The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-09-11

uas Section of the Act provides for of
individuals and above dollars Section pro
vlde Tor tax upon the net income of corporations without
authorizing deduction of thousand dollars This raises the
question whether legislature classify objects for the
purposes of taxation and whether has done properly
this instance.
The Constitution of United States contains provision
that in terms limits the power of Territorial Legislatures
tiers OF taxation Hence it eontended that the limitations
of them placed by that upon Federal
State governments apply to the Territories.
As to the limitations upon Federal governments the ag
ment is that the creature, the Territory, do what the
creator Congress- do The power Congress
gwen IN the Constitution with only exception and only
qualifications Fdrbank United Suites, Sup CT Rep
64S 653 The exception is that exports This
OF course has no application to the present One quaea
ton is that direct except by the rule ap
lonment This, Also have SEEN has application
this The other qualification is that indirect
except by the rule of uniformity Such taxes must be
uniform throughout the United States 1t equally
that this clause also has application imposed by
Territorial legislatures If Territorial legislature could
impose any direct tax unless apporoned among
States and could not any indirect unless made
uniform throughout the United States could not impose any
tax at all We may add that the uniformity required by this
clause of the Constitution is only geographical uniformity
and that it does prohibit classification purposes
alton Knooon Moore ITS e. S. Al in which an Act of
Congress which provided for inheritance held
utiona though all Under $4,000 exempt
amounts above that divided into five classes according
the of relationship of
decdent and each of these FIVE classes subdyded
other classes according the received the being
graduated increasing with the Of the relationship
and the amount received. 1faa
The constitutional prohibitions against the laying of duties
and and duties of tonnage by the States of
do not apply this But it is conended that the
provision of the 18th Amendment that No State shall
deprive any person of fe liberty property, with
due process of law deny person within its ju
dcion the equal protection of the laws is applicable This
applies corporations we'll natural persons
Cerngon, de- Turnpike Co Sanford 1874 O. s. SIS, 5s2
Whether applies Territories well States proper
need not say 1t would apply the States only IF
applies to the Territories still it does not prevent classification
for the purpose of taxation CargW Co. Minnesota $50
e. s. 1852 In that case the State of Minnesota imposed
cense fee receivng shipping storing handling grain at
elevators along railways, terminal 1t did
elevators at terminal points railways elevators
along railways and made distinction between those
which the grain of the only handled and these in
which the of others handled The held under
the circumstances only that might be classification
notwithstanding the 4h Amendment but that the classified
ton that instance should be sustained 1t said per Mr. Jus
tce Harlan Cat page 1852 e4e4
Assuming that the defendant entitled, upon this record
invoke the benefit of the clause of the Fourteenth Amend
ment forbiddng State from denying any person within its
jurisdiction the equal protection of the laws adudge that
the applies all of the class defined section
1t invalid by of its non-appcation who
operate elevators situate the right of way
railroad The railroad, this said public
highway established primarily for the convenience of the public
andsubect always to right acquired by the railroad
pany under nviolabe with the State-the
spch highway be regulated promote the public
provided such regulation be arbitrary
character and does materially interfere with
by the railroad company its property The right
closely connected with the operations the railroad
that It's be regulated by the State promote the
ends for which the corporation created
the interests OF the general public without interfering
sonab with the company management of its property lie
the Judgment of the State the public
beneficial to the public that elevators and warehouses
of the kinds described should be operated only under license
and under such regulations may be ghuly prescribed
would be going far hold that such
so unreasonable Justify adudgng that the require
ment of license void denying the equal of
the laws No such Judgment could be properly rendered unless
the
elements that inherent the distinction implied in classi
hcaon We cannot perceive that the requirement of license
not based reasonable difference
bears relation the classification made statute
Gull, COL d Santa Fe Ry. Ellis 165 q. S. 150 1855 It
worthy of observation in this that neither
alleged proved that there IN the State elevators
warehouses that situated the right of of
railroad company"
In Giozaa Tierman las s. 657 court per