The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-03-18
CAN'T COLLECT
TELEGRAPH TAX
Called Unconstitutional
and Void
THE FINAL DECREE
Judge C. H. Simonion Declares that
North Carolina License Tax of
twenty-five Cents Mile on
Telegraph Wire Violates
Interstate Com
merce.

A final decree in the case of the West
ern Union Telegraph Company VS.. R. p.
Lacy. State Treasurer, was yesterday filed
in the Federal Court here by Judge Chas.
II. Simonton.
A few days ago Judge SimontOn issued
Il temporary injunction against the State
Treasurer forbidding him from collecting
the license tax OF % cents a mile on the
wire of the Western Union Telegraph
Company in this State The final decree
entered yesterday declares the assess
ment of the said license is unlawful and
void,' and is license or privilege tax
attempted to be imposed upon the bust
ness of interstate commerce, and is uncon-
stitutional and void
The decree in full is as follows:
THE DECREE FILED.
I'm the Circuit Court of the United States
for the Eastern District of North Caro-
lima, at Raleigh-Fourth Circuit, in
equity.
Western Union Telegraph Company, COM
plainant, VS.. B. R. Lacy. Treasurer of
the State OF North Carolina. Franklin
Mcneil Samuel l.. Rogers ard Eugene
C. Beddingield members OF the North
Carolina Corporation Commission defen-
dams.
This cause came on to be heard on
February 81. 1904, before His Honor
Charles H. Simonton. United States Cir
cult judge, sitting in equity at Charleston.
of no x \ AT
Raleigh, n. c.. upon the bill and oral
demurrer together with the stipulation
filed in the pleadings, and was argued by
counsel for the complainant and for the
defendant; and thereupon consideration
thereof it was ordered adiudged and de-
creed as follows:
THAT the complainant, citizen of
New York. is telegraph company carry
ing on the business of Geographic COM
munication in the State of North Caro-
lima and other States OF the United States,
and that all its lines in the State of North
Carolina are used by the complainant in
interstate commerce by their connection
with Others telegraph lines of the COM
plainant, and that in that State it does a
large business, interstate and infra-state,
the former dominating the latter.
THAT the said complainant, under the
regulations prescribed in section 40 of the
public laws of North Caeolna, 1908, chap
ter 251, is assessed and chargeable In the
State of North Carolina with an ad valo-
rem tax upon the entire value, not only
of its real and personal property, in the
State. but also with the value of the
franchises and capital stock of complain
ant, determined by the amount of the
mileage of its wires in North Carolina
ho mill IF
complainant.
THAT by section so of public laws 1908,
il is provided that every telegraph COM
pany doing business in North Carolina
shall Day an annual license tax of an
amount equal to % cents on each mile of
wire that such company operates within
the State of North Carolina.
THAT the defendant. B. r. Lacy, has
demanded that the complainant shall pay
to him for the State, under the provisions
of this section. as license tax. the sum
Of four thousand three hundred and seven
ty-seven ($4377) dollars. which is an
amount equal to % cents on each mile of
wire which the complainant operates in
the State OF North Carolina; and it is the
purpose of the said defendant, in case the
complainant shall fail to pay the license
tax aforesaid to impose a penalty of one
thousand ($1,000) dollars as authorized
by said section, and to designate some
sheriff In the State of North Carolina to
call the said tax and penalty by distress.
Upon the foregoing facts the court
doth adiudge that the license tax attempt
cd TO be imposed upon the authority Of
section. 80, is a general license tax, as a
condition precedent to doing business in
this State, which business consists chief
" of interstate transmission of MESA ges
by telegraph, and that such taxation is
in addition to the taxation of the proper
ty of the complainant under the constitu-
ton and laws regulating ordinary proper
ty taxation in North Carolina, ard is a
license or privilege tax attempted to be
imposed upon the business of interstate
commerce, and is unconstitutional and
void
''Thereupcn it is ordered. that the de-
fcndant, 3. R. Lacy. treasurer of the
State of North Carolina. he restrained