New-York tribune., 1906-04-03
RAILROADS LOSE SUIT.
MICHIGAN LAW UPHELD.
Justice Brescer Intimates Congress
Cannot Delegate Legislative Po7Oer.

Washington. April 1.-THE Supreme Court of
the United States to-day decided the Michigan
Railroad tax cases. involving the taxes of all
the railroads in that state for several years
past against the railroads. The opinion was by
Justice Brewer.
There were twenty-seven of these cases, ali
involving the validity of Act No 173 of the
Michigan Legislature of 1901. passed under au-
thority given by an amendment to the state con-
stitution adopted in 1900 This law changed the
method of taxing railroad and kindred corpora
tions from the old system of exacting the pay
ment of certain percentage of their gross earn
ings to ad valorem system. providing for the
fixing of the value of the railroads for taxation
on the average value at which other property in
the state is assessed The levied against the
various railroads OF the state for 1902. the first
year after the law went into effect. aggre-
gated S744. .S9S, as against S263. .446 which would
have been called for under the old system The
railroad companies rendered the latter and
resisted the payment of the difference amounting
to S4S1 .451. Each year since the companies
have refused to pay the difference that the
suits involved accumulation of about $1,000
600 in taxes. well the establishment of
tax system for the state permanently fixing
their annual payments at about three times
much as they have been in the past. The rail-
road companies contended that In arriving at a
decision to the valuation of their property
the State Board Of Assessors undervalued other
property in the state and thus Disseminated
against the railroads. Hence they alleged that
the action was in contravention of the Fourteenth
Amendment to the federal Constitution. The
Circuit Court dismissed the bill of the railroad
companies, thus sustaining the action of the
tax authorities and upholding the law under
which It was taken. and it's decision af-
irmed.
Justice Brewer accepted as final the decision of
the Michigan court to the validity of the tax
law under the state constitution. Remarking
the contention of the railroad companies that the
fixing of the rate of taxation by the state author
tiles as authorized by the state law is lesis-
lative function, Justice Brewer touched
point now receiving much attention from Con-
gress. He said
There might be a question whether even if
there were clear delegation of legislative func
tions to other departments of the government, it
would be void under the federal Constitution.
In the nation no one of the three great depart
ments assume or be given the functions of
another. for the Constitution distinctly grants to
the President, Congress and the judiciary sepa-
ratey the executive, legislative and judicial
powers of the nation. 1t may, therefore. be con-
ceded that an attempted delegation by Congress
to the President or any ministerial officer or
board of power to fix a rate of taxation exer-
else other legislative function would be judged
unconstitutional But does it follow that state
is subject TO the same restraint? Crimes against
the nation must be prosecuted by indictment. yet
a state may proceed by information. Suppose
state by its constitution grants legislative func-
tons to the executive to the judiciary. what
provision of the federal Constitution will nuIlify
the action? VIII the. grant work an abandon
ment of a republican form of government, be
a denial of due process or equal protection?
Coming to the case at issue. he said the point
was not involved, because there was no abandon
ment by the Legislature of its functions He
added:
The state prescrbes as the rate of taxation
upon railroad property the average rate of taxa
ton all other property subject to ad valorem
taxes. 1t provides the most direct way for ascer-
tanning such average rate. deducing ii from
| consideration of all the other rates. No author
ity is given to the local assessors to apply their
Judgment to the question of the railroad rate.
Their authority in respect to the matter of tax
alton is precisely the same as it was before and
independently of this statute. Why is II
necessary that the legislature be convened to
add it's formal approval of the integrity of the
action Of the local officers? May il not ntruSt
the mathematical computation to the State
Board of Assessors. and, if so, may it not like
wise act upon the assumption that the local as
SCISSORS will discharge their duties with an eye
single to these duties and irrespective of the ef-
feet upon the railroad rates? II may he laid
down as a general proposition that where a
legislature enacts specific rule for fixing a rate
of taxation, by which rule the is mathe-
matically deduced from facts. and even this oc-
curing within the year and created without ref
erence to the matter of that rate, there is no
abdicatiOn of the legislative function but on the
contrary a direct legislative determination of
the rats Unless there be specific pro-
visions In the state constitution compelling other
action the state may treat it's entire territory
as composing only single taxing district and
deal with all property as within the district and
subject to taxation accordingly. The state is
traversed in almost every direction by railroads
To hold that for each railroad the average rate
must be determined from the property i'm the To-
caltties Immediately contiguous or through which
its road passes might well introduce into the
matter or taxation confusion and inequality
resulting in far greater injustice than the uni
formty established by the present system
STRIKING TENANTS IN COURT