The National tribune., 1906-04-12

THE mIShlGAN TAX CASES.
The unanimous decision OF the Su-
preme Court sustaining the legality Of
the law of Michigan imposing addi-
tional taxation upon railroads has an
Importance in itself. aside from its in
dication of the possible attitude Of the
Court upon the Hepburn bill.
There were 81 cases in all, involving
| the validity of an act of the Michigan
Legislature Of 1901. by which the old
method of taxing railroad and other
corporations, which required them to
pay certain percentage of their gross
earnings. was changed to an ad valorem
system, upon which the assessment Of
the railroads for taxation was made
upon an average value like that of 9TH
err property. The effect of this was to
raise the gross sum received from the
railroads of the State from $263,446.
which had been previously paid. to
$744.S9S in 1902 and every year since.
The railroad companies rendered what
they had been previously paying. and
refused to pay the additional $4S1.451.
They have done SO each year, until
there is standing against them about
100000 Of unpaid taxes.
The railroad companies commended
that the State Board Of Assessors un-
dervalucd other property in the State
and Disseminated against the railroads.
This they alleged was in violation of
that part of Section 1 of Article XIV
Of the Constitution. which says, nor
shall any State deprive any person of
life. liberty or property without due
process of law, nor deny any person
ton of the laws"
They asserted that not only were
their taxes made higher than those of
other property. but that the State Board
of Assessors were given legislative pow
er in making the assessments by a
mathematical computation" They also
affirmed that the tax was illegal be-
cause it reached property outside of
the State. and was therefore i'm contra
vention of the Congressional power
over Interstate Commerce.
The Supreme Court of Michigan held
the law to be valid. and it was finally
carried to the Supreme Court of the
United States. Justice Brewer delivered
the unanimous opinion of the Court.
and said that the scope and limits of
National interference were we'll settled.
The Government could have no SUPER
vision over State taxation, since the
State was sovereign in that matter. and
IN ho N fri
OF constitutional rights before the Su-
preme Court would take cognizance.
Inequality of taxation was not sufficient
cause, and it was not shown that the
method Of mathematical computation
conferred legislative powers upon the
State Board OF Assessors. Justice Brew
er went on to lay down the general
principle that the lines between the
Legislative, Judicial and Executive De-
partments Of the Government must be
strongly demarked and maintained.
This is what arouses general attention.
since 1T Is an indication OF the Supreme
Courts attitude; toward the proposed
enlargement of the functions Of the
Interstate Commerce bill. 1t is claimed
that the Hepburn bill gives the Inter-
state Commerce Commission 1egisla-
tive. judicial and ministerial functions,
since Congress does not make fixed
rates and direct the Commission to
execute them.
The conservative Republicans. led by
Senators Foraker and Aldrich, regard
the decision as strongly intrenching
them In their position. and have re-
quested Senator Knox to make a study
OF the decision and furnish them with
his views. The friends OF the bill. led
by Senators Doiiiver and Nelson. con-
tend that the decision is not applicable
to the Hepburn bill. and therefore gives
no assertion inimical to IL.