The Montgomery advertiser., 1907-11-19
RAILROADS GET DECISION Supreme Court of Georgia Reversed. COLLECTION OF BACK TAXES Western Railway of Alabama h. volved in Opinion. The Supreme Court of the United states Through Justice Day Renders
 Two Important
 

Washington, Nov. 18-The case of the Georgia Railroad Company against the tax authorities of Georgia and of Ful- ton County, in that State. involving the right of the State to collect back taxes on the stock of the Western Railway Of Alabama, foreign corporation, was decided today by the Supreme Court of the United States against the State.
 The taxes which 1t Is sought to cols lect run back to 1895, and the cofu- pany alleged not only that they were excessive, but that they were dia- criminative. because no such proceed ing had been undertaken against any other railroad. the legal contention be- ing that this was & denial of equal pre- lection under the law. The opinion was by Justice Day.
 Justice Day also delivered the opin- ion of the court ir the case of the Gen. tFal of Georgia Railway Company vs. William A. Wright. comptroller general of Georgia, and John W. Helms, sher- if of Fulton County. Georgia, in favor of the company, thus reversing in both cases the decisions of the Supreme Court of Georgia.
 Tn the second suit the railroad conn pany sought to evade responsibility for taxes on stock of the Western Hafl~ way of Alabama. The controversy was further complicated by the circuna- stances that the stock Is in the possez- sion of the Mercantile Trust Company of New York. by which 1t is held to secure the payment of $5,00O.o00 ok bonds, but the Georgia court held that "as the substantial and beneficial own ership of the stock is in Georgia. 1t ak liabl etc taxation in that State"
 Justice Days decision reversing the Georgia Court was based upon the de- nfaI to the railroad company of the right to be heard. which, he says, dee nies due process of law as required by the constitution of the United States. The case was therefore res manded to the State Court for further proceedings in accordance with today's decision.
 In his opinion Justice Day dealt en% tireiy with the Georgia process which dAnieH to a tax payer opportunity tn Dc. heard in any proceeding 70 collect taxes in cases fn which he has tmilNd Co 1uNA tax return of such propsrty because of an honest belief that it Is not faxav bic, and he concluded that the Georgia State law as construed by the Suprene Court of that State. amounts to denial of due process of law.
 Under the scheme provided for. if the property Is withheld from return, he said, "the Comptroller without mo- tice or opportunity for hearing must proceed to value the property and his valuation is final and conclusive unless the taxpayer can show very unlikely contingency. that the taxing ofiicer has acted in bad faith in making the as- sessment. Against the assessment thus made there Is no relief in she courts of the State upon proceedings brought to collect the taxes or by bill to en1oEn their collection. The penalty of faaf- ure to return, no matter how honest or we'll grounded the taxpayer may have been in his belief that the property was not subject to taxation. compels him to submit to the final and conclusive as- sessment made by the taxing oficer.s
 He then added.
 Reluctant as we are to interfere with the enforcement of the tax laws of State, we are constrained to the conclusion that this system does not provide for that due process of law which adJudges. upon notice and oppor- tunity to be heard. which it was the intention of the fourteenth amendment to protect against impairment by State action.