The Birmingham age-herald., 1907-11-19
CASE DECIDED
 AGAINST STATE Georgia Railroad Wins Suit ts
 Collect Taxes COMPLICATIONS ARE MANY Justice Day of the Supreme Court Gives the Decision Reversing Geor- ga Supreme Court In
 This Case.
COMPLICATIONS ARE MANY

Washington, November 1S.-The case Of the Georgia Railroad company against the tax authorities of Georgia and Fulton county, in that state involving the right of the state to collect back taxes on the stock of the Western Railway of Ala bama, a foreign corporation, was decided today by the supreme court of the United States against the state. The taxes which it is sought to collect run back to 1S90 and the company alleged not only that they were excessive, but they were dis criminative because no such proceeding had been undertaken against any other railroad, the legal contention being that this was a denial of equal protection under the law. The opinion was by Jus tce Day.
 Justice Day also delivered the opinion of the court in the case of the Central of Georgia Railroad company vs. William A. Wright, comptroller general of Geor- gia, and John w. Nelms, sheriff of Full ton county Georgia, in favor of the com pany, thus reversing in both cases the decision of the supreme court of Geor- gia.
 In the second suit the railroad company sought to evade responsibility for taxes on stock of the Western Railroad of Ala bama. The controversy was further com- plicated by the circumstances that the stock is in the possession of the Mercan- tile Trust company of New York, by which it is held to secure the payment of $5OOO.000 worth of bonds, but the Georgia court held that "as the substantial and beneficial ownership of the stock is in Georgia, it is liable to taxation in that state"
 Justice Days decision reversing the Georgia court was based upon denial to the railroad company of the right to be heard, which he says denies due process of law as required by the constitution of the United States. The case was there- fore remanded to the state court for fur ther proceeding in accordance with to- days decision.
 In his opinion Justice Day dealt en- tirely with the Georgia process which denies to a tax payer opportunity to be heard in any proceeding to collect taxes in cases in which he has failed lO Ildhe u tdA or SuCn Suplpy because of an honest belief that it is not taxable and he concluded that the Georgia state law as construed by the supreme court of that state amounts to a denial of due process of law.
 Under the scheme provided for if the property is withheld from return" he said, the comptroller with out notice or hearing. must proceed to value the property, and his valuation is final and conclusive, unless the tax payer can show q very unlikely contingency, that the taxing officer has acted in bad faith in making the assessment Against the assessment thus made there is no relief in the courts of the state upon proceedings brought to col lect the taxes or by bill to enjoin their collection. The penalty of fail ure to return, no matter how honest, or well grounded the tax payer may have been in his belief that the property was not subject to taxation, compels him to submit to the final and con officer"
 He added:
 "Reluctant as we are to interference in the enforcement of the tax laws of a state we are constrained to the con- clusion that this system does not pro- vide for that due process of law which adiudges upon notice and opportunity to be heard, which was intended for additional protection against impair ment by state action"