The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-18
VITAL CORPORATION
CASE IS DECIDED
Interstate Concern Need Not
Pay Charter Fee for Benefit
of State Schools.
WESTERN UNION SUIT
FINALLY SETTLES POINT
Decision by Highest Court of
Land; Three Dissenting
Opinions.

WASHINGTON, Jan. 1.-THE Bush
act" OF the state of Kansas, which
sought to compel outside corporations to
pay charter fee for the benefit OF state
schools as a condition OF doing business
In that state, is held invalid by the su-
preme court of the United States in
divided decision announced today.
The controlling opinion is by Justice
Harlan with a concurrlng opinion by
Justice White; but three Justices dissent.
The case was that of the Western
Union Telegraph company VS., the state
of Kansas. The Western Union has
fought the law on the grounds OF ac
CURED rights and that the law was un-
constitutional as seeking TO impose a
burden upon interstate commerce.
Opinion Of Harlan.
Interpreting his opinion. Justice Harlan
said that IL was held "that the statutory
requirement OF given per cent OF the
authorized capital of a telegraph COM
pany. which represented all It's business
interests and property inside and out OF
a burden on Interstate commerce and a
Kansas"
The opinion closed as follows.
1T results that a decree OF custer.
such as the state asks, could not be
granted without recognizing the validity
OF and giving effect to The unconstitu-
tional requirement that the telegraph
company as condition of It's being al
lowed TO do intrastate business in Kan
sas, should pay into tho state school
fund given per cent OF its entire cap
ital in the form Of a fee based on all It's
property. business and interests every
where. including both Its Interstate and
intrastatc business and property Such
a decree is asked on the ground that the
company has refused 10 pay such fec.
Duty of State Court.
The state court ought 10 have refused
the Affirmative relief asked and dis
missed the petition upon the ground that
the condition sought TO be enforced by
decree Of custer was in violation OF the
commerce and due process clauses OF
the constitution and OF the company S
rights under that instrument The right
OF the telegraph company TO continue the
transaction OF local business In Kansas
could not be made to depend upon Its
submission 10 a condition prescribed by
that state, which was hostile both 10 the
letter and spirit Of the constitution,
THE company was not bound under
any circumstances, TO surrender It's con-
stitutional exemption from state taxa
ton. direct or Indirect. in respect OF its
Interstate business and It's property out
side of the state. any more than II would
have been bound 10 surrender any other
right secured by the constitution"
Dissenting View.
In the dissenting opinion, Justice
Holmes declared that the state had not
undertaken to tax the Western Union,
but simply had fixed the condition on
which the company could transact state
business within the state.
"The whole matter is left In the West
crn Unions hands" he said, ''lf the
license fee is more than the local bust
ness can bear, II can stop that business
and avoid the fee"
Justice White concurrcd IN the find
ing OF the majority. but for different rea-
sons. and read an opinion outlining his
views.