The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1913-01-27
N. k. 8 I. WINS
BIG LAW SUIT

OF the 81. -. a. - t1hAVo1 aA1s.-7N
state Auditor Leo Meyer, was decided
by Judge j. ii. Cotteral In a lengthy
opinion. The suit was brought by the
railway company 10 obtain a decree
enioining the state auditor from en-
forcing the collection Of gross revenue
taxes imposed upon receipts derived
from its railway operations under the
laws OF the state found In sections z
and 8. Of the act Of May rs, 1908 tSes.
Laws 1908, pp. $40 and e4l, forming
sections 7702 and 770S OF Snyder 5
Com Laws. 1909: and upon coal
mined ard produced by the company
n the state. under section s OF same
act ard under that section as amend
N by act OF March 27. 1903, forming
section 770s OF Snyder's compiled laws
The grounds OF complaint mainly
urged against these taxes are ell' tnat
the acts do not apply 10 coal produced
by the railway as 1t does not sell out
uses the coal; (2l. that the acts are
yiolatlve OF section 81, article 5, and
section 10, article 10, Of the state con
stltution; tS), that the tax Is void as
q burden upon interstate commerce;
and (4), that IT is void because inn
posed upon rights and privileges con
ferred by the federal government.
u)-The court held that while the
tan purports to be laid upon per-
centum from the total production or
coal. yet the tax is payable BY all per
anna engaged In mining or producing
coal. and not in selling IT, and the law
authorizes the computation Of the tax
On the amount and value OF the pro-
ductIons, the intent as taken from tne
several provisions being the obtaining
OF revenues from al productions re-
gardless OF use.
(2)--The court cited Binton VS.. OK
lahoma Gas and Electric company, 70
okla, 356, ia Pac. 1886, as showing
that the state supreme court has held
mat both Of tho acts Of 1903 and 1908
herein involved were In accord Win
section 81 Of article Of the state con.
stitution, and by uniform authority
the construction Of the constitution q
4 state BY the supreme court Thereon
Il controlling in this court. The court
held that as the state supreme court
had held that section -, article ~ o.
he constitution OF the state 'is IN
tended to apply only TO annually re-
eurrIng taxes imposed generally upon
the entire property of the state and
not the kind denominated as spe'
clal tax. and that the tax under con
alteration Ii dependent upon the ais
eoyery and production Of mineral IN
uarticular localities, therefore the
above section OF the constitution can
III Id held to detract from the valid
ity Of the acts imposing Il.
ts)-The contention that this tax
constitutes burden on interstate com
merce thus validating It cannot be sus
tained. the court held. The tav does
aof purport to be charged upon trans
portation or the receipts therefron
and does not Interfere Herewith
Penn. K. II. co. is. Knight, 1872 Y. ;.
ii: Williams VS.. the City Of Talladega
decided December 23, 1912; Thomas
IS. Gay. 1Ga, L. s., 264.l
fl--rhe objection that the tax y
improperly laid upon rights and PRIV
ileges conferred by the federal govern
ment IS based on its effect upon grants
Of congress to construct and operate
railway lines, and upon certain leases
for obtaining coal from the lands ol
Indian tribes. The state has the
powar ts impose tax upon railway
property or business within the state
provided such imposition does not
terminate any OF the provisions be'
tween tue la1iAu9 aAiN AiN
eminent as 70 governmental conces-
sion on transportation etc. Hut TINS
tax is not laid upon transportation
service in any way "But this tax has
closer relation to the rights con
ferred by the leases Of these coal
mines concededly a federal agency de-
signed and pnt in execution ny the
government in pursuance Of It's con
gtitutional power TO deal with indian
tribes. The states power Of taxation
il broad and complete and extends 70
all classes OF property and occupation
and would not be open TO oplee1ioh
because exerted upon this coal as prop
erty or the right to mine II, unless
Il would thereby hinder or defeat the
means employed by the government
IN carrying out its policy towards the
indians. In which case It would yield
validity in favor Of the superior pow
ri" uT. S. vs.. Rickert. 1888 Y, y. 4SS;
Ii S. Va. Thurston County l4S Fed