Charles Evans Hughes

“ We take it to be simply a tax on the privilege of being a corporation,-on the primary corporate franchise granted by the state. The authority of the state to tax this privilege, or franchise, has always been recognized, and it is well settled that a tax of this sort is not necessarily rendered invalid because it is measured by capital stock which in part may represent property not subject to the state's taxing power. ”

“ And, further, in determining whether a tax has such a direct relation to interstate commerce as to be an exercise of power prohibited by the commerce clause, our decision must regard the substance of the exaction, its operation and effect as enforced,-and cannot depend upon the manner in which the taxing scheme has been characterized. ”

“ Rep. 638, the tax upon the railroad company was 'equal to 1 per centum of its gross receipts.' The court held that this was 'merely an effort to reach the gross receipts, not even disguised by the name of an occupation tax, and in no way helped by the words 'equal to. ”