Harlan F. Stone

“ Although it directs that the tax be ascertained by assigning a specific value to the nonpar stock, and applying to it the rate applicable to par value stock, the resultant inequalities do not differ from those complained of in that case where the tax was computed at a flat rate on nonpar stock, used in the state, without assigning to it any value.
The assignment to the shares of a value in excess of their present worth or of the present value of the assets within the state does not operate to tax property or business without the state. The tax is a privilege and not a property tax. ”

“ Other objections to the tax require but brief comment. The mere fact that a corporation is engaged in interstate commerce does not relieve it of local tax burdens in respect of its property within the state or its intrastate business. ”

“ It is said that, as section 12 operates, by reference to the Franchise Tax Law, to change the tax on corporations having nonpar stock, it is in effect a taxing act, and hence its title does not clearly express the subject of the legislation. But its subject was the method of ascertaining the value of nonpar shares for taxation and other statutory purposes, a subject-matter clearly embraced in the title which described the legislation as 'regulating' corporations having nonpar stock and as 'prescribing the method of determining * * * the capital of corporations' issuing such shares. ”