Hugo Black

“ If New Jersey had set a minimum tax in dollars which exceeded the tax on appellant here, we could not say that the tax was an unreasonable charge for the advantages accorded appellant by the state. That the minimum tax actually enacted varies fairly with net worth, and that appellant happens to own United States bonds, should not require us to strike down this tax as unconstitutional. And there was certainly no purpose to put a heavier tax burden on appellant merely because it owned tax-exempt bonds. ”

“ I agree that New Jersey cannot tax United States bonds made tax-exempt by Congress. This Court has consistently held, however, that such bonds need not be excluded from computation of a justifiable state tax imposed on corporations created by or doing business within the state. A short time ago we said that 'The power of a state to levy a tax on a legitimate subject, such as a franchise, measured by net assets or net income including tax-exempt federal instrumentalities or their income is likewise well settled.' Tradesmens Nat. ”

“ For an instance in which a state court has expressly refused to do either, see State ex rel. Missouri Ins. Co. v. Gehner, 281 U.S. 313, 319, 50 S.Ct. 326, 327, 74 L.Ed. 870. Furthermore, such an interpretation would have absurd consequences. ”