Stephen Johnson Field

“ They differ from property taxes, as levied for state and municipal purposes in the basis prescribed for computing the amount, in the manner of assessment, and in the mode of collection.' And again: 'Comparative valuation, in assessing property taxes, is the basis of computation in ascertaining the amount to be contributed by an individual; but the amount of a franchise tax depends upon the business transacted by the corporation, and the extent to which they have exercised the privileges granted in their charter.' Pages 631, 632. ”

“ But the court said: 'Reference is evidently made to the total amount of deposits on the day named, not as the subject-matter for assessment, but as the basis for computing the tax required to be paid by the corporation defendants. They enjoy important privileges, and it is just that they should contribute to the public burdens. Views of the defendants are that the sum required to be paid to the treasury of the state is a tax on the assets of the institution, but there is not a word in the provision which gives any satisfactory support to that proposition. ”

“ And, when such legislation applies to artificial bodies, it is not open to objection if all such bodies are treated alike, under similar circumstances and conditions in respect to the privileges conferred upon them, and the liabilities to which they are subjected. Under the statute of New York, all corporations, joint-stock companies, and associations of the same kind are subjected to the same tax. There is the same rule, applicable to all under the same conditions, in determining the rate of taxation. There is no discrimination in favor of one against another of the same class. ”

“ It is a right or privilege by which several individuals may unite themselves under a common name, and act as a single person, with a succession of members, without dissolution or suspension of business, and with a limited individual liability. ”

“ Nor is the objection tenable that the statute, in imposing such tax, conflicts with the last clause of the first section of the fourteenth amendment of the constitution of the United States, declaring that no state shall deprive any person within its jurisdiction of the equal protection of the laws. It is conceded that corporations are 'persons,' within the meaning of this amendment. ”

“ The validity of the tax can in no way be dependent upon the mode which the state may deem fit to adoptin fixing the amount for any year which it will exact for the franchise. No constitutional objection lies in the way of a legislative body prescribing any mode of measurement to determine the amount it will charge for the privileges it bestow. ”

“ Massachusetts, 6 Wall. 632, a statute of Massachusetts which required corporations having a capital stock divided into shares to pay a tax of a certain percentage upon the excess of the market value of such stock over the value of its real estate and machinery was sustained as a statute imposing a franchise tax, notwithstanding a portion of the property which went to make the excess of the market value consisted of securities of the United States ”