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of common carriers rests has enabled the state to regulate in the public interest the charges of telephone and telegraph companies, and to make the telephone and telegraph, those important agencies of commerce, subservient to the wants and necessities of society. These regulations in no way interfere with a rational liberty-liberty regulated by law.

The business of elevating grain is an incident to the business of transportation. The elevators are indispensable instrumentalities in the business of the common carrier. It is scarcely too much to say that, in a broad sense, the elevators perform the work of carriers. They are located upon or adjacent to the waters of the state, and transfer from the lake vessels to the canal boats, or from the canal boats to the ocean vessels, the cargoes of grain, and thereby perform an essential service in transportation. It is by means of the elevators that transportation of grain by water from the upper lakes to the seaboard is rendered possible. It needs no argument to show that the business of elevating grain has a vital relation to commerce in one of its most important aspects."

Prohibition against charge for gas meter.- Section 69 of the Transportation Corporations Law (Laws of 1890, ch. 566), which provides that "no gas light corporation in this State shall charge or collect rent on its gas meters, either in a direct or indirect manner," is constitutional. Buffalo v. Buffalo Gas Co., (1903) 81 App. Div. 505, 80 N. Y. S. 1093.

III. TAXATION.

1. In General.

Origin of taxing-power." The right to tax is not granted by the constitution but of necessity underlies it, because the government could not exist or perform its functions without it. While it may be regulated and limited by the fundamental law, it exists 'independently of it as a necessary attribute of sovereignty."" People v. Reardon, (1906) 184 N. Y. 431, 77 N. E. 970, 112 A. S. R. 628, 6 Ann. Cas. 515, 1 L. R. A. (N. S.) 161, affirming 110 App. Div. 821, 97 N. Y. S. 535, affirmed 204 U. S. 152, 27 S. Ct. 188, 51 U S. (L. ed.) 415, 9 Ann. Cas. 736. To the same effect, People v. Pitt, (1902) 169 N. Y. 521, 62 N. E. 662, 58 L. R. A. 372, affirming 64 App. Div. 316, 72 N. Y. S. 191; People v. Adirondack R. Co., (1899) 160 N. Y. 225, 54 N. E. 689, reversing 39 App. Div. 34, 56 N. Y. S. 869, affirmed 176 U. S. 335, 20 S. Ct. 460, 44 U. S. (L. ed.) 492; Cayuga County v. State, (1897) 153 N. Y. 279, 47 N. E. 288; Bertholf v. O'Reilly, (1878) 74 N. Y. 509, 30 Am. Rep. 323, affirming 8 Hun 16; In re Van Antwerp, (1874) 56 N. Y. 261, affirming 1 Thomp. & C. 423; People v. Roper, (1866) 35 N. Y. 629; Gautier v. Ditmar, (1911) 144 App. Div. 721, 129 N. Y. S. 834.

Principle underlying taxation." There can be no doubt of the correctness of the general proposition, that the principle upon which taxation is founded is that the tax-payer is supposed to receive just compensation in the benefits conferred by government, and in the proper application of the tax; and that in the exercise of the taxing power the legislature ought, as nearly as prac ticable, to apportion the tax according to the benefit which each tax-payer is supposed to receive from the object upon which the tax is expended.” People v. Ronner, (1906) 185 N. Y. 285, 77 N. E. 1061, affirming 110 App. Div. 816, 97 N. Y. S. 550; Gordon v. Cornes, (1872) 47 N. Y. 608. To the same effect, In re Tuthill, (1900) 163 N. Y. 133, 57 N. E. 303, 79 A. S. R. 574, 49 L. R. A. 781, affirming 36 App. Div. 492, 55 N. Y. S. 657; Stuart v. Palmer, (1878) 74 N. Y. 183, 30 Am. Rep. 289, affirming 10 Hun 23; Darlington v. New York, (1865) 31 N. Y. 164, 88 Am. Dec. 248, affirming 2 Robt. 274; People v. Brooklyn, (1851) 4 N. Y. 419, 55 Am. Dec. 266. See also Wynehamer v. People, (1856) 13 N. Y. 378, affirming 20 Barb. 567, reversing 20 Barb. 168; Gubner v. McClellan, (1909) 130 App. Div. 716, 115 N. Y. S. 755.

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Power of taxation generally.— The authority of the legislaturc over the subject of taxation for public purposes is of the broadest scope. In fact, except as restricted by the Constitution, it is practically unbounded. The amount which is to be raised and the subjects to be taxed are matters entirely within the legislative discretion. Gautier v. Ditmar, (1912) 204 N. Y. 20, 97 N. E. 464, Ann. Cas. 1913C 960, affirming 144 App. Div. 721, 129 N. Y. S. 834; People v. Ronner, (1906) 185 N. Y. 285, 77 N. E. 1061, affirming 110 App. Div. 816, 97 N. Y. S. 550; People v. Reardon, (1906) 184 N. Y. 431, 77 N. E. 970, 112 A. S. R. 628, 6 Ann. Cas. 515, 1 L. R. A. (N. S.) 161, affirming 110 App. Div. 821, 97 N. Y. S. 535, affirmed 204 U. S. 152, 27 S. Ct. 188, 51 U. S. (L. ed.) 415, 9 Ann. Cas. 736; Woodruff v. Oswego Starch Factory, (1903) 177 N. Y. 23, 68 N. E. 994, affirming 70 App. Div. 481, 74 N. Y. S. 961; People v. State Board of Tax Com'rs, (1903) 174 N. Y. 417, 67 N. E. 69, 105 A. S. R. 674, 63 L. R. A. 884, affirmed 199 U. S. 1, 25 S. Ct. 705, 50 U. S. (L. ed.) 65, 4 Ann. Cas. 381, and reversing 79 App. Div. 183, 80 N. Y. S. 85; In re Pell, (1902) 171 N. Y. 48, 63 N. E. 789, 89 A. S. R. 791, 57 L. R. A. 540, reversing 60 App. Div. 286, 70 N. Y. S. 196; People v. Pitt, (1902) 169 N. Y. 521, 62 N. E. 662, 58 L. R. A. 372, affirming 64 App. Div. 316, 72 N. Y. S. 191; In re Tuthill, (1900) 163 N. Y. 133, 57 N. E. 303, 79 A. S. R. 574, 49 L. R. A. 781, affirming 36 App. Div. 492, 55 N. Y. S. 657; Cayuga County v. State, (1897) 153 N. Y. 279, 47 N. E. 288; People v. Fitch, (1895) 148 N. Y. 71, 42 N. E. 520, modifying 89 Hun 310, 35 N. Y. S. 193; State v. Kings County, (1891) 125 N. Y. 312, 26 N. E. 272; In re Sherwell, (1891) 125 N. Y. 376, 26 N. E. 464; In re McPherson, (1887) 104 N. Y. 306, 10 N. E. 685, 58 Am. Rep. 502; Spencer v. Merchant, (1885) 100 N. Y. 585, 3 N. E. 682, affirmed 125 U. S. 345, 8 S. Ct. 921, 31 U. S. (L. ed.) 763; Genet v. Brooklyn, (1885) 99 N. Y. 296, 1 N. E. 777; People v. Equitable Trust Co., (1884) 96 N. Y. 387; People v. Home Ins. Co., (1883) 92 N. Y. 328, affirmed 134 U. S. 594, 10 S. Ct. 593, 33 U. S. (L. ed.) 1025; Stuart v. Palmer, (1878) 74 N. Y. 183, 30 Am. Rep. 289, affirming 10 Hun 23; Bertholf v. O'Reilly, (1878) 74 N. Y. 509, 30 Am. Rep. 323, affirming 8 Hun 16; Weismer v. Douglas, (1876) 64 N. Y. 91, 21 Am. Rep. 586, affirming 4 Hun 201; Astor v. New York, (1875) 62 N. Y. 580; In re Land Assessments, (1875) 60 N. Y. 398, affirming Brooklyn v. Lott, 2 Hun 628; In re Van Antwerp, (1874) 56 N. Y. 261, affirming 1 Thomp. & C. 423; People v. Dayton, (1874) 55 N. Y. 367; Guilford v. Chenango County, (1855) 13 N. Y. 143, affirming 18 Barb. 615; Gordon v. Cornes, (1872) 47 N. Y. 608; Litchfield v. Vernon, (1869) 41 N. Y. 123; Howell v. Buffalo, (1867) 37 N. Y. 267; Guilford v. Chenango County, (1855) 13 N. Y. 143; People v. Brooklyn, (1851) 4 N. Y. 419, 55 Am. Dec. 266; Gubner v. McClellan, (1909) 130 App. Div. 716, 115 N. Y. S. 755; Matter of Greene, (1900) 55 App. Div. 475, 67 N. Y. S. 291, affirmed (1901) 166 N. Y. 485, 60 N. E. 183; People v. Queens County, (1888) 48 Hun 324, 1 N. Y. S. 382, affirmed (1889) 112 N. Y. 585, 20 N. E. 549; People v. Ulster County, (1885) 36 Hun 491. See also In re Land Assessments, (1875) 60 N. Y. 398, affirming Brooklyn v. Lott, 2 Hun 628. See also notes under TAX LAW.

"There is no

In People v. Reardon, (1906) 184 N. Y. 431, the court said: express restriction upon this power in our State Constitution and no implied restriction, except by the primary guaranties relating to life, liberty, property and due process of law. The same is true of the Federal Constitution except as to certain subjects of national interest under the control of Congress, such as imports, patent rights and agencies used to carry the powers of Congress into execution. Subject to these restraints, the legislature has supreme control of the power to tax, and its action, even if arbitrary, discriminating and unreasonable, is binding upon all persons and property within the boundaries of the state. The state retained all the power of legislation that it did not part with in adopting the Federal Constitution or consenting to the amendment thereof, and subject to that exception, it is as supreme as the British

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Parliament, which is restrained only by the custom of the realm and the conservatism of the people. Taxes upon the right of succession to property by will and intestate law, on special franchises and upon the sale of intoxicating liquors, are recent instances of the exercise of this power by the state through the selection of special subjects of taxation, involving the exemption of all others, each of which was attacked as in violation of both Constitutions, but all were sustained by the courts." In the Matter of McPherson, supra, the court said: "The power of the legislature over the subject of taxation, except as limited by constitutional restrictions, is unbounded. It is for that body, in the exercise of its discretion, to select the objects of taxation. lt may impose all the taxes upon lands, or all upon personal property, or all upon houses or upon incomes. It may raise revenue by capitation taxes, by special taxes upon carriages, horses, servants, dogs, franchise and upon every species of property and upon all kinds of business and trades."

Franchise tax.—A corporate franchise, whether general or special, is taxable the same as other property. People v. State Board of Tax Com❜rs, (1903) 174 N. Y. 417, 67 N. E. 69, 105 A. S. R. 674, 63 L. R. A. 884, reversing 79 App. Div. 183, 80 N. Y. S. 85, affirmed 199 U. S. 1, 25 S. Ct. 705, 50 U. S. (L. ed.) 65, 4 Ann. Cas. 381; People v. Roberts, (1899) 159 N. Y. 70, 53 N. E. 685, 45 L. R. A. 126, reversing 35 App. Div. 624, 54 N. Y. S. 1112; People v. Wemple, (1898) 138 N. Y. 1, 33 N. E. 720, 19 L. R. A. 694, affirming 65 Hun 252, 20 N. Y. S. 287; People v. Home Ins. Co., (1883) 92 N. Y. 328, affirmed 134 U. S. 594, 10 S. Ct. 593, 33 U. S. (L. ed.) 1025. Accordingly, chapter 712 of the Laws of 1899, amending the General Tax Law and authorizing for the first time in the history of the state the assessment or valuation for the purpose of general taxation of all special franchises by a state board of tax commissioners appointed by the governor, is constitutional. People v. State Board of Tax Com'rs, (1903) 174 N. Y. 417, 67 N. E. 69, 105 A. S. R. 674, 63 L. R. A. 884, affirmed 199 U. S. 1, 25 S. Ct. 705, 50 U. S. (L. ed.) 65, 4 Ann. Cas. 381, and reversing 79 App. Div. 183, 80 N. Y. S. 85. However, the franchises of a foreign corporation are not directly taxable. They are derived from the governments to which they owe their creation and can only be subjected to taxation by the laws of those governments. People v. Knight, (1903) 174 N. Y. 475, 67 N. E. 65, 63 L. R. A. 87, reversing 67 App. Div. 333, 73 N. Y. S. 745; People v. Roberts, (1899) 159 N. Y. 70, 53 N. E. 685, 45 L. R. A. 126, reversing 35 App. Div. 624, 54 N. Y. S. 1112; People v. Equitable Trust Co., (1884) 96 N. Y. 387. See also People v. Campbell, (1893) 70 Hun 507, 24 N. Y. S. 208. But a foreign corporation may be taxed on 66 that intangible property which rests solely in the privilege allowed it of exercising its franchise within this state." People v. Knight, (1903) 174 N. Y. 475, 67 N. E. 65, 63 L. R. A. 87, reversing 67 App. Div. 333, 73 N. Y. S. 745. To the same effect, People v. Kelsey, (1906) 116 App. Div. 97, 101 N. Y. S. 902, affirmed (1907) 188 N. Y. 541, 80 N. E. 1116. See also notes under TAX LAW.

Transfer tax on exercise of power of appointment.— Subdivision 5 of section 220 of the Tax Law (Laws of 1896, ch. 908, and Laws of 1897, ch. 284), imposing a tax upon the transfer of any property, real or personal, not only by will or intestate law, but also "whenever any person or corporation shall exercise a power of appointment derived from any disposition of property made either before or after the passage of this act, such appointment when made shall be deemed a transfer taxable under the provisions of this act in the same manner as though the property to which such appointment relates belonged absolutely to the donee of such power, and had been bequeathed or devised by such donee by will, . . ." is an exercise of legislative power not prohibited by the state or federal constitution. A transfer tax is, therefore, properly imposed upon the exercise, by a last will and testament, of a power of appointment derived from a deed executed before the passage of any statute imposing a tax upon the right of succession to the property of

a decedent.

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In re Delano, (1903) 176 N. Y. 486, 68 N. E. 871, 64 L. R. A. 279, reversing 82 App. Div. 147, 81 N. Y. S. 762, affirmed Chanler v. Kelsey, 205 U. S. 466, 27 S. Ct. 550, 51 N. E. (L. ed.) 882.

Transfer tax on vested residuary estates.- Chapter 76 of the Laws of 1899, providing for a tax upon remainders and reversions which had vested prior to June 30, 1885, upon their coming into actual possession or enjoyment is, upon its face, an amendment of the Tax Law relating to taxable transfers of property (Laws of 1896, ch. 908, § 230) and imposes a tax upon the right of succession to property; it is not an exercise of legislative power imposing a direct tax thereon and is unconstitutional and void because it diminishes the value of vested estates, impairs the obligation of a contract and takes private property for public use without compensation. In re Pell, (1902) 171 N. Y. 48, 63 N. E. 789, 89 A. S. R. 791, 57 L. R. A. 540, reversing 60 App. Div. 286, 70 N. Y. S. 196.

Inheritance tax.- A tax may lawfully be imposed on property passing by will or by the intestate laws of the state. Thus, a tax, such as is provided for by the Act of 1885 (ch. 483, Laws of 1885), "to tax gifts, legacies and collateral inheritances in certain cases," may be constitutionally imposed. In re McPherson, (1877) 104 N. Y. 306, 10 N. E. 685, 58 Am. Rep. 502. Designation by contract of amount of taxes.-"Unless our Constitution prohibits it the state may contract with a corporation or tax payer as to the amount of taxes it should pay, whether proportioned to its gross earnings or on any other basis and such a contract would be protected by the Constitution of the United States." Heerwagen v. Crosstown St. R. Co., (1904) 179 N. Y. 99, 71 N. E. 729, modifying 90 App. Div. 275, 86 N. Y. S. 218.

Power of legislature over method of collection generally. There is no express or implied constitutional restriction on the power of the legislature to choose such form of collecting taxes as it may deem expedient. Gautier v. Ditmar, (1912) 204 N. Y. 20, 97 N. E. 464, Ann. Cas. 1913C 960, affirming 144 App. Div. 721, 129 N. Y. S. 834. See also Genet v. Brooklyn, (1885) 99 N. Y. 296, 1 N. E. 777.

Assignment of right to collect taxes.-The legislature is competent to authorize the assignment of the right to collect tax assessments. Gautier v. Ditmar, (1912) 204 N. Y. 20, 97 N. E. 464, Ann. Cas. 1913C 960, affirming 144 App. Div. 721, 129 N. Y. S. 834. See also Litchfield v. Vernon, (1870) 41 N. Y. 123. Thus, chapter 490 of the Laws of 1908, amending the Greater New York charter by allowing the city to sell at auction liens held by it upon lands for unpaid taxes to the bidder who should agree to charge the lowest rate of interest, and empowering the purchasers, under certain conditions, to enforce the lien by a sale in a suit of foreclosure, is not unconstitutional on the theory that the power of taxation is purely governmental and cannot be transferred to private persons to be exercised for their own purposes. Gautier v. Ditmar, (1912) 204 N. Y. 201, 97 N. E. 464, Ann. Cas. 1913C 960, affirming 144 App. Div. 721, 129 N. Y. S. 834.

2. Apportionment.

Generally. The power to tax necessarily carries with it the power of distributing the burden of taxation, and this power of apportionment is as unlimited as the taxing power itself. Thus, not only is the taxing power of the legislature unlimited as to the extent and subjects of taxation, but also as to the manner thereof, whether general, upon all the property of a locality, or upon such only as is supposed to be benefited by the purpose of the tax. Gautier v. Ditmar, (1912) 204 N. Y. 201, 97 N. E. 464, Ann. Cas. 1913C 960, affirming 144 App. Div. 721, 129 N. Y. S. 834; People v. Mensching, (1907) 187 N. Y. 8, 79 N. E. 884, 10 Ann. Cas. 101, 10 L. R. A. (N. S.) 625, affirming 115 App. Div. 893, 101 N. Y. S. 1138; People v. Ronner, (1906) 185 N. Y. 285, 77 N. E. 1061, affirming 110 App. Div. 816, 97 N. Y. S. 550;

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People v. Reardon, (1906) 184 N. Y. 431, 77 N. E. 970, 112 A. S. R. 628, 6 Ann. Cas. 515, 1 L. R. A. (N. S.) 161, affirming 110 App. Div. 821, 97 N. Y. S. 535, affirmed 204 U. S. 152, 27 S. Ct. 188, 51 U. S. (L. ed.) 415, 9 Ann Cas. 736; People v. Pitt, (1902) 169 N. Y. 521, 62 N. E. 662, 58 L. R. A. 372, affirming 64 App. Div. 316, 72 N. Y. S. 191; In re Tuthill, (1900) 163 N. Y. 133, 57 N. E. 303, 79 A. S. R. 574, 49 L. R. A. 781, affirming 36 App. Div. 492, 55 N. Y. S. 657; Cayuga County v. State, (1897) 153 N. Y. 279, 47 N. E. 288; State v. Kings County, (1891) 125 N. Y. 312, 26 N. E. 272; In re McPherson, (1877) 104 N. Y. 306, 10 N. E. 685, 58 Am. Rep. 502; Spencer v. Merchant, (1885) 100 N. Y. 585, 3 N. E. 682, affirmed 125 U. S. 345, 8 S. Ct. 921, 31 U. S. (L. ed.) 763; Genet v. Brooklyn, (1885) 99 N. Y. 296, 1 N. E. 777; People v. Home Ins. Co., (1883) 92 N. Y. 328, affirmed 134 U. S. 594, 10 S. Ct. 593, 33 U. S. (L. ed.) 1025; Stuart v. Palmer, (1878) 74 N. Y. 183, 30 Am. Rep. 289, affirming 10 Hun 23; In re Sackett St., (1878) 74 N. Y. 95, affirming 4 Hun 92; Weismer v. Douglas, (1876) 64 N. Y. 91, 21 Am. Rep. 586, affirming 4 Hun 201; In re Land Assessments, (1875) 60 N. Y. 398, affirming Brooklyn v. Lott, 2 Hun 628; In re Van Antwerp, (1874) 56 N. Y. 261, affirming 1 Thomp. & C. 423; Gordon v. Cornes, (1872) 47 N. Y. 608; Litchfield v. Vernon, (1869) 41 N. Y. 123; Howell v. Buffalo, (1867) 37 N. Y. 267; Brewster v. Syracuse, (1859) 19 N. Y. 116; Guilford v. Chenango County, (1855) 13 N. Y. 143, affirming 18 Barb. 615; People v. Brooklyn, (1851) 4 N. Y. 419, 55 Am. Dec. 266, reversing 9 Barb. 535; Gubner v. McClellan, (1909) 130 App. Div. 716, 115 N. Y. S. 755; Matter of Flower, (1889) 55 Hun 158, 7 N. Y. S. 866; People v. Queens County, (1888) 48 Hun 324, 1 N. Y. S. 382, affirmed (1889) 112 N. Y. 585, 20 N. E. 549; People v. Ulster County, (1885) 36 Hun 491. See also Astor v. New York, (1875) 62 N. Y. 580; Dyker Meadow Land, etc., Co. v. Cook, (1896) 3 App. Div. 164, 38 N. Y. S. 222, affirmed (1899) 159 N. Y. 6, 53 N. E. 690. See infra, p. 261, Uniformity and p. 264, Classification.

Assessments for local improvements.-The legislature is competent to authorize a municipal corporation to make public improvements and to assess the expense thereof among the owners and occupants of the land benefited by the improvement in proportion to the amount of their benefit. In re New York City, (1901) 190 N. Y. 350, 83 N. E. 299, 13 Ann. Cas. 598, 16 L. R. A. (N. S.) 335, modifying 120 App. Div. 849, 105 N. Y. S. 750; People v. Pitt, (1902) 169 N. Y. 521, 62 N. E. 662, 58 L. R. A. 372, affirming 64 App. Div. 316, 72 N. Y. S. 191; McLaughlin v. Miller, (1891) 124 N. Y. 510, 26 N. E. 1104, affirmed 57 Hun 430, 10 N. Y. S. 830; Spencer v. Merchant, (1885) 100 N. Y. 585, 3 N. E. 682, affirmed 125 U. S. 345, 8 S. Ct. 921, 31 U. S. (L. ed.) 763; Genet v. Brooklyn, (1885) 99 N. Y. 296, 1 N. E. 777; In re Church, (1883) 92 N. Y. 1; Stuart v. Palmer, (1878) 74 N. Y. 183, 30 Am. Rep. 289, affirming 10 Hun 23; In re Sackett St., (1878) 74 N. Y. 95, affirming 4 Hun 92; In re Van Antwerp, (1874) 56 N. Y. 261, affirming 1 Thomp. & C. 423; Litchfield v. Vernon, (1869) 41 N. Y. 123; Howell v. Buffalo, (1867) 37 N. Y. 267; People v. Brooklyn, (1851) 4 N. Y. 419; People v. Buffalo, (1900) 52 App. Div. 157, 65 N. Y. S. 163, affirmed 166 N. Y. 604, 59 N. E. 1128; Matter of Flower, (1889) 55 Hun 158, 7 N. Y. S. 866; People v. Lohnas, (1889) 54 Hun 604, 8 N. Y. S. 104; People v. Queens County, (1888) 48 Hun 324, 1 N. Y. S. 382, affirmed in (1889) 112 N. Y. 585, 20 N. E. 549; Moron v. Troy, (1877) 9 Hun 540. See also In re Protestant Episcopal Public School, (1864) 31 N. Y. 574. And see infra, p. 261, Uniformity. Such an assessment is a proper exercise of the taxing power vested in the state, and is not in conflict with that part of the constitution which declares that " no person shall be deprived of life, liberty or property, without due process of law; nor shall private property be taken for public use without just compensation.” People v. Pitt, (1902) 169 N. Y. 521, 62 N. E. 662, 58 L. R. A. 372, affirming 64 App. Div. 316, 72 N. Y. S. 191; Genet v. Brooklyn, (1885) 99 N. Y. 296, 1 N. E. 777; People v. Brooklyn, (1851) 4 N. Y. 419.

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