xviii REPORT OF THE

that although the stock itself, in the hands of the stockholders
may be free from taxation, the immense properties owned by
the corporations themselves, and comprising as they do, a large
portion of the most valuable property in the State, and the
business done by the corporations also, can be free from taxa-
tion by the State in some form.

If such be the case, the consequence must be, that when these
powerful corporations come to extend their operations, so as to
own one-half of the most valuable property in the State, the
area of taxation will be limited to the other half, which has
already been taxed from the beginning, to furnish the means
to aid in constructing the works in their inception. This aid
has been of vital importance in rendering the stock valuable in
the hands of the holders, and insuring the success of the cor-
porations themselves. That such a ruling by our Courts can
still prevail, in view of the clear distinction made by the Su-
preme Court of the United States in regard to the stock of corpor-
ations in the hands of the holders, and the property of the same
Corporations belonging to them in their corporate capacities, is
hardly to be expected.

COAL MIXING COMPANIES.

An Act was passed at January Session, 1872, to regulate the
taxation of Coal Mining Companies in this State, for State
purposes. That Act was intended to levy a tax on the business
of mining coal in this State. The tax was measured by the
number of tons of coal mined and shipped directly from the
mine where produced for sale, and the rate of taxation was
fixed at two cents on each ton of coal so mined and shipped.
This tax was made a lien on the coal thus mined and shipped,
and it was made unlawful for the Company so mining, to remove
the coal away from the mines for sale, until the tax was paid,
or payment thereof secured to the transportation Company re-
moving the same. The Second section of the Act made it un-
lawful for any Railroad Company, or other transportation
Company, to take such coal on its cars or other vehicles, until
such tax was paid, or payment thereof secured, and made any
such Railroad Company or other transporting Company, that