Page:Harvard Law Review Volume 32.djvu/410

374 374 HARVARD^ LAW REVIEW INDIRECT ENCROACHMENT ON FEDERAL AUTHORITY BY THE TAXING POWERS OF THE STATES.! VI n. Regulations of Interstate Commerce {continued) 2. Taxes not Discriminating Against Interstate Commerce (continued) C. Taxes on Acts, Occupations, or Income. OpHIS study has now reached a point where the remaining cases -■- can most profitably be considered under the somewhat omni- bus rubric chosen for this section. We have seen that the Supreme Court has not been meticulous in inquiring whether the statute under which a tax is imposed calls it a tax on property or on a fran- chise or on capital stock or "on the corporation itself." If a rose by another name would smell sweeter, it has sometimes been re- christened and found sweet enough to accept. "Literal adherence to particular nomenclature should not be allowed to control con- struction in arriving at the true intention and effect of state legislation,"^ observed Chief Justice Fuller in a passage already quoted.^ In spite of the rule that earnings from interstate commerce may not be taxed directly, such earnings have been accorded recog- nition in assessing the amount of taxes on privileges or property. Most of the cases have dealt with valuations that regarded a capi- talization of net earnings.^ But Maine v. Grand Trunk Railway 1 For preceding instalments of this discussion see 31 Harv. L. Rev. 321-72 (January, 1918); Ibid., 572-618 (February, 1918); Ihid., 721-78 (March, 1918); Ibid., 932-53 (May, 1918); and 32 Harv. L. Rev. 234-65 (January, 1919). « Postal Telegraph Cable Co. v. Adams, 155 U. S. 688, 700, 15 Sup. Ct. Rq). 268 (1895). '32 Harv. L. Rev. 249. « The Delaware Raibroad Tax, 18 Wall. (U. S.) 206 (1873), 32 Harv. L. Rev. 236; Western Union Telegraph Co. v. Massachusetts, 125 U. S. 530, 8 Sup. Ct. Rep. 961 (1888), 32 Harv. L. Rev. 239; Massachusetts v. Western Union Telegraph Co., 141 U. S. 40, II Sup. Ct. Rep. 889 (1891), 32 Harv. L. Rev. 239; Pullman's Palace Car Co. V. Pennsylvania, 141 U. S. 18, 11 Sup. Ct. Rep. 876 (1891), 32 Harv. L. Rev. 240; Cleveland, C, C. & St. L. Ry. Co. v. Backus, 154 U. S. 439, 14 Sup. Ct. Rep. 1122 (1894), 32 Harv. L. Rev. 244; Pittsburgh, C. C. & St. L. Ry. Co. v. Backus, 154 U. S. 421, 14 Sup. Ct. Rep. 1 114 (1894), 32 Harv. L. Rev. 248; Western Union Telegraph