Latest Important Cases supreme purpose of this court is to give the people of this state a just and harmonious system of criminal jurisprudence, founded on justice and supported by reason freed from the mysticism of arbitrary technicali ties. . . . Now that our criminal jurisprudence is in its formative period we are determined to do all in our power to place it upon the broad and sure foundation of reason and justice. . . . We will give full consideration to all authorities which are supported by living principles and will follow them when in harmony with our laws and the conditions existing in Oklahoma, but we must confess to want of respect for precedents which were found in the rubbish of Noah's Ark and which have outlived their usefulness, if they ever had any." Public Service Corporations. Assessment of Special Franchises—" Net Earnings Rule" in New York State— Equalization of Assess ments. N. Y. Long litigation in the New York state courts reached a termination Oct. 19, when the Court of Appeals reached, in the case of People ex rel. Jamaica Water Supply Co. v. Tax Commissioners, a decision rendering the special franchise taxes levied under the law of 1900 collectible. Two principal issues had been raised. The first was whether the court could properly set aside the assess ment made by the State Board of Tax Com missioners because it did not correspond to the result reached by applying what is known as the "net earnings rule." On this point the court held that the board, in fixing the value of a special franchise for purposes of taxation, may avail itself of any rule or method reasonably adapted to ascertaining its true value. When the method known as the "net earnings rule" is adopted taxes other than the special franchise tax should be deducted from the gross earnings in order to determine the net earnings. There should also be deducted a reasonable amount to meet depreciation. Under this rule the court below might take judicial notice that six per cent should be allowed as a fair return upon the capital invested by the company in real estate and other tangible property. In the present case, seven per cent was a proper rate to adopt in capitalizing the surplus earnings, to provide a sinking fund for unforeseen contingencies. The second point was whether assessments upon special franchises were to be equalized
647
with the local assessments made by assessing officers of the localities in which the corpora tions involved might be located. The Court of Appeals upheld the ruling of the court below, holding that the assessments should be made at the same ratio of actual or true value as other property in the county appearing on the assessment roll. The ques tion of unequal assessment may be reviewed by the courts on certiorari. The extended opinion in the case was written by Willard Bartlett, J. (Reported in N. Y. Law Jour., Oct. 25, 1909.) Public Service Corporations. Dissolution of Corporation Revokes its Franchise—Status of the Franchise, if Continuing, to be De termined only in Suit to which State is a Party. N. Y. The New York Court of Appeals on Oct. 19 reversed the judgment of the Appellate Division and dismissed the proceedings in the case of the City of New York against the former Directors, now Trustees, of the corpora tion which built the Belmont tunnel under the East River between the Grand Central Station and Long Island City. The question before the court was whether, on the dis solution of a corporation which is in default in performance of the conditions under which it holds its corporate power, the franchise can pass to the trustees. Chief Justice Cullen pointed out that the legal status of the franchise could be determined only in litigation to which the state was itself a party, and said:— "When the legislature enacted that the powers of the corporation should cease it intended thereby that in the same contin gency the franchises conferred on the corpora tion should cease. What possible benefit would accrue from the dissolution of a corpora tion for failure to exercise its franchises in time, if the franchise itself is to continue for the benefit of the stockholders, who might form a new corporation and to it transfer the franchises?" Sherman Anti-Trust Act. See Monopolies. Wagers. Oral Betting at a Horse Race not Bookmaking— New York Anti- Race-Track Gambling Law. N. Y. "While the statute makes all bets and wagers illegal and void, and money lost thereon recoverable," said the New York Court of Appeals in People ex rel. Lichtenstein v. Langan, decided Nov. 9, "it has made
