Event of 1886: Santa Clara County v. Southern Pacific Railroad: The U.S. Supreme Court rules th

Background. The case arose from California's 1878-79 constitutional convention, which denied railroads the right to deduct mortgage debts from taxable property values, a right granted to individuals. Southern Pacific Railroad refused to pay taxes under these new rules. Counties filed suits to recoup tax revenue losses, leading to litigation that eventually reached the U.S. Supreme Court.

Legal Proceedings. The Supreme Court consolidated three cases, including Santa Clara County v. Southern Pacific Railroad. The opinion, written by Justice John Marshall Harlan, decided the case on statutory grounds in favor of the railroads. The actual decision did not address the applicability of the Equal Protection Clause to corporations, despite arguments made by counsel.

Headnote Impact. Reporter J.P. Davis included a headnote stating that corporations are persons under the Fourteenth Amendment. This headnote was not part of the Court's actual decision but was confirmed by Chief Justice Morrison Waite in a letter dated May 26, 1886. This headnote subsequently influenced legal interpretations, affirming corporate protections under the Fourteenth Amendment.