The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-03-25
TAXING THE RAILROADS.
DECISION OF THE UNITED STATES
SUPREME COURT.
The Northeastern Case Not Decided
Adjournment of the Court for n
Week.

No decision was rendered by the United
States Supreme Court to-day 10 the tax-case
against, the Northeastern Railroad Company.
The court has adjourned for a week.
Text of tho Decision of the Supreme
Court In the South Carolina Railroad
Case.
The following is the text of the decision In
the case of the State against, the South Caro-
lima Railroad Company:
| Reuben Tomlinson. James W. Grace, Fleetwood
Lannean, l.. D. Halonquist, q. saspol tas,
J.W. Denny, John Woolly, B. D. DeSaussure,
TT. Coghlan. appellants, vs. Thomas Branch,
John P. Branch, Frederick B. Scott and
Thomas P. Branch. Appeal from the Cir
cult Court of the Unlted States TOR Inc Dls-
trct of South Carolina.
The doctrine that State Leglsl lture, u1re-
stricted by constitutional prohibitlon, has
power 10 exempt certain property from TAXA
| tloD, reiterated.
Where a railroad company, by Its charter
was granted such an exemption for limited
period. and was afterwards merged In another
railroad company, which became invested with
all Its property, rights and privileges, the ex-
empllon and Its limitation accompanied the
property, and q perpetual exemption from
taxation In the charter Of The latter company
would not be extended TO the properly 30 &C.
quired, without express words, or necessary
lntendment TO that effect.
Where two railroad companies are consoli-
dated the presumption is. that each OF the Two
united lines of road will be respectively held
with the privileges and burdens originally at
taching thereto, unless the contrary is ex-
pressed.
Mr.. Justice Bradley delivered the opinion of
the court.
In thus case a bill in equity was fled In the
hu 'Qtla 9kCGkhOlder6
The South Carolina Railroad Company. to restrain
the State auditor and certain county collectors
from coiIecii &, and the mpauy lom paying,
certain taxes !mposed ON said company IN pur.
snapCe OF an act Of The Legislature OF South Car.
ollna passed In April, 1858. and another acL
passed In February, 1870 it being alleged tn Vt
said company was, by its own charter, exempt
from to aXatlon. and that no adequ lie legal RENE.
dy existed under the AVS OF the state to obtain
redress; and the company declined to adopt any
measures for that purpose.
The question In The case ID, whether the COM
p8ny is entitled to an exemption from taxation
which the Legislature cannot sbbrogate or disre-
gard. iJ being conceded that the company i5
made taxable, II the Legislature has the power 10
taxi 1t.
The property Of the company IL derived from
two sources, one portion being the railroad from
Charleston 10 Hamburg. opposite tue Town OF
Au. usta, Ca, which was constructed Dy anu
formerly belonged TO the South Caroline Canal
and Kailroad Company, and the other being the
roads extending from BranchVille on the line OF
the first road to Columbia aud Camden, which
were constructed by the South Carolina Railroad
Company under its own charter.
The South Carolira Canal and Railroad Oom
pany was chartered by The Legislature OF Soutn
Carolina In December, 1927, for the purpose OF
cons siructlug a railroad or canal, or BON, 1rcm
charles on 10 each OF the Towns OF Columbia.
Camden and Hamburg, with the exclusive tight
for that purpose for thrty-six years" In sup
plemeut OF January. 1873, amongst other things,
it was enacted as follows, viz: THAT during the
first period Of thirty.six years the STOCK OF me
company, and the real estate that may ne pnr'
chased by them and connected with, ant be SUD
spryient 10 the works herein aulhoTiz d, shall he
yempted from taxation" Under this charter
the company constructed railroad from Charles
ton to Hamburg only, distance ol nearly one
hundred and lorty miles. THIS road was COM
pleted In 1888 and 1t Is admitted that the thirty
six years OF exemption from taxation expired In
1853, and cannot be invoked In support OF the
present suit.
Company was Incorporated by the Lea islature OF
South Carolina for The purpose OF establishing
c ,mmunicatiOn by railroad bst~e cen Clnclunati
and charleston, through the States Of Kentucky,
Tennessee North Carolina and South Carolina,
with power to construct branches not cUnnicting
with any chartered rights, and with power 20 use
any section OF the said railroad before the Wnole
should be completed. BY the forty.thrd section
OF this charter it was enacted that the capital
stock OF this company, the dividends thereon,
and all the property and estate, real and per-
sonal, belonging to said company, should be for.
should exceed lawful interest. subsequently the
project ul extending the road into other states
was abandoned, and the name OF the com
pany was changed. nrst to that Of tae Louisville Louis
Cincinnati and ona1le'tSn haroao h Con anin pany,
Carolina Car IA Ralro,d Company. The company
never built any portion OF the railroad
authorized by its charter, except IRON
Branchyllle to Columbia, and branch TO
Camden. Tho exclusive privileges conceded to
the South Carolina Canal and Railroad Company
rendered 1t difficult, II not impractlcable TO enect
q communication with Charleston WltEnat tne
for an smsleamatlon Of interests between the TWO
companies took place as early as 1887. and was
practically effected In that and the ensuing years.
The mode in which It was done was that the
stockholders OF the south Carolina Canal and
Railroad company exchanged their stock In that
company for an equal numDet Oh smart D "a the
Louisville, Cincinnati aud Cnarleston kallrGao
Company, afterwards called the Souln Carollna
Railroad Company,) and received In addition
bonus OF twenty five per cent BY this means tne
latter company acquired the entire control OF the
fIrmer, and used the road OF the former company
between Brauchvilie and Charleston, inntend OF
buldnQ a separate road Of their own.
Io 1873 by an act OF The legislature. passed the
10Th of december, this amalgsmatlon was fur.
maly legsllzed. The Section relating TO tals sub.
jecL was express ed IN tne lSllowins ,ers =, 81,
al That whenever the written consent OF all
the stockholders Of the South carolina Canal
aud Railroad Company small nave pe2n oo.ain.a q,
the said south Carolina Canal ano hallroau Colu'
psny shall be merged In the said south Carollns
Railroad Company, and thereup N and thereaf.
ter sll the rights, privileges and properly oeiong
ing to the said South Carolina canal and Rallroao
COMPANY shall be vested IL the said south caro-.
lima Railroad company, and the SAID S0uIn Cafo
lima Railroad Company shall be liable for all the
debts and contracts Of the said south Carollaa
Canal aud Railroad Company; and the STOCK and
property OF the said south Carolina Ralroad
t,ompapy shall be subject to the same liens and
charges To which the stock and properly or the
said South Carolina canal and Railro d com auy
NAV be liable and in the same relative order lu
which the said lien, and charges now stand"
III conceded that the terms or tnls law were
com piled with. And now the defend .n!s 10 error
olina canal and Ra lroad company IN the Soutn
Carolina Railroad Company, the properly OF tne
former Is held by the lalt.r, with aIl tne rignts
and privileges OF It's own charter atI8cnlng snele
10. including the right OF perpetual exemption
from taxation. II This is So, the state, 0y giving
the ter company the power 10 acquire tne
property OF the former, has lost valuable pre-.
roga;iy:: IN reference TO that property. which It
posse. sed up 10 the time when the act OF 1913 was
nassed-namely, the right 10 tax the property
aiter the expirh tOn OF the thirty six years. Sucn
a conc uson OF The rights or the STATE ougnt not
tn be admitted wi houS clear exprt ssl0n OF the
legislative assent Ir does not seem TO US that the
section In question contains sucn clear assem-.
In declaring thai the one company snail te
merged in the other and that the rights, privi-
leJesa ami property OF The one shall be vested 10
the n her the Lcli3lature cannot be under9tCod
20 mean that The restrictions, limitations and
burdcos affecting that propeit ty, ann imposed for
the benent OF the pubic Or OF lndiVldusls snsi
NOT 90 with T.. The rights and privileges 90 with
H. and those rights and privileges cin, Win DIM
entity. be separated from The restrictions and du-
tips nv which they are measured and quallfe ).