, 1876-05-01
Railroad Property To Do Taxed According
10 Tho State Revenue Law.
The Question Of the Taxation Of In
solvent Roads.
Enjoiniug Of Tax-Co[IecIions Condemned
and Restrained'-.Want Of Equity
in Tax-Ffghting.


crcsstuR or reducing, declares its 1nal taxable
value. Tho State Board then ascortafna tho
value OF the canilal stock Of each Company And
Of tta dobts, adds thcBe together, and from thotr
aggregate thkcs the aaccrtainod valuo Of tho
tangible property tho difference, II any, is
then declared 10 10 the ta1hbfo vAluo OF tho
franchise and capital stock Of such Company.
The State Board thon npportlons this valuation
thus reached among tho sevcrnl counttoa OF the
Etoto through which the railroad ruoB, according
to the milosgo IN each county. Tho Rockford
L Rock Island md other railroads roaistod tho
collection Of taxation under this Bystern Of
valuation aud superintendent, hut tho Supreme
Court OF Illinois tcfuaed to restrain tho coiloc-
tton OF tho tax by Injunction, and hsl1 tho
Revenue Law In all those respects to be consti-
tutional. Other Railroad Companies applied to
tue United Statoa Courts Of tho Northern and
Southern Districts Of Illinois, and obtained in-
functions. from which tho Btate appealed; and
on this appeal tho United Statoa Supreme Court
hos rove1aed tho Judgment Of tue Circuit
Courts, and directed the injunclions to be dis
solved and tho bills diainissod. Justice Miller,
after gtasing tho facts, and tho 1aH OF tho
State, thus proceeds:
Itlg obvious, however, that wutla fair assessuent
under tless TWO descriptions Of ptoperty will include
Ii may Of may not Include ali is wealth. There 1nay
which ought to respond to ,asation. and which the
Blato h1s right toaubject 10 taxation. Thus It may
ss bns md Is ea1nss no bone
sufficient to PAY anything beyond lta necessary OK
psusaa Tor operating tho road ad IL repairs, that
this tangible property represents moro than tbs real
wa1jth Of the company and ia property. Whl1e on
ths olhcr hand auothor of thso companies ts 10
fn lsfns % smonnt u iob Il doeares irss I'D ydeds aud
this Interest and tacsc diycnds, when looked % In
sF Il .nober sss of ws sbe
'ns Rs s5o is q at.s as 1 uo. ea, . value
u ii tba 1'' '''' Wv ' y '00 ~ ~ '
YnANon1HE AND CAPITAL sroCK
corporation. Tho vaus Of tho right 70 use ttis
ssass s 1sss1 s sr s5 9sss IT 70 ~ e
1aado BY tho Beard Of EQUALIZATION and whioh, vlsn
tlu1 ssesrtstns4, i subjected to tho ..s.-
of tho roadbed T. n.tney, according to tls length
s;osN a. hsrs used, docs not mssn tho aaros of ths
asoek but tho agSrcgstc espiA q the oo,opsny Ths
oa.ious from tue provao to ~ fourth psragFsph o.
Tho basa OF these controversies il hers given serha-
Tin; .,. =, a., .o,n.,to. md ,,,o,t,,,on.
now Or hereafter created uneF tho laws Of this State,
laai be valaeA by thu s...a Board ot Equa.1auoA
essa sslae of .uo I capital stost neudins ho fran
ehtss oger and above tho assessed vstua Of tho nBl
bic pronrty q such company o. sss1csaaea: y s.sa
t,nias ths isir esah V.lus Of such capital stock ~ 10
may .eam squltsno md rust; and aues Eulae nd
sss se sh.i l bc a. binding and Of tho sso sdect ..
II contained III this setsnb3oct, however, 70 such
s T. e. ,a
Irurtitd That in al csaes where The tangible prop
erty capita. stock Of any company or association
Asseese under this act, tho sarGa OF c1pttal stock OF
my such company OF association shall not 10 aasessod
or taxed 10 ths State. This clause aia not apply to
tho capital stock shates Of capital stock Of bants
eraan!zod unaor tho General bantns l4va Of sn's
Tlss the franchise, capital stock, business. and
r.ons Of I'll corporations liable to taxation In the
paca where they do buznoss, and hy tho State WHICH
Greats than. admits Of no dispute at THU day. "Soh.
ing ho 1nort certain Ia lsgh DECISIONS saJa thla
th.n thss liz pr,siess. asd franshises Of psiy.ss
Ss slt'ssns aequfa sT @ sshooS nay be BY
slate Tor the support Of Htate do1ernmeut."-
freight ra1 Sir y W4 a'2; sA'' Tax on Gross
Ths statute Of Illinois, and the rule adopted by tho
beard Of Equstzaton. under the power confarEeA by
n,odo Of doing comrste Justice IN sh. ditncu!s mat.
ter, Lut we confess 70 have on the whole sesn no
poae 30 far railroad corporations concerned OF
ta1iug at oneu ali thcr psupetty and Of tuating tha
IA. ju.t .ua e4u In IL relation to othsr t.1.ale prop
Tue uuIE Apoi1Ep NJ THE BOARD
fSa-1ne market or f.lr cash value Of tho .hars.
Of capital stock and the market fa.r cash !4uo Of
The debt (e1cudinx from such dsbt tho indebedcas
current 31Ncn4e4l, 4uAA Va c0t01Ne4 Auu0u
s,a 10 taken and huId u ho Tho fais cash valuo Of
Tho capital stock Including tho fnchlse reApscsiro'
'!&eo,a-Fsom tho aggregate smount sseoreaned
ssosessa there sh. " deducted tts sgyrsFsto @
md sssoeiatsoua ueh saua1oi assessed valuation
Eff ns sssh o. s It
tsty by this uosnil, aud THO amount REMAINING ~
tash case. Y .ny, shall ee tafen snd hsa 70 70 n.
Guiding the frsuchi8e, whtcI thl4 Hoard u required
BY law asaoss respectively aganat compan!eA and
asooaseone now or hoIoafssF eFsa'sa uaaer tho AS'
mar 10 assumed fos II practical parroses. md I
seespd 81
Of moro mortgages. Tia parties who deal tn sucl
honds are generally tson an1 f,s'shsea men, ., .at
which thBsa securities hold In market Ia one Of th
aarea eriterlss i. f.r - goes q tns value q th
Thssa mortgages 40, taxsver, liens on ths ro.d
Md taking precedanco Of tho shares oi the ,oekho9
hss ny o. nay not sainSusa hs ~ Ssiao 9.1a. H1 y
tha s1Act amount Of ths aggregate dotts kas ~ u.
goss to pay that debt and its inte!est dnanisa =.
anfo the dividend OF tie SHAREHOLDER and mo Saus
Ill, therefore. obvious that when you hAve ascs'
d.bt aud hs current oslh vslue of Ii. sntIrs nuabe
sl.tsa+ you have, hy taa action Of thosa VITO Abos
~ ohers cAn Lest estimate II, aacertaueA tho tt
And IL franchises. for thsEo runEosented BY ia
value Of i bondBd doDt ana Of the ahkraa Vt ls cap
tA stock,
This would OF Itself bs, perhaps,
Tut fAiIEsr BAAM or TAXATION
.of ~ stAts q AsEs "a tsilsosda Nets solvent a.
hA hi4 never be0u tbs cate In Illinois, aud Il s dau0
ia this happy atAto Of sIairx 10 likely 10 prvva
eaon in that any othes State ID the Union. tax.
fsfe aasasabs Alone tbs value Of the capital stoe
aad franchises ot The corporation, eases might
1ound ~hors these wpso worth nothing, and such con
pantss would Pay A1 tot lhsir fsAl astAtb
sssson.l propsty And .a!s 4 Prso..ly u: main
A.l4rosd Company N opposition 70 The aw md 70 {.
sa!s of ths heasd Of Equalization. Hut individuals
aot eseepa tA1suou Oh their EvAl aud psssouA props
because thsy sEe lusovsnt In sovsra1 Of tbs stat
many msh In effect pay tsA On hsar lots OF ands Il
en Us mort9sgu which oovurs H. and s1essds It
s4ns, and on large azaouns Of pessonA propert
wv ~ worth Ia tbs world. No 6tate b.. Tenlur
r. sssaeaih tie principle Of permitting IL ytsiD
~ imposed on tbs inalv1a4al on ths basts Of bis
haAtsd Msalth In excoas Of his dsbts+
Tue ayatsn sdoptsd =! ths ststuts of Illinois, q
~ fnlo of the Board u Equalization, ptssaFvs ~
prnapls ot taxing III the lAnsthls property At
,xsa!as md taxing The ospitai stona aad ffAnallss