The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1878-02-21
Air Line Railroad.

the construction of the Air lime Rail-
road, were voted and issued under
the impression that the track and all
other property OF the Road would be
taxed under the laws OF tho State, and
would, thereby, contribute largely to-
wards the payment ct tho interest on
tho bonds. After the bonds had been
issued, the State called upon the Road
for it's taxes, and it refused to pay,
claiming exemption under it's charter
for period OF thirty-six years. The
case went before Judge Bond and he
decided in favor of the Railroad. The
State appealed to the Supreme Court
of tho United States, ard there the
case has been pending ever since. 1t
is the opinion of we'll informed law
years that the State will gain the
suit, and the Road will bcacompelled
to pay it's taxes. The Supreme Court
In some Railroad case has already de-
cided that where a corporation had
been exempted from taxation, such
exemption was not a franchise that
could be transferred in the saie OF the
Road, and when sold and the property
Of the second proprietor, it bocame
liable to taxation. This decision Gov.
ers the case of the Air Line Railroad
exactly, and there is scarcely any
doubt but what tho Supreme Court
will decide promptly, when the ease
is reached, that the Road is liable
(having been sold to the second party)
and must pay it's State and County
taxes. But the impression, somehow
or other, has gono out amongst our
people that subsequent TO the bring
ing Of this suit by the State against
tho Railroad, the Radical Legislature
of 1876, passed an Act which enabled
the Road to transfer in its sale the
right Of exemption from taxation.-
This impression is made, we are in
formed by the reading OF Section 2, of
the Act, which is as follows:
"SEc. 2. Such corporation shall pos
sess all the powers, rights, immunites,
privileges and franchises in respect to
such Railroad, or tho part thereof in~
cluded in such certificate, and in rcs>
pcct to tho real and personal property
appertaining to the same, which were
possessed or enjoyed by The corpora
ton which owned or held such Rail-
road previous to such sale under or by
virtue of it's charter, and any amends
ments thereto, and of other laws Of
this State or tho laws of any other
State in which any part of such Rails
road may have been situated, not in>
consistent with the laws of this State"
BY the reading of this section alone
it does really appear that the inten-
tion Of the Legislature was to warrant
parties purchasing raih Dads, exempt
ed in their charter from taxation, the
right to evade this decision of the Su~
preme Court, and to permit them to
enjoy the privilege If exemption from
taxation. But such is not the case.
If they will only read the second pro"
viso of Section of tho same act, (the
title Is, san act to enable the purcbas~
ers of railroads to form corporations,
and to exercise corporate powers, and
70 define their rights, powers and
privileges" approved March "a, 1850
they will perceive that tho right of
exemption from taxation is positively
forbidden. The proviso reads as fol-
lows: "And provided further: That
such Railroad shall not be exempted
from taxation, and that such agree~
ment for consolidation shall contain
no provision in conflict with the pros
visions OF this act, or which shall ex-
empt such Railroad, 80 far as it lies in
this State; from the operation Of the
laws of this State" The proviso ia
plain and positive; and under no pos
sible construction of the act could the
Railroad be exempt from taxation.
o. In connection with this subject, it
may not be amiss to state that Rep
resentative D. F. Bradley has intro,
duced and referred to the Judiciary
Committee the following bill:
SEC. /. That section 2 of an act, en-.
titled san act to enable the purchas-
,na oF u ailrnaha IN form cnrnnrnt,noo