Savannah morning news. [volume] (Savannah) 1868-1887, 1883-01-16

The South Georgia and Florida and the
Atlantic and Gulf Tax Appeals Finally
Deeided-Savannah Mulcted for Costs
in the Latter Suit.
The following telegram from James III.
Mckinney, Clerk of the Supreme Court
of the United States, was received yester-
day by Judge W. S. Chisholm, Vice Presi-
dent and general counsel of the Savan-
nah, Florida and Western Railway Com
pany:
"Eighty-one and one twenty-six affirm
ed with costs.'
The following resume of the points in
volved and history of the cases has been
furnished the NEWS for publication by
authority of the successful party to the
suits:
''Eighty-one'' is the case of the South
Georgia and Florida Railroad Company
and the holders of the per cent. guaran-
teed stock Of the Atlantic and Gulf Rail-
road Company, issued to aid in building
the road, complainants, VS.. John Screyen
and Samuel A. Strang, receivers, and the
pany, defendants. The question
involved the title of the At
lantic and Gulf Railroad Company
to the railroad from ThOmasville to AL
bany and the right of the bOndhOlders of
the Atlantic and Gulf Company TO sell
the road as property covered by the trust
deeds or mortgages securing the bonds.
Justice Bradley some time ago decided
the question in favor OF the bOndhOlders.
The opinion Is reported in Woods. p. 4S1.
The decree which he rendered was APP
pealed from, and the cause taken to the
Supreme Court of the United States. 1t
was argued during the month of NOvem-
Der last by Judge Montgomery as counsel
for the South Georgia and Florida Rail-
road Company and the holders of the
seven per cent. guaranteed stock. the APP
pellants, and by Capt. Falligant for the
Atlantic and Gulf Railroad Company, and
Judge Chisholm for the bOndhOlders and
the Savannah, Florida and Western Rail-
road Company, the successor of the At
lantic and Gulf Railroad Company, the
appellees.
The Supreme Court has affirmed
the decree made by Justice Brad
ley in the Fifth Circuit Court OF the United
States for the Southern District of Georgia.
and has thereby confirmed the title Of the
Savannah, Florida and Western Railway
Company to the property. A fine new
iron bridge has recently been built by the
Savannah, Florida and Western Railway
Company at Albany, and it is probable
that as this litigation is now ended,
it will not be long before this enterpriSing
company will have the entire line laid
with new steel rails. The decision is
a very important one for the city of Sa-
vannah. 1t keeps the line from Albany to
Savannah solid, and unites the two cities
by an unbrOken link.
lone twentv-siX" is the case of the
Mayor and Aldermen of Savannah VS.. the
Atlantic and Gulf Railroad Company and
John Screven and Samuel A. Strang, re-
-,
right of the city to tax the depot grounds
of the Atlantic and Gulf Railroad Com
pany for municipal purposes. The case
arose upon an issue made on a petition
filed by the city in the late foreclosure
proceedings in behalf of the bOndhOlders
of the Atlantic and Gulf Company, assert
ing lien prior to that of the bOndhOlders,
and asking to be paid out of the funds in
the hands of the receivers.
Justice Bradley also heard and decided
this case against the claim asserted by
the city. His decision is repOr Jed in 3
Woods, p. 432. An appeal was taken
from the decree which he rendered, and
this case also taken to the Supreme Court
of the United States. 1t was argued in
the latter part of December by General
A. r. Lawton for the appellant, and
Judge Chisholm for the appellees and
their successor, 1.-The Savannah, Florida
The Supreme Court has affirmed the de-
cree made by Judge Bradley. The policy of
permitting cities, towns and counties to
levy a local tax upon railroads is one
which has been doubted by the ablest
lawyers and political economists. A rail-
road is only valuable as line of transpOr-
tatiOn and travel and cannot be estimated
in local sections. The bridges over the
Ogeechee and Altamaha rivers give value
to the depot grounds in Savannah, and
they in turn add value to those bridges.
The railroads should be allowed to make
Just and reasonable profit for the stock
holders on their investment. If they are
to be subjected to local taxation, it is
right that their rates and tolls should be
sufficiently increased to enable them to
pay these additional burdens. And if this
is done the citizens Of Savannah, who are
patrons of the road, will contribute to the
taxes of every city, town and
county through which the road passes,
and the citizens of those places will also
contribute to the payment of the taxes of
Savannah. Thus far there is some show
of reciprocity, but there are many COM
munities which have no railroads to tax,
and yet must use those nearest to them.
! Upon every occasion that they might
travel or have transported produce or
merchandise they would aid in the pay
ment of local taxation in which they have
no interest or representation.
1t is thought that the wiser policy is to
levy a State tax alone. In this the whole
people of the State are alike represented
and interested. Judge Bradley decided
that this was the policy Of the State of
Georgia, as expressed by the various
enactments, and that the city Of Savannah
had not been authorized to depart from it
so as to collect the taxes which were
assessed and claimed.