The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-03-05
AN IMPORTANT DECISION.
Street Railway Franchises Arc Taxable
According TO Value.


According To Value.
A very important decision was rendered
In the Supreme Court OF Tennessee on last
Thursday affecting the right OF counties TO
tax street railway companies II appears
that in 1857 the South Nashville street
Railroad Company was assessed by the
regular assessor for purposes OF State and
county taxation upon the following yalua-
ton:
Real property $4,000, personal property
$4,000. Ia 1855 Il was assessed rs follows:
Mules, 5000 ears, s., 500 real estate, $1,000;
stockholdcu,S1,lOOO. by Section "a. OF the as
Seument law Of March a, Iss7, il Il pro.
vided, that II at any time after the assess
mcnts have have been made il should come
10 the knowlelgc Of the Chairman or Judge
Of the County Court or the Clerk of the
County Court the County Trustee or sheriff
that amy person or corporation has not been
assessed, cor has been assessed upon an In.
adequate amount, that II shall be the duty
OF such officer ON motion Of the Attorney
General 10 cite said person or corporation,
their agent or attorney or representative TO
appear before the Trustee for the purpose Of
being assessed according 10 law; and said
Trustee Is hereby authorized and empowered
TO make the proper assessment against such
l'AH'Af hihA VI ANl lhiAAtuls y fuUl
10 cause the same to DO entered on the tax
books for collection" Acts OF lSs5, PAGE "a
Under this authority the County Trustee
Tor Davidson County, upon the motion Of
the Attorney General, aud upon notice TO
the said corporation. rcnsscssud the corpor.
ate properly for both lss7 and ISIS. and al
the same time aud upon the same notice
treating the corr oatiOn a. the agent Tor and
representative 0i the shareholders aud bond
a.. III -
shares Of stock in said corporation 10 the In.
dividual shareholders by name, and the out
standing coupon bonds OF the company 10
unknown owners" by this rcnsscssmcnt
the valuation OF the corporate property Inns
been largely Increased. The shares OF stock
aud the bonds Of the company not having
before been assessed are assessed ~ omitted
property. The company denied the
right Of the County Trustee 20 increase the
assessment for. 1851, Il having Heretofore
paid the tax assessed against Il Tor that wear
IL denied the right OF the Trustee 20 asses
the shares Of stocks, or 10 ass-ss IT, bonds In
such manner rs 10 compel the company 20
collect the tax thus assessed from H. share
holders or bondholdcr, or 20 compel the
company 10 pay such tax M assessed or be
liable for same. II likewise denied the LA.
bility Of it, b lnds ~ assessment and the lc-
galiiy Of the assessment made. Both the
]
right Of the Trustee 10 assess both the com
pany's property and the shares Of capital
stock as being double taxation. Therctipon
AN agrCcd case was made up to have the VA.
lidity Of these several assmcnts deter.
mined. and 20 have the act Of iSs5
construed aud ~ consHtulionality CON.
sidorcd and the liability of the com.
pany by reason Of said assessments under
the provisions OF the act declared and ascct.
iaincd. The parties 10 this agreed case were
the company and Us shareholders upon the
one side aud the County Trustee upon the
other. Tho bondholdcrw were unknown and
Of course wcrc not parties 10 this suit Tho
agreed ease was submitted g. the Circuit
Court OF Davidson County, aud all OF the
assessments were sustained ~ valid except
IN ~ Ear as the imnchisc OF the CORPORATION
had been, Ia the opinion OF the learned
Circuit Judg. nxscsscd separately aud indie.
pondcnilyof other property Of the company.
Tho part OF the assessment qunshed bv the
Circuit Court Will BE- first disposed Of. Tho
Assessor has nndcriakcn Ia iicmize the scy.
oral propcrtits oi the company and 20 value
them separately. Tho franchises OF the com.
pany, together with It's easement la the
streets OF Nahelllo. under the ordinances 81
said city and We contract between the city
aud tho Street Railway Company, art az.
scsscd ~ OF a valuation OF $1,000
Inc HupUNH Noutb Va an elaborate
opinion. sn-laleed The Trustee upon all
points exccpt the right 10 tax nonresident
bondholdcns. Judge Lurion says,
The city has1nhdc n contract with the som.
pany by whieh-u has granted TO the latter
what Il substantially lcasch0d In a portion
OF this street for number Of years. ID las
acquired rights in the street which no other
person or company, nor the general public
possess. w I'LL. 05J. This easement In tho
streets, together with the franchises, are a..
sc.scd rs OF valuation OF sio.OOo. II would
have been better 70 have ussts cd these clio.
spikes, etc, ~ together constituting somuch
street railway. The franchise. 10 be \ cor
porallon, 4 properly, and us such must be
assessed. Il ought however, 10 be assessed
With the tangible property Of the company.
aud not separately Herr Ill has been assessed