The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-25
IS LIABLE FOR TAXES.
THE ATTORNEY @ sNERAL'S OPIN.
ION AGAINST THE CENTRAL

Upon Which the Opinion is Based.
Chatham Would Get SCI 900 and the
City Of Savannah $4,000 II the
Taxes We're Paid-Oapt Cunning
hams View OF the Matter and the
Centrars Prob able Action.
! The Central railroad may have to pay city
and county taxes. Attorney General Little
has rendered his opinion to that effect. but
the final decision will rest with the courts.
The legislature Of 1888 and 1889 passed a
bill requiring all railroads TO pay municipal
and county taxes, as we'll as state taxes.
making no exception In favor Of any. The
Central railroad, the Georgia railroad, the
Southwestern aud nearly all the
| old railroads Of the state
claimed exemption under their
charters, by which they were exempted
| from taxation. Since then the question has
| been as to the liability of the railroads for
these taxes, the railroads. OF course, cous
tending for their exemption.
In an elaborate opinion rendered by At
| torney General Little to Controller General
Wright in response to the letters inquiry
as to the liability Of the Central railroad
under the recent act. the attorney general
makes an elaborate review Of the situation
entering into the history of the Central
railroad aud the various acts for its incor-
poratiou passed since 1885, He concludes
that the section Of the charter exempting
the railroad from taxation was meant to
apply TO the capital stock Of the company,
it being then customary to tax the capital
stock of corporations, but that It was not
meant to apply TO any other property
Of the road.
THE ATTORNEY GENERALS OPINION.
The attorney generals conclusions are as
follows:
l. That in limiting the tax on the railroad and
appurtenances to an amount equal to one-haf
OF per cent. on the net income, the legislature
committed the amount which the company
snould pay as state tax perpetually. but
expressly reserved the right that municipal
and other corporations might tax all property
OF the company within their respective juris-
dictions
2. That in prohibiting municipal corporations
from taxing the stock of the company, the
legislature meant either to refer two shares of
stock in the hands of individuals or to that
species OF corporate property therefore
recognized as proper subject OF taxation, in
neither case including the property Of the cor
poration.
3. That as the prohibition against taxing the
STOCK is coupled with a grant to tax all prop
erty, 10 construe the word stock as including
real and personal property, would qualify the
grant and extend the exemption by implica
ton.
4. That when capital stock is by charter
exempted from taxation, this will not be held
10 include corporate property, il the language
Is ambiguous, nor unless by the language used.
the clear manifest intent Of the legislature to
exempt the property be shown.
lnasmuch then as the legislature has by the
act OF $50 authorized counties 70 impose a tax
on railroad property and prescribed the re-
quslte machinery for its assessment and col
lection, 1t is my conclusion that a proper CON
struction of the charter Of the Central railroad
does not exempt any Of the property of that
company from the imposition of that tax.
In so advising, 1 refer to the property of the
original company, under the charter of 1885, un-
derstanding your request to be 80 confined.
THE EXEMPTION BY CHARTER.
The section of the charter Of the Central
railroad which Is construed to exempt IL
from all taxation, state county and NUM-
cipal, except the l q per cent, income tax,
specifically mentioned is as follows:
SECTION is. The said railroad and the APP
| purtenances OF the same shall not be subjected
to be taxed higher than one-haf of per centum
| or other corporation shall have power to tax
the stock of said company, but may tax any
property, real or personal, of said company,
Within the jurisdiction of said corporation in
the ratio of taxation Of like property.
The attorney generals decision would
seem TO be supported by the wording of
the charter, as it says directly that no
municipal or other corporation shall have
the power to tax the stock Of the company,
but may tax any real or personal property
VI bu6 COMPANY COullDR UQe llLDlLb OF
its jurisdiction. How the depots, ware-
houses. roadbed and other property of the
Central railroad and other railroad COM
panies have escaped taxation heretofore
under the wording OF the charter. lawyers
say, is difficult to see. This, however, de-
ponds entirely upon the Interpretation of
the charter.
CAPT. CUNNINGHAM's VIEW OF IT.
Capt. II. G. Cunningham. counsel Of the
Central railroad, said yesterday when
spoken to about the matter that he Judged
that the attempt TO collect county taxes
from The Central was by chasing the coun-
ties as corporations under the provisions OF
the constitution of 1877. The Central rail-
road, he said, had never paid county and
municipal taxes, and it is doubtful II il
ever will, as under its charter it is held to
Re exempt from all taxation except the IL
per cent. tax upon its gross income. When
an attempt is made to collect the
tax, he said, the question will be
taken TO the courts upon an affidavit of
illegality. and would be thoroughly investi-
gated there. Capt Cunningham said that
about twenty-five years ago an endeavor
was made to make the Central liable for
ell taxes, state, county and municipal, and
the supreme court of the state decided that
the road was liable. The case was carried
to the United States supreme court which
decided that under its charter the road was
not liable for all taxes, as decided in the SUI
preme court Of the state. 1t may be taken
as decided that the Central is not liable for
state taxes further than the IL per cent.
! upon its income. The question now is
whether it Is liable for county and mu-
nicipal taxes.
CHATHAM CoUNTY'S SHARE.
Chatham county would reap a larger
revenue from the taxation Of the Central
railroad than any other county i'll the state
its yards and warehouses being located here.
| II the city tax were paid without resistance
it would give the city Of Savannah 1872, 473,
and the county tax would be S31, 740.
| Capt. Cunningham said that the idea that
the amount that would be required of the
! Central for county taxes, IL 1t should be
| found to be liable. would mount into the
| hundreds OF Thousands is erroneous He
| did not seem to think it would amount to
over 100000 for the whole state. As the
! average rate of county taxation is about
per cent. or less, and supposng that there
should be found Sl0,0O0,0O0 of Central for
taxation in the state, it is seen that the total
of its county taxes would amount to only
| 100000. Normally this would not be a
heavy burden for large corporation like
the Central railroad, but in its present de-
| pressed condition the Central would find it
an addition to its already heavy burdens.