The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-26
TIE cENrRAL,s TAXES
Judge Speer's Decision VIII Likely GO
to the Court Of Appeals.


to the Court Of Appeals.
Copies of the decision OF Judge Speer
holding the Central railroad liable for
taxes to the counties and cities along its
line between Savannah and Macon under
the Glenn bill passed by the legislature
OF 1SS9-sO were received in the city yes
terday.
The cease was argued before Judge
Speer in Macon last May, having come
up on an Intervention in the Central rail-
road causes filed by Controller General
William A. Wright in behalf of the coun-
ties and cities between Savannah and
Macon through which the road runs. Il
was argued in behalf Of the state by
Attorney General J. N. Terrell. for
several OF the counties by Hon. Robert
Hodges Of Macon, and on behalf Of the
Central railroad. which opposed any rule
for the payment Of taxes under the Glenn
act, by Messrs. Lawton & Cunningham.
The Glenn biI gave the right TO coun-
ties and cities through which railroads
in Georgia run. TO levy a tax upon the
property in those corporations similar 10
the tax levied upon other property Of a
like nature. The arguments Of the at
torneys for the Central was that the
road between Savannah and Macon was
not liable for the taxes assessed under
its charter. which states distinctly that
''The said railroad and the appurtenances
of the same shall not be subject to be
taxed higher than one-half of / per centum
upon its annual net income. and no mu-
nicipalty or other corporation shall have
power to tax the stock of said company,
but may tax any property. real or per-
sonal, of the said company within the
Jurisdiction of said corporation in the
ratio of taxation Of like property"
The attorneys for the state admitted
that this section of the charter ex-
empted the railroad from taxation except
as provided as long as there was no
specific legislation on the subject, but
that the charter distinctly admitted the
liability of the road TO taxation on its
personal property after the passage Of
such legislation as would provide for It'll
collection. for as will be seen it states
that corporations may tax the real and
personal property of the corporation in
the ratio OF taxation of like property,
The attorneys for the Central, on the
other hand, held that the word stock in
this clause of the charter meant capital
stock and that it had already been deter
mined by supreme court decisions that
when capital stock" was used it meant
the property in which the amount of
money subscribed as the capital stock
of corporation was invested On this
ground it was held that this clause Of the
charter exempted the portion of the road
between Savannah and Macon from taxa
ton, as provided in the Glenn bill.
Judge Speer held, however that as it
was a rule of equity, that exemption from
taxation should never be presumed, but
should always be distinctly stated, the
word stock should be construed to mean
the stock certificates as held by the sub
scribers to the capital stock and not the
real and personal property which was used
by the corporation. With this view of
the case, he decided that the road was
subject to taxation in the counties and
cities between Savannah and Macon and
that the taxes from 1891 to 1894. inclusive,
with interest should be paid to these cor
porations. The total amount of these
taxes for the years mentioned will be
somewhere in the neighborhood of 100000.
There was no question about the con-
stitutionality of the Glenn bill as has
been stated. In fact, the conshtutionality
of the bill was admitted a that time, and
has subsequently been decided by the SUI
preme court of the United States as well
as by the supreme court of the state of
Georgia, in the case of the state against
refused to pay the taxes as levied under
The Glenn bill The supreme court Of the
United States decided the question in
favor of the state, declaring the law TO
be constitutional.
In the case of the Central railroad, with
the exemption clause in its charter, how
ever, the question is considered to be one
of doubt. 1t is a question as to whether
the word stock means capital stock, -
or merely the stock certificates as held
by the subscribers to it. The Central rail-
road viii probably not allow the matter
TO rest where it is, and it is likely that
the matter viii be carried to the circuit
court of appeals. Although under the new
charter, which the road win have to OBJ
tain under the reorganization, it will not
be exempt from taxation any more than
other property, the question still involves
about 100000 for taxes for the years
mentioned and is consequently worth car
rying to the court of appeals if there is
any likelihood of obtaining a reversal of
the decision which has been rendered.