The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-08-04

taxation by the State Is that the rolling
stock.capital stock and franhcise are per,
sonal property, and that this. with al
other personal property, has local Situs
at the principal place Of business or th2
corporation, and can he taxed 10y no
other county, city or town, but the one
where it is so situated This Objection
is based upon the general rule Of law
that personal property, as to its sltus'
follows the dolniCile of the owner. II
may be doubted very reasonably whether
such a rule can be applied to q rallroaa
corrpratiom as between the different 10
calitics embraced by its line OF road
But. after all. this rule is merely the
law of the State which recognizes 1t ana
when il is called into operation as 10
property located in one State. and oWned
Inv resident OF another, it Is fal" o.
comfy in the former State rather than
an absolute principle i'm all cases. Green
v Van Buskirk, ; Wall, 312'
In Maryc v. II. & ID. II. II. Co, III. Z.
S., III. the court held that State may
tax rolling stock owned by foreign
CORPORATION which is used within the
State although the specific and individual
class of property SO used WIS mot ccu~
tinuouSly the same, but were continually
changing according to the eXigency OF
the business.
See Denver and r. G.. Il. Co. V.
Church, 43 Am and Eng. X. Gas. 62l;
Atlantic & =. r. Co. V. Lcseur 81 a.
& II. II Gas. 36S; Atlantic r. Il. Co V.
Yavapai Go 80 A. & II. Il. Gas. 543.
Under Illinois Act of April .. 1869,
entitled "An Act for the collection of
railroad taxes in certain counties. cities
ard towns" the persons or company
operating railroad are liable fer the
taxes upon the rolling stock used upon
such read, without reference to the
ownership Of the road or the rolling
stock so used. Kennedy " ST Louis
v. & T. IL. r. Go. 81 Ill. 800, Ann.
Ry. Rep. 346.
THE actual situs and control of the
property within this State, and the fact
that it enjoys the protection of the
laws here are conditions which subject
ii to taxation here; and the legal he
ton which is sometimes for ether pur-
poses indulged that it is deemed to fol-
low the person of the owner, and 20 he
present at the rface of his. domicil, has
no application. In such case. the mlxim
''morbilia personam sequuntIr' gives
way to the other maxim 'jurlS selhober
aeouitas existat."
Redmond \. Commissioners, 81 \. {.
1873
Bain's case has never been cited with
approval i'm North Carolina. nor. accord
ing to Mr. Rapale, in any other State 1t
is plainly repugnant to later decisions
of the Supreme Court of the United
States which must be followed uTyn
Federal questions. The Supreme CouT
of North Carolina must repudiate it,
when the occasion offers. Otherwise tie
taxation of cars of the Pullman Com
pa1ly must be abandoned as unconStitu-
tional, and the taxation of the rolling
stock Of the Southern Railway must
cease
'.Bain's case has also been expressly
oyerruled in Union Refrigerator Transit
Co v Lynch, % Pacific Rep. 642 decided
in 1899.
III. THE SOUTHERN RAILWAY
COMPANY SHOULD BE ASSESSED
UPON THE AVERAGE AMOUNT
OF ROLLING STOCK USED ON
THE PIEDMONT RAILROAD FOR
L L
This road has been, since July list,
1894, am integral part of the Southern
Railway and has been operated 10y it.
1t has never owned any rolling stock,
but the same has been supplied by the
Southern Railway Company. This COM
pany has listed such rolling stock at
S11S,300 for the years 1897, 1898 and
1899 Approximately the same amount
Z. ! / s.st Il
and was used in 1895 and 1896. For
these years no ratrGn was made. If
the Southern was bound to pay taxes
ON this rolling stock in 1897, the same
obligation rested upon it in 1895 and
1896. The Balm case, if it had not
been overultled by the Supreme Court of
the United States, would not apply,
because the Southern Railway is oper-
ating its own road in NORTH Carolina
with it's own rolling stock, using every
day the same average amount. Ut makes
no difference Chat the same cars are
net always on the read and within the
State, for while they are ON other roads,
tire rylling stock of such roads are sup
plying their places If the Piedmont
road were an independent organization,
and owned its own complement OF Sis
taxable ON the Whole thereof, although
the greater part were running inter
changeably with either lines IN tine coun-
try. which i'm turn supplied with uleir
own cars the Piednont's necessities
while it's cars were absent.
". THE SOUTHERN RAILROAD
SHOULD BE ASSESSED UPON
THE DEFICIENCY OF ROLLING
STOCK ON TIE NORTH CARO-
LIMA RAILROAD WHICH HAS
BEEN SUPPLIED BY IT.
Section rs of the Machinery Act of
1893 provides:
If the property of any railroad COM
pany lie leased or operated by AMY
other corporation, foreign or domestic.
$50. and if the lessee or operating
company, leing a foreign corporation.
be the owner or possessor of
any property in this State other than
that which it derives from the lessor or
company whose property is operated, il
shall be assessed in respect of such
DronpptV i'm like T,aYpn1, or,, Jo,,...4.