The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-02-18
OPRIETOR BUFFALO LITHIA SPRINGS, VIRGHI
TAXATION OF FRANCHISES.
Michigan Supreme Court Holds Them
to Be As.esxabIe

TO BE AssessabIe-
LANSING, Mich. Feb 18-The State
Supreme Court in the case Of the De
troft Citizens Street Railway Company
VS. the Detroit Common Council, uphoids
the legality of the action of the Detroit
assessors in including in the value OF the
property OF such corporations as street
railway and gas companies the value
given to it By the public franchises which
they enjoy
The street railway company asked for
a mandamus 10 compel the council to
either strike the assessment from the rolls
or reccnyene and strike from the assess
ment certain sums alleged to represent
/ the values placed upon the company s
franchise and place upon the roll its per-
so1al property at the actual cash value
Of its tangible personal property subject
TO taxation
The prOpriety Of treating properties as
unit Is declared by the court TO be as
natural and proper for the purposes Of
assessment as for sale, and especially so
where the various articles are so essen
tial TO the purpose for which they are
combined that the withdrawal Of one
would destroy or substantially impair the
use OF ali for the purpose 10 which in
their new form they are adapted
The court says il may take judicial
notice Of the fact that the railroad has a
large market value, much in excess Of any
amount that il would have were it 10 be
dismantled and the parts sold separately.
Again" says the court he assess
ment of steam railroad in continuous
right OF way through the State over a de-
sirable route and in use has much
greater value than the same kind or a
right not in use or in small disconnected
parcels or in a remote region, where il
cannot be used profitabIy Manufacturing
establishments and large buildings favor
ably located and adapted TO special uses
illustrate the same principle, and we
think It is incorrect to say that the rec
ognition of this principle and its con-
sideratiOn in assessment IS taxing the
good viii Of the business, which like
eXecutory contracts. has not usually been
thought TO be taxable"
The contention that if an intangible
license to do an exceptional business is
not made taxable property by express
statute it cannot be taxed Indirectly was
considered; but the court concludes that
ii is clear that the property should be
taxable and at its cash value whatever
Il may be that causes the value
If as claimed. the street railway
property is worth and would bring, with
the franchises that are inseparable from
it and necessary to go with it, from $1G.-
600 ,000 20 $I5 Geo, coo, its owners have no
right to expect 10 be taxed on a basis Of
81 500 GOO and the court feels confident
that the Legislature never contemplated
a construction Of the tax law that would
justify it Whether the property is worth
such a sum is not for US TO decide That
question is for the assessors and Board of
Review. and as held by the learned cir
cult judges, their determination cannot be
disturbed if regular and not fraudulent
4 significant and important statement
IN the opinion IS the following:
Whatever may be thought OF the effect
Of this case upon the right 10 tax the good
VIII of a business OF the ability OF the
owner OF property 10 use II to extraOrdin-
AIRY advantage, which we find il unneces-
sary TO approve, we consider it s strong
support to The doctrine that the tangible
property of q street railway company may
be assessed as a unit, and that the loca-
ton of its easement and tracks as to en-
vironmeut and the period that 1t may Law
fully use it. and any other exceptional
privileges insepaTably connected with 1t,
NAV be considered IN determining its
value: or. in other words the assessor
may not eliminate them by making redUc-
lions in the clear value OF the entire
plant Unlike the good VIII of merchant
or manufacturer. which is ephemeral,
these are part and portion of the right to
make use Of the property for the purpose
for which il is adapted