Commonwealth v. Cumberland Telephone & Telegraph Co.

• Decision Date: 06 February 1907
• Citation: Commonwealth v. Cumberland Telephone & Telegraph Co., 124 Ky. 535, 99 S.W. 604 (Ky. Ct. App. 1907)
• Parties: COMMONWEALTH v. CUMBERLAND TELEPHONE & TELEGRAPH CO.
• Court: Kentucky Court of Appeals

99 S.W. 604

124 Ky. 535

COMMONWEALTH v. CUMBERLAND TELEPHONE & TELEGRAPH CO.

Court of Appeals of Kentucky.

February 6, 1907

Appeal from Circuit Court, Christian County.

"To be officially reported."

Action by the commonwealth of Kentucky, by Frank A. Lucas, as revenue agent for the state at large, against the Cumberland Telephone & Telegraph Company. From a judgment of the circuit court, affirming an order of the county court sustaining a demurrer to the statement, plaintiff appeals. Affirmed.

Taylor & Lucas and Jno. C. Duffy, for appellant.

Hunter Wood & Son and Wm. L. Granberry, for appellee.

HOBSON J.

Frank A. Lucas, as revenue agent for the state at large, filed a statement in the name of the commonwealth against the Cumberland Telephone & Telegraph Company in the Christian county court, in which he charged that for the years 1900 1901, 1902, 1903, and 1904 the telephone company was the owner and in possession of bonds, notes, accounts, cash in hand and in bank, stock in other corporations, and other credits, of the value of $5,000,000, and that it had failed to list the same, or any part thereof, with the assessor or board of supervisors of Christian county. The county court sustained a demurrer to the statement, and dismissed the proceeding. An appeal was taken to the circuit court, which entered the same judgment, and the plaintiff has appealed to this court.

The question to be determined is whether the stocks, bonds notes, accounts, money, and other credits, of the telephone company, which is a Kentucky corporation, are to be listed with the assessor in its home county, or are to be considered by the board of valuation and assessment in assessing the franchise of the company? It is not averred that this board has not assessed the property referred to; but it is insisted that this board has no authority to consider such matters and that the proper place for the property to be assessed is with the county assessor at the residence of the corporation. The case simply involves a construction of the statute. Article 1 of the revenue act relates to general provisions; article 2, assessment of property; article 3, the assessment of certain corporations. Section 4077, Ky. St. 1903, which is the first section of article 3, provides that certain corporations, including telephone companies, shall each "in addition to the other taxes imposed on it by law, annually pay a tax on its franchise to the state, and a local tax thereon to the county, incorporated city, town and taxing district, where its franchise may be exercised." The next section (4078) provides how the franchise tax is to be fixed, and requires certain reports from these corporations. One of the things required to be reported is "the amount and kind of tangible property in this state, and where situated, assessed, or liable to assessment, in this state, and the fair cash value thereof, estimated at the price it would bring at a fair voluntary sale." The next section (4079) requires the board to take into consideration all...