Huck v. the Chicago

• Decision Date: 30 September 1877
• Citation: 1877 WL 9732,86 Ill. 352
• Parties: LOUIS C. HUCK et al.v.THE CHICAGO AND ALTON RAILROAD COMPANY.
• Court: Illinois Supreme Court

86 Ill. 352

1877 WL 9732 (Ill.)

LOUIS C. HUCK et al.

v.THE CHICAGO AND ALTON RAILROAD COMPANY.

Supreme Court of Illinois.

September Term, 1877.

APPEAL from the Circuit Court of Cook County; the Hon. E. S. WILLIAMS, Judge, presiding.

Mr. JAMES K. EDSALL, Attorney General, for the appellants.

Mr. JOHN P. WILSON, for the appellee. Mr. CHIEF JUSTICE SCHOLFIELD delivered the opinion of the Court:

The State Board of Equalization assessed the capital stock of the Chicago, Alton and St. Louis Railroad Company in the year 1875 at $5,723,319, for purposes of taxation; and the object of the present suit is to enjoin the collection of all taxes, State, county, and municipal, extended upon that assessment.

The Chicago and Alton Railroad Company was incorporated by an act of the General Assembly in force February 18, 1861. The 1st section of the act appoints certain commissioners to organize the corporation, “subject to all the conditions, franchises, rights and privileges” conferred by the act. The 2d section empowers a majority of the commissioners to acquire, “by purchase, transfer, or conveyance, all and singular the railroad and all its property, real and personal, with the corporate rights, franchises, rights, privileges and effects now or hereafter belonging to, or owned or vested in, the Alton and Sangamon Railroad Company, afterwards called the Chicago and Mississippi Railroad Company, and also the Chicago, Alton and St. Louis Railroad Company.” The 11th section empowers “the president and directors of the corporation, by and with the written consent of a majority of its stockholders, to acquire, by lease, purchase, or otherwise, any extension of its road necessary and proper to its business;” and provides that “all the property so acquired shall become part of the property of said corporation, and shall be as fully subject to the provisions of this act as if the same constituted part of the original purchase by said commissioners hereinbefore named.” The 13th section empowers the president and directors of the corporation “to do everything necessary to preserve and maintain its railroad property and effects, not inconsistent with the provisions of the act,” and “to prescribe by-laws for the government of its officers, fix the rates of toll in the transportation of freight and passengers over its railroad, and ordain rules and regulations for the division of its profits,” etc.

The Joliet and Chicago Railroad Company, the Alton and St. Louis Railroad Company, and the St. Louis, Jacksonville and Chicago Railroad Company, by their several leases dated, respectively, January 1, 1864, April 16, 1864, and April 3, 1868, leased their railroads, and property used in connection therewith, to the Chicago and Alton Railroad Company, forever. In each of the leases the Chicago and Alton Railroad Company covenants that it will, at all times, and at its own proper cost and expense, keep in good and sufficient repair and working order the several railroads; make all needful repairs and additions thereto, including the renewal of track, etc., and all additions thereto which may be necessary and proper to secure the prompt and efficient dispatch of the ordinary business of the roads. It also covenants, in the leases of the first two named companies, that the leased premises shall be forever used and operated as a part of the main line of the Chicago and Alton Railroad. And in all of the leases it covenants that it “will at all times hereafter pay all taxes, whether State, Federal, or municipal, which are or may hereafter be assessed against the premises hereinbefore demised and leased, at the time when said taxes may be due and payable.”

The revenue law requires “every person, company, or corporation, owning, operating, or constructing a railroad, to return a schedule of the taxable property of such railroad,” for taxation. Rev. Stat. 1874, p. 865, sec. 40. And the rolling-stock is to be listed and taxed in the several counties, towns, villages, districts, and cities, in the proportion that the length of the main track used or operated in such county, town, village, district or city bears to the whole length of the road used or operated by such person, company, or corporation, whether owned or leased by him or them in whole or in part.

We think it very clear, from the corporate powers conferred by its charter, the terms of the leases, and the provisions of the revenue law referred to, that the Chicago and Alton Railroad Company is, for all purposes of taxation, at least, if not for all other purposes, to be regarded as the owner of all the leased property. See, also, Kennedy v. St. Louis, Vandalia & Terre Haute R. R. Co. 62 Ill. 396.

There can, therefore, have been no error in assessing the property held by virtue of the leases, in common with all its other tangible property, against it for taxation; and, as we understand the argument of the counsel for the company, it is not claimed there was any error in this respect.

But it is contended that the State Board of Equalization, in assessing the value of the capital stock, included in the assessment the capital stock of each of the lessor companies. A careful examination of the evidence relied on to establish this charge has convinced us that it has no foundation in fact.

The only evidence upon this point is the published report of the proceedings of the State Board of Equalization, in which appears the table given on page 356.

It will be observed, by reference to this table, that the amount of $5,723,319 is the assessed and equalized value of the capital stock, after deducting the assessed value of the tangible property of the Chicago and Alton Railroad Company alone; and, from the table, it is impossible that the capital stock of the other companies could have entered into the amount. Thus, the total capital stock of that company, paid up; its total indebtedness, except for current expenses; the market or actual value of the paid-up capital stock and debts as determined, and the equalized value of the capital stock and debts, are given in a single line. Against the Alton and St. Louis Railroad Company no amounts are carried out; but against the other two companies amounts are carried out, under each of these specifications, in consecutive lines, directly under that referring to the Chicago and Alton Railroad Company. The equalized valuation of the capital stock and debts of the Chicago and Alton Railroad Company is given at $10,175,135.

TABLE “A.”

Showing the assessment made by the State Board of Equalization on the capital stock of Railroads, accompanying and made part of the Report of the Committee on Assessment of Capital Stock of Corporations.

+-----------------------------------------------------------------------------------------------------------------+
                ¦            ¦       ¦            ¦           ¦          ¦          ¦Assessed   ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦           ¦Capital   ¦          ¦and        ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦           ¦stock and ¦          ¦equalized  ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦Market or  ¦debt as   ¦Total     ¦value of   ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦actual     ¦equalized,¦equalized ¦capital    ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦value of   ¦with the  ¦value of  ¦stock,     ¦           ¦          ¦          ¦
                ¦            ¦CAPITAL¦TOTAL       ¦paid-up    ¦aggregate ¦tangible  ¦being      ¦           ¦          ¦          ¦
                ¦NAME OF     ¦STOCK  ¦INDEBTEDNESS¦capital    ¦assessment¦property  ¦excess of  ¦           ¦          ¦          ¦
                ¦COMPANY.    ¦PAID   ¦EXCEPT FOR  ¦stock and  ¦of the    ¦assessed  ¦equalized  ¦           ¦          ¦          ¦
                ¦            ¦UP.    ¦CURRENT     ¦debt, as   ¦State by  ¦by State  ¦value of   ¦           ¦          ¦          ¦
                ¦            ¦       ¦EXPENSES.   ¦determined ¦deducting ¦Board and ¦capital    ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦by the     ¦50 per    ¦in        ¦stock and  ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦State      ¦cent of   ¦counties. ¦debt over  ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦Board.     ¦market or ¦          ¦equalized  ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦           ¦actual    ¦          ¦value of   ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦           ¦value.    ¦          ¦tangible   ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦           ¦          ¦          ¦property.  ¦           ¦          ¦          ¦
                +------------+-------+------------+-----------+----------+----------+-----------+-----------+----------+----------¦
                ¦            ¦       ¦            ¦Proportion ¦          ¦Proportion¦           ¦           ¦          ¦          ¦
                ¦            ¦       ¦Total.      ¦in         ¦Total.    ¦in        ¦           ¦           ¦          ¦          ¦
                ¦            ¦       ¦            ¦Illinois.  ¦          ¦Illinois. ¦           ¦           ¦          ¦          ¦
                +------------+-------+------------+-----------+----------+----------+-----------+-----------+----------+----------¦
                ¦Chicago and ¦}      ¦$11,335,300 ¦$11,335,300¦$8,242,200¦$8,242,200¦$20,350,269¦$10,175,135¦$4,451,816¦$5,723,319¦
                ¦Alton       ¦       ¦            ¦           ¦          ¦          ¦           ¦           ¦          ¦          ¦
                +------------+-------+------------+-----------+----------+----------+-----------+-----------+----------+----------¦
                ¦Alton and   ¦}      ¦..........  ¦.......... ¦..........¦..........¦.......... ¦.......... ¦..........¦..........¦
                ¦St. Louis   ¦       ¦            ¦           ¦          ¦          ¦           ¦           ¦          ¦          ¦

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