Michigan Cent. R. Co. v. Carr

• Decision Date: 21 June 1922
• Docket Number: No. 14655.,14655.
• Citation: 303 Ill. 354,135 N.E. 881
• Parties: MICHIGAN CENT. R. CO. v. CARR, County Collector.
• Court: Illinois Supreme Court

303 Ill. 354

135 N.E. 881

MICHIGAN CENT. R. CO.

v.CARR, County Collector.

No. 14655.

Supreme Court of Illinois.

June 21, 1922.

Suit by the Michigan Central Railroad Company to restrain Patrick J. Carr, County Collector, from collecting certain taxes. From a decree dismissing the bill, complainant appeals.

Affirmed.

Appeal from Superior Court, Cook County; Charles M. Foell, judge.

Winston, Strawn & Shaw, of Chicago (Edward W. Everett, of Chicago, of counsel), for appellant.

Robert E. Crowe, State's Atty., George E. Gorman, and William H. Duval, all of Chicago (Hayden N. Bell, of Chicago, of counsel), for appellee.

DUNCAN, J.

This appeal was taken to have reviewed the decree of the superior court of Cook county sustaining appellee's general and special demurrer to appellant's amended bill to declare unlawful, void, and fraudulent certain taxes assessed against its railroad property, and to restrain appellee from collecting or attempting to collect the same, and dismissing its bill for want of equity.

The following facts are stated in the bill: About 1852, by contract with the Illinois Central Railroad Company, appellant extended its lines to South Water street, in Chicago. The Chicago, Burlington & Quincy Railroad Company and the Chicago & Northwestern Railway Company are common carriers whose railroads extend up to the west bank of the south branch of the Chicago river, and it is approximately 3,748 feet from the west bank of the river to the right of way of the Illinois Central Railroad Company. The four railroad purchased a strip for right of way between said points, and built at joint expense thereon a railroad connection, which is referred to in the bill as the Sixteenth street side-track connection. Each railroad company owns an undivided one-fourth interest in the track connection, which lies between Fifteenth and Sixteenth streets. Since 1852 the track connection has been used by the four railroad companies for interchange of cars and traffic. Appellant has never used said connection for any purpose other than exchange of freight from its railroad to connceting railroads and for delivery and receipt of freight to and from industries located thereon. It has never operated over the track connection as a main line, and has never run its regular passenger or freight trains over the same. The tracks are side tracks and turnouts, and should be so considered for purposes of taxing in Illinois. From the time the track conncetion was built until the same was assessed for taxation for the year 1920 it has usually and customarily been considered and treated by the four railroads and the officials of Illinois who assess and tax the same as a railroad owned by said four railroad companies, each owning an undivided one-fourth interest therein. It has never, prior to 1920, been considered or treated by public taxing authorities as an independent railroad, the ownership and operation thereof always being considered and treated as in said four companies. It was never owned by a company or corporation known as the St. Charles Air Line Railroad Company, or any entity with a similar name. It was characterized as the St. Charles Air Line by the employees of said companies as a mere matter of convenience. The connection has 13,804 feet of track, is not a part and parcel of any main line or railroad of complainant, and should be treated as side-track and not as main line for the purpose of taxation. Within the time required by statute, appellant, as a corporation owning and operating a railroad in Illinois, returned sworn lists and schedules of its taxable property, and in said lists and schedules included its undivided one-fourth interest in the track connection as part of its railroad track. At no time, except in the year 1920, has said connection been returned by the companies owning the same as an independent railroad, and it was never so considered by the Illinois officials who have taxed it, except in the year 1920. The lists and schedules of taxable property of complainant were made and sworn to within the time required by law, and filed and delivered in accordance with the requirements of the law. It is further charged in the bill that about October 20, 1920, the tax commission after having under consideration the question whether or not said track connection should be assessed as a main line railroad and a return filed showing the connection to be a separate railroad distinct from the railroads of the owners thereof, decided and determined that the same should be assessed as the St. Charles Air Line Railroad for the year 1920, and made the following finding and report:

‘That the tentative assessment of the property of the said St. Charles Air Line Railroad, as hereinbefore ascertained and fixed by the tax commission for the year 1920, be and the same is hereby confirmed, and that said assessment be certified to the county collector of Cook county as a separate and distinct piece of railroad property, and that the same be extended on the tax books of Cook county against said property designated as the St. Charles Air Line for the year 1920.’

The amended bill then charges: That the track connection is assessed as main, second, and side track. That the county collector extended a tax, as directed by the tax commission, against said connection in and upon the following equalized valuations: Main track, 3,748 feet, $297,675; second main track, 3,748 feet, $35,158; side tracks, turnouts, etc., 6,308 feet, $23,439. That the total tax extended against said property upon the valuation and now sought to be collected by the collector of Cook county amounts to $19,203.15. The bill charges that said action is void, in excess of authority, unlawful and fraudulent because it violates the rights...