Missouri Pac Co v. Western Crawford Road Improvement Dist

• Decision Date: 17 November 1924
• Docket Number: No. 67,67
• Citation: 69 L.Ed. 237,45 S.Ct. 31,266 U.S. 187
• Parties: MISSOURI PAC. R. CO. et al. v. WESTERN CRAWFORD ROAD IMPROVEMENT DIST
• Court: U.S. Supreme Court

266 U.S. 187

45 S.Ct. 31

69 L.Ed. 237

MISSOURI PAC. R. CO. et al.

v WESTERN CRAWFORD ROAD IMPROVEMENT DIST.

No. 67.

Submitted Oct. 10, 1924.

Decided Nov. 17, 1924.

Messrs. Harry P. Warner and Thomas B. Pryor, both of Ft. Smith, Ark., and W. F. Evans and Edward J. White, both of St. Louis, Mo., for plaintiffs in error.

Mr. E. L. Matlock, of Van Buren, Ark., for defendant in error.

Mr. Justice BRANDEIS delivered the opinion of the Court.

In 1920 Arkansas created the Western Crawford road improvement district by a special act. Pursuant to its provisions the commissioners named therein took the proceedings incident to organizing the district. They determined what work would be required, estimated the cost thereof, and had the preliminary assessment made of the benefits and burdens. In so doing the commissioners necessarily incurred expenses for publication of notices, for the services of engineers, lawyers, and assessors, and for other matters. After the required data had been obtained, it was concluded that the cost of the proposed improvement would probably exceed the benefits, and the project was duly abandoned. The aggregate preliminary expense was $20,611.80. The special act had provided:

'Sec. 25. In case, for any reason, the improvement contemplated by this district is not made, the preliminary expense shall be a first lien upon all of the land in the district, and shall be paid by a levy of a tax thereon upon the assessed value for county and state taxation, which levy shall be made by the chancery court of Crawford county and shall be collected by a receiver to be appointed by the court.'

For the purpose of paying the preliminary expense the commissioners applied to the appropriate court for a tax levy. A decree was entered for a levy of 1.65 per cent. on the assessed value of the land in the district subject to taxation. Thereupon the Missouri Pacific Railroad Company¹ brought, in the same court, this suit to restrain enforcement of the decree. The aggregate assessed value of property within the district was $1,453,938. The assessed value of the Missouri Pacific property was $145,250. The tax assessed against its property to defray the preliminary expense was $2,396.62. The board of assessors appointed under the special act estimated the amount of the anticipated benefit at $1,960. The sole objection of the railroad was that the tax to defray the preliminary expense was distributed in proportion to the assessed value of the property, instead of in proportion to the amount of the benefit thereto which it was estimated would accrue if the improvement was made. It argued that the smaller sum would, under both the state and the federal Constitution, have been the limit of its assessment for the improvement if carried out; that it could not be taxed more for the preliminary expense of a projected improvement which had been abandoned; and that, therefore, section 25 violated the due process clause of the Fourteenth Amendment. The Supreme Court of Arkansas sustained the decree for a levy as originally entered. 157 Ark. 304, 248 S. W. 563. That judgment is here on writ of error.

The state court held that the provision in section 25 for payment of preliminary expenses necessarily implied a legislative determination that the cost of the preliminary...