Pittsburgh v. Backus

• Decision Date: 18 February 1893
• Citation: 133 Ind. 625,33 N.E. 432
• Parties: PITTSBURGH, C., C. & ST. L. RY. CO. v. BACKUS, County Treasurer, et al.
• Court: Indiana Supreme Court

133 Ind. 625

33 N.E. 432

PITTSBURGH, C., C. & ST. L. RY. CO.

v.BACKUS, County Treasurer, et al.

Supreme Court of Indiana.

Feb. 18, 1893.

Appeal from circuit court, Marion county; Edgar A. Brown, Judge.

Action by the Pittsburgh, Cincinnati, Chicago & St. Louis Railway Company to enjoin Victor M. Backus, treasurer of Marion county, and others, from collecting taxes assessed against plaintiff railway company by the state board of tax commissioners. From a judgment for defendants, plaintiff appeals. Affirmed.Butler, Snow & Butler, S. O. Pickens, S. Stansifer, and J. L. Rupe, for appellant.

OLDS, J.

This is a suit brought by the appellant against the appellees to enjoin the collection of taxes assessed against the appellant railway company by the state board of tax commissioners of Indiana. The plaintiff is a corporation organized under the laws of Pennsylvania, West Virginia, Ohio, Indiana, and Illinois, and is, and has been for several years, engaged in the business of a common carrier of freight and passengers, and in operating a system of railroads in the states of Pennsylvania, West Virginia, Ohio, Indiana, and Illinois, having various lines of railroads in Indiana; and its railroad track and rolling stock was assessed for taxation by the said state board of tax commissioners, under the act of the legislature of Indiana approved March 6, 1891.

The principal question involved in this case relates to the constitutionality and validity of the law under which the appellant's property was assessed, but some other questions are presented by the record, which we will consider later on. The act makes provision for the assessment of real and personal property by township and county assessors, creates a county board of equalization in each county in the state, and section 114 gives to such county boards “power to hear complaints of any owner of personal property except railroad tracks and rolling stock of railroads, to equalize the valuation of property and taxables;” and provides that “it shall pass upon each valuation, and may, on sufficient cause being shown, or on its own motion, correct the assessment or valuation of any property in such manner as will, in its judgment, make the valuation thereof just and equal, and provides that appeals shall lie from the decision of any county board of review to the state board of tax commissioners, which shall hear and determine the same in such manner as it may, by its rules, prescribe, and certify its decisions, which shall be final, to the proper county auditor.”

In relation to the assessment of railway property the act provides, (section 77:) “Between the first day of April and the first day of June of the year eighteen ninety-one, and at the same time in each year thereafter, when required by the county auditor, any person, company, or corporation so owning, managing, operating, or constructing a railroad shall make and file with the county auditor of the respective counties in which the railroad may be located a statement or schedule, verified by the oath of such person or the president and secretary of such corporation, showing the property held for right of way, and the length of the main and all side or second tracks and terminals in such county and in each city or town through or into which the roads may run, and describe such tract of land, other than a city or town lot, through which the road may run, in accordance with the United States or other surveys, giving the width and length of the strip of land held in each tract, and the number of acres thereof. They shall also state the value of improvements and stations located on the right of way. New companies shall make such statements in April next after the location of their roads. When such statement shall have been once made, it shall not be necessary to repeat the description as hereinbefore required, unless directed so to do by the county auditor; but the company shall, during the month of April, annually report the value of such property, by the description set forth in the next section of this act, and note all additions or changes in such right of way as shall have occurred.”

Section 78. “Such right of way, including the superstructures, main, side, or second track and terminals, turntable, telegraph poles, wires, instruments, and other appliances, and stations and improvements of the railroad company on such right of way, (excepting machinery, stationary engines, and other fixtures, which shall be considered personal property,) shall be held to be real estate for the purpose of taxation, and denominated ‘railroad track,’ and shall be so listed and valued,” etc.

Section 79 declares that the railroad track shall be listed and taxed in the several counties, etc.

Section 80 declares that “the movable property belonging to a railroad company shall be held to be personal property, and denominated for the purpose of taxation ‘rolling stock.’ Such rolling stock shall be listed and taxed in the several counties, townships, cities, and towns in the proportion that the main track used or operated in such county, township, city, or town bears to the length of the main track used or operated by such person, company, or corporation, whether owned, operated, or leased by him or them, in whole or in part.”

Section 81 provides for the taxation of tools, materials for repairs, etc., in the county, township, city, or town where the same may be on the 1st day of April of each year; and section 82 provides for the taxation of all real estate of any railroad other than that denominated “railroad track” and improvements thereon as lands and lots in the county, township, city, or town where situated.

Section 83 declares that between the 1st day of April and the 1st day of June of each year “every person, company, or corporation owning, constructing, or operating a railroad in this state shall return to the county auditor a list or schedule, verified by the oath of such person so owning, constructing, or operating, if an individual, or, if a company or corporation, by the oath of the superintendent or secretary of such company or corporation, which shall contain-First. A full and correct detailed inventory of all the rolling stock belonging to or leased, hired, used, or operated by such company, and which shall distinctly set forth the number of locomotives and tenders of all classes, passenger cars of all classes, sleeping, chair, and dining cars, express cars, wrecking cars, freight cars, flat cars, pay cars, hand cars, tank or oil cars, and all other kinds of cars; and the true cash value thereof on the first day of April of the current year shall be set opposite each of them. Such list or schedule shall also set forth the number of miles of main track on which such rolling stock is used in the state of Indiana. For the purpose of taxation such rolling stock leased or hired from persons or corporations other than the railroad companies shall be deemed the property of the railroad company leasing the same, and for that purpose shall be valued at such proportion of the full value thereof as the time during which the same is used on such railroad during the year bears to the whole year.” Second. Such list shall also contain a full and correct inventory of all other personal property of such railroad company not specifically taxed, including tools, etc., where the same may be on the 1st day of April. The third subdivision provides for an inventory of real estate other than that denominated “railroad track.”

Section 84 makes it the duty of county auditors to return to the proper assessors a copy of the lists as contained in the second and third specifications to be assessed by such assessors, the same to be treated in all respects in regard to assessments and equalization as other similar property belonging to individuals.

Section 85 reads as follows: “At the same time that the lists or schedules as hereinbefore required to be returned to the county auditor, the person, company, or corporation running, operating, or constructing any railroad in this state shall, under the oath of such person, or the secretary or superintendent of such company or corporation, return to the auditor of state sworn statements or schedules-First. Of the property denominated ‘railroad track,’ giving the length of the main and side or second tracks and turnouts, and showing the proportions in each county and township, and the total in the state. Second. The rolling stock, whether owned or hired, giving the length of the main track in each county, and the entire length of the road in this state. Third. Showing the number of ties in track per mile; the weight of iron or steel per yard used in the main and side tracks; what joints or chains are used in the track; the ballasting of road, whether gravel, stone, or dirt; the number and quality of buildings or other structures on railroad tracks; the length of time iron or steel in track has been used, and the length of time the road has been built. Fourth. A statement or schedule showing (1) the amount of capital stock authorized, and the number of shares into which such capital stock is divided; (2) the amount of capital stock paid up; (3) the market value, or, if no market value, then the actual value, of the shares of stock; (4) the total amounts of all indebtedness, except for current expenses for operating the road; (5) the total listed valuation of all its tangible property in this state. Such schedule shall be made in conformity to such instructions and forms as may be prescribed by the auditor of state.”

Section 86 subjects the persons, companies, and corporations to a penalty for failure to file such reports.

Section 87 reads as follows: “The auditor of state shall annually, on the meeting of the state board of tax commissioners, lay before said board the statements and schedules herein required to be returned to him, and said board shall assess such property in the manner...