Public Service Ry. Co. v. Herold

• Decision Date: 25 January 1915
• Docket Number: 496.
• Citation: 227 F. 500
• Parties: PUBLIC SERVICE RY. CO. et al. v. HEROLD.
• Court: U.S. District Court — District of New Jersey

227 F. 500

PUBLIC SERVICE RY. CO. et al. v. HEROLD.

No. 496.

United States District Court, D. New Jersey.

January 25, 1915

Frank Bergen and Edward Ambler Armstrong, both of Newark, N.J., for plaintiffs.

J Warren Davis, U.S. Atty., of Trenton, N.J., and Walter H Bacon, Asst. U.S. Atty., of Bridgeton, N.J., for defendant.

HUNT Circuit Judge.

Action to recover taxes paid for 1909, 1910, 1911, and 1912 under the Corporation Tax Law. Act Aug. 5, 1909, c. 6, 36 Stat. 11 (Comp. St. 1913, Secs. 6300-6308). The facts shown by the record in this case are substantially these The lessor corporation had authority to build a street railroad, and in January, 1908, leased for 999 years to the Public Service Railway Company its lines of railway, lands bridges, car barns, poles, wires, and all other property of every character, and all rights, privileges, and franchises connected with the demised property, excepting its franchise to be a corporation, its seal, stock, and dividend account books, office furniture, and deeds and documents showing its right and title to the property leased. The lease contains covenants whereby the lessor agrees to make any conveyances and do any act necessary to protect the rights of the lessee and enable the lessee to extend the plants and franchises if it, the lessee, elects to do so, and the lessee has the right from time to time to apply for and operate in the name or in the right of the lessor any further rights, privileges, or franchises necessary for the proper protection of the property demised or the making of extensions of the lines of the lessor, and for its own benefit may use the lessor's name or rights in bringing any suits or taking action which may be necessary for the protection or enjoyment of the demised property. The lessee covenants that it will use and enjoy the property and franchises and privileges demised subject to the mortgages on the property of the lessor and will pay taxes, assessments, and charges of every kind lawfully imposed during the continuance of the lease, and any sums of money which the lessor might become liable to pay for the possession or perpetuation of any of its powers, privileges, or franchises. The lessee agrees to operate the property and to maintain it in good condition, make betterments, and that all such betterments, additions, and renewals, when acquired, shall become the property of the lessor and a part of the premises and...