Southwestern Co v. Wright Same v. State of Georgia

• Decision Date: 04 January 1886
• Citation: 6 S.Ct. 375,29 L.Ed. 626,116 U.S. 231
• Parties: SOUTHWESTERN R. CO. v. WRIGHT, Comptroller General, etc., and others. SAME v. STATE OF GEORGIA. Filed
• Court: U.S. Supreme Court

6 S.Ct. 375

116 U.S. 231

29 L.Ed. 626

SOUTHWESTERN R. CO. v. WRIGHT, Comptroller General, etc., and others.

SAME

v. STATE OF GEORGIA.

Filed January 4, 1886.

R. F. Lyon, A. R. Lawton, and Thos. B. Gresham, for plaintiffs in error.

Clifford Anderson and Saml. Barnett, for defendants in error.

WAITE, C. J.

These suits relate to the liability of the Southwestern Railroad Company, a Georgia corporation, for taxes on different parts of its railroad, and the federal question involved arises under a claim of a charter contract of exemption from all taxation beyond 'a tax of one-half of one per cent. upon its annual net income.' The company owns and operates (1) a road from Macon through Fort Valley, Americus, Smithville, and Cuthbert to Fort Gaines; (2) a road from Smithville to Albany; (3) a road from Albany to Arlington; (4) a road from Cuthbert to Eufaula; and (5) a road from Fort Valley to Columbus. The line of all these roads is shown on the following plat:

The road from Macon to Americus and from Smithville to Fort Gaines was built under the original charter of the company, granted December 14, 1845. Section 14 of this charter is as follows:

'Sec. 14. That the said railway and its appurtenances, and all property therewith connected, shall not be subject to be taxed higher than one-half of one per cent. upon its annual net income.'

From Americus through Smithville to Albany the building was done by the Georgia & Florida Railroad Company, under a charter granted January 22, 1852. Section 2 of this charter is as follows:

'That the Georgia & Florida Railroad Company may, at any time, incorporate their stock with the stock of any other company, on such terms as may be mutually agreed upon by such companies: provided, that the road and other property of this company shall be subject to such taxation as the legislature may deem equitable and just.'

After this part of the road was finished, the Georgia & Florida Company agreed with the South western Company to consolidate its stock with that of the Southwestern, and thereupon it delivered its road, then running from Americus to Albany, into the possession of the Southwestern Company. This having been done, the general assembly of Georgia, on the nineteenth of December, 1859, passed an act which recited what has been done, and then enacted:

'Sec. 2. Be it further enacted, that the said railroad from Americus to Albany shall be considered part and parcel of the road of the Southwestern Railroad Company, and be liable to pay the state the same tax that the rest of the Southwestern Railroad Company is liable to pay, and such additional tax as the legislature may hereafter impose.'

The Southwestern Company now holds this part of its road under this transfer.

The road from Albany to Arlington was built under an act of the general assembly passed December 18, 1860, as follows:

'An act to amend the several acts of the general assembly relating to the Southwestern Railroad Company, and to authorize the said company to construct a branch railroad, and for other purposes.

'Section 1. Be it enacted, etc., that the Southwestern Railroad Company, of this state, are hereby authorized to construct a branch railroad from Albany, or Dawson, or any point west of Dawson, on their line of road, to such place on the Chattahoochee river, or on the Florida line, as the said company may select, and that said company shall have for these purposes all the rights, privileges, and powers conferred by their charter of incorporation and the act amendatory thereof.

'Sec. 2. Be it further enacted, etc., that said company are hereby empowered and authorized to increase their capital stock $1,000,000, and said additional stock shall be subject and liable to pay the same rate of tax to the state of Georgia that is now required of the said Southwestern Railroad Company, and such additional tax as the legislature may hereafter impose.'

The road from Cuthbert to Eufaula was built under the following act, passed February 23, 1850:

'An act to amend an act entitled 'An act to incorporate the Southwestern Rairoad Company, with power to extend branches to Albany, in the county of Baker, and Fort Gaines, in the county of Early, and to points below those places on the Chattahoochee and Flint rivers, and to punish those who may willfully injure the same, assented to December 27, 1845, and for other purposes.'

'Section 1. Be it enacted by the senate and house of representatives of the state of Georgia, in general assembly met, and it is hereby enacted by the authority of the same, that from and after the passage of this act said railroad company shall have power and authority to construct a branch of said road from some point on said road to any point on the Chattahoochee river, below the town of Florence, in the county of Stewart, which...