State Bd. of Assessors v. Paterson & R. R. Co.

• Decision Date: 23 May 1888
• Citation: 14 A. 610,50 N.J.L. 446
• Parties: STATE BOARD OF ASSESSORS v. PATERSON & R. R. Co.
• Court: New Jersey Supreme Court

14 A. 610

50 N.J.L. 446

STATE BOARD OF ASSESSORS

v. PATERSON & R. R. Co.

Court of Errors and Appeals of New Jersey.

May 23, 1888.

Error to supreme court.

John P. Stockton, Atty. Gen., and Barker Gummere, for plaintiff in error. John Hopper and Joseph D. Bedle, for defendant in error.

MCGILL, Ch. The tax assessment in question was made against the franchises and property of the Paterson & Ramapo Railroad Company, under the provisions of the "Act for the taxation of railroad and canal property," approved April 10, 1884. P. L. 1884, p. 142. The judgment of the supreme court set the assessment aside, and declared it to be void, in consequence of the opinion of that court in the case of Railroad Co. v. Board, etc., 48 N. T. Law, 1, 2 Atl. Rep. 789, upon the constitutionality of the act under which the assessment was laid. Subsequently, by the judgment of this court in that case upon error, the constitutionality and validity of the tax was maintained. 48 N. J. Law, 146, 4 Atl. Rep. 578. The defendant in error now claims that it has an irrepealable contract with the state, which limits the power to tax it, by the provisions of the "Act to establish just rules for the taxation of railroad corporations, and to induce their acceptance and uniform adoption," approved April 2, 1873. The Paterson & Ramapo Railroad Company was incorporated by an act of the legislature of this state passed March 10, 1841, (P. L. 1841, p. 97,) and by the twenty-second section of that act was subjected to a tax of live cents for every passenger, and eight cents for every ton of freight, transported "on" its road. The act provided that no other state tax should be levied or assessed on said company, and also that it should be lawful for the legislature, at any time thereafter, to alter, amend, or modify the act whenever, in its opinion, the public good might require it. A supplement to this charter was passed on February 28, 1844, (P. L. 1844, p. 136,) which provided that the payments to the state for passengers and freight transported should be construed to be for passengers and freight transported "over" the road, "and that the exemption from taxation should be construed to extend only to taxes for the use of the state, anything in said act to the contrary notwithstanding." Another supplement to the charter was approved April 1, 1845, which provided for a tax of one-half of l per cent, upon the capital stock expended until the net earnings of the road should amount annually to 6 per centum on the cost thereof, and from that time a tax of 1 per centum, and that such tax should be received and taken in full discharge and satisfaction "of the transit duties of five cents a passenger, and eight cents a ton, provided for in the twenty-second section of their act of incorporation," and that the legislature might, at any time thereafter, alter, modify, or repeal that supplement. By an act of the legislature approved April 2, 1873, (P. L. 1873, p. 112,) which was entitled "An act to establish just rules for the taxation of railroad corporations, and to induce their acceptance and uniform adoption," a state tax was imposed upon all railroad corporations after the rate of taxation which was theretofore imposed by law upon them, respectively, or, in default of such imposition one-half of 1 per centum upon the cost of their respective roads, equipments, and appendages, and also an annual county and municipal tax of 1 per centum upon their realty outside of the main stem of the road. The tenth section of that act provided that whereas, certain railroad corporations then owning and occupying railroads in the state claimed exemption from all taxation beyond that which was provided for by their charters or by special laws, which claims, even if legal, subjected the corporations to the ill will of the public, and made it to their interest to forego the same, and agree to the scheme of taxation established by that act, that, therefore, any such corporation might within six months from the approval of that act, made a declaration in writing, under its common seal, signed by its president, surrendering all claim of exemption from taxation, and accepting the provisions of that act, in lieu thereof, and file such declaration in the office of the secretary of state. On the 27th day of September, 1873, in the form provided by the act last mentioned, the Paterson & Ramapo Railroad Company declared that it made claim to exemption from taxation in excess of that which was provided for in its charter, and the supplements thereto, and that it surrendered such claim, and accepted the provisions of the said act of 1873, and filed that declaration in the office of the secretary of state. It is claimed for the defendant in error, not only that, before the act of 1873 it had an irrepealable contract with the state upon the subject of its taxation, but that by its action, under that act, it obtained such a contract. It has been held by this court, in Railroad Co. v. Commissioners, 38 N. J. Law, 472, that the tenth section of the act referred to, under which the defendant's intended surrender was made, does not extend...