The Atlanta & Richmond Air-line R.R. Co. v. The State Of Ga.

• Decision Date: 30 September 1879
• Citation: 63 Ga. 483
• Parties: The Atlanta & Richmond Air-Line Railroad Company. v. The State of Georgia. The Atlanta & Charlotte Air-Line Railroad Company. v. The State of Georgia.
• Court: Georgia Supreme Court

63 Ga. 483

The Atlanta & Richmond Air-Line Railroad Company. v. The State of Georgia. The Atlanta & Charlotte Air-Line Railroad Company. v. The State of Georgia.

Supreme Court of the State of Georgia

(September Term, 1879.)

H. K. McCay, for plaintiffs in error.

R. N. Ely, attorney-general; R. Toombs, for the state.

Warner, Chief Justice.

This case came before the court below on affidavits of illegality to three tax ft. fas. issued by the comptroller-general of the state against the Atlanta & Richmond Air-Line Railway Company, as provided by the act of 28th of February, 1874, and were argued together here. One. of said ft. fas. was for the sum of $1,983.59 for tax due for the year 1874, and dated 27th day of October, 1874, and levied on the defendant's property November 6, 1874; and one for the sum of $1,983.49 for tax due for theyear 1875, dated 24th of January, 1876; the other fi. fa. was for the sum of *$1,648.99 for the tax due for the year 1876, and for the sum of $3,297.98 as penalty for default of payment of its tax for that year, dated 2d of November, 1876. Both of the last named ft. fas. were levied on the defendant\'s property on the 25th of April, 1879. On the hearing of the said affidavits of illegality, the same were overruled, and the defendant excepted. The state also excepted because the court refused to allow interest on the tax ft. fas.

1. The two questions mainly insisted on here by the plaintiffs in error were: First, that the Atlanta & Richmond Air-Line Railway Company was not liable to be taxed higher than one-half of one per cent. on its net annual income, and that so far as the act of the general assembly of 1874 sought to impose a higher rate of taxation upon its property, the same was unconstitutional and void. Second, that since the date of the two last ft. fas. hereinbefore set forth, the defendant's road was sold (to-wit) on the 5th of December, 1876, under a decree of the circuit court of the United States, and before the ft. fas. had been levied on its property. On the 5th of March, 1856, the general assembly incorporated the Georgia Air-Line Railroad Company, and by the fourth section of its charter it was provided that it should "use and enjoy with all the rights, privileges and immunities granted to the Central Railroad and Banking Company, " one of which was an exemption from taxation exceeding one-half of one per cent. on its annual net income. On the 5th of September, 1868, the general assembly passed an act to amend the act incorporating the Georgia Air-Line Railroad Company, and to confer upon it certain powers and privileges therein mentioned, the second section of which was as follows:

"That said Georgia Air-Line Railroad Company be, and they are hereby, authorized to consolidate, combine or unite with any other railroad company, or companies, directly or indirectly connecting therewith (or to unite the management of said companies), upon such terms, conditions and provisions as shall be agreed upon by and between such companies so consolidating or uniting, and thereupon suchconsolidation or united company shall be invested in this state with *all the rights and privileges conferred, and be subject to all the restrictions imposed by the original charter of said Georgia Air-Line Railroad Company, and the amendments thereto, with the right to adopt such other or modified corporate name, and to increase or diminish the number of directors now provided for, as shall be determined best, and agreed upon by such companies."

It was admitted that the railroad from Norcross (about 20 miles from Atlanta) to Charlotte had been constructed after the date of the union or consolidation referred to in the extracts hereafter copied from the pamphlet published by said company, to-wit: after the date of 29th June, 1870, and by the Atlanta & Richmond Air-Line Company. By consent, the act of the legislature of South Carolina, chartering the South Carolina Air-Line Railroad Company, and its amendment, the former dated December 20, 1856, and the latter September 18, 1868, and the act of the legislature of North Carolina, granting to the South Carolina Air-Line Company its privileges in North Carolina, of the date of 3d of August, 1868, were read, as law, published under the authority of the states.

The following statements, published by the authority of the defendant in a printed pamphlet, were, by consent, read as evidence, to-wit:

1. "On the 14th of November, 1868, at a meeting of the stockholders of...