The Cleveland, Cincinnati, Chicago & St. Louis Railway Company v. Backus

• Decision Date: 03 February 1893
• Docket Number: 16,769
• Citation: 33 N.E. 421,133 Ind. 513
• Court: Indiana Supreme Court
• Parties: The Cleveland, Cincinnati, Chicago & St. Louis Railway Company v. Backus, Treasurer

33 N.E. 421

133 Ind. 513

The Cleveland, Cincinnati, Chicago & St. Louis Railway Company v. Backus, Treasurer

No. 16,769

Supreme Court of Indiana

February 3, 1893

From the Marion Circuit Court.

Judgment affirmed.

A Baker, E. Daniels and J. T. Dye, for appellant.

A. G Smith, Attorney-General, S. Claypool, J. W. Kern, A. C Ayres, W. A. Ketcham and A. J. Beveridge, for appellee.

OPINION

Olds, J.

This is a suit brought by the appellant against the appellee, 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 Ohio and Indiana, 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 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, though around this question cluster some others, 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 track' 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 their own motion, correct the assessment or valuation of any property in such manner as will, in their judgment, make the valuation thereof just and equal," and provides (section 125) 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 decision, 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 1891 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 and second tracks and turnouts, in such county, and in each city or town in the county through or into which the road may run, and describing each 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 statement in April next, after the location of their roads. When such statement shall have once been made, it shall not be necessary to report 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 turnouts, turntable, telegraph poles, wires, instruments, and other appliances, and the 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, and shall be described in the assessment thereof as a strip of land extending on each side of such railroad track and embracing the same, together with all the stations and improvements thereon, commencing at a point where such railroad track crosses a boundary line in entering the county, township, city or town, tending to the point where such track crosses the boundary line leaving such county, township, city or town to the point of termination in the same, as the case may be, containing ----- acres, more or less (inserting name of county, township, city or town, or boundary line of same, and number of acres and length in feet), and when advertised or sold for taxes, no other description shall be necessary to convey a good title to the purchaser."

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, baggage cars, horse cars, cattle cars, coal cars, platform 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 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 any 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 * * classified and separated into the particular county, township, wherein the same may be on the 1st day of April.

The third subdivision provides for an inventory of the 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 assessment 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, as follows:

"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 chairs are used in track, the ballasting of road whether graveled, 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: 1st, the amount of capital stock authorized, and the number of...