The Western Union Tel. Co. v. Lieb

• Decision Date: 31 January 1875
• Citation: The Western Union Tel. Co. v. Lieb, 76 Ill. 172, 1875 WL 8161 (Ill. 1875)
• Parties: THE WESTERN UNION TELEGRAPH COMPANYv.HERMAN LIEB et al.
• Court: Illinois Supreme Court

76 Ill. 172

1875 WL 8161 (Ill.)

THE WESTERN UNION TELEGRAPH COMPANY

v.HERMAN LIEB et al.

Supreme Court of Illinois.

January Term, 1875.

APPEAL from the Circuit Court of Cook county; the Hon. WILLIAM W. FARWELL, Judge, presiding.

This was a bill in chancery, by the appellant, against Herman Lieb, county clerk, and H. B. Miller, collector of Cook county, to enjoin the extension and collection of taxes upon the capital stock of the company, including its franchise. The court sustained a demurrer to the bill and dismissed it, from which decree the complainant appealed.

Messrs. WILLIAMS & THOMPSON, for the appellant.

Mr. JAMES K. EDSALL, Attorney General, for the appellees.

Mr. JUSTICE SCHOLFIELD delivered the opinion of the Court:

The Western Union Telegraph Company is a foreign corporation, deriving its existence from the laws of the State of New York, but owning, operating and controlling lines of telegraph in this State. We fail to find any statute under the provisions of which it can be said it is, even constructively, incorporated under the laws of this State. We are, therefore, compelled to assume that it is, in theory as well as in fact, a foreign corporation, exercising its franchises and privileges in this State by comity only.

There can be no doubt of the power of the legislature to impose taxation on such corporations to whatever extent it may, in its discretion, choose, as the condition upon which the corporation shall be allowed to exercise its franchises and privileges in this State. Ducat v. Chicago, 48 Ill. 172; Paul v. Virginia, 8 Wallace, 168.

The Board of Equalization assessed the capital stock, including the franchise of this company, for taxation for the year 1873, at $1,168,394, and the only question now before us is, does the “Act for the assessment of property and for the levy and collection of taxes,” in force July 1, 1872, authorize this assessment?

We have held, at the present term, in Porter et al. v. The R. R. I. and St. L. R. R. Co., post, p. 561, that the Board of Equalization is empowered to assess for taxation the capital stock of such corporations as are created by or under the laws of this State, and that shares of stock in such corporations are not liable to be assessed for taxation; but that persons residing in this State, owning shares of stock in corporations created by the laws of other States, must be taxed on the value of such shares. The necessary implication from this would seem to be conclusive of the question, unless there is something in the act referred to placing telegraph companies on a different footing in this respect from that of other corporations.

After a careful examination of the different sections of the act bearing upon the question, we are unable to find any provision which shows that telegraph companies are regarded in anywise differently, for the purpose of taxation, from other corporations.

It is true, by section 53, “any person, company or corporation using or operating a...