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S. 431, 39 L. Ed. 1043. 15 S. Ct. 896; Sher- Ct. 211.



§§ 3939-3940



CARRIERS.



3552



out sense. When a legislature is trying simply to value property, it is less likely
to attempt to or effect injurious regulation that when it is aiming directly at the ■
receipts from interstate commerce. A practical line can be drawn by taking the
whole scheme of taxation into account. That must be done by the federal su-
preme court as best it can.^^ Doubtless no state could add to the taxation of
jiroperty according to the rule of ordinary property taxation, the burden of a
license or other tax on the privilege of using, constructing, or operating an in-
strumentality of interstate or international commerce, or for the carrying on of
such commerce ; but the value of property results from the use to which it is put,
and varies with the profitableness of that use ; and by whatever name the exaction
may be called, if it amounts to no more than the ordinary tax upon property, or a
just equivalent therefor, ascertained by reference thereto, it is not open to attack
as inconsistent with the constitution. ^"^

§§ 3940-3947. Tax on Corporations Engaged in Interstate Com-
merce — § 3940. In General. — The rule seems to be that property in a state
belonging to a corporation, whether foreign or domestic, engaged in foreign or
interstate compierce, may be taxed, or a tax may be imposed on the corporation
on account of its property within a state,^^^ provided the rights and power of the
national government are not interfered with.-^ Corporations and companies en-
gaged in interstate commerce should bear their proper proportion of the burdens
of the governments under whose protection they conduct their operations, and
taxation on property, collectible by the ordinary means, does not affect interstate
commerce otherwise than incidentally, as all business is affected by the necessity
of contributing to the support of the government. -

Taxable to Same Extent as Natural Persons. — The states have authority
to tax the estate, real and personal, of all their corporations, including carrying
companies, precisely as they may tax similar property when belonging to natural
persons, and to the same extent.-^



18. Galveston, etc., R. Co. v. Texas, 210
U. S. 217. 52 L. Ed. 1031, 28 S. Ct. 638;
United States Exp. Co. v. Minnesota, 223
U. S. 335, 56 L. Ed. 459, 32 S. Ct. 211.

19. Postal Telegraph-Cable Co. v.
Adams, 155 U. S. 688, 39 L. Ed. 311, 15 S.
Ct. 263.

20. Corporations. — New York, etc., R.
Co. V. Pennsylvania, 158 U. S. 431, 39 L.
Ed. 1043, 15 S. Ct. 896; Ward v. Maryland
(U. S.), 12 Wall. 418, 20 L. Ed. 449; Cali-
fornia V. Central Pac. R. Co., 127 U. S. 1,
32 L. Ed. 150, 8 S. Ct. 1073; Postal Tele-
graph-Cable Co. V. Adams, 155 U. S. 688,
39 L. Ed. 311, 15 S. Ct. 263; Pickard v.
Pullman Southern Car Co., 117 U. S. 34,
29 L. Ed. 785, 6 S. Ct. 635; Postal Tele-
graph-Cable Co. V. Charleston, 153 U. S.
692, 38 L. Ed. 871. 14 S. Ct. 1094; Emert
V. Missouri, 156 U. S. 296, 320, 39 L. Ed.
430. 15 S. Ct. 367; Cleveland, etc., R. Co.
V. Backus, 154 U. S. 439, 38 L. Ed. 1041,
14 S. Ct. 1122; Stockard v. Morgan, 185
U. S. 27, 46 L. Ed. 785, 22 S. Ct. 576;
Western Union Tel. Co. v. Taggart, 163
U. S. 1, 41 L. Ed. 49, 16 S. Ct. 1054;
Ficklen v. Taxing Dist., 145 U. S. 1, 36
L. Ed. 601, 21 S. Ct. 810; Adams Exp.
Co. V. Ohio State Auditor, 165 U. S. 194,
41 L. Ed. 683, 17 S. Ct. 305; American
Refrigerator Trans. Co. v. Hall, 174 U. S.
70, 43 L. Ed. 899, 19 S. Ct. 599; Louisville,
etc., Ferry Co. v. Kentucky, 188 U. S. 385,
47 L. Ed. 513, 23 S. Ct. 463; Atlantic, etc.,



Tel. Co. V. Philadelphia, 190 U. S. 160, 47
L. Ed. 995, 24 S. Ct. 817; State Tax on
Railway Gross Receipts (U. S.), 15 Wall.
284, 21 L. Ed. 164; Delaware Railroad
Tax (U. S.), 18 Wall. 206, 21 L. Ed. 888;
Telegraph Co. v. Texas, 105 U. S. 460, 26
L. Ed. 1067; Gloucester Ferry Co. v.
Pennsylvania, 114 U. S. 196, 29 L. Ed. 158,
5 S. Ct. 826; Western Union Tel. Co. v.
Massachusetts, 125 U. S. 530, 31 L. Ed.
790, 8 S. Ct. 961; Marye v. Baltimore, etc.,
R. Co., 127 U. S. 117, 32 L. Ed. 94, 8 S.
Ct. 1037; Leloup v. Mobile, 127 U. S. 640,
32 L. Ed. 311, 8 S. Ct. 1380; Pullman's
Palace Car Co. v. Pennsylvania, 141 U.
S. 18, 35 L. Ed. 613, 11 S. Ct. 876; Mas-
sachusetts z'. Western Union Tel. Co., 141
U. S. 40, 35 L. Ed. 628, 11 S. Ct. 889;
Pittsburgh, etc., R. Co. v. Backus, 154 U.
S. 421, 38 L. Ed. 1031, 14 S. Ct. 1114.

21. Western Union Tek Co. v. Taggart,
163 U. S. 1, 41 L. Ed. 49. 16 S. Ct. 1054;
Covington, etc., Bridge Co. v. Kentucky,
154 U. S. 204, 38 L. Ed. 962, 14 S. Ct. 1087.

22. Postal Telegraph-Cable Co. v.
Adams, 155 U. S. 688, 39 L. Ed. 311, 15
S. Ct. 263; Adams Exp. Co. v. Ohio State
Auditor, 165 U. S. 194, 41 L. Ed. 683, 17
S. Ct. 305.

23. Taxable to same extent as natural
persons. — State Tax on Railway Gross
Receipts (U. S.), 15 Wall. 284, 21 L. Ed.
164.



3553 TAXATION. §§ 3940-3942

Valuation or Excise Tax. — Such taxation may be laid upon a valuation, or
may be an excise, and in exacting an excise tax from their corporations, the
states are not obliged to impose a fixed sum upon the franchises or upon the value
of them but they may demand a graduated contribution proportioned either to
the value of the privileges granted, or to the extent of their exercises or to the
results of their exercise.-"*

Corporations Created by State. — The property, the business, and*the in-
come of corporations created by a state may undoubtedly be taxed by the state;
but in imposing such taxes care should be taken not to interfere with or hamper,
directly or by indirection, interstate or foreign commerce, or any other matter
exclusively within the jurisdiction of the federal government.-^ The state may
tax a corporation on its special franchises, granted to it by the state, or by au-
thority from the state wholly within its limits, though the corporation is engaged
in interstate commerce, because the tax is not on the business of the corpora-
tion.-'^

Corporations Created by United States. — The property of corporations
holding their franchises from the government of the United States is not exempt
from taxation by the states of its situs. -'^

Under Charter Provision. — The Illinois Central Railroad Charter requiring
the company to pay to the state an amount equal to seven per cent of its gross re-
ceipts in lieu of taxes, was a mere charter method of fixing an equivalent for a
tax that would otherwise ordinarily be levied on the property of the corporation;
and hence, notwithstanding it required the payment of such percentage on the re-
ceipts of the railroad company's charter lines from interstate commerce, was not
invalid as an attempt to regulate or impose a tax on interstate commerce itself. ^s

§ 3941. Tax on Gross Receipts. — A tax levied by a state upon the gross
receipts derived from the transportation of passengers and goods between one
state and other states or foreign nations is a regulation of commerce and beyond
the power of the state. -^

§ 3942. Tax on Franchise or Privilege. — The franchise of a corporation,
although that franchise is the business of interstate commerce, is, as a part of its
property, subject to state taxation, providing at least the franchise is not derived
from the United States.^"' The proposition that the states can, by way of a tax

24. Valuation or excise tax. — State Tax L. Ed. 146; Delaware Railroad Tax (U.
on Railway Gross Receipts (U. S.), 15 S.). 18 Wall. 306, 21 L. Ed. 888; Postal
Wall. 284. 21 L. Ed. 164. Telegraph-Cable Co. v. Adams, 155 U. S.

25. Corporations created by state. — 688, 39 L. Ed! 311, 15 S. Ct. 263; New
Ficklen v. Taxing Dist., 145 U. S. 1, 36 L. York, etc., R. Co. v. Pennsylvania, 158 U.
Ed. 601, 21 S. Ct. 810; Philadelphia, etc., S. 431, 39 L. Ed. 1043, 15 S. Ct. 896; Cen-
v^leamship Co. v. Pennsylvania. 122 U. S. tral Pac. R. Co. v. People, 162 U. S. 91,40
326, 30 L. Ed. 1200, 7 S. Ct. 1118. L. Ed. 903. 16 S. Ct. 766; Western Union

26. Hudson, etc., R. Co. v. State Board, Tel. Co. x\ Taggart. 163 U. S. 1, 41 L. Ed.
127 X. Y. S. 91S, 143 App. Div. 26. 49, 16 S. Ct. 1054; Western Union Tel. Co.

27. Corporations created by United v. Gottlieb, 190 U. S. 412, 47 L. Ed. 1116,
States.— Railroad Co. v. Peniston (U. S.), 23 S. Ct. 730; Atlantic, etc., Tel. Co. v.
18 Wall. 5, 21 L. Ed. 787; Thomson v. Philadelphia, 190 U. S. 160, 47 L. Ed. 995,
Pacific Railway (U. S.), 9 Wall. 579, 19 24 S. Ct. 817; Ficklen v. Taxing Dist.,
L. Ed. 792; Western Union Tel. Co. v. 145 U. S. 1, 36 L. Ed. 601, 21 S. Ct. 810;
Massachusetts, 125 U. S. 530, 31 L. Ed. Philadelphia, etc.. Steamship Co. v. Penn-
790, 8 S. Ct. 961; Ficklen v. Taxing Dist., sylvania, 122 U. S. 326, 30 L. Ed. 1200, 7
145 U. S. 1, 36 L. Ed. 601, 21 S. Ct. 810. S. Ct. 1118.

28. Under charter provision. — State v. Rev. Codes, § 165, imposing certain
Illinois C'cni. R. Co., 92 N. E. 814, 246 graduated charges, based upon the amount
'"■ 1"^^- of capital stock of the corporation, to be

29. Tax on gross receipts. — Fargo v. collected by the secretary of state, for the
Mulligan, \:i\ I'. S. 2:;o, ;i0 L. Ed. 888, 7 filing of each certified copy or article of
S. Ct. H.'',7. incorporation of any foreign corporation,

30. Tax upon franchises. — Case of the luld unconstitutional as imposing a bur-
State Freight Tax (U. S.j, 15 Wall. 2:i2, 21 (kii on interstate commerce, when ap-



§ 3942 CARRiE^Rs. 3554

upon business transacted within their Hmits, or upon the franchise of corporations
which they have chartered, regulate such business or the afifairs of such corpora-
tions, has often been set up as a defense to the allegation that the taxation was
such an interference with commerce as violated the constitutional provision now
under consideration. But where the business so taxed is commerce itself, and is
commerce among the states or with foreign nations, the constitutional provision
can not. thereby be evaded ; nor can the states, by granting franchises to corpora-
tions engaged in the business of the transportation of persons or merchandise
among them, which is itself interstate commerce, acquire the right to regulate that
commerce, either by taxation or in any other way.^^ But where a railroad com-
pany received important franchises by grant of the United States, such fran-
chises are not legitimate subjects of taxation by the state. They were granted
to the company for national purposes and to subserve national ends. The state
can neither take them away, nor destroy nor abridge them, nor cripple them by
onerous burdens. It can not tax franchises which are the grant of the United
States.^- A franchise tax imposed locally on a railroad doing an interstate busi-
ness is invalid as a burden on interstate commerce."^ A license or privilege tax
for the conduct of intrastate business of a corporation doing both interstate and
intrastate business, based on the corporation's total capital or capital stock, is un-
constitutional as violating the commerce clause of the federal constitution.^"*

Fee for Filing Articles of Incorporation. — The refusal of the Secretary of
State to accept for filing articles of incorporation of a domestic corporation, or-
ganized to guarantee mortgages on real estate in various states, without payment
of the filing fee and license tax contemplated by a statute is not violative of the
federal constitution as interfering with interstate commerce. ^•'^

Based on Amount of Capital Stock. — A state franchise tax upon private
corporations, based on the amount of capital employed by the corporation in the
state, is not afifected by the character of the property in which the capital is in-
vested, and is therefore not rendered illegal by the fact that such capital is em-
plied to foreign interstate corporations. taking toll thereon; held, that the assess-
Chicago, etc., R. Co. v. Swindlehurst ment of these franchises was repugnant
(Mont.), 130 Pac. 966. to the constitution and laws of the United

Act March 7, 1907, p. 418, § 1 (Code States and the power given to congress
1907, § 2391), requiring a foreign corpora- to regulate commerce among the several
tion to pay an annual franchise tax for states. Franchises conferred by congress
use of the state, based on the amount of cannot, without its permission, be taxed
capital employed therein, is not invalid by the states. California v. Central Pac.
as interfering with interstate commerce. R. Co., 127 U. S. 1, 33 L. Ed. 150, 8 S.
Southern R. Co. v. Greene, 160 Ala. 396, Ct. 1073.

49 So. 404; Central, etc., R. Co. v. Gas- 33. King County v. Northern Pac. R.

ton, 160 Ala. 671, 49 So. 413. Co., 196 Fed. 323.

Acts 1911, p. 67 imposing an annual g^^ ^ulford Co. v. Curry, 103 Cal. 276,

franchise tax on all the corporations do- -jo^ p^^ 22g

ing business in the state upon the pro- '^ ^-^^^ Code, '§ 409, and Pol. Code, § 416,
portion of their outstanding capital stock ^^^^ -^^ ^^ ^^^ ^^ ^^ provide for

represented by property owned and used ^^^^ j^^ ^^ corporations doing an in-

m business ransacted in the state, he d ^erstate business an annual license tax
as to a railroad engaged in interstate ^^^ ^^^ ^.j j^^ ^^ ^^ business in California,
transportation, not invahd as a taxation ,^^j^ j^^^^j-jj ^^ imposing a burden on in-
of interstate commerce St. Loms etc., ^^,^^^^^ commerce. Mulford Co. v. Curry,
R Co V. Norwood, 106 Ark. 321, 152 S. ^35 p^^ 333 -^gg ^al. 276.
vV 110

31. Fargo v. Michigan, 121 U. S. 230, .35. Fee for filing articles of incorpora-
30 L. Ed. 888, 7 S. Ct. 857. tion.— City Properties^ Co. v. Jordan, 126

32. The state board of equalization of P^^. 351, 163 Cal. a87.

California having included in their assess- So much of Civ. Code, § 408, as re-

ment all the franchises of a railroad com- quires foreign corporations before doing

pany, amongst which were franchises con- business in the state to file a copy of

ferred by the United States, of construct- their articles with the secretary of state,

ing a railroad from the Pacific Ocean held not in restraint of interstate com-

across the state as well as across the merce. Mulford Co. v. Curry, 163 Cal.

territories of the United States, and of 276, 125 Pac. 236.



3555 TAXATION. §§ 3942-3944

ployed in interstate or foreign commerce. 2'' Interstate commerce is not uncon-
stitutionally interfered with by the franchise tax imposed upon a domestic railway
corporation by a state law, because no deduction is allowed from the capital
stock, taken as the basis of the tax, on account of the considerable proportion of
its rolling stock which, by the familiar course of railway business, is always ab-
sent from the state. ^'''

Right of Way under River. — A railroad company received a patent from the
state of a right of way under the Hudson River for the construction of tunnels
for operation of a railroad underneath the river. The franchise, being largely
used for local traffic within the state, could be taxed by the state, though used
partly in interstate commerce. ^^

Tax on Right to Engage in Commerce.— The cases in which the taxing
statutes have been held void, were cases in which the tax was not upon the prop-
erty employed in the business, but upon the right to carry on the business at all,
and was therefore held to impose a direct burden upon the commerce itself.^^
For the same reason, a tax upon the gross receipts. derived from the transporta-
tion of passengers and goods between one state and other states or foreign na-
tions has been held to be invalid.'**^

§^3943. Tax on Capital Stock.— The tax imposed under Colorado Laws
1907, ch. 211, upon the capital stock of a foreign railway company, the greater
part of whose property and business is outside the state, and whose business done
within the state is principally interstate commerce, is invalid under the com-
merce, and due process of law clauses of the federal constitution, even if the
temporary forfeiture of the right to do business, declared by the statute in case
of failure to pay the tax, can be confined by construction in business wholly
within the state.'* ^

§ 3944. Tax on Transfer of Corporate Stock.— An unconstitutional in-
terference with interstate commerce is not made by the tax on transfers of cor-
porate stock imposed by a law of Xew York, as applied to a sale in New York, be-

36. Based on amount of capital stock. Payment of the unconstitutional tax
— Xe\y York v. Roberts, 19 S. Ct. 58, imposed under Colo. Laws 1907, ch. 311,
171 U. S. 658, 43 L. Ed. 323, reversing upon the capital stock of a foreign rail-
judgment United States v. Hopkins, 82 way company whose business is princi-
Fed. 529. pally interstate commerce, can not be

37. Judgments 69 N. E. 1129, 177 N. Y. deemed voluntary, so as to defeat an ac-
584 and 76 N. E. 1104, affirmed in New lion to recover it back, where the corn-
York, etc.. R. Co. V. Miller, 26 S. Ct. 714, pany, failing to pay the tax, would incur
202 U. S. 584, 50 L. Ed. 1155. tlie risk of having its contracts disputed

38. Right of way under river. — People v. ^"<^ its business injured by reason of the
State Board, 125 N. Y. S. 895, 69 Misc. forfeiture clause in such statute, and of
Rep. 1. finding the tax greatly increased in case

39. Tax on right to engage in com- '^ finally had to pay. Atchison etc., R.
mercc-Moran ^.. New Orlean?, 112 U. S. ^o v. O Connor 223 U.S^ 280, 32 S. Ct.
69, 28 L. Ed. 653. 5 S. Ct. 38; Pickard v. 216. Ann. Cas. 1913C, 1050.

Pullman Southern Car Co., 117 U. S. 34, ^^^ secretary of state, who collects

43, 29 L. Ed. 785, 6 S. Ct. 635; Robbins ^"^ ^fa.ns he unconstitutional tax im-

V. Shelby County Taxing Dist., 120 U. S. P^^ed by Colo. Sess. Laws 190^ ch. 211,

489, 30 L. Ed. 694, 7 S. Ct. 592; Leloup "P"" ^^'^^ ^^P'^^' ^t°'^'^ °^^ .^°'',V^". 'V^'

V. Mobile, 127 U. S. 640, 32 L. Ed 311. "^'""^ company engaged principally in in-

8 S Ct 1380 tcrstate commerce, is liable to a suit to

l- T^' ' ,,. , . T. ^ recover l)ack the tax, as paid under duress

40. Fargo 7^ Michigan, 121 U.S 230, 30 ^nd protest— especially in view of the
L Ed. 888, 7 S. Ct. 857; Philadelphia, etc provisions of § 6, that, if it shall be ju-
Meamship Co. v Pennsylvania 122 U. dicially determined that any corporation
n li ' .^"r, T ^']; ^^^"' ^ ^- ^^\ ^^^.^^ lias erroneously paid the tax, the auditor
I ullmans Palace Car Co. t'. Pennsylvania, ^ay draw a warrant for its refunding
141 L. S. 18, 35 L. Ed. 613, 11 S. Ct. 876. ^,po„ the fili„j. of a certified copy of the

41. Tax on capital stock. — Atchison, judgment. Atchison, etc., R. Co. v.
etc.. R. Co. V. O'Connor, 223 U. S. 280, O'Connor, 223 U. S. 280, 33 S. Ct. 216,
32 S. Ct. 316, Ann. Cas. 1913C, 1050. Ann. Cas. 1913C, 1050.

4 Car— 29



§§ 3944-3947 ' carriers. 3556

tween two nonresidents, of the stock of foreign railway corporations. ^2

§ 3945. Tax on Right of Corporations to Consolidate. — A statute of
Ohio imposes a fee on a consohdated corporation for lihng in the state articles of
consolidation, where several railroads of different states had been consolidated,
forming a new corporation, as a condition to receiving privileges, immunities, and
powers which it could by no means possess, save by the grace and favor of the
constitution of the state of Ohio and the statutory provisions passed in accord-
ance therewith. The exaction constituted no tax upon interstate commerce, or
the right to carry on the same, or the instruments thereof, and its enforcement
involved no attempt on the part of the state to extend its taxing power beyond its
territorial limits."*^

§ 3946. Tax on Property Outside of State. — A state can not tax prop-
erty outside of its jurisdiction belonging to persons domiciled elsewhere. On the
other hand, it can tax property permanently within its jurisdiction although be-
longing to persons domiciled -elsewhere and used in commerce among the states.-*^

§ 3947. Tax on Property of Foreign Corporation. — It is settled that
where a corporation of one state brings into another to use and employ, a portion
of its movable personal property, it is legitimate for the latter to impose upon such
property thus used and employed its fair share of the burdens of taxation im-
posed upon similar property used in like way by its own citizens.-*'^ The fact that
the rolling stock of a carrier is employed in interstate commerce does not exempt
it from taxation by the state. "^^^ If such stock never passed beyond the limits of
the state, it could not be doubted that the state could tax them, like other property,
within its borders, notwithstanding they were employed in interstate commerce.
The fact that the stock, instead of stopping at the state boundary, crosses the
boundary in going out and coming back, can not aft'ect the power of the state to
levy a tax upon them. The state, having the right, for the purposes of taxation,
to tax any personal property found within its jurisdiction, without regard to the
place of the owner's domicile, could tax the specific stock which at a given mo-
ment were within its borders.**'^ The route over which the cars travel extending
beyond the limits of the state, particular cars may not remain within the state;
but the company has at all times substantially the same number of cars within the
state, and continuously and constantly uses there a portion of its property; and
it is distinctly found, as matter if fact, that the company continuously, throughout
the periods for which these taxes were levied, carried on business in Pennsylvania,
and had about one hundred cars within the state.-^^ It is quite true, as the situs of

42. Tax on transfer of corporate stock. 166 U. S. 171, 41 L. Ed. 960, 17 S. Ct. 527.
—Order, 184 N. Y. 431, 77 N. E. 970, 8 46. Pullman's Palace Car Co. v. Penn-
L. R. A., N. S., 314, 6 Am. & Eng. Ann. sylvania, 141 U. S. 18, 35 L. Ed. 613, 11
Cas. 515, affirmed in Hatch v. Reardon, S. Ct. 876; Pullman's Palace Car Co. v.
204 U. S. 152, 51 L. Ed. 415, 27 S. Ct. 188, Hayward, 141 U. S. 36, 35 L. Ed. 621, 11
9 Am. & Eng. Ann. Cas. 736. S. Ct. 883; State Railroad Tax Cases, 92

43. Tax on right of corporations to con- U. S. 575, 23 L. Ed. 663; Gloucester Ferry
solidate.— Ashley v. Ryan, 153 U. S. 436, Co. v. Pennsylvania, 114 U. S. 196, 29 L.
38 L. Ed. 773, 14 S. Ct. 865. Ed. 158, 5 S. Ct. 826; Marye v. Baltimore,

44. Property outside of state.— Fargo z^. etc., R. Co., 127 U. S. 117, 32 L. Ed. 94,
Hart, 193 U. S. 490, 48 L. Ed. 761, 24 S. 8 S. Ct. 1037.

Ct. 498. 47. Pullman's Palace Car Co. v. Penn-

45. Property of foreign corporation. — sylvania, 141 U. S. 18, 35 L. Ed. 613, 11
American Refrigerator Trans. Co. v. Hall, S. Ct. 876; Green v. Van Buskirk (U. S.),
174 U. S. 70, 43 L. Ed. 899, 19 S. Ct. 599; 5 Wall. 307, 18 L. Ed. 599; American Re-
Union Refrigerator Trans. Co. v. Lynch, frigerator Trans. Co. v. Hall, 174 U. S.
177 U. S. 149, 44 L. Ed. 708, 20 S. Ct. 70, 43 L. Ed. 899, 19 S. Ct. 599; Union
631; Pullman's Palace Car Co. v. Pennsyl- Refrigerator Trans. Co. v. Lynch, 177 U.
vania, 141 U. S. 18, 35 L. Ed. 613, 11 S. S. 149, 44 L. Ed. 708, 20 S. Ct. 631.

Ct. 876; Adams Exp. Co. v. Ohio State 48. Pullman's Palace Car Co. v. Penn-

Auditor, 165 U. S. 194, 41 L. Ed. 683, 17 sylvania, 141 U. S. 18, 35 L. Ed. 613, 11
S. Ct. 305; Adams Exp. Co. v. Kentucky, S. Ct. 876; Marye v. Baltimore, etc., R.



3557



TAXATION.



§ 3947



a railroad is in another state, that also, upon general principles, is the situs of all
its personal property; but for purposes of taxation, as well as for other pur-
poses, that situs may be fixed in whatever locality the propery may be brought
and used by jts owner by the law of the place where it is found. ^^ This principle
of the power to a state to tax the movable and constantly changing property of
foreign corporations has been applied to corporations engaged in furnishing to
shippers refrigerator cars for the transportation of perishable freight.^*^ Where
rolling stock is used in two or more states, the tax might be fixed by an appraise-
ment and valuation of the average amount of the property habitually used in a
state. ^1 The taxation of a foreign corporation which owns freight cars run by
state railroad companies from points within to points without the state is not
unconstitutional, as an interference with interstate commerce. •''-

Engaged in Interstate Commerce. — The provision of a state law which re-
quires a foreign corporation, carrying on solely interstate commerce in Missouri,
to make out, deliver, and file with the secretary of state a statement as to its



Online LibraryThomas Johnson MichieA treatise on the law of carriers (Volume 4) → online text (page 86 of 214)