Citation Numbers: 100 Me. 202
Judges: Emery, Peabody, Savage, Spear, Strout, Whitehouse
Filed Date: 5/6/1905
Status: Precedential
Modified Date: 9/24/2021
This is an action of debt brought by the State of Maine against the Canadian Pacific Railway Company to recover the semi-annual installments of its excise tax for the year 1902.
It is reported to the law eourt upon an agreed statement of facts to determine the legal construction of the statute sec'. 42, chap. 6, R. S. (1883) as amended by chap. 145 Public Laws, 1901, fix the amount of the tax in accordance therewith, and render judgment accordingly. The statute is as follows: — “The amount of such annual excise tax shall be ascertained as follows: the amount for the gross transportation receipts as returned to the railroad commissioners for the year ending on the thirtieth day of June preceding the levying of such tax, shall be divided by the number of miles of railroad operated, to ascertain the average gross receipts per mile; when such average receipts per mile do not exceed fifteen hundred dollars, the tax shall be equal to one-half of one per cent of the gross transportation receipts; when the average receipts per mile exceed fifteen hundred dollars and do not exceed two thousand dollars the tax shall be equal to three-quarters of one per cent of the gross receipts; and so on increasing the rate of the tax one-quarter of one per cent for each additional five hundred dollars of average gross receipts per mile or fractional part thereof, provided that the rate shall in no event exceed four per cent. When a railroad lies partly within and partly without the state, or is operated as a part of a line or system extending beyond the state, the tax shall be equal to the same proportion of the gross receipts in the state, as herein provided, and its amount shall be determined as follows : the gross transportation receipts of such railroad, line or system, as the case may be, over its whole extent, within and without the state, shall be divided by the total number of miles operated to obtain the average gross receipts per mile, and the gross receipts in the state shall be taken to be the average gross receipts per mile multiplied by the number of miles operated within the state.” It provides for an excise tax upon a railroad based upon the average gross transportation receipts per mile of the railroad operated.
The defendant resists the payment of the tax because: 1. The assessors did not include in their computation the transportation lines across the Pacific Ocean. 2. They did not include the yard, siding and second track lines in their computation.
The. regularity of the proceedings of the Board of State Assessors is not otherwise questioned, and the constitutionality of our statute instituting the excise tax has been established by judicial decision in the case of Maine v. Grand Trunk Railway Co., 142 U. S. 217. The sole, question presented is the legal construction of the words “railroad,” “line” and “system” in the last clause of the statute quoted. They should be construed according to their ordinary and popular meaning in connection with the subject matter to which they relate. The word “railroad” comprehends not only the equipment and road way but the sites of depots, warehouses, and other real estate incidentally connected with the business, including property
The defendant company was chartered by the Canadian Parliament in 1881, with authority to construct lines of railroad and in addition to own and run steam and other vessels, and consequently was not operating its railroad in this state at the time the present method of taxing railroads was adopted. The words “line or system” first used in the statute of 1881 did not expressly apply to any railroad having, authority to acquire lines of steamers and steamships for carrying on, in connection with their railroad business, transportation business across the American Continent, including its navigable waters and across the Pacific Ocean. It cannot be presumed that the legislature contemplated, when it adopted the present rule of determining the amount of the excise tax, railroads having as part of their lines and systems steamboat and steamship lines over navigable waters. The reverse would be true, for a corporation formed for the purpose of constructing and operating a railroad cannot, unless special powers and authority are granted under the general law or by a special statute of a state, engage in the business of running steamboats and steamships beyond its terminus. This would be as distinct from railroad transportation as the business of express, telegraph, or pipe-line companies. Pearce v. Madison, etc., R. R. Co., 21 Howard (U. S. ) 441; Green Bay, etc., R. Co. v. Union Steamboat Co., 107 U. S. 98; Shawmut Bank v. Plattsburgh, etc., R. Co., 31 Vt. 491. The physical conditions governing the operation of such transportation companies are unlike those pertaining to railroads, and while they would be subject to an excise tax it might not be equitable or reasonable to determine the amount by the same rules. And it is to be considered that steamboat lines instead of passing over territory, for which states could properly impose a tax, pass over inland waters or waters of the ocean, public highways which subject them to no burden of taxation. Several of the states have adopted the mileage basis of apportionment in taxing railroad and other public service companies; and some beside Maine assess the tax on the amount of gross transportation receipts, and others variously on profits, cash values of property, or capital stock. This method has been held by the U. S.
We think the contention of the state, that the spirit and intention of the statute are to include only actual railroad lines as existing on the face of the earth and operated as such, should be sustained.
Judgment for the plaintiff.