St. Louis, Iron Mountain & Southern Railway Co. v. Berry (113 U.S. 465)

by the Supreme Court of the United States

For works with similar titles, see St. Louis, Iron Mountain & Southern Railway Co. v. Berry.

Supreme Court of the United States

113 U.S. 465

St. Louis, Iron Mountain & Southern Railway Company  v.  Berry & Another, Railroad Commissioners

In Error to the Supreme Court of the State of Arkansas
Submitted January 7, 1885.—Decided March 2, 1885.

A consolidation of two railway companies by an agreement which provides that all the property of each company shall be taken and deemed to be transferred to the consolidated company (naming it) "as such new corporation without further act or deed," creates a new corporation, with an existence dating from the time when the consolidation took effect, and is subject to constitutional provisions respecting taxation in force in the State at that time. One section in the charter of a railway company authorized it to consolidate with other companies. Another section provided that the "capital stock and dividends of said company shall be forever exempt from taxation; the road, fixtures and appurtenances shall be exempt from taxation until it pays an interest of not less than ten per cent per annum." Held, That a new company. created by the exercise of the power to consolidate, took the property and franchises of the old company subject to the organic law as to taxation at the time of the consolidation.

This was a writ of error to review the action of the Supreme Court of Arkansas in refusing to restrain officers of that State from levying a tax on property of the plaintiff in error. The grounds on which exemption from taxation was claimed, and on which a Federal question was raised, are stated in the opinion of the court.

Mr. J. H. McGowan, Mr. A. T. Britton, Mr. A. B. Browne, and Mr. John F. Dillon for plaintiff in error.

Mr. U. M. Rose for defendants in error.

MR. JUSTICE MATTHEWS delivered the opinion of the court.