HUNTINGTON and another, Trustees,
SAME.  Appeal from the Circuit Court of the United
States for the Eastern District of Arkansas.
January 24, 1887.
In the first of the above-entitled cases plaintiff, the Little Rock & Fort Smith Railway, is a corporation created under the laws of Arkansas, and operates a railroad from Little Rock to Fort Smith in that state, running through several counties in its route. The defendants are the sheriffs of those counties, and ex officio collectors of taxes therein. The suit was brought to enjoin them from collecting certain taxes assessed and levied for the year 1885 on what is termed in the revenue act of the state as the 'railroad track' of the corporation, upon the alleged ground that the board of railroad commissioners of the state exceeded its powers by including unauthorized elements in the estimate of its value. That t rm, 'railroad track,' embraces all fixed railroad property of the corporation, and is assessed for purposes of taxation as real estate.
In the second of the above-entitled cases the plaintiffs, who are citizens of Massachusetts, and trustees under a mortgage executed by the railway company upon its railroad and land grant, filed their bill of complaint against the same collectors to restrain the collection of the same taxes. Subsequently the bill was amended by joining the county clerks of the several counties on the line of the railway as defendants, with prayers for injunctions restraining them from doing the several acts which the revenue act requires them to perform in connection with and subsequently to the sale of the railroad track.
By a statute of Arkansas, passed in 1883, the governor, secretary of state, and auditor of public accounts were constituted a board of railroad commissioners for the state, and required on the first Monday of April of each year to ascertain the value of all property, real and personal, of every railroad company existing under the laws of the state, including therein the railroad track, rolling stock, water and wood stations, passenger and freight depots, offices and furniture; and it was made the duty of the company in March. The statute also required the board of railroad commissioners to meet on the first Monday of April in each year, at the office of the secretary of state, and examine the lists or schedules of the description and value of the railroad tracks of the railroad companies filed with the secretary of state; and if the schedules are made out in accordance with the provisions of the act, and, in the opinion of the board, the valuation of the railroad track is fair and reasonable, it shall appraise the same, and the secretary of state shall certify to the assessor of each county in which the railroad is located so much of the list as values the railroad track located in the county and in any city or town thereof, and the assessors shall list and assess the same as real estate.
The Little Rock & Fort Smith Railway, under this statute, made a return of the length of its main and side tracks, and of the value thereof, and of the improvements and structures, including the railroad track on its right of way, but omitted in its estimate the value of the embankments, tunnels, cuts, ties, trestles, and bridges, following in this respect the directions of the statute. At a subsequent meeting, the board passed a resolution declaring that all property of railroad companies in the state should be assessed at its true value, without regard to the restrictions and limitations mentioned, by which the value of the embankments, tunnels, cuts, ties, trestles, and bridges is excluded from the schedule of their property; that, after full examination and consultation, it had determined that such limitations and restrictions were unconstitutional, and that it was not bound thereby. The several railroad companies were therefore requested to render full statements of their property, of whatever kind or description, and the true value thereof, without regard to the restrictions and limitations mentioned. A hearing was accorded to the companies by the board; but its conclusion was not changed, and it proceeded to include in the assessment of the railroad track the value of the embankments, tunnels, cuts, ties, trestles, and bridges. The assessment was thereby largely increased. The plaintiff thereupon commenced the present suit to restrain the collection of the taxes, setting forth the matters above mentioned, and alleging that it was unable to state to what extent the assessment of its property was increased by this action of the board, as the increase was incapable of separation from the whole. It charged, therefore, that the whole assessment was vitiated and rendered void by this unlawful action of the board, and prayed an injunction to restrain the collection of the taxes based upon it. The defendants appeared in the suit, and demurred to the complaint. The court in which the suit was commenced sustained the demurrer, and dismissed the suit. The supreme court of the state, on appeal, affirmed the decree of the court below, and the case is now brought here for review. In the second suit-the one from the federal court-the defendants appeared and pleaded in bar the decree in the above case in the state court, and also, by leave of the court, demurred to the complaint. The court sustained the demurrer, and dismissed the bill. From its decree the case is brought here on appeal.
C. W. Huntington, for plaintiffs in error and appellants.
David W. Jones, for defendants in error and appellees.
Mr. JUSTICE FIELD, after stating the case as above, delivered the opinion of the court, as follows:
- See 16 Fed. Rep. 906; 18 Fed. Rep. 344; 21 Fed. Rep. 370.