limits of the city; but the capital stock of the company is neither property owned by it, nor capital which it employs. The stock issued by a corporation is not property owned by it. Such stock is in no sense assets, but, on the contrary, is a liability. Stock in an incorporated company is held and owned by the stockholders. As to them, it is property, and may or may not be subject to municipal taxation; but, relatively to the corporation itself, it is not property at all. Neither a natural nor an artificial person can properly be said to own a chose in action, or written instrument of any sort, which merely evidences the fact that he or it is liable to or indebted to another." 63 Therefore an act was held unconstitutional, on the ground that the taxation was not uniform and ad valorem, which provided for a tax on the shares, and exempted the corporation from other taxation; for this act really left all the property of the corporation exempt.64

Occupation taxes may be laid both by the municipalities, and by the State in its annual general tax law; but these occupation taxes are and must be in addition to the ad valorem tax on all the property of the corporation, which the constitution requires to be laid.65 Such is the tax on the gross receipts of an insurance company laid by the city in which they were received; the State tax of two and one-half per cent. on the gross receipts of express and telegraph companies, and the State tax of one dollar on each telephone station or box.67

All special franchises, meaning thereby a privilege to any person or corporation to exercise the right of eminent domain, to use the highway, or to exercise any public service (not including the mere right to be a corporation by a trading or manufacturing or other corporation exercising no special franchise) shall be valued by the Comptroller-General after returns by

63 Macon v. Macon Construction Co., 94 Ga. 201, 21 S. E. 456.

64 Georgia State B. & L. Assoc. v. Savannah, 109 Ga. 63, 35 S. E. 67. 65 Atlanta N. B. & L. Assoc. v. Stewart, 109 Ga. 80, 35 S. E. 73. 66 Mutual R. F. L. Assoc. v. Augusta, 109 Ga. 73, 35 S. E. 71. 67 Atlanta N. B. & L. Assoc. v, Stewart, 109 Ga. 80, 35 S. E. 73.

the owner, and shall be taxed like other property in the manner provided for the taxation of railroad companies.68 Where such special franchises are exercised in more than one place, the entire value of the franchises shall be locally apportioned in proportion to the miles operated, as is provided in the case of railroads.69 Where it appears that such a corporation is by contract or law bound to pay a certain proportion of its gross receipts or otherwise in return for the grant of the franchise, the amount so paid shall be deducted from the franchise tax.70

§ 521. Hawaii.

The property of corporations is taxable like that of individuals; the value of the business as a whole being taken, rather than the aggregate of the separate items of property.

"In all cases where real and personal property, or several classes or kinds of real or personal property respectively, are combined and made the basis of an enterprise for profit, the combined property forming such basis of such enterprise for profit shall be assessed as a whole on its fair and reasonable aggregate value.

"In estimating the aggregate value of each such enterprise for profit there shall be taken into consideration the net profits made by the same, also the gross receipts and actual running expenses; and where it is a company being a corporation whose stock is quoted in the market, the market price thereof, as well as all other facts and considerations which reasonably and fully bear upon such valuation.

"In ascertaining the aggregate value of the property constituting an enterprise for profit for the purpose indicated by this section, there shall be excluded therefrom the value of shares in other Hawaiian corporations held or owned by such enterprise, and all property upon which specific taxes are levied." "1

68 Ga. 1902, No. 145, §§ 1, 2, 3.

69 Ibid. §§ 4, 5.

70 Ga. 1903, No. 439.

71 Hawaii Laws of 1897, § 820.

§ 522. Idaho.

There is no franchise tax. The property of a corporation is assessed like that of an individual. Capital stock of a corporation is exempt to the extent that it is represented by property of the corporation which has been assessed.72 The property is assessed in the name of the corporation in the county where it is situated.73 These provisions apply to foreign as well as to domestic corporations.

§ 523. Illinois.

There is no franchise tax. The local taxing districts tax the tangible property of corporations like that of individuals; and the State through a State Board of Equalization taxes the remaining capital stock of most domestic corporations. Taxable property includes "All moneys, credits, bonds or stocks and other investments, the shares of stock of incorporated companies and associations, and all other personal property." 74 The franchise is to be included as part of the personal property.75

"The capital stock of all companies and associations now or hereafter created under the laws of this State except those required to be assessed by the local assessors, as hereinafter provided, shall be so valued by the State Board of Equalization as to ascertain and determine respectively the fair cash value of such capital stock, including the franchise, over and above the assessed value of the tangible property of such company or association; such board shall adopt such rules and principles for ascertaining the fair cash value of such capital stock as to it may seem equitable and just, and such rules and principles when so adopted, if not inconsistent with this act, shall be as binding and of the same effect as if contained in this act, subject however to such change, alteration or amendment as

74 Ill. Rev. Stat. ch. 120, § 1.

76 Porter v. Rockford, R. I. & S. L. R. R., 76 Ill. 561.

may be found from time to time to be necessary by said board." 76

The State Board of Equalization, in pursuance of the power given by statute, passed the following rules: "For the purpose of ascertaining the fair cash value of the capital stock, including the franchise, of all companies or associations now or hereafter created under the laws of this state, and for the assessment of the same, or so much thereof as may be found to be in excess of the assessed or equalized value of the tangible property of such companies and associations, respectively, we, the state board of equalization, hereby adopt the following rules and principles, viz.: First. The market or fair cash value of the shares of capital stock and the market or fair cash value of the debt to be determined by reference to the stock exchange or the books of said corporations; and the returns made to the state board, or other means (excluding from such debt the indebtedness for current expenses), shall be combined or added together, and the aggregate amount so ascertained shall be taken and held to be the fair cash value of the capital stock, including the franchise, respectively, of such companies and associations. Second. From the aggregate amount ascertained, as aforesaid, there shall be deducted the aggregate amount of the equalized or assessed valuation of all tangible property, respectively, of such companies and associations (such equalized or assessed valuation in each case, if any, shall be taken and held to be the amount and fair cash value of the capital stock, including the franchise) which this board is required by law to assess, respectively, against companies and associations now or herafter created under the laws of this state."

These rules were frequently upheld by the courts.77 "There is a seeming injustice in taxing corporations which are largely indebted and whose earnings are insufficient to pay the accruing interest, as is alleged to be the fact in the present

76 Ill. Rev. Stat. ch. 120, § 3, cl. 4.

77 Porter v. Rockford, R. I. & S. L. R. R., 76 Ill. 561; Pacific Hotel Co. v. Lieb, 83 Ill. 602; Distilling & C. F. Co. v. People, 161 Ill. 101, 43 N. E. 779.

case, to the full extent of the value of all their property and privileges, without regard to their indebtedness; yet it has never been the policy of the legislature to make any discrimination in favor of individuals on this account, and corporations cannot claim an exemption from taxation when, under like circumstances, an individual would not also be exempt to the same extent." 78

"It is . . . obvious that, when you have ascertained the current cash value of the whole funded debt and the current cash value of the entire number of shares, you have, by the action of those who above all others can best estimate it, ascertained the true value of the road,-all its property, its capital stock, and its franchises,-for these are all represented by the value of its bonded debt and of the shares of its capital stock." 1979

In 1900 the board attempted to change these rules so as to diminish the amount of taxation upon corporations which had a large bonded debt, but the change was held illegal.80

This tax by the State Board of Equalization is a tax upon personal property.81 "The kind of property denominated as 'capital stock' does not mean shares of stock, either separately or in the aggregate, but designates the property of the corporation subject to taxation as a homogeneous unit, partaking of the nature of personalty, and subject to the burdens imposed upon it at the domicil of the owner." 82 This does not give rise to double taxation, since the tangible property specifically taxed is deducted, and the Board will be presumed to have made the deduction fairly. "It has been held that an assessment, by the board, of the capital stock of a corporation for taxation, by first ascertaining the market or fair cash value.

78 Scholfield, J., in Porter v. Rockford, R. I. & S. L. R. R., 76 Ill. 561, 588. 79 Miller, J., in State Railroad Tax Cases, 92 U. S. 575, 23 L. ed. 669. 80 State Board of Equalization v. People, 191 Ill. 528, 61 N. E. 339, 58 L. R. A. 513.

81 Baker, J., in Keokuk & H. Bridge Co. v. Peo., 161 Ill. 132, 43 N. E. 691. 82 Cooper v. Corbin, 105 Ill. 224; Ottawa G. L. & C. Co. v. Peo., 138 Ill. 336, 514, 27 N. E. 924,