conditions to be considered as in the case of private property. (b) They shall then assess the value of the franchise, which shall be determined by due consideration of the gross earnings as compared with the operating expenses; and particularly by consideration of the value placed upon the whole property by the public (the value of the physical property being deducted), as evidenced by the market value of all capital stock, certificates of indebtedness, bonds or any other securities, the value of which is based upon the earning capacity of the property. (c) The aggregate value of the physical or tangible property and the franchise, as thus determined, shall be the true value of the property for the purpose of an ad valorem taxation, and shall be apportioned in the same proportion that the length of such road in each county bears to the entire length of such division or branch road in each county bears to the entire length of such division or branch thereof; and the Commissioners shall certify to the chairman of the County Commissioners and the Mayor of each city or incorporated town, the amount apportioned to his county, city or town, and the Commissioners shall make and forward a like certificate to the Auditor of the State. All taxes due the State from any railroad company, except the tax imposed for school purposes, shall be paid by the treasurer of each company directly to the State Treasurer within thirty days after the first day of July of each year, and upon failure to pay the State Treasurer as aforesaid, he shall institute an action to enforce the same in the county of Wake or any other county in which such railroad is located, adding thereto twenty-five per centum of the tax. The Board of County Commissioners of each county through which said railroad passes shall assess against the same only the tax imposed by the State for school purposes and those imposed for county purposes.118

When any railroad has part of its road in this State and part thereof in any other State, the Commissioners shall ascertain the value of railroad track, rolling stock, and all other property 118 Ibid. § 55.

liable to assessment by the Corporation Commission of such company, as provided in the next preceding section, and divide it in the proportion to the length of such main line of road in his State bears to the whole length of such main line of road, and determine the value in this State accordingly.119

If the property of any railroad company be leased or operated by any other corporation, foreign or domestic, the property of the lessor or company whose property is operated shall be subject to taxation in the manner herein before directed. And if the lessee or operating company, being a foreign corporation, be the owner or possessor of any property in this State other than which it derives from the lessor or company whose property is operated, it shall be assessed in respect to such property in like manner as any domestic railroad company.120 Canal and steamboat companies are assessed in the same way.121

8 631. North Dakota.

Railroads are specially taxed under the Constitution. The legislative assembly may provide for the payment of a percentage of the gross earnings of railroads in lieu of State, county and township taxes on property exclusively used in and about the prosecution of their business as common carriers. No real estate except the roadbed, right of way, shops and buildings used exclusively for their business shall be exempt under this provision. 122 The franchise, roadbed, rails and rolling stock of railroads operated in the State are to be assessed by a State Board of Equalization and apportioned to the local taxing districts in proportion to the number of miles of railway in each.123

$632. Ohio.

Electric light, gas, natural gas, pipe line, waterworks, street, 119 Ibid. § 56.

120 Ibid. § 57.

121 Ibid. § 59.

122 N. Dak. Const. § 176.

123 Ibid. § 179.

suburban or interurban railroad, express, telegraph, telephone, messenger or signal, and union depot company shall make annual return of its gross earnings within the State; the gross earnings within the State of railroad companies operating partly outside the State being found by taking a part of their total earnings proportional to the number of miles within the State. On their gross earnings within the State these corporations pay a tax of one per cent.124

The tangible property is locally taxed. The property of a railroad is assessed by a State Board.

"The value of such property, moneys and credits, of any railroad company, as found and determined by such board, shall be apportioned by said board among the several counties through which such road, or any part thereof, runs, so that to each county and to each city, village, township and district, or part thereof therein, shall be apportioned such part thereof as shall equalize the relative value of the real estate, structures, and stationary personal property of such company therein, in proportion to the whole value of the real estate, structures, and stationary personal property of such railroad company in this state; and so that the rolling stock, main track, roadbed, supplies, moneys and credits of such company shall be apportioned in the same proportion that the length of such road in such county bears to the entire length thereof in all said counties or county, and to each city, village, and district, or any part thereof therein, provided that if the line of any railroad company is divided into separate divisions or branches, so much of the rolling stock of such company as belongs to or is used solely upon any one of such divisions or branches shall be apportioned in the same manner to the county or counties, and to each city, village and district, or any part thereof therein, through which such branch or division runs, and the board shall certify to the county auditor of each county, and to each city, incorporated village, township and district, or any part

124 Ohio Rev. Stat. § 2780, cl. 18, 19, 21, amended by Oh. L. 1902, p. 136.

thereof therein interested, the amount apportioned to his county, and the board shall make and forward a like certificate together with all the reports of the various railroad officers, and other papers and evidence which formed the basis of their valuation, to the auditor of state, for the use of the state board of equalization of railroad property. It shall be the duty of the county auditor, upon receiving the certificate aforesaid, to apportion the amount therein stated to the cities, villages, townships, districts, or parts thereof; but the auditor shall not put the same on the tax list until he shall have been advised of the action of said state authority, when the proper amounts shall be entered on the tax lists." 125

§ 633. Oklahoma.

The governor, secretary and auditor of the Territory are made a board of railroad assessors, whose duty it is to assess all the property of railroads at its actual cash value. This assessment is not to include land and buildings of the railroad not used in the operation of the railroad. Cars belonging to car companies are assessed in the same way.126

§ 634. Oregon.

Rolling stock of a railway is assessed in the county where the principal terminus or depot of the railway is; provided that if it has a terminus or depot in the county where the principal office is, it shall there be assessed.127

§ 635. Pennsylvania.

Transportation, transmission and electric light companies, in addition to the tax upon their capital stock, pay a tax upon their gross receipts. The law provides that every railroad, pipe line, conduit company, steamboat company, canal company, slack-water navigation company, transportation company and every foreign or domestic company, doing business 125 Ibid. § 2774.

126 Okl. 1895, ch. 43, Art. 4, §§ 2, 6; 1899, ch. 28, Art. 3, § 1. 127 Ore. Misc. § 2744.

company,

in Pennsylvania, and owning, operating or leasing any device for transportation of freight or passengers or oil, and every telephone or telegraph company, and every express 128 and every electric light company, palace car and sleeping car company doing business in Pennsylvania shall pay a tax of eight mills on the dollar on the gross receipts received from passengers and freight traffic, etc., wholly within the State. 129

Under this act it was held that tolls received by one railroad company from another for the joint use of the track of the former, computed not upon the amount of the gross receipts, but at a certain specified sum per ton or per passenger, are not "received from passenger and freight traffic," and are, therefore, not to be included in the gross receipts for purposes of taxation.130

636. Rhode Island,

Every telegraph and telephone company, and express company, doing business within the State pays to the State one per cent. of its gross receipts within the State, which is in lieu of all other taxes on its lines and personal estate used in its business.131

§ 637. South Carolina.

There appears to be no special provisions for taxing such corporations, the taxation of many of them being fixed in the charter.

$638. South Dakota.

All property, real and personal, belonging to any railway company in this State and necessarily used in the operation of its line or lines of railway in this State, shall be assessed 128 Pa. 1889, P. L. 420, § 23.

129 The law as to express companies was altered by 1897, P. L. 294, but this provision was repealed and the tax provided by the original act restored by 1899, P. L. 72, § 2.

130 Com. v. New York, L. E. & W. R. R., 145 Pa. 200, 22 Atl. 806. 131 R. I. Gen. L. ch. 29, §§ 12, 13.