124 Ga. 630 | Ga. | 1906
This ease differs but slightly from the case of' Georgia R. Co. v. Wright, ante. No question of res adjudicata or of the statutes of limitation is involved in the present ease, but otherwise the two cases are identical in principle, save as to the one question now for determination. That question grows out of the peculiar character of the ownership by the Central of Georgia Railway Company of its half of the capital stock of the Western Railway of Alabama. It appears that this stock was originally owned by the Central Railroad and Banking Company of Georgia, which company, in 1887, conveyed it by a deed of trust to the Central Trust Company, of New York, to secure an issue of bonds amounting to' five million dollars. In 1892 the property of the Central Railroad and Banking Company was placed in the hands of a receiver in the .
We have seen, in the ease of Georgia R. Co. v. Wright, supra, that, the situs of stock in a foreign corporation, for the purposes of taxation, is at the domicile of the owner of the stock. Now, the-ownership of the stock involved in the present case is, as it were,, split. The Central Trust Company, of New York, is the owner of the legal title, and the plaintiff in error owns the equity of redemption and the right, on compliance with the terms of the deed of trust executed by its predecessor in title, to‘enjoy every sub-.-stantial benefit flowing from the stock. We agree with counsel for the railroad company that the deed of trust comes squarely within, the terms of the Civil Code, §2771, and that it conveyed to the trustee the full legal title to the stock during the life of the bonds which it was given to secure, subject to be defeated by the payment
The Central of Georgia Railway Company receives the dividends, votes the stock, and has every beneficial interest in the property except the doubtful one of physical possession. In accordance with the Georgia authorities which we have cited, we therefore hold that it is liable to pay the tax. It does not matter that it never owned the legal title at any time, and is not a party to the deed of trust by which it was conveyed to the Central Trust Company nor to the bonds the redemption of which by it is necessary to its ownership of the legal title. The important fact is that it now has the sub-stantia] equitable, taxable ownership of the property.
Judgment affirmed.