183 Pa. 618 | Pa. | 1898
Opinion by
Is a machine shop belonging to a railroad company and used exclusively for repairs in its own business subject to taxation by the local authorities? This must depend upon the answer to the question whether such repairs are reasonably neeessary to the successful prosecution of the business of the railroad company. If the shop is for the original construction of locomotives or cars, it is, under all our cases, subject to local taxation. A manufactory is no necessary part of the equipment of a carrying company, whether the carriage is conducted upon land or by water. Nor can a corporation engage in any other line of business than that which its charter and the general law under which it was granted authorizes. It may do the work for which it was created with as efficient and useful methods as it can command, and its preparations to serve the public and compete with its rivals are within its corporate powers and are therefore, covered by the taxation to which the state subjects its corporations. The application of this rule has in the main been uniform and consistent. It was stated with clearness and force in the Lehigh Coal and Navigation Company v. Northampton County, 8 W. & S. 334, in which we held that the “bed, berme bank and towpath of an incorporated canal are not taxable as land .... nor are the tollhouses and collectors’ offices belonging to it and incident thereto.” The reason given was that these were a necessary part of the canal itself, without which its business could not be properly carried on. Freight and passenger depots upon the line of a railroad were considered in The County v. The Coal and Navigation Company, 75 Pa. 461. It would be possible to discharge passengers and freight into the
The application of this rule to the case now before us requires us to affirm the judgment of the Superior Court for the reason that repairs are reasonably necessary as an incident to the business of the plaintiff company. New cars are merchandise, and can be bought in the market as they may be wanted. Locomotives may be obtained in the same manner, just as the need for them becomes apparent. But the almost infinite variety of breakage, due to constant wear and to the power required for the movement of cars makes it necessary for a railroad company to maintain shops at convenient places along its line with an adequate force of men and tools to mend and make fit for continued service all its appliances of transportation with the least possible delay. Many repairs can be made, if only the mechanics with their tools are at hand, in so short a time as not seriously to delay the movement of the cars on which they are needed; while serious delays would be the necessary result of detaching them and sending them to some general repair shop where they would be compelled to wait their turn for the attention needed,
This case derives no support from the cases preceding it, nor has it upon this particular point been followed by the latter ones. On the contrary, the distinction between construction and repair has been generally recognized. In Penna., etc., Co. v. Vandyke,
The judgment of the Superior Court is affirmed for the reasons now given.
The case reported in 1 Walker, 428 is distinctly overruled so far as it is in conflict with the rule iaid down in the foregoing opinion.