
    THE MAYOR AND ALDERMEN OF THE CITY OF NEWARK, DEFENDANTS IN ERROR, v. THE STATE BOARD OF TAXATION, PLAINTIFF IN ERROR.
    Argued November 25, 1901
    Decided January 27, 1902.
    A franchise .to maintain and operate a street railway over public highways and collect tolls from persons traveling upon it is property, and is taxable as such.
    On error to the Supreme Court. The opinion of that court is reported in 37 Vroom 466.
    For the plaintiff in error, John W. Griggs and George T. Werts.
    
    For the defendants in error, Henry Young and Herbert Boggs.
    
   The opinion of the court was delivered by

Gummere, Chief Justice.

The judgment under review should be reversed, for the reasons set forth in the dissenting opinion delivered by Mr. Justice Garrison in the court below.

That there is an inherent value in the property of the North Jersey Street Eailway Company, over and above the cost of reproducing its rails, stringers, poles, wires, power-house, &c., needs no demonstration. That value, however, springs, not out of any ownership by the company of an interest in the soil of the highways over which its road passes, but out of its ownership of the franchise to maintain and operate its road over those highways, and to collect tolls from all persons traveling upon it. This- franchise is property, and taxable as such (State Board of Assessors v. Central Railroad Co. of New Jersey, 19 Vroom 146); but, under present legislation, the right to tax it has been reserved by the state to itself, through its state board of assessors, and not delegated to the several municipalities through which the company’s road passes.

For affirmance — Dixon, Collins, Vredenburgh. 3.

For reversal — The Chancellor, Chief Justice, Hendrickson, Pitney, Adams, Voorhees, Vroom. 7.  