People v. Chicago Railways Co. (369 Ill. 128, 1938)

Mr. Justice Jones

delivered the opinion of the court:

The question in this case is whether the surface-wearing course of a strip of street pavement required to be maintained by a street railway' company is taxable as tangible personal property of the company. The issue is presented here by appeal of the People from a judgment of the circuit court of Cook county in favor of the Chicago Railways Company, Chicago City Railways Company, and Calumet and South Chicago Railway Company, appellees, in a consolidated cause where it was sought to collect such a tax for the year 1933. Each of the appellees operates its street railway on streets in Chicago under enabling ordinances providing for a division of net profits between the com-panics and the city, and containing an option of purchase by the city or its nominee. The ordinances require the companies to maintain an eight-foot strip of pavement on single-track streets, and a sixteen-foot strip on double-track streets.

For the purpose of assessment the property of corporations is divided into two classes — i.