Mahlon Pitney

“ In these cases, as in those last mentioned, it is earnestly insisted by plaintiff that the district court erred in holding that the Kentucky statutes, properly construed, require first an apportionment of a proper share of the total 'capital stock' value to Kentucky, followed by a deduction from Kentucky's proportion thereof of the value of its tangible property in the state, instead of holding that the total tangible property in and out of Kentucky should first be deducted from the total capital stock value before apportionment to the state. ”

“ Rep. 498, and similar cases, to which we adhere, that a state cannot tax property outside of its jurisdiction, belonging to persons domiciled elsewhere, and that although the fact that property is part of a system and has its actual uses only in connection with other parts of the system may be considered by the state in taxing that portion of the system which is within its borders, yet the notion of organic unity must not be made the means of unlawfully taxing property without the state. ”

“ For the year 1913, the capital stock value fixed for Kentucky was $23,679,180, the assessed value of tangible property $12,478,903, which, being deducted, left $11,200,277 as the franchise valuation. The court granted a restraining order upon payment of taxes on an assessment of $6,000,000, followed this with a temporary injunction upon the same terms, and made a final decree granting a permanent injunction upon condition of the payment of taxes upon $2,161,067 in addition to the $6,000,000 upon which taxes had been paid under the order for preliminary injunction. ”