There is legitimately but one question for discussion in this case. The controversy, by the pleadings, is narrowed down to one single point. The complaint charges that defendants are members of and compose a certain corporation known as the California Stage Company. That said Company have an office in the City of Sacramento, where they carry on and transact their business, and that they are constantly engaged in the business of carrying passengers, for hire, to and from said city, and that under and by virtue of the ordinance referred to they are liable for the license tax charged by plaintiffs. All these facts defendants admit to be true.
Here it will be seen, defendants admit that a part of theirbusiness (to wit, carrying passengers by means of stages to and from said city) is transacted and carried on within the limits and territorial jurisdiction of the city. No one will for a moment contend that the city has a right to tax the defendants for that portion of the business transacted outside of her jurisdiction; nor do we believe that any one can entertain a serious doubt that the city has the right and power to tax the Stage Company upon that portion of their business transacted here. We do not believe there is a wholesale house in Sacramento that does not transact a large portion of their business outside of the city. Many of them have branch stores in the mountains, which they supply from their stores here. Yet they pay a license tax upon all their business without a question as to the right of the Council to levy the same. Defendants' business is co-extensive with the limits of the State; they are not confined to any particular place, and therefore pay no taxes anywhere.
But, says appellants' counsel, the ordinance says " to and from the city." That certainly cannot mean to within and from within; it cannot reach beyond the outside limits, and therefore the City Council has no jurisdiction. But this attempt to torture language and pervert obvious meaning cannot for a moment be countenanced by this Court.
" Statutes should not in any case be so strictly construed as to defeat the obvious intention of the Legislature." Randolph v. The State, 9 Texas, 521.
" When the literal interpretation of a statute would lead to a gross absurdity of restriction, the Court will extend its operation to cases within the same equity, though at the expense of forcing the construction of the words." Henry v. Tilson, 17 Vermont, 478.
Here the meaning and intention of the Common Council cannot be misunderstood. The license tax is levied upon business transacted within the city limits. She has that right as a power, a sovereignty.
Defendants have their office in Sacramento; they sell their tickets and transact their business here. They are protected by our laws, and receive all the privileges and benefits of other citizens, and are morally and legally bound to contribute their just proportion for the support of government.
JUDGES: Baldwin, J., delivered the opinion of the Court. Terry, C. J., concurring.
OPINION
BALDWIN, Judge
Under a provision of the City Charter, the authorities have power " to levy and collect a license tax on theatres, and on trades, professions and business," etc. Under this section of the Charter, they imposed the tax on the defendants, who are a Company whose office and place of business is in the city, but whose business is the carriage of passengers from and to the city. The question is made whether, inasmuch as the larger portion of this work of transportation is done without the territorial limits of the city, the authorities have a right to levy this tax upon them; and, on this question, we have no doubt. The Company receive and discharge their passengers, and make contracts here for their conveyance, and they have their offices and property here, within the protection of the municipal laws. The mere fact that the business of carrying the passengers is not within the municipal limits, does not make the receiving and discharging of them and for contracting for them less a business here.
If this business is not a business in Sacramento, it is difficult to say where it is. The Company have as much need of the protection of the laws of the corporation, and are as much interested in the police expenditures, especially for streets, roads, etc., as any other persons, and we think are within the words and spirit of the taxing power.
Judgment is affirmed.