The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-05-17

in order to facilitate their proper arrange
ment.
THE TAXATION OF RAILROADS.
Decision OF the Supreme Court OF the
United States, that STATE tannot
Tax q Corporation which is ExemPt-
ed from Taxation by aus Charter.
= the following descision rendered by the
United States Supreme Court decides, as we
are advised, the question OF the power OF tnis
Estate to tax the South Carolina Railroad Com
pany and other companies which, by their
charters, are exempted from taxation:
The Wilmington and Weldon Railroad Com
pany, Plaintiffs 10 Error, vs.. john A. Reid,
Sheriff. &c.-In error to the supreme
Court of Inc State of North Carolina.
Mr.. Justice Davis delivered the opinion o.
the court. , n,,,,
of the State OF North Carolina, and brings up
the question whether the recent legislation VI
the State concerning the collection OF taxes,
is. as II affects the plsintf In error, 10 Vloia.
tion of tnat provision Of the Constilutloh oi
Slate shall pass any law impairlng the o6liea-
lion of contracts. As early as 1883, the Gene.
raj Assembly of North Carolina Incorporated
the Wilmington and Weldon Railroad Com
psny, for the purpose Of constructing rail-
road in the State, and inserted provision 10
the charter THAT the property VI saio com-
papy and the shares therein shall be ex'
empted from any public charge, or tax what.
soever." 1t has been 80 often decided oy tnls
court that charter of Incorporation granted oy
a State creates contract between the state
and the corporators, which the State csnnot
violate, that it would be Work o! supereroea-
tion To repeat the reasons on which Inc argu'
ment Ia founded. It is ;rue that When cor
neration claims an exemption from taxatlon,
ir mnat chow that the power to tax has oeen
clearly relInqulshed by the State, and u there
be a reasonable doubt about this having oeen
done. that doubt must be solved IN iavor o1 !
the State. Cine Blnghamton Bridge case,
Wallace.o II, however, the contract is plain
and unambiguous, and the meaning OF tae
nar,.es TO il can be clearly ascertalned, IL ls
the div OF the court To give effect TO II, tne
same as If 1t were contract between priVate
persons, without regard to lib supposed lpJu-
rious effects upon the pubic interssS. ..ou .o,
the Interest of the State, that the taxing
nower. which Is one Of the highest and most
fmporlant attributes Of sovereignty, should on
no occ lsion be surrendered. In the nature OF
things the necessities OF the government eau
not always be foreseen, and 10 the changes ol
nfQ6 Ll0 6UllIJ lolsO tONSAeo es~~N
apeoIes of property may be of vital Importance
IN the State. but the courts Of the country are
not the proper tribunals TO apply the correc-
five to Irnprovident legislation OF this casrac'
ter. Ifthere be no constitutional restraint on
the action of the Legislature on this suo)ect,
there is no remedys exceps snreugn acSng n ans
Controlling the conduct of the law-msEing
There ia no difficulty whatever In this case.
The General Assembly of North Carolina told
the Wilmington and Weldon Railroad Com
pauy, In language which no one can misun-
aerstand, that If they would complete the
work OF internal Improvement for which lney
we're Incorporated, their property and tne
shares of their stockholders should be forever
eTempt from taxation. This is not denied,
bnt n ia contended that the subsequent legisla-
tion does not impair the obligation OF the con
tract, and this presents the only qnesuon ~
the case. The taxes imposed ure upon tne
franchise and rolling stock Of the company,
and upon lots of Iapd appurtensnt 10 and
forming part OF the properly OF the company;
and necessary to be used In the successful
onoraiion of It's business. It certainly re.
onires no argument to show that railroad
Corporation cannot perform the functionS ior
which 1t was created without OWNING loilus
stock. and limited quantity OF real estate,
and tSst these are embraced In the general
term property. Property is word OF large
imnort. and in its application to this company
Included all the real and personal esate
reanred by IL, for the successful prosecution
of It's business. II It had appeared tnat Lne
company had acquired, elther real OF personal unn
!, estate. beyond its Legitimate wants, IL Is very
clear that sucn acquisitions would not be with
in the protectiun Of the contract But no sucn
case has arisen, and we are only Called upon
to decide upon the case made by the retoru,
which shows plainly enough that the company
has not undertaken to abuse the laVof VI Jus
Legislature. 49,,
R "a inslsted, however. that the tax on the
HfflEchise is something entirely distinct IRON
the property of the corporation, and tnat lne
Tepislaiure. therefore, was not inhibited from
laxing 1t. This position Is equally uasound
with the others taken In this Gaze. Nolnlng is
better settled than that tne franchise OF pri-
yafe corp pnration-which IN IT. application 10
railroad is the privilege Of rauning 1t and
taking fare and freighL-is property, ana OF
the most valuable Kind, as 1t cannot be taken
for pubic use even without compensation.
(Redfeld op Railways, p. l29. FEC. 1O.) IL Is
true It is not the same sort OF properly as Ghe
rolling stock, road.6ed, ana oepot grou1us, ~.
but IL Is equally with them covered cy tbs
general term t'Ihe property of the company"
and. therefore, equally within the protection
It is nepdless to argue the point further. It
is clear that the legislation In controversy alo
impair the obligation of the contract, Wnlcn
the General Assembly of North Carolina made
with the plaintiff In error, and 1t follows that
she Judgment of the Supreme Court must be
reversed. Ills 80 ordered, aud the cause Is
remsnded for further proceedings In conform
ity wltbthis opinion.
THE WEATHER IND THE CROPS.
Abbeville.
The Press says: ''The crops are suffering
greatly for rain, and the prospects for large
Yields are growing less on account OF the very
long dry spell we are having. The wheat
LOOKS very badly In some portions of the coun,
ty. The stand of corn is not very good, and
z. ,..,d of ootton ia extremely Door and dis