Document: 332 U.S. 168 67 S.Ct. 1584 91 L.Ed. 1977 ATLANTIC COAST LINE R. CO.v.PHILLIPS, State Revenue Com'r. No. 385. Argued April 9, 1947. Decided June 23, Appeal from the Supreme Court of Georgia. Messrs. Carl H. Davis, Wilmington, N.C., and T.M. Cunningham, Savannah, Ga., for appellant. Claude Shaw, Jr., Victor Davidson, both Atlanta, appellee. Mr. Justice FRANKFURTER delivered opinion Court. 1 This was a proceeding in courts Georgia to declare invalid an assessment by Commissioner against Atlantic Coast Line Railroad Company on ground that tax as applied appellant impairs obligation contracts. United States Constitution, art. I, Sec. 10. 2 To encourage railroad development, 1833 chartered (which later became Banking Company), gave railroadcertain im munity taxation. Georgia's increasing need tapping new sources revenue has not unnaturally brought scope this immunity. Its construction relation claim Georgia, despite charter is subject its corporate income tax, sole issue before us. 3 The case this. 1931, imposed 5 1/2 per cent. net all domestic foreign corporations. Acts Extra.Sess. pp. 24, 26, amended, 1937, 109, 117, Ga.Ann. Code § 92-3102. No under made Line, one lessees Railroad, until 1941. For calendar years 1941, 1942, 1943, assessed deficiency taxes basis road, computed at rate paid It contested. resisted attempt impose disregard assumed through 15 Charter 1833. sustained assessment, holding exemption related merely limits which property could be levied, such measured so exceed one-half earning power properties. 200 Ga. 856, 38 S.E.2d 774. exemption, found, concerned with what we now know therefore did bargain away legislature tax. 4 A statute contract appeal cannot foreclosed court's determination whether there or were obligations. But while it true are bound local statutes deciding Constitutional question, 'yet when dealing matter policy, like system taxation, should slow depart their judgment, if no real oppression manifest wrong result.' People New York ex rel. Clyde v. Gilchrist, 262 94, 97, 43 501, 502, 883. had construe following language: 'The stock said company branches shall exempt taxation during term seven after completion railroads any them: that, exceeding half annum proceeds investments.' 15, Act December 21, 1833, p. 256, 263—64. 6 us read law independent but innocent eyes, heedless placed upon court. Such provision collocation abstract words. In seeking meaning conveyed enactment must viewed part whole texture laws economy they apply. language draws itself presuppositions always articulated, even expressed words may carry insiders within sure discernment those viewing distance. And prepared say 'manifestly wrong,' Hale Iowa Board Assessment Review, 302 95, 101, 58 102, 103, 82 72, construing limiting right taxes. Our search something other than specialists today find 'It particular time place setting might reasonably have acceptance men common understanding.' supra. We reject wich Legislature wrote only can confident used, thus attributed it. fair regard taxes, commonly conceived, thought practice concerning fiscal matters prevalent precludes rejection interpretation 7 There were, sure, so-called 'faculty taxes' Colonial times some characteristics our present ability pay ingredient. these hardly them, generally ceased be, perhaps remembered. See, e.g., Seligman, Income Tax (2d Ed.) Part II, c. 367 et seq.; compare Hylton States, Dall. 171, 556. imposition remotely classifiable because presumably based illustrated levy sum four dollars professors physic, fifty billiard tables.' Law 590, 1797, Watkins Digest Laws 1755—1799, 646, 648. Not Civil War Federal Government, resort indisputably On hand, property, fairly reflects practice, unknown earlier days, assessing purposes exchange value power. 382, 383; Report Special Commission Taxation, Connecticut 1887, comments thereon Kennan, Taxation 207. 8 setting, would savor dogmatism infuse into atmosphere own day. does seem inadmissible found sought measure commonplace flat sum, abstractly ascertained, accordance fruits modestly limited. 9 sanction restricted reading respect rule deeply rooted history according contracts 'narrowly strictly.' supra, page 107, 72. recognize more hundred ago forever wholly untapped domain governing consideration never regarded surrendered bargained room rational doubt purpose.' controversy affecting here. Wright & Co., 216 420, 438, 30 242, 249, 54 544. As astuteness taxpayers ordering affairs minimize 'the very line you intentionally go close do pass it.' Superior Oil Co. Mississippi, 280 390, 395, 396, 50 169, 170, 74 504. 'nobody owes public duty demands: enforced exactions, voluntary contributions.' Learned Hand, C.J., dissenting Internal Newman, Cir., 159 F.2d 848, 851. Conversely, State, insofar limit basic enable government on, sail closely permits immunity exaction. old canon judicial construction. policy rests antedates us, forms i read. Proprietors Charles River Bridge Warren Bridge, 1830, Pick., Mass., 344, affirmed, 1837, 11 Pet. 773. requirement legislative grants, especially exemptions, aspect respecting purpose. presumed relinquished beyond narrowest exemption. potential governmental powers, fairness distribution burdens enjoyment privileges, preclude assumption. 10 carefully considered cases came Central 92 665, 23 757; supra; 236 674, 35 471, 59 781; Louisville Nashville 687, 675, 788; Wright, 248 525, 39 181, 63 401; 250 519, 40 1, 1123. needless rehearse issues involved. Suffice prior been barred property. Now first called examine candid, conventional Passing reference 'income' Court's mind focused validity torn context discussion event, phrases leave untouched judgment court intendment Judgment affirmed. 12 RUTLEDGE, agreeing conclusions statute, concurs result.

Category: 7