Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/514

 § 489.] THE LAW OF PRIVATE CORPORATIONS. [CHAP. VIII. in favor of the state. 1 Thus a clause in a charter requiring the corporation "to pay to the state an annual tax of one- half of one per cent, on each share of capital stock which shall be in lieu of all other taxes," while it limits the tax on each share of stock in the hands of shareholders, does not cover the capital stock of the corporation or its surplus or Frankford & P. Pass'r Ry. Co. v. Philadelphia, 5S Pa. St. 119. The grant to a corporation of a privilege to manufacture and vend gas in a city for a certain term of years, which places restrictions on the prices that may be demanded by the corporation, does not exempt the corporation from the imposition of a license tax. Mem- phis Gas Co. v. Shelby County, 109 U. S. 398. When a corporation is chartered with the unconditional right to in- crease its capital stock (power to alter, etc., not reserved), the state cannot exact a bonus (not a tax) on the corporation increasing its stock. Commonwealth v. Erie, etc., Trans. Co., 107 Pa. St. 112. But when a charter, which is subject to altera- tion and repeal, provides that the corporation shall not be taxed until its dividends amount to a certain per cent., the state may still tax the cor- poration before that condition of affairs exists. Commonwealth v. Fayette County R. R. Co., 55 Pa. St. 452. See Gulf & Ship. I. R. R. Co. v. Hewes, 183 U. S. 66. Compare § 461, ante, and § 497, note. See, also, cases in the following note. 1 Railroad Cos. v. Gains, 97 U. S. 697; Railroad Co. v. Commissioners, 103 U. S. 1; Hoge v. Railroad Co., 99 U. S. 348; Bailey v. Magnire, 22 Wall. 215; Morgan v. Louisiana, 93 U. S. 217; Roosevelt Hospital v. City of New York, 84 N. Y. 108; Academy v. Exeter, 58 N. H. 306; Tucker v. 494 Ferguson, 22 Wall. 527; Memphis & L. R. R. R. Co. v. Railroad Commis- sioners, 112 U. S. 609; Yazoo R. R. Co. v. Thomas, 132 U. S. 174; Vicks- burg, etc., Ry. Co. v. Dennis, 116 U. S. 605; New Orleans City, etc., R. R. Co. v. New Orleans, 143 U. S. 192; R. R. v. Harris, 99 Tenn. 684; Harkreader v. Turnpike Co., 101 Tenn. 680. A general statute ex- empting charitable corporations from certain taxes held to apply only to domestic corporations. Es- tate of Prime, 136 N. Y. 347. An exemption from taxation exempts from ordinary taxes ; and does not exempt from special assessments for local improvements. Illinois Cent. R. R. Co. v. Decatur, 147 U. S. 190; Ford v. Laud Co., 164 U. S. 662. Exempting the capital stock and dividends from taxation does not exempt lauds granted to the corpo- ration by the state creating it. Rail- road Co. v. Loftin, 98 U. IS. 559; see Railway Co. v. Loftin, 105 U. S. 258; Central R. R. Co. v. Wright, 164 U. S. 327. Where the purposes for which a corporation may hold prop- erty are specified in connection with an exemption of its property from taxation, the exemption applies only to property acquired for such pur- poses. Bank v. Tennessee, 104 U. S. 493. Exemption from taxation of the stock and property of a railroad company applies only to property used for its business. Ford v. Land Co., 164 U. S. 662.