taxation possessed by the Bluff City Company; while in the next following grant, that of the charter of the plaintiff in error, the word "immunity" is omitted. Is there any meaning to be attached to that omission, and if so, what? We think some meaning is to be attached to it. The word "immunity" expresses more clearly and definitely an intention to include therein an exemption from taxation than does either of the other words. Exemption from taxation is more accurately described as an "immunity" than as a privilege, although it is not to be denied that the latter word may sometimes and under some circumstances include such exemptions.
In Morgan v. Louisiana,[1] there is an instructive discussion from the pen of Mr. Justice Field. In holding that on a foreclosure sale of the franchise and property of a railroad corporation an immunity from taxation did not pass to the purchaser, the learned Judge said:
As has been often said by this court, the whole community is interested in retaining the power of taxation undiminished * * * The exemption of the property of the company from taxation, and the exemption of its officers and servants from jury and military duty, were both intended for the benefit of the company, and its benefit alone. In their personal character they are analogous property of debtors, to exemptions from execution of certain property of debtors, made by laws of several of the states[2]
- ↑ (1876) 93 U. S., 217, 222.
- ↑ See, in accord, Picard v. Tennessee, etc., R. Co. (1888), 130 U. S., 637, 642, (Field, J.); Rochester Railway Co. v. Rochester (1906) 205 U. S., 236, 252 (Moody, J., reviewing the many other cases on the subject).In Internat. & G. N. Ry. Co. v. State (1899), 75 Tex., 356, a different view was taken as to the alienability of an immunity from taxation. Speaking by Stayton, C. J., the court said:"Looking at the provisions of the Act of March 10, 1875, we think there can be no doubt the exemption from taxation given by it, instead of being a right vesting only in appellant, is a right which inheres in the property to which it applies, and follows it into the hands of whosover becomes the owner. * * * The existence of this right enhances the value of the property to which it applies. Shareholders and creditors must be presumed to have dealt with the corporation on the faith of the contract which gave the exemption, and it cannot be taken away by legislation, by dissolution of the corporation, or in any other manner not sufficient to pass title to any other property from one person to another. The right to exemption from taxation is secured by the same guaranty which secures titles to those owning lands granted under the act, and though the corporation may be dissolved, will continue to exist in favor of persons owning the property to which the immunity applies. Lawful dissolution of a corporation will destroy all its corporate franchises or privileges vested by
