Raleigh & Gaston Railroad Co. v. Reid - 80 U.S. 269 (1871)
U.S. Supreme Court
Raleigh & Gaston Railroad Co. v. Reid, 80 U.S. 13 Wall. 269 269 (1871)
Raleigh & Gaston Railroad Co. v. Reid
80 U.S. (13 Wall.) 269
The principle of the preceding case affirmed in a case where the exemption from taxation was limited to a term of years, and where the dividends did not exceed a certain sum.
In the case just above adjudged and reported, the property of the railroad company could not by its charter be taxed under any circumstances. In the case of the charter of the railroad company now under consideration, the exemption was limited to a term of fifteen years. After this limitation expired, the legislature was at liberty to tax the individual shares of the stockholders whenever their annual profits exceeded 8 percent, provided that the tax did not exceed twenty-five cents a share per annum. The pleadings in the case showed that the annual profits on the shares never reached 8 percent.