United States Supreme Court Cases & Opinions

U.S. Supreme Court

Morgan v. Louisiana, 93 U.S. 217 (1876)

Morgan v. Louisiana

93 U.S. 217

Syllabus

1. Upon a sale of the property and franchises of a railroad corporation under a decree founded upon a mortgage which in terms covers the franchises, or under a process upon a money judgment against the company, immunity from taxation upon the property of the company provided in the act of incorporation does not accompany the property in its transfer to the purchaser. The immunity from taxation in such cases is a personal privilege of the company, and not transferable.

2. The franchises of a railroad corporation are rights or privileges which are essential to the operations of the corporation, and without which its roads and works would be of little value, such as the franchise to run cars, to take tolls, to appropriate earth and gravel for the bed of its road or water for its engines, and the like. Immunity from taxation is not itself a franchise of a railroad corporation which passes as such without other description to a purchaser of its property.

This was an action by the State of Louisiana against Morgan to recover certain taxes.

The facts are stated in the opinion of the Court.

The judgment below was in favor of the plaintiff. The defendant thereupon sued out this writ of error.

Page 93 U. S. 219