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.
Page 80 U. S. 270
MR. JUSTICE DAVIS delivered the opinion of the Court.
The only way in which the property of this company could be
reached for taxation at all was after the limitation of the fifteen
years had expired. The legislature was then at liberty to tax the
individual shares of the stockholders, whenever their annual
profits exceeded 8 percent. When a statute limits a thing to be
done in a particular mode, it includes a negative of any other
mode. It was the manifest object of the legislation which
incorporated this company to invite the investment of capital in
the enterprise of building this road, and no means better adapted
for the purpose could have been devised, short of total immunity
from taxation. As long as the capital was unproductive, it
contributed nothing to the support of the government, and even
after it became remunerative, its contribution was fixed by the
terms of the charter, and could not, in any event, exceed
twenty-five cents on the share of stock. The impolicy of this
legislation is apparent, but there is no relief to the state, for
the rights secured by the contract are protected from invasion by
the Constitution of the United States.
As the pleadings show that the annual profits on the shares of
stock have never reached 8 percent, it follows that they were not
subject to any public charge or tax.
Judgment reversed and the cause remanded for further
proceedings in conformity with this opinion.