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NEW ORLEANS V. HOUSTON, 119 U. S. 265 (1886)

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U.S. Supreme Court

New Orleans v. Houston, 119 U.S. 265 (1886)

New Orleans v. Houston

Argued November 17-18, 1886

Decided December 6, 1886

119 U.S. 265

Syllabus

The service of process in this case having been upon the Mayor of New Orleans, and the city having appeared and answered, the municipality is properly in court.

The effect of article 167 of the Constitution of Louisiana of 1879 is to revive the charter of the Louisiana State Lottery Company of 1868, except as to the clause conferring upon it the exclusive privilege of establishing a lottery and dealing in lottery tickets, notwithstanding its repeal in 1875, and also to recognize the charter thus modified as a contract binding on the state for the period therein specified.

Stone v. Mississippi, 101 U. S. 814, distinguished.

A grant in the Constitution of a state of a privilege to a corporation is not subject to repeal or change by the legislature of the state.

An assessment of a tax upon the shares of shareholders in a corporation appearing upon the books of the company, which the company is required to pay irrespective of any dividends or profits payable to the shareholder out of which it might repay itself, is substantially a tax upon the corporation itself.

United States v. Railroad Co., 17 Wall. 322, and National Bank v. Commonwealth, 9 Wall. 353, is, distinguished.

The case is stated in the opinion of the Court.





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