James Clark McReynolds

“ But this merely permitted the lease of 'the canal of said company, or any part thereof, with all or any of its boats, property, works, appurtenances and franchises;' and, as clearly pointed out in the Rochester Case, an exemption from taxation does not pass under a valid lease or slae of corporate property together with appurtenances and franchises. ”

“ The person with whom the contract is made by the state may continue to enjoy its benefits unmolested as long as he chooses, but there his rights end, and he cannot by any form of conveyance transmit the contract or its benefits, to a successor. . . . But the state, by virtue of the same power which created the original contract of exemption, may either by the same law, or by subsequent laws, authorize or direct the transfer of the exemption to a successor in title. ”

“ The court of errors and appeals of New Jersey sustained a tax for the year 1906, levied by the state board of assessors, under the railroad and canal tax act of 1884 and supplements thereto, upon the canal and appurtenances leased by the Morris Canal & Banking Company to the Lehigh Valley Railroad. ”