Morrison Waite

“ As a rule, we treat the construction which the highest court of a State has given a statute of the State as part of the statute itself. It is only when, by giving such construction a retroactive effect, it will invalidate contracts which in our opinion were lawfully made, that we disregard them. Here, however, we find nothing of the kind. Taxation by municipal or public corporations must be for a corporate purpose. ”

“ Trustees of Schools, supra, 'their creation is purely to aid in the great scheme of accomplishing universal education.' They are pre-eminently public-school corporations, and in the absence of legislative power under the Constitution can no more tax the people to build railroads than an ordinary school district or an incorporated academy can use its funds in that way. A railroad may held the people in a school district, but it can hardly be said that the construction of a railroad is a school purpose. ”

“ Railroads are the effect rather than the cause of schools.
Congressional townships under the name of the 'trustees of schools' were incorporated for 'school purposes' only. So the act of incorporation in terms declares. Taxation, by the corporate authorities, therefore on persons and property within the jurisdiction of such a township, to build railroads, is not taxation for a corporate purpose, and the decree below, which followed the decisions of the State court, was consequently right. ”