A franchise to be or to act as a corporation granted by a State, may be taxed by a State as a piece of intangible property. But franchises or other rights derived from the Federal Government may not be taxed by the States nor any hindrances placed by th States upon their exercise. In California v. Central Pacific R. Co.9 one of a series of cases dealing with the Pacific Railroads, the court say: "These franchises were granted to the company for national purposes and to subserve national ends. It seems very clear that the State of California can neither take them away, nor destroy, nor abridge them, nor cripple them by onerous burdens. . . . Can it tax them? It may undoubtedly tax outside visible property of the company situated within the State. That is a different thing. But may it tax franchises which are the grant of the United States? In our judgment, it cannot."

9 127 U. S. 1; 8 Sup. Ct. Rep. 1073; 32 L. ed. 150.