TOMPKINS v`. LITTLE Rock & FT. s. BY. 7 T
5. INEGOTIABLE PAPER. V A _ ‘ l it · A » ' 5
The payee of negotiable paper who transfers it for value thereby rmarantles
0 the genuineness of the paper, and the truth of every recital on its face material
to its validity and value. · c . . j _. ._
iIn’Equity.· ~ U .~ 2. · » = -
On the twenty-frrst of .Tuly,‘_’1868,‘ the general assembly of the-state
of Arkansas passed an act toaid, in the construction of railroads by
a loan ofthe sta,te’s_credit. ‘   - V ,_ ,V ‘ ‘ " ` g
. The provisions of,the act upon which the inaterial questions inthe
casearise areas follows: c   , . .
- {Section 1., For the purposeof securing such linesof railroad in this state as
the interests of the people may from timepto time require, the faith and credit
of the state of Arkansas are hereby irreyocably pledged, and the proper author-
ities of the statewill and shallissue to each railroad company or corporation,
which shall become entitled thereto;_theVbonds~of this state.-in the su¤1»0f
$1,000 each, payable in 30 years from the date thereof, with coupons thereto
attached forthe payment of interest on the same in the city of New York,
semi—annually, at 7 per cent. per annum, in the sum of,` $15,000 in bonds for
each mile of railroad which has not received a railroad land grant from the `
United States, and $10,000 in bonds for each mile ef railroad which has re- .
ceived a land grant from the United =States, on account of which such bonds
shallbe due and issuable as provided." _ t, V   V _ A
*‘ Sec. 2. The board of railroad commissioners are hereby authorized and re-
quired to receive the application for the loan of , state credit herein provided
for, and to designate the roads entitled to the same." " ' ‘
“ Sec. 7. The legislature shall, from time to timegimpose upon each railroad
company, to which bonds shall have been issued, a tax equalto the amount of
the annual interest upon such bonclsthen outstanding and unpaid, which tax
may be paid in money or in the past-due coupons of the state at par, and,
after the expiration of tive years from the completion of said road, the legis-
lature shall impose an additional special tax of 2Q per cent. per annum upon
the whole amount of state aid granted to such company, payable in money or
in the bonds and coupons of the state at par; and, if in money, the same shall
be invested by the treasurer of the state in the bonds of the state, at their cur- V
rent market value.` The taxation in this section provided to continue until
the amount of bonds issued to such company, with the interest thereon, shall
have been paid by said company-as,l1erein_ specified, inrwhich case the said
road shall be entitled to a discharge from all claims orliens on the part of the \
state: provided, that nothing herein contained shall be so construed as to de-
prive any company, securing theloan of the bonds of the state herein pro-
vided for, from paying the whole amount due from such company to the state,
at any time, in the bonds of the state loanedin aid of railroads, or the coupons
thereon, or in money.
"Sec. 8. In case any company shall fail to pay the taxes imposed by the
preceding section at the time the same become due, and for 60 days thereafter,
it shall be the duty of the treasurer of the state, by writ of sequestration, to