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28 ·r i I -.rDE1uL 12m>0B.·1*ER.
crease every species of property to be used in their development, thereby
diminishing the burdens of taxation on the property of other tax-pay-
ers of the state in proportion to the increased taxes to be derived from
the anticipated increase of the property to be realized from the improve-
ments, as well as to create these new arteries of commerce and transpor-
“ tation for person and property, and to convert these rich lands, then a
wilderness, into the most productive fields, settled up by a numerous and
thrifty population, and the other benefits the public were expected to de-
rive from the facilities these new railroads would afford. It could not
be expected that these new railroads would earn much, if anything, by
way ofa return to those who would invest their money in theenterprise
until the expected development of these new sources of wealth and com-
merce should be realized; hence this exemption from taxation was pro-
vided as an inducement for the investment. I therefore conclude that
the exemption provided is a contract irrpealable under the constitution
of the United States referred to. f
It is insisted upon the part of the defendants that the eighth section
of the charter does not embrace levee taxes, and, if it did mention them,
that the levy of such taxes is an exercise of the police power of the state,
which the legislature cannot contract away. I am unable to draw a dis-
tinction between a tax to build and maintain a levee and a tax levied by
a town or city for the purpose of building bridges, or making other im-
provements for the benefit of the inhabitants of the town or city. And
it is admitted by counsel for the defendants that the clause prohibiting
towns and cities from imposing taxation on the company, its railroad,
and other property connected with it, is a valid exemption. The char-
ter provides an exemption from all taxation. ‘
‘ The most difiicult point to be determined is as to the period of time
at which the exemption commencesjwhether at the passage of the act
or only from the time of the completion of the railroad or one of its
branches to the Mississippi river. The act provides that the 20-years
exemption shall extend for 20·years‘from the completion of the railroad
to the Mississippi river, but not to extend beyond 25 years from the date
of the approval of this act, after which time the property of the said rail-
road might be taxed at the same .ra.te as other property in this state.
It will "be observed that the eighth section of the act under which the ex-
emption is given tixes no point on the Mississippi river. The-second
section of the act provides that one of the lines, or a branch therefrom,
shall reach the Mississippi river at or ·near a point opposite Arkansas
City, if practicable, but this provision relates only to the practicability
of reaching the Mississippi river at or nearly opposite Arkansas City.
Thecompletion of the railroad to any point on thisriver will entitle the
complainant corporation to the exemption provided, but it must be com-
pleted to some point on this river to entitle it to the 20- years exemption.
When that is done, the exemption will extend to all the railroads, and ·
property connected with it, used in their construction and operation un-
der the charter, including its stock. It is argued by the learned counsel
for the complainant, with great earnestness and plausibility, that the