Page:St. Louis, Iron Mountain & Southern Railway Co. v. Berry (41 Ark. 509).pdf/1

41 Ark.]

1. TAXATION: Power of legislature to exempt from.

The legislature was not restrained by the Constitution of 1836 from granting immunity from taxation, and could bind the state by an act exempting a railroad corporation from taxes.

2. TAXATION: Immunity from. Construction of act.

Every act of the legislature granting immunity from taxes must be strictly construed, and be so clear that there can be no reasonable doubt or controversy about its terms. If, on fair construction, there is a reasonable doubt whether the contract of exemption claimed in the act is made out, this doubt must be solved in favor of the State. An intention to surrender the power of taxation will not be imputed unless the language of the act leaves no other alternative.

3. RAILROADS: Consolidation: Effect of.

The legal effect of a consolidation of railroad companies is to extinguish the constituent companies and to create a new corporation with property, liabilities, and stockholders of the old companies which pass out of existence.

4. CAIRO AND FULTON R. R.: Power to consolidate with other companies.

Under the charter of the Cairo & Fulton Railroad company, it had no power to consolidate with other companies after it was completed, as the authority to consolidate was only to "facilitate its early construction." But it did have such power under the act of July 23rd, 1868.

5. TAXATION: Immunity from, not transferred to consolidated company.

The immunity from taxation granted to a railroad company does not pass to a new company, with which it becomes consolidated unless the statute granting the immunity so clearly provides for its transfer as to leave no room for controversy.

6. RAILROAD: Conditional exemption from taxes.

A provision in a railroad charter exempting the road and equipments from taxes until the income should amount to a certain per cent. per annum on the cost of construction and equipments, implies an accounting by the company to the State, showing the cost of construction and equipments and the annual receipts and expenditures of the road, as a means of ascertaining when the right to tax it accrues.

APPEAL from Pulaski Chancery Court.

HON. D. W. CARROLL, Chancellor.