The Yazoo & Mississippi Valley Railroad Company was incorporated by an act of the Mississippi legislature, approved February 17, 1882, the preamble and sections 2, 8, 13, and 14 being as follows:

'Whereas, the construction of railroads to, in, through, and along the Mississippi River basin, and the Yazoo and Sunflower River basins, penetrating these and other alluvial lands in this state, west of the Chicago, St. Louis and New Orleans Railroad, and connecting them by railroads and branches with other railroads west, east, north, and south, is deemed and hereby declared to be a work of great public importance, and, in strict accordance with the true policy and interest of this state, should be encouraged by legislative sanction and liberality; and, whereas, the physical difficulties of constructing and maintaining railroads to, across, along, or within either the Mississippi, Sunflower, Deer Creek, or Yazoo bottoms or basins, or the other alluvial lands herein referred to, are such that no private company has so far been able to establish a railroad and branches developing said basins and alluvial lands, and connecting them with the railroad system of the country: Now, therefore, in order to induce the investment of capital in the construction, maintenance, and operation of such a railroad and branches, and thus develop the resources and wealth of this state,'——

'Sec. 2. Be it further enacted that the said corporation shall also have, and it is hereby authorized and invested with, the right and power to build and construct, and thereafter to use, operate, own, and enjoy a railroad or railroads, with one or more tracks, into, along, and across that part of the state of Mississippi lying between the Mississippi river and the Chicago, St. Louis and New Orleans Railroad, on such line or lines as shall be deemed best by the board of directors of the company hereby chartered; one of said lines, or a branch therefrom, to reach the Mississippi river at or near a point opposite Arkansas City if practicable, so as to connect such point on the east bank of the Mississippi river with some point or points on the line of the Chicago, St. Louis and New Orleans Railroad; one of said lines of railroad, or a branch therefrom, to be extended to or pass through Yazoo city, Mississippi; and said company shall have the right and power, and are hereby authorized, to build one or more branches or lines of railroads between the Mississippi river and Deer creek, and between Deer creek and the Sunflower river, and between the Sunflower and Yazoo rivers, in the direction of or to the north line of this state, and extend the same, or any one thereof, in the direction of or to the south boundary line of this state, as shall from time to time, in the judgment of said company, be deemed proper; and shall also be authorized to construct and operate such spurs or laterals from or along such main line or branches, not exceeding one hundred miles in length, as may from time to time be necessary or proper to fully develop said country lying west of the Chicago, St. Louis and New Orleans Railroad, and east of the Mississippi river, in this state; and the said company, as soon as and whenever, from time to time, they have located said line or lines of railroad or branches, spurs, or laterals thereto, or any of them, shall file in the office of the secretary of state a statement showing the general line thereof, as far as the same has up to that time been located.'

'Sec. 8. Be it further enacted that in order to encourage the investment of capital in the works which said company is hereby authorized to construct and maintain, and to make certain in advance of such investment, and as an inducement and consideration therefor, the taxes and burdens which this state will and will not impose thereon, it is hereby declared that said company, its stock, its railroads and appurtenances, and all its property in this state necessary or incident to the full exercise of all the powers herein granted,—not to include compresses and oil-mills, shall be exempt from taxation for a term of twenty years from the completion of said railroad to the Mississippi river, but not to extend beyond twenty-five years from the date of the approval of this act; and, when the period of exemption herein prescribed shall have expired, the property of said railroad may be taxed at the same rate as other property in this state. All of said taxes to which the property of said company may be subject in this state, whether for county or state, shall be collected by the treasurer of this state, and paid into the state treasury, to be dealt with as the legislature may direct; but said company shall be exempt from taxation by cities and towns.'

'Sec. 13. Be it further enacted that, unless said company shall construct and have in operation twenty miles of railroad within three years from the passage of this act, the legislature shall have the right to declare this charter forfeited.

'Sec. 14. Be it further enacted that all acts in conflict with this act, or any part thereof, be and the same are hereby repealed, and that this act take effect and be in force from and after its passage, the public welfare requiring it.' Laws Miss. 1882, p. 838.

By section 1 the corporation is authorized to hold, purchase, receive, and enjoy real and personal estate in Mississippi and other states, however acquired, and to sell, rent, lease, mortgage, or otherwise dispose thereof. By section 5 it is empowered to consolidate with any other company or companies, and acquire or lease other railroads in or out of the state for a term of years or in perpetuity; to do an express business over its own and other lines of railroads and steam-boats, or other conveyances, in and out of the state; and to acquire, put up, use and operate a line or lines of telegraph in this or other state or states; by section 6, to fix its own rate of charges, not to exceed a maximum indicated, provided, it may make special agreements with shippers as to lumber, coal, iron, etc., and other freights transported in car-loads, without discrimination; by section 7, to enter on state lands anywhere, and take in fee-simple 100 feet on each side of the center of any of its tracks, as right of way; to use any rocks, timber, earth, sand, gravel, water, or other materials anywhere found on such state lands; to build bridges across any stream, whether navigable or not, with power and authority 'to build, construct, maintain, and operate, of itself or with others, in or out of this state, a ferry across, or a tunnel under, or a bridge over, the Mississippi river, at any point within this state, where its railroads, branches, laterals, or spurs may reach said river;' to acquire all lands and materials necessary for landings, wharves, inclines, or approaches thereto; to establish such landings, wharves, etc., as may be necessary or convenient in transporting freights, passengers, cars, or rolling stock, loaded or unloaded, upon and across said Mississippi river, or any other river or body of water within this state; and to own, use, and operate, and control by itself or others, 'all such steamboats, ferries, or other water-craft as are or may be convenient or necessary in crossing such water, so as to develop trade over said lines of railroad;' by section 9, to insure persons and property, or either, transported or to be transported over any part of its line, and all other property coming into the possession or control of said company for transportation or storage, and to charge reasonable compensation for such insurance or storage; to erect or acquire and use such depots, storage houses, wharves, etc., as shall be necessary or convenient; and to construct and operate compresses and oil-mills; by section 10, to run its railroad, branches, laterals, or spurs into the corporate limits of any incorporated town or city; and to build and operate its tracks across or along any streets of such incorporated municipality; and, by section 11, the board of directors, stockholders, executive committee, officers, and agents of the company may hold their meetings and transact the company's business in or out of the state, and establish such offices as they deem best in or out of the state, and all acts done by said company, its officers or agents, out of the state shall be of the same force and effect as if done within the state.

By the Code of Mississippi of 1880, under the heading 'Taxation of Railroads,' taxation was provided for in certain sections, summarized by counsel, in substance, as follows:

Section 597 provides that each railroad company owning and operating a railroad in this state shall, on or before the third Monday in August in each year, file with the auditor of public accounts a complete schedule of all its property, real or personal, setting forth the length in miles or fractions of its road-bed, switches, and side tracks, and showing the number of miles and fractions lying in the state, and in each county, and in each incorporated town, and the value of the whole, and each part as herein subdivided,—capital stock, bonded indebtedness, the gross amount of receipts, the rolling stock, depot buildings, work-houses and machine-shops, carshops, and stationary machinery, and the county and town in which situated, and the land on which they are situated, together with all other real, mixed, and personal property.

Section 599 requires: The auditor, when this schedule has been filed, and also in cases when it has been refused, is directed to notify the governor of the state of the fact, who shall proceed to convene the auditor, treasurer, and secretary of state, who, thus convened, shall assess the value of each railroad for purposes of taxation, and shall certify the same to the auditor of public accounts.

Section 600 provides the means of ascertaining the items and value of the property. The board is directed to value the entire road and property, that value is to be divided into the number of miles in the state, and the valuation for each county is to be according to the number of miles of the road in each. The number of miles for the state shall be the product for state taxes, and the number of miles in each county the product for county taxes; and, having thus ascertained the sums to be taxed, they shall certify the same and the facts to the auditor.

Under section 601 may be added 10 per cent. on the amount of taxes assessed against railroad companies failing or refusing to file schedules as directed by section 597, or filing unfair ones.

Section 603 provides that when the valuation so ascertained and certified has been furnished to the auditor he shall ascertain the taxes due the state and counties, and notify the companies of the amounts due to the state, by letter or otherwise, and shall certify the sums to be taxed in the several counties for county purposes to the clerk of the chancery court of the county, and the amount to be taxed by cities and towns to the mayor thereof, and the sums so certified shall be entered on the collector's books, to be collected as other taxes; and by section 604 the auditor shall collect the taxes due the state by distress warrants, issued to any sheriff, authorizing the seizure and sale of personal property in the county; and, should the personal property be insufficient, the auditor may sell the entire road and franchise to the highest bidder, and the purchaser shall be put in possession.

Sec. 605. The county taxes are to be collected as all other taxes.

Sec. 606. Railroad property situated in any city or incorporated town may be taxed for city or town purposes, upon a valuation thereof made upon the same basis as the property of individuals, and this section is to apply to the foregoing, as well as to the following modes of taxation herein provided for.

Section 607 provides that every railroad accepting this act, and annually paying to the auditor of public accounts the taxes hereinafter provided for, and signifying their acceptance in writing, shall be exempt from all the foregoing provisions, except section 606,—in relation to cities and towns,—and such payment shall be in full of all state and county taxes; 50 per cent. of the amount paid to be placed to the credit of the counties through which the railroad may pass, to be divided among them according to the number of miles in each. Lands owned by such railroad companies, and not used in operating the roads, shall be taxed as other property, and for all purposes.

'Sec. 608. Each railroad company whose line is in whole or in part in this state shall, if it accepts the provisions of this act, pay to the state treasurer, on the warrant of the auditor, on or before the 31st day of December in each and every year, a privilege tax as follows, to-wit, [here follows a list of the existing railroads in the state, their names being given, and the sums required of each,] provided, that no railroad company shall be subject to taxation under this chapter while the same is in process of construction but, if any part of any road shall be finished and used for profit, the part so finished shall be taxed, although the whole road may not be finished.' Code Miss. 1880, p. 194 et seq. In 1884, section 604, so far as it provided for putting a purchaser of a railroad under the tax-sale therein mentioned in possession of the road, was repealed, and section 607 was so amended as to give to the counties two-thirds, instead of 50 per cent., of the privilege tax. Section 608 was amended so as to read: 'Each railroad company whose line is in whole or in part in this state shall, if it accepts the provisions of this act, pay to the state treasurer, on the warrant of the auditor, on or before the 15th day of December in each and every year, a privilege tax as follows, to-wit, [then follows the names of the companies, not including appellant,] all the railroads not named herein, and not exempt from taxation by their charters, sixty dollars per mile: provided, that no railroad company shall be subject to taxation under this chapter while the same is in process of construction; but, if any part of any road shall be finished and used for profit, the part so finished shall be taxed, although the whole road may not be finished; nor where the same is now exempt from taxation by its charter.' Laws Miss. 1884, c. 22, pp. 29, 30. In 1886 the privilege tax for all railroads was increased 25 per cent. Acts 1886, p. 23. April 3, 1888, the legislature of Mississippi passed an act entitled 'An act to provide for the assessment of past-due and unpaid taxes on railroads which have escaped the payment thereof,' the first section of which is in these words: 'That every railroad which has failed to pay the taxes for which the same was liable for any year for which it was so liable, such railroad not being exempt by law or its charter from taxation for such years, and so being liable to taxation, shall be assessed for and shall pay an ad valorem tax, to be assessed as hereinafter provided, unless such railroad shall, within sixty days after the passage of this act, pay the taxes for which the same was liable according to its charter, or shall pay the privilege taxes for which the same was liable, as follows: If a standard or broad gauge road, for the years prior to 1884, eighty dollars per mile; for the years 1884 and 1885, one hundred dollars per mile; and for the years 1886 and 1887, one hundred and twenty-five dollars per mile; and, if a narrow gauge, or not standard or broad gauge, road, for the years prior to 1884, forty dollars per mile; for the years 1884 and 1885, fifty dollars per mile; and for the years 1886 and 1887, sixty-two dollars and fifty cents per mile.' Laws Miss. 1888, c. 28, p. 49. Section 2 provides that 60 days after the passage of the act the tax collectors of the several counties through which any railroad runs which has failed to pay the taxes for which it was liable, and failed to avail itself of the provisions of the first section, and paid taxes according thereto, shall assess, as additional assessment, every such railroad in their respective counties for the several years for which taxes have not been paid, on lists duly prepared for that purpose by the railroad commission, whose duty it shall be to prepare such lists immediately after the passage of the act; and then proceeds with other particulars in relation to the valuation, assessment, and collection, referring to various sections of the Code, so far as applicable. Under this act taxes amounting to $58,000 were assessed against appellant for the years 1885, 1886, and 1887, in respect to parts of its line which were operated in those years for business as a carrier, the road not having been completed to the Mississippi river. On the 17th of July, 1888, appellant filed its bill in the chancery court of Hinds county against Thomas and others, the appellees here, who were sheriffs and tax collectors of the several counties through or into which the road extended, to enjoin the collection of the taxes so assessed upon its railroad property, as unauthorized and illegal. The illegality complained of was that the tax was in violation of the company's charter, by which, it was insisted, the property of the company incident to its railroad operations was exempted from taxation; and it was averred that the charter, as respects the exemption claimed, was a contract 'irrevocable, and protected by the contract clause of the constitution of the United States; that the unwarranted application of the general laws subsequently passed, as well as the application of the general laws in force at the time, is equivalent to a direct repeal of the charter exemption; that it is an effectual abrogation of its privilege of exemption by means of authority exercised under the state.' To this bill the defendants demurred. The demurrer was sustained, and the bill dismissed by the chancery court, and the complainant appealed to the supreme court of the state of Mississippi. The decree of the court below was affirmed by that court, and to this judgment of affirmance the plaintiff in error sued out the pending writ of error. The opinion of the supreme court was delivered by ARNOLD, C. J., and is as follows: