Illinois Cent Company v. City of Decatur
Proceedings by the city of Decatur, Ill., to assess a special tax for the cost of grading and paving a street in said city on contiguous property, including land forming part of the right of way of the Illinois Central Railroad Company. Judgment of the county court confirming the assessment was affirmed by the supreme court of the state. 18 N. E. Rep. 315. The railroad company brings error. Affirmed.

Statement by Mr. Justice BREWER:

On February 10, 1851, an act was passed by the general assembly of Illinois incorporating the Illinois Central Railroad Company. By it the company was made the beneficiary of the land grant from congress to the state, of September 20, 1850, (9 St. p. 466.) The twenty-second section was in these words:

'Sec. 22. The lands selected under said act of congress, and hereby authorized to be conveyed, shall be exempt from all taxation under the laws of this state until sold and conveyed by said corporation or trustees; and the other stock, property, and effects of said company shall be, in like manner, exempt from taxation for the term of six years from the passage of this act. After the expiration of said six years, the stock, property, and assets belonging to said company shall be listed by the president, secretary, or other proper officer, with the auditor of state, and an annual tax for state purposes shall be assessed by the auditor upon all the property and assets, of every name, kind, and description, belonging to said corporation. Whenever the taxes levied for state purposes shall exceed three fourths of one per centum per annum, such excess shall be deducted from the gross proceeds or income herein required to be paid by said corporation to the state, and the said corporation is hereby exempted from all taxation, of every kind, except as herein provided for. The revenue arising from said taxation, and the said five per cent. of gross or total proceeds, receipts, or income aforesaid, shall be paid into the state treasury, in money, and applied to the payment of interest-paying state indebtedness, until the extinction thereof: provided, in case the five per cent. provided to be paid into the state treasury, and the state taxes to be paid by the corporation, do not amount to seven per cent. of the gross or total proceeds, receipts, or income, then the said company shall pay into the state treasury the difference, so as to make the whole amount paid equal at least to seven per cent. of the gross receipts of said corporation.'

By section 27 it was provided that 'this act shall be deemed a public act, and shll be favorably construed, for all purposes therein expressed and declared, in all courts and places whatsoever.'

In 1887, proceedings were had in the county court of Macon county to defray the cost of grading and paving a certain street in the city of Decatur. Under those proceedings two separate parcels of land belonging to the Illinois Central Railroad Company, and forming part of its right of way, were assessed to the amount of $262.70. The company objected to this assessment on the ground that by its charter it was exempted from all taxation, of every kind, except as therein provided for, and that there was no provision permitting such an assessment. This objection was overruled, and a judgment entered by the county court against the two parcels of land. Exception was taken, and an appeal allowed to the supreme court of the state. In that court the ruling of the county court was sustained, and the judgment affirmed, and the case is now brought here for review by writ of error.

B. F. Ayer, for plaintiff in error.

[Argument of Counsel from pages 191-197 intentionally omitted]

E. S. McDonald and Hugh Crea, for defendant in error.

Mr. Justice BREWER, after stating the facts in the foregoing language, delivered the opinion of the court. 

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