Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1846-11-27

COuloC Is SuDUOSCQ Nv IUeI,
TO be sanctioned by decision of the Supreme
Court, on the taxing clause in their old Char
ter; but the renewed Charter of 1899 is in diff
ferent language. and it could hardly have
been the design of the gsiature TO exact a
Bank, than on that in similar institutions in
the State.
To aid the Treasury, until other means can
be realized, | suggest that the Bonds, Notes
and Judgments, held by the Literary Board,
consisting chiefly of the unexpended balance
appropriated TO drain Swamp Lands, be turned
over to the Public Treasurer, to be collected
and applied according to our necessities; but,
that the State be charged with the amount
thereof, as loan, the interest of which shall
be faithfully paid as an annual part of the dis
trlbutIon for the support of Common Schools.
The effectual security of the Principal, and
the punctual payment of the interest, is all that
is now desired from the Literary Fund. The
proposed disposition of this part of it, while
it supplies the present wants of the State, will
relieve the School Fund from the expense in
cident to the present Loan Office in the Litera-
ry Board; and the increased Revenue, in the
mode already set forth, will afford ample
means for the payment OF the interest 1t will
simplify the Public Accounts, to direct the
Bonds of the Wilmington and Raleigh Rail
Road Company, now lying in the Treasury,
and amounting to $780, 900 as before stated, to
be transferred to the Literary Fund, and as
an equivalent, that the Tavern and Auction
taxes be hereafter paid into the Public Treas
urV.
To liquidate the States responsibility for
the Raleigh and CASTOR Rail Road Company,
as early as pract cable, ] recommend the crea-
ton OF sinking fund, to be applied in buying
in and cancelling both kinds of Bonds, when
they can be purchased at, or below par, to
consist, LIST, of any Surplus which may be in
the Treasury, after defraying customary ex-
penses and specific appropriations. End. Any
income derived from said Rail Road if retained,
or its proceeds, if sold. 3rd. Any recoveries
effected against the Stockholders in said Com
| panv, under the 4th section of the Act of
| 1889, or against the Stockholders and Sub
scribers under the Act of 1871. Suits are now
pending against sundry ohligors on the Bonds,
| given for the States indemnity under the Act
of 1841, who failed to renew their bonds bien-
nially, as required by Law, and 7 regret that
no decision has, as vet, been rendered in the
premises. It is contended on behalf of the
State, that a failure to renew, is a breach of
the condition of the Bond inducing forfeiture
of the whole penalty Since the foreclosure
of the Mortgages, and the insuficency of
the real and personal estate OF the Company
to in 'emnify the State in her secur;tyship, it
has become an interesting question to what
extent can she claim to be Unidentified by the
individual Stockhol lers and Bon lsmen, and at
what time is her right thereto to be asserte !?
By the 4th section of the Act of 1899, in the
case which has happened, to wit, 'of the in
suffciency of the property of the Company to
pay Off and satisfy the full amount of Bonds,
then directed to he lorse ,Inciu ling the prin-
c:pal and tie interest tbereon,'' each AMI every
Stotkloler was to be bounl, 10 pay towar IS
making up such deficiency, an amount cor
responding with his Stock held therein at the
time when such deficiency should be ascer-
ta;nel, The Act of 1911, designed from its
title, further to secure the State against loss.
as well as to grant further all to the Company,
prov lie amongst other things, for the execu-
ton an delivery Of Bon s, in the aggregate
pera sum OF 100000, by Stockholders AMI
Subscribers, covenanting to in emnify the State
arajnst any loss or damage, in consequence of
her suretyship in the premises, an 'nsuffi-
cheney OF the real and personal estate ana pro-
perty of said Company to discharge the same
1t would seem, therefore, to have been the
intention of the Act of s39, to hold the Stock
hol,!ers Individually responsible for 'Fany loss
10 the State in the payment of principal or in
terest, after app. y-ng the mortgaged property,
to an equal amount with their subscr; ptons
of stock Nothing that perceive, in the Act
of 1871, changes that intention. The Bonds
directed to be taken, appear to have been pur-
poset, at the least as cumu alive security for
the former liability, ami to provide more easy
remedy IN case OF noncompliance Whether
the Bon1s actually taken conform to this con-
structlOn OF the Statute, or whether it may be
necessary to resort to Court of Equity to as
sert the States remedy in its full extent, on
the ground of mistake or inalvertence in franz
ing the Bonds, is matter for your MATURE de-
liberation. That the Act of 1889, section IA
obIigel the Stockholders to save the State
harmless, both as to principal and interest,
cannot be doubted Nor, will it be reality
alm;tted, that the Act of 1871, IN pari mate
ria, was designed to abridge or surrender any
security Those Stockholders, who did not
give Bonds, seem to be responsible to the
amount of their stock, under the Act of 1899
for both interest and principal. And it would
be an anomaly in the subsequent proceeding,
if they are under heavier obligations than their
associates, who entered into bonds besides be.
ing Stockholders
But whatever may be the extent of the
liability of these Stockholders and bon lsnen
or whatever may be the forum to enforce it
I apprehend that the event has happened on
which it may be at once asserted. An opin-
ion has prevailed, that the State, although
obliged to pay interest in the mean time, and
$500, 900 Of principal in 1860, or thereafter
could have no relress on these obligations
; until after that distant perioi,H The law, il
is true, renders the debt ire Ieemable, until
that time, to give the capitalist assurance of &
long loan AMI thereby to enhance the value
of the stock But after exhausting the rene ly
; by mortgage, AMI it being demoonstratve,y
certain, that large balance even of principal
must be paid by the State, see nothing which
requires delay in exacting any part of the in
den1nity stipulated. Should these suggestions
meet your concurrence, you will of course
give the corresponding directions to the Law
officers of the State. How much may be re
alize1, either from the income or resale O
!. the Rail Roal, or fro the liabilities Just re-
+ ferrel to, is as yet uncertain. In advising
therefore butt temporary provision for eXtr
taxation, am influenced by the consi Iteration
; that possibly it may not longer be require
= rather than by the fear of any aversion of GU
l constituents, to contribute whatevermay
nee led to re leem the public obligations, howey
er incautiously or unfortunately entered into
The olious doctrine that State may refus
! or postpone the fulfilment of contracts guaran
: teel by her public faith AMI sovereign hono
# has no resting place in all our Dor lers, ana