The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1858-06-08
TRANSFERRING RAILROAD STOCK.

We have heretofore alluded to Mr. McRae's
proposition to give aid to the Fayetteville Railroad
by transferring the stock owned by the State in
the Raleigh and CASTOR Road to that work The
Fayetteville Observer and Wilmington Journal
say that such transfer cannot be made, inasmuch
the last Legislature transferred all its stock (not
previously disposed of to the Sinking Fund.
We are inclined to think that our usually cor
rectly informed contemporaries are in error about
the matter However much we doubt the propri-
ETY. of such transfers, we think there is precedent
in point The Legislature at time transferred
certain swamp lands to the University of North
Carolina, for the benefit of that institution. Find
ing, at subsequent session. that it would be bet
ter to appropriate the revenue arising from the
sale of those lands to the Common School Fund
they were rc-transferred for that purpose. a legal
friend thinks the went before the Supreme
Court, where the action of the Legislature was
sustained
There is another which probably may have
some bearing upon this subject 1t is that
went from Polk county to the Supreme Court, and
was decided at December Term, 1850. In 1913
the Legislature repealed the act creating that
county. i TIC pdIiItIi, tHc ENLclIH VI LHC tpuIt
contended that the Legislature had no right to
repeal the act-that it was unconstitutional. Judge
Pearson delivered the opinion Of the Court to the
effect that the Legislature had right to repeal
the act, because such statutes are not the result
of contracts Here is an extract from the opinion
Of his honor:
Some corporations created by the ~U Of
the Legislature there being other party interested OF
b.Nt- Inn ntt he NON ~ he
Legislature delegated to be exercised for the public
good and subject all times to be modified, changed
annullcd.
Other corporations the result of contract. The
LEGISLATURE is not the only party interested for al
though it has public purpose to he accomplished Ii
chooses do it by the instrumen1ay OF second party
These two parties made contract. The Legislature.
for and in consideration of certain labor and outlay OF
money! confrs upon the party of the second part the
privilege of being corporation with certain powers
and capacities The expectation OF hcneht to the uhc
is the moving con sdcraion side; that of eN-
pected remuneration the outlay is the consideration
on the other II is contract: and, therefore cannot
he modified. changed or annued without the consent
of both parties.
Now it appears to us that the act of the Lcgls-
lature transferring its railroad stock to the Sinking
Fund, for tie benefit Of itse!t, comes under the
sense of the first paragraph above quoted. There
is no second partv-nO cOntract-and therefore
the same power has the right to re-transter those
stocks for any other purpose
OF course We do not pretend to assert that we
are right in these views, but merely put them
forth for the purpose of eliciting information.
Even if the transfer could be made, we think 1t
very poor way to help any work Besides the
State would lose 40 per cent of the whole amount
transferred, for the stock at the highest estimate
is only worth $50, and it could only be transferred
ut its market value