Daily national Democrat., 1858-12-21
county subscriptions to Railroad CompO-
nles

nles.
The decision of the Supreme Court of this
State, in reference to the legality and validi-
~ of the bonds authorized to be issued by
the Board of Supervisors of this county, by
way of subscription to the San Francisco and
Marvsyille Railroad will be rendered, it is
thought in a few days The case has been
fully argued before Justices Baldwin and
Field, the Chief Justice not being present.
In case of a disagreement between the two
first named, the case will have to be re-
argued before Judge Terry, before decision
can be rendered 1t is much to be hoped
that no such unfortunate delay will be occas
ioned, inasmuch as it is desirable that the va
lidtv or invalidity of such subscriptions as
are involved in the matter now pending
should be definitely determined before the
sitting of the legislature, in order that other
counties wishing to subscribe stock to this
Railroad may know whether or not to apply
for the power to do so in the manner already
adventured by Yuba county. We perceive
that similar case to this one has been before
tne OuDEtuiS OOuIb VI L CuuS1lNd anu
decision recently rendered which recognizes
the right of counties to subscribe stock to
Railroad Companies. As bearing with con-
siderable directness, upon the issue now be-
fore our own Supreme tribunal, and as a
matter in which our citizens are naturally
much interested, we give the subjoined arti-
Gle on the subject of the decision alluded to,
from late number of the Dollar Newspa-
per-
THE ALLEGHENY COUNTY BOND CASE.
1t has been stated that the Supreme Court
of this State has decided in effect that the
bonds of Allegheny county, issued for sub
seriptions to the stock of railroad companies,
under sundry acts of Assembly, are valid and
binding, and peremptorily commands the
county Commissioners to levy a tax, at their
annual meeting, to meet the interest due, and
falling due next year, upon the three hun
dred thousand (frst) subscription to the Pitts
burg and Steubenville Railroad.
But while the court requires the payment
of the interest, it freely expresses its opinion
that, in a court Of equity, if the fact were
established that the bonds were disposed of for
less money than the law required, 1t would
BE- matter for scr o1s consideration whether
the county should be required to pay the
creditors back more money than they gave
for the bonds. This is all the unla wfu pur-
chaser could require in good conscience
Having required the payment of the inter
est, the payment of the principal did not fol
low a matter of course. The court says:
-~The relator, standing in a court of strict
law, demands the interest that is nominated
6n his bond. However he acquired his
bond, he is the "bearer," and such has
right to demand the interest The Commits
sioners tender an equitable defence, but we
tell them this is not The time or place to bring
Il forward As long as they leave the body
of the securities outstanding and unquestion-
ed, they are incapable of making the defence
upon the incidents. Equity even, would not
deal with such defence, where the suit was
only for interest. Much less the law But
let the whole case be brought into equity,
and it may be found that eUsnbanded justice
sriW require the county TO make Re1c security
for the sans actually receiged by the company,
payable in 1885, with semi-annual interest,
and the holders of the bonds to surrender
their bonds for cancellation on receiving that
new security. Whatever interest is paid
meanwhile will easily admit of equitable ad
justment, when the final account comes
If this foreshadowing of possible remedy
should lead to action on the part of the coun
ty, she will not be at any loss for parties to
sue, for the railroad company is at hand,
and every owner of bonds will become
Known, as his semiannual interest is paid at
the county treasury. But if the county
means to take no effectual action for her re
lief-if she will drive her creditors to sheer
law, by refusing all performance of her prom
Uses, she must be judged by the law. Upon the
Jaw the defence proposed cannot be sus-
1ained"
The act of the legislature was a public
law, and brokers and their customers are
bound to take notice of it as well as other
persons In the bond there was express re-
ference to the act and in the act the condi-
tion was expressed in unmistakable English.
Spectators should have taken notice of these
Shings, and should have needed the legisla
five guards which were thrown around the
undertaking.
Judge Lowrie, while concurring in the
,opiniOn of the court, gave also an individual
opinion, taking the ground that the act un
der @4Eieh the bends were issued is constitu-
tional. The Constitution, if violated, had
been violated by the combined act of the
government and of the people who were in
Herested in the question. 1t was mistake
Of the people as we'll as their functionaries,
and they could not throw the consequences
upon persons VINO were lnduced TO place Uhelr
trust in them, and who believed the public
act of the people of the county and their Off
GERS wac safe exponent of their principles
The Judge, OH this point, says;
mo man of any tolerable metakty would
cay that those who made the mistake may
honestly cast the loss of it upon those who
trusted them as understanding their own
business, their own authority constitution
and laws. Honest men who would advo-
cate reputation of such contract, would
do it only under ignorance or forgetfulness
of facts and principles constituting the essen
tal element of the case.
There was not man in Allegheny county,
who has sense enough to comprehend a single
principle Of the case, who did not know that
these things were going on. All knew that
public faith was to be pledged in these
transactions They knew it as a social and
not an individual movement They knew it
was pledge of the public taxes that was to
be made, and if they made no effort to pre-
vent it, they assented to it, according to the
maxim of common sense and common homes
ty, that silence gives assent, and which is oth-
erwise thus expressive-he who is silent
when he ought to speak, must remain silent
when he wants to speak and ought not
This is moral maxim on which is founded
an immense body of legal rules which com
mend themselves to the honesty OF every
man. We shall state some of them prin.
cipal is bound by the acts of his agent, even
when he exceeds his authority if the princi-
pal knows and does not forbid it. If one
puts another in position that gives him APP
,nano,,k otbars NAV trust to the n n