Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1862-02-08
moARD oF
oFFIcEaA PRoCBaBrraA.

I5e5Ot aDl Aldermen, held yesterday, Februsry It'll.
-So~ resent Hon. John Park. Mayor, Chairman Msr.
rL Aldermen Drew, Morgan, Amis. Ayres Tovps.nd
Ah0yt Farmer, Robinson Patrick. VolFutiue Tirhe HrI.
oei- hoftrecht Cochran and Greenlaw.
a quorum being annOuneed. the chairman took his
seat ana called The Board to order. when the ron OF Al
l4t - e4lsut anu the uuinshed business pros cd
u N'A' oy a can Tor reports from special Committee.
MEMPHIS AND LITTLE ROCK Cd.
AId Ayre9 chairman Of The special COMMITTEES On the
subject submitted the following report and resolution.
49, after a pT0tIacted debate, were adopted by the
gam kortreeht, Ams, Ayres, Patrick. Kirby. Farmer,
BalDert, FoAeutne, and Merrill Esy-Townsend
Robinson, and Groeniaw.
Your special COMMITTEES, 70 whom was referred the
communication from W.. o. Lofand in relation to the
paylnento Of The coupons Of the Ne rphis and Little Rock
iSt"'d ocnts, asking Tor instructions, etc, aHd the res-
SIupon OF AID Townsend on the same sasjeet, now ask
lsaye to report etc
Your committee find that on the 30th Of January. 1851.
the Board Of Mayor and Aldermen OF the city Of Mem
pms passed the following ordinance Of FIVE sections. a
copy Of which is herewith unlimited This ordinance,
ine Board dispensing with the rule, was put on issecond
and maj passage on the same day it was introduced.
The object aud effect Of this ordinance. as will appear,
was TO make the city Of Memphis assTre the payment Of
ue Oonds 81 tho Memphis and Little Rock railroad com
pany for S5o0G00, having fifteen years to run, with eou-
pons attached for interest AZ 2 per cent payable semi
annually, on certain conditions precedent as pro
v'ded therein. and also providing that the Navy Yard
grounds should be morgaged to pay said bonds, and That
me rents and yearly revenue to the amount Of S30000
gagged to pay the interest.
By reference TO the city charter, in operation at the
IaN VIII IttHallce was uu-ScU. YOur committee fluid a
provision ltat the Board Of Mayor and Aldermen OF the
city Of Memphis shall not have the power 10 issue the
bonds OF the city having longer than one year to run,
except iE certain eases provided, and AL power which
had previously existed for any such purpose was re-
pealed by the act Of February, 1850.
Your committee now admit that IN this ordinance as
sHntag to pay tie bonds Of the Memphis and Little Rock
railroad company for 100000 on the terms and condi
tons IN the same prescribed, the city did NOT issue as
and expressly prohibited but the Board Of Mayor snI
Aldermen da Whist sin violation Of the spirit aud nten-
you u nor iHe Ist5er OF the at and city charter and ere
sled or attempted u create q liability Of the city for 50 o.
go and Interest, having fifteen years 10 run. and without
submitting the same TO a vote OF the people
The general principle that corporations derive their
powers from their respective charters or the organic laws
OF their CREATION H 300 familiar az tMs day to require au-
th0lty ca argument to sustain it, and the principls that
corporations osaH0t exercise powers which are proi5lc9,
mas never been cOntroycrtci As your committee ar
informed the highest Judicial tribunals have settled the
dostrrie that corr orafious can only exercise such powers
as are grmtedbyt their respective charters and sueh a
may be necessary to carry out the same.
Your committee do not deem it necessary 20 inquire
no" IF the conditions Of std ordnance have heen
complied with by tho Memphis and Little Rock railroad
company, and whether theconditiou precedent were per
formed before the ordinance took effect
Your committee further find that on the 10th day OF
May, 1851, A; Il, Douglass, then Mayor Of said city OF
Memphis, proceeded to set under the supposed authority
VI said ordinance, to carry out the SAME by conveying
ne navy yard grounds TO secure the bond3 OF me Mem
phs and title Rock railroad company for S300,O0O paya- |
bic in fifteen years after the lst July, 1851, with coupons
attached, ste, and by the act Of SAID Douglass as Mayer /
on the part Of The city, he executes not q 549srgagc but a
deed Of JaSf purporting 20 convey 10 Sam Tate and I
James Elder, trustees, the Memphis navy ward grounds. ]
improvements, etc, with power 10 advertise snd sell said
grounds for cash, on sixty days notice, to pay said bonds
when they mature, and with power to collect Hsnts and
lease money to she amount Of $4,000 per sanuIn, to pay
interest as il may fall due, in case the city Of Memphis
fail 10 pay the same Copy Of said deed Of trust Is filed
herewith.
Your committee would call attention to the difference
between a A8,tgcge as is named in said ordinance and a
decd u trust
mortgage cannot be enforced or freolosed only by a
decree OF court Of competent jurisdiction, and the court
whose power Is invoked for sneh purpose viii hear and
determine the rights Of the parties, and compel the party
seeking its aid, TO 90 what IS just and equitable 10 the
adverse parry, and provides in its decree, 20 en-
force such equities az Che csso may require and the
rights Of the srsnioE, or the party making the mortgage,
VIZ lhe rsni Oh resumption WILDE protected But IN
q deed Of trust and especially in the one under consider
alton, the trustees are empowered 10 sell, absolutely, the
eutlrc navy yard Er"auaA, Il necessary, on sixty days
notice, 20 pay said bonds, with the right Of redemption, !
or squity Of redemption, waived; and the city OF Mem
pins on failure 90 pay these bonds when they fall due, is
liable By the terms OF the deed Of trust, 20 have the
her navy yard grounds sold. and have swept or from
f0rthree hundred thousand dollars (S30QOOO) property
which at that time may be- worth millions. The poWsrs
thus granted 20 the trustees may be abused and tho city
made tosnarr hesvy iossas without lie power Of redress
Your committee would further state that by 1ho 0rli
nance aforesaid it is provided that for the assumption OF
the said bonds Of the Memphis aud Little Rock railroad
NOE Of The road FROM Memphis to The ST. Francis river
was completed, or within tvelve1aouths, at tue discretion
OF the Board OF Mayor aud Aldermen iaso from said
railroad compeHyi eiiler stock Ia me company or IT'S INST
class mortgage bond~ 70 the amount Of 53D0,OOg in pay
ment Of the bonds assumed and secured by mortgage on
the navy yard grounds hnd all sums paid by the city Il
az thar lime a. iutesost simply, shall be refunded to the
city Of Memphis in the stock Of the company
The first section Of tho road was completed in 155s, |
aud thew arc advised that action has been taken bv he 4
Board IN making the election to take tho bonds in March,
1850, and they ae informed the railroad company do not
object 70 the right Of the city 10 elect to take the bonds
Of the company.
II vMI be seen thasin section four Of said ordinance, It
s provided ii the city elect 70 take the first class mort
gage bonds Of said company the said bonds shall have
thirty years TO run, will coupons for interest atisched At
seven per cent, etc. Said bonds. on their face, to BE-
convertible INTO STOCK nj the option % the holder with
/ ia i've years after date-
Your committee are informed that the construction !
| placed BY the officers Of the railroad company on the |
! ordinance and deed OF trust in regard to said bonds, is
sueh that railroad company win insist that the city OF
| Memphis is bound TO pay the accruiug Interest on the |
bonds for 100000 assumed and secured by the ordinance
and deed of trust, Tor fifteen years, on tile maturity OF
said bonds, and 10 take The AMOUNT Of interest SO pald,
| 81 600 per annum, for fifteen year., in the stock Of ssid
railroad company, and tlat the Memphis aud Little
Rock railroad company Is ony bound TO deliver to tho
/ city Der bonds Tor SJJQU00, with coupons for interest az
tEehcd Tor the last fifteen years the bonds Of the eo-n
pany may have to rim, or, in other words, Tor the first
fifteen years interest paid by Ae city On ths bonds Of
The company a'sAnsd the ra-lroad company is 20 pay in
| stock, aud from aaf time Whcu the bonds asssmed hav-
ing fifteen years 90 run are due aud paid, the bonds Of |
the railroad company, in lien, shall bear interest. Now
your committee cannot aduit this construction Of the
I terms OF the ordinance 10 be correct land they now
give it Az their opinion. That The city il only bound
by said ordinance, to take the stock Of the COM
pany for all Interest paid by the city, M to twelve |
mouths after the kompletioa Of the first section OF tho
rOed and that the thirty years bonds Of the company TO Il
the city for the fifteen year bonds assumed, should have |
been delivered with coupons for interest from hat ,ime
est OF Reimburse ths city fr all Interest PAID, or 10 be
paid. after twelve months from tie completion Of the
first section Of said road.
Your committee are informed by one Of the late OH 4
GERS Of said railroad company, that said company nil
not deliver to the city it's bonds for the S3J0OGO, only
with coupons for Interest aitef the lst OF July, 1872, and
viii MOI provide ter payment Of the interest accrung OF /
S2iG90 per auuuIn, but foEce the city TO pay the interest 1
for fifteen years, snd take the stock Of the company for
] fha fntar.uf EtlE fNI Maid and TO he Maid g4 the fsfrragf 1
becomes due.
Your committee cannot regard such a position as teua-
be. 10 such construction can be given 70 the ordinance |
authorizing the assumption OF tho @3oa,OvO and H there /
Is q somb.ance Of p oprety in such claim on the part Of
the railroad company, Il b. 20 be found IN the rscitals Of |
| he decd Of trust, but such instrument Was not eOuem-
plgtod bv sail ordinances sud Is not authorized BY the /
terms and conditions therein contained, and your com
mitee have not found any evidence that The Board Of
! Mayor and Aldermen have approved Of sail deed and
they hazard but little in expressing the opinion that said
deed Of trusr was executed by The Mayor without author
uy and the city Of Memphis Is not bound by its recilals
/ OF pfecludcd by itstcrms-the same being on its face a
paper not ia conformity with the letter OF spirit OF the
ordinance passed by the Board Of Mayor and Aldermen.
Your committee are informed That tue city % Mem
1 phis has already paid coupons fdr interest ON Sid bonds
10 the amount OF $4,000, snd therc are coupons for in
ter-st now due, and Hot yet paid 90 the amount Of 81
Your committee might safely LAY that the city Mem I
] phis Is Eut Laaig hz5{. for The said bonds. either pin T. |
nalor Interest. and while they DO not wish 10 place her
I ia the attitude Of denying the liability andreusing 10 pay
The same, yet so proteet herself from injury, Eh % ena-
I BE her 10 insist on a Performance Of the terms Of said
[ OffiHautc Q III lHe part Oh rau iaitiNAl company NArl /
/ recommend thu city TO dcclnr tbs further payment Of
| the coupons Tor interest, until the railroad company shall
4 comply with said ordinances and deliver 90 the city or It's /
urop-r officers the first class mortgage bonds of sad
1 railroad company, having thirty years 20 run, foI $500
900, from the lst July ls2i with coupons for interest
attached from twelve months after tho completion o. the
dut section Of said road, aud TO this end they recon-
mend Tie adoption Of he resolution herewith All Of
which IS most respectfully submitted
I. s. ATREs, Chaiuaan-
O. k0HrRECHT,
j. II PATRICK
Be it resolved by The Board Of Mayor snd Aldermen
Of the city Of Memphis
That the officers Of said city are hereby instructed not
10 the city. Tie coupons for interest on the bonds Of the |
! afeslphis and Little Rock raaroad company Tor s5o0OG0. |
I sssirled by the ordinance * January 3Othg 1851, until |
~ 0arthcr order Of this Board; but upon ths said rail i
road company complying with said ordinance oi 80ik