Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1868-12-18

For the Journal.
The Chatham OpIHion of ID. r.

stances
The General Assembly, in the year 1861,
chap. 1919, chartered the Chatham Rail-
road Company" &" for the purpose of build
ing and constructing railroad from the
Coalfelds, in the county of Chatham,
through said county to Raleigh, or some
point West of Raleigh, not exceeding
twelve miles. the nearest and most practi-
cable route
The charter was amended by Ordinance
No. z, of January. 1862, so as to connect
and to allow the Southern termini of the
road to be sat any point or points in the
said Coalfeld region"
Under this charter the company was
duly organized and the road begun. At
the session of the Convention of 1868, an
Ordinance was passed, chap. 10; ratified
March II, by which it was enacted: THAT,
to enable the Chatham Railroad Com
pany" to finish its road the State should
lend the said company it's bonds for ST.
2OO,0 900.
All these matters took place before the
|
in April, 1868, and there was Then no exist
ing restraint Oh the power of the General
Assembly in regard to their making State
contracts, Or lending the credit of the
State.
By that instrument, Art. 5, Sec. 5, it is
provided Until the bonds of the State
shall be at par, the General Assembly shall
have no power to contract ary new debt
or pecuniary obligation in behalf of the
State, except to supply casual deficit, or
for suppressing invasion or insurrection,
unless it shall, in the same bill, levy spe-
cial tax to pay the interest annually. And
the General Assembly shall have no power
to give Or lend the credit of the State in
aid Of any person, association or corpora
ton, except to aid III the completion of
such railroads as may be unfinished at the
time of the adoption of this Constitution,
or in which the State has direct pecu-
MARY interest, unless the subject be sub
mitted to a direct vote of the people OF
the State, and be approved by a majority !
Of those who shall vote thereon" /
This section of the Constitution was OBJ
viously intended to prohibit the General
Assembly from extending their powers be-
yond certain limits in respect to involving
the State in debt.
Whether these limits are defined by clear |
and we'll chosen language will, I appre-
bend, soon be tested and it will be very
unfortunate for the credit of the State if |
the language should prove to be so flexible
as to give color to contrary decisions, as, at
different times. they may find favor with
the popular Judgment of the hour.
Nothing Can be more disastrous to the
ho,> al ,or &l,,Do - A.
State soiemnly pledged by one General
Assembly and repudiated by another yet
this sad result must ensue unless the spirit
of the provision shall be firmly and rigidly
observed and executed.
The section consists of two main and
principal divisions
Isl. The General Assembly is EXPIRE sy pro-
hibitod Ito contract any neD debt or pecuniary
oDis alton in behalf of the State" except in cases
of casual deficit, inUdS1On resurrection, 'unless
it shall, in the same BILL" which creates the Pc
cuniary obligation, levy special tax to pay the
interest annually"
I'd The General Assembly is prohibited to
give or lend the credit of the State,' under any
circumstances. unless the subject be submitted
to the people of the State except, first, &c to sid
in the completion of such railroads as may be
unfinished at the timo of the adoption of the
CONSTITUTE = or, second, to aid such g in which
the State has direct pecuniary interest" 4
The first division applies solely to con-
and the second, solely to contracts where
by the State gives or lends its credit to,
aud becomes bound for, others.
Under the first, the State, for itself, can
contract no neW debt. except in the excep-
ted cases. until its then outstanding bonds /
shall be at par.
At the time of framing the Constitution
the State bonds were VIGOROUSLY below
par. SO long as this is remembered and
the word ''par is understood, any viola
ton of the first division of the section must
be palpable and wilful.
The State, therefore, cannot noeO make
new contracts to raise money for itself, in
other than the excepted cases. Nor can
the State, for the benefit of others, give
or lend its credit to railroads, in which the
State has no "dlrect pecunlary interest" {
except to such as was already in being "a. e.
organized) and unfinished at the adoption {
of the Constitution.
The case stated for my opinion does not
present hequestion whether the alternative
provision that embraces roads Gin which the
State has a direct pecuniary interest, be y
confined to such roads only as then lat
the adoption of the Constitution) exis-
ted {
The language employed to express this
part of the restrictionary clause is unfor- {
tunately, in my opinion, exceedingly ]
vague and opens the door for a construc- {
ton which, if adopted, will annibilate
all restriction of legislative power Deepen
ding on the State having "a direct Pc
cuniary interest," t
Ii such aid be confined to those roads i
which then had existence, the restriction S
will have much effect but if aid may be &
given to any road which may be thereaf- I
ter organized or built, in which the State l
shall or may have ga direct pecuniary /
interest,"" the intended restriction will be I
worthless. Because it may be evaded by
the simplest legislative continuance. AS, {
if the General Assembly should subscribe
now, or at any time hereafter, for the State s
and pay for few shares of railroad stock; t
Or if a stakeholder should present to the 6
State few of his own shares, the case
would be forthwith presented of a railroad |
in which the State had "a direct pecunia- s
ry interest" {
By this stratagem every road, now or I
hereafter chartered, might be aided by ]
State credit "a affocfuallv oc hoforo tho {