The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-10-24
THE CHITHIM R-dILROAD.
The North Carolina straightforward
of the Scheme.

| of the Scheme.
Our readers arc familiar with the fact that
in consideration of a loan Of $4,000 to the
State, a charter was given to the Chatham
Railroad for On extension from the North Caro-
Ind line to Columbia, S. C. The backbone of
the project was the appropriation OF $4,000, 900
made to the Chatham Railroad by the North
Carolina Legislature, and the following para
graphs from the Wilmington Journal show
that the backbone is we'll nigh broken
[From the Wilmington Journal, October %.
We havo tried in vain, as others have. to get
a copy of the protest signed by fourteen sena-
tors of the North Carolina Legislature and
filed upon the records OF tho Senate, against
the Chatham Railroad bonds for unconstitu-
| tionalltc, These bonds will, sooner or later,
| be the subject of judicial investigation. If the
State should refuse hereafter to pay them, let
no man charge her with reputation. 10 the
purchaser we say, cdueat eneptor' ltis gross
| violation of the constitution and ought not to
| be tolerated.
| The protest was drawn by that able and
| learned lawyer and jurist, Judge Osborne.
| The following is nearly the language of this
paper, and is sufficiently correct to give the
positions of tho senators in protes Ting against
this illegal appropriation OF menoy, having
been drawn from recollection OF the original
protest by Its author:
1.-The undersigned senator's would respectfully
enter their protest against the passage of the
bill giving aid to the Chatham Railroad. That
road by its charter, is q well known defined
railroad, with it's beginning at Ralelgh and It's
terminus at fixed point in the County OF
Chatham. By IN amendment OF the charter
this road has been extended to point on the
South Carolina line. This amendment was
adopted at the present session. From the ter
minus in Chatham unto the terminus at the
South Carolina line, it is mantle 1t that new
road is created. The constitution expressly re-
quires that all appropriations for new roads
shall. before they become obhgatory,be submit
ted to the popular vote, and be ratified by the e-
gal voters uf the State at popular election.
The constitution cannot be evaded by the cxter-
sion CT railroad beyond the original limlts.so
as to give 1t the character OF all unfinished
road. BY this process that provision OF the
constitution which was intended to bs re-
strant upon excessive appropriations OF the
public money. would be rendered nugatory ana
unayaillng. The meaning OF the constitution
clearly is that roads which were created by
Charters subsequent to its adoption, should
not receive aid from tho public treasury except
by the appreciation OF tho pcopio expresseu NJ
tie ballut-bo1 and whether such roa1 ls Great
ed by charter directly or by an amendment
OF charter, Is wholly immatcrial:
The appropriation violates another provision
of the constitution equally clear and conclusive.
No appropriation of public money by which the
State incurs pecunlary obligation can be made
unless in the bill making it there be provision
for the payment OF the interest annually accru-
ING. This provision Of the constitution is uni
yersal in its application, and relates to oil
classes Of public improvements, indeed every
object for which the State incurs any pecunlary
obligation.
Both provisions are violated in the b;il grant
ING aid 10 the Chatham Railroad, ana the bonds
thus issued are not obligatory on the Legisla-
ture or on the people of North Carolina" i,
In explanation and support OF the protest OF
tho fourteen senators against the Legislation
appropriating two million of State Bonds for
the Chatham Railroad, we publish the clause
OF the constitution which bears upon 1T:
Art. 5. Sec. 5. Until the bonds OF the State
shall 10 at par, the General Assembly shall
have no power to coatrIct any new debt or pc
cuniary obligation in behalf of the State, except
to supply a casual deficit, OF for suppressng
invasion or nsurrecton, unless it shall III the
same bill levy special tax to pay the interest
annually. Aud the General Assembly shall
have no power to give or lend the credit OF the
| State in aid of any person, ASSOCIATION or cor
poraton, exec, t to aid i'll the completion of
| such railroads as may he unfinished at the
time of the adoption of tins constitution, or III
| which the State has direct pecunlary interest,
unless the subject be submitted to direct
vote Of the people of the State. and be ap-
proved by a majority OF those VINO snail vote
| thereon.
AS the protest very properly says that from
the terminus in Chatham County TO tho pro-
| posed terminus at the South Carolina line 1t Is
manlfestly new railroad and all approprla-
tions therefor must be submitted to, and ratl-
fed by, the people OF th3 state before Ino
| bonds lssuedfor its aid Can nave any ieGai or
| binding force.
That the convention which adopted the
presout constitution, and TO which the Chat
ham Railroad applied for and obtained aid to
the exteut Of one million two hundred thou
sand dollars in the bond; OF the State, regard
ed and ordained that the termlnl Ut THIS ralI-
road were Raleigh and the Gulf in Chatham
County, VIC have only 10 quote from the second
| section of the ordinance ito amend the Char
ter of the Chatham Railroad Company, adopt
cd the 11th OF March, 1868" as follows;
The State OF North Carolina by this ordinance
have a lien upon all tho estate OF said company,
both real and personal, which they may now
have or may hereafter acquire, between the
| CITY oil Raleigh and the Gulf the terminus OF
said railroad IN the Coalields.
The other violation Of the constitution re-
ferred to in the protest, to wit: the failure to
''levy special tax to pay the interest annual
ly" on this appropriation, IS SO palpa2Ie, tnat
| it is hardly necessary more than 10 Call aeIen-
ton thereto.
We have referred to this subject in no party
spirit, but to protect the future honor OF the
State. We do not believe these bonds will ever
be paid, and we Go not believe they should
be- They have been appropriated in the face
| of direct provisions of the constitution, at q
time when our political and civil revolution fill
ed our Legislature with ignorant, and, to somo
extent, corrupt men, many Of whom were
strangers. unacquainted with the laws, aug ..
Indifferent to the welfare OF the Slate. And IL
has been said, and it is generally believed, that
bribery effected the passage Of the act, por.,
tion OF the very bonds granted to this proposed
road being promised to procure votes. In ad-
vance Of the.r negotiation we profer our earn
est and honest warning to purchasers tnat
these bonds arc worthless, and VIC give the
reasons tor the faith that isin us.
c7- UNIoN D1srRICr.-IN EQUITY