The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1870-11-04
THE VETO MESSAGE.
EXECUTIVE OTT1cE, !
SALEM, Oos., Oct. q. 1870.

10 a,e Honorable H,e Senate Of the State |
Of Oregon.
According TO the requirements of |
the Constitution, I herewith return |
Senate Bill No. II, "An net to amend |
nm act to incorporate the city of Port
land, approved October 14th, 1864,
and to amend an act approved Octo-
Der 21st, 1870, entitled an act to
amend an net entitled an act to incor-
porate the city of Portland, approved
October 14th, 1864, and to amend an
act entitled an net to amend an act en-
titled an act to Incorporate the city of
Portland, approved October 14th,
1864, and approved the 18th day Of
October, 1868, and to amend nm act
entitled IN act to amend nm net enti-
tied an act to incorporate the city of
Portland, approved October 14th,
1864, and approved October oath
1906" without executive approval
which 1 herewith file with the Secreta-
ry of State with my objections there
to.
The bill composed chiefly of two
sections provides, in effect, in the first
section, that the Indebtedness of the
city OF Portland must never exceed in
the aggregate the sum Of one hun
dred thousand dollars, and any debt
or liability incurred in violation of this
section, whether by borrowing money,
loaning the credit of the city or other
wise, is null and void and Of no effect,
but the city Of Portland may incur an
additional Indebtedness not exceed
ing three hundred thousand dollars in
manner and for the purpose following,
that Is to say if any person or persons
shall cause or procure the Willamette
Valley Railway Company heretofore
incorporated under the laws of this
State by articles of incorporation filed
in the Office of the Secretary of State,
the 9th day of July, 1870, or any 9TH
er Company to commence and con-
struct their road or tack from and
within the limits of the city of Port
land. and if such person or persons
shall cause or procure said Railway
Company to locate, construct and es-
tablish its terminal depot on the west
side of the Willamette river and with
in the limits of said city as aforesaid
then and upon those conditions said
city is authorized by and through its
Mayor ana Common Council to pro-
vide by ordinance for making and is
SUNG Its seven per cent. gold coupon
bonds payable in twenty years for sum
of three hundred thousand dollars. the
interest thereon to be paid semi-an-
nually.
That so soon and as often as FIVE
miles of said road or track, commenc-
ing ut said terminal depot aforesaid,
and going westerly towards Forest
Grove, and then southerly toward
McMinnyille, Is completed and con-
structed, forty thousand dollars of
said bonds shall become the property
OF said person or persons, and shall be
delivered to them by the proper Off
GERS of said city.
The second section authorizes the
! city of Portland, in addition to other
taxes, to levy q special tax to pay the
interest on these bonds, and to pro-
vide or raise the necessary funds by
Especial taxation, or otherwise, to pay
the principal sum of said bonds as the
same shall become due.
In considering this bill, the first in
Iquiry should be-is it consistent with
the spirit and terms of oul State Con-
stitution?
In Section 0 of Article IL of that in
strument, upon the subject of corpo-
rations and internal improvements, we
have the following provision:
"Sec. 8. No county, city, town, o,
other municipal corporation, by vote
of its citizens, or otherwise, shall be.
come q stakeholder in any joint stock
company, corporation or association
whatever, or raise money for, or loan
its credit to, or in aid of, any such com
lpany, corporation or association.
From this clause of the Constitution
we arrive at the conclusion that it was
the purpose of tho trainers of that in.
strument to erect substantial barrier
in our fundamental law against all
connections of counties, cities and
towns, and other municipal corpora.
{ tions in this State, with speculative
enterprises outside their own legiti.
mate workings. They cannot become
stockholders of any joint stock com.
pany, corporation or association. no,
raise money for, nor loan their credi,
to or in aid of any such company, cor.
poration or association. These words
are plain and direct. Do they pro.
hibit the enactment of such law as
the one under consideration?
\ This bill provides that the city o1
Portland shall raise money to the
amount of $500, 900 for any person OF
, persons who shall cause or procure Q
certain railway company, or any Other
company, to make their terminal de-
pot and begin the construction of theil
road or track within the city of Port
land, and proceed thence with theil
work in given direction and to {
given distance.
II The wording of the bill is peculiar
and circutious, and apparently framed
. to avoid contact with this clause o.
. the Constitution; for it is claimed
! that while the prohibition clearly ex
. tends to joint stock companies, oorpo
rations and associations, it does no
extend to "person or persons" ] fai
n to see the exception here claimed.
q corporation is s'person" in law, ans
|the joining of 'spersons" in an inter
: est or enterprise constitutes an associ
1 alton.
The Willamette Valley Railwa,
2 Company, or any other corporation
. &c norson in law fu1fillinu the con