The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-08-12
only provision which the Iegislatnre had
enacted for the security Of The State Was

only provision which the Iegislasnre had
thds eaAly Violated, TIE effort to p.oenre
|tioh. Some doubts as to the legality Of.
the notion Of the company must, how.
ever, have been entertained by the lend
ers. for the Blue Ridge Company was
advised that the bonds could not be ne
gotiated if the provision OF the second
section Of the Aots Of 1868 was adhered
to. Application was, therefore. made to
the Legislature, and in 1871 an ACT wns
passed entitled Gan Aot to promote the
consultations Of the Greenville and Co
lnmbia Raiirond Company and the Blue
Ridge Railroad Company"
The first three sections give large
powers and privileges to the Grecnviile
and Columbia Railroad Company. The
fourth section provides ''that iu view Of
the consolidation of The Greenville and
Columbia Railroad Company and tho
Blue Ridge Railroad Company, the
ISSUE of the bonds autlUfined by the, act
OF 1868, the endorsement. by tlrs Coup.
troller-G General. and the execution of.the
mortgage by the Blue Ridge Company
to Messrs. Gourdin, Clews and Cameron,
are ratified and confirmed, and the mort
gage declared to be lien prior to the
statutory lien.
The sixth section 'repenls the provi-
sion, making it Ian express condition
that tho bonds shall not be used at less
than par. t.
We have already indicated dur opinion
that the mortgage is d better security
than the statutory lien, and we do not
think it necessary inow to discuss the
question whether the >State could post
pore the lien to The mortgage The
moro important question is, has the'S
postponed it? Is the Act Of 1871 opera
tive without consolidation? The object
IND Intent of the Act wns to promote the
|66hboffdRti6n Of tile Two coI6panies. A
Especial ACT -was not necessary to enable
the two roads to CONSOLIDATE. They had
that power under..the general railroad
Aotvof 1870, but that Act imposed terms
which were regarded as objectionable.
The Legislature. by this special Act, re-
lieved the companies from the objection
able terms, authorized them to consoli-
date, granted powers and privileges to
ehch In view Of Decentralization, and to in
duce It., and enacted provisions regulat
ing them after consolidation. u Tie pri-
vIleges dndtpd dwers granted were to pro-
mote consolidation; we're tothnt end and
| for That purpose. The consideration OF
the grants was tho consolidation OF the
companies. They were not absolute
grants-free gifts to be held and enjoyed
by the companies in any event-but con-
ditional grants, the benefits of which
! we're to aoorue on consolidation. The
ACT means consolidation or it means no.
thing. 10 maintain that the companies
can take all the benefits granted to each
and refuse to perform the condition upon
| which the grants were made, is to say
that they can psrpetrate fraud upon the
Legislature. 1t could be as we'll con-
| tended that the grant to O railway COM
pany Of right to condemn land with q
view Of constructing railway. would
authorize them to take the land and re-
fuse to build the road. One OF two in
terpretations must prevail-either the
lpowers and privileges are absolute grants
to the respective companies, or they are
grants on condition that the companies
consolidate. It is only by considering
them as grants, on condition, thnt the
Act can be maintained as valid. Tie
title Of the Aot is. can Act to promote
the consolidation o. the Greenville and
Columbia Railroad Company and the
Blue Ridge Railroad Company" The
Consultation provides that every Act
''shall relate to but one subject, and that
shall be expressed in the title" (Article
2. Section 20.) If this Act is grant of
powers and privileges to the Greenville
and Columbia Railroad Company, and
of powers and privileges to the Blue
Ridge Railroad Company, it relates to
two subjects, md neither is expressed in
the title, and the Act has not tho force OF
law. But if the grants ore on condition
that the companies consolidate, then the
whole Act relates to tho consolidation,
and to the regulation of, the two compa-
| MES after consolidation. It is oil one
subject matter, and that expressed in tie
title, and the Act is valid. In like man
nsr the sixth section, repeating the pro-
viso that the bonds shall not be negoti-
nted at loss than par, takes effect only on
the consolidation of the companies.
We have thus briefly reviewed the le.
gislntive history of the Blue Ridge Rnil-
road Company. It is marked by many
changes, and some peculiarities; but
whatever the nature of the legislation,
ono unvarying characteristic painfully
pervades it oil. Each successive Act has
diminished the security which the State