Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-04-05

/ DEFINITE p0SJpOnemenLj IWelVe lot, InlT'
teen against. 1t was referred to the
finance committee.
The house consumed the day in cor
recting yesterdays journal upon the
written explanation of the votes on the
passage of the railroad bill, operating
under the previous question. Mr.. Cum
ningham's explanation, as upon the
journal, was enpunged because of disre-
spectful language to the supporters OF
the bill; also a sentence in Mr.. Briden-
thal's explanation which reflected upon
certain persons. During the discussion,
Mr.. Tankersly stated that a prominent
member of the Memphis bar was here
lobbying to defeat the railroad bill. The
same individual was instrumental in the
passage of the great levee land bill OF
1871.
There is continued interest among our
railroad spectators as to its passage by
the senate and the governors approval,
some apprehending a veto.
The house finance committee of
twelve agreed tonight on eonsulta-
ton with bankers about the issuance of
two million dollars seven per cent. gold
bonds, to pay the interest overdue on all
bonds.
Special TO the Appeal
LITTLE Rock, April 4.-The follow
ing paper is said to have been prepared
as a basis for Governor Baxter's veto
message, by lawyer of Memphis, and
by an ex-editor of this city, formerly of
Camden:
The house bill No. 80, or what is
commonly called the railroad bill, is
unconstitutional because
First-Section % of article of the
constitution declares that ''nO act shall
embrace more than one subject, which
shall be embraced in the title" This
bill embraces two subjects, the changing
of the railroad bonds into stock, and the
levying of a tax to pay the interest on
these bonds; and the subject of levying
the tax is not mentioned in the title.
Second-Article 10, section 6, says:
1.-THE credit of the State or counties shall
never be loaned for any purpose without
the consent of the people thereof ex-
pressed through the ballot-box." This
act certainly proposes to loan the credit
of the State to an unlimited extent. The
act of July 2l, 1865, loaning the credit of
the State TO aid in the construction of
railroads, and creating the bonds
which it is proposed to change
into stock, was submitted to the
people, but that act provided that the
roads should be taxed for the payment
of the interest, and to fund the princi-
pal, while this act entirely changes this,
releasing the roads from any liability
and taxing the people both for the
interest and principal, and therefore it is
in violation of the article above quoted.
Third-Section l6 Of article 10, reads
''The State shall never assume the debts
of county, town, city, or other corpora
tions, unless such debts have been ere
ated to repel invasions, suppress insur-
reetions, or to provide for the public well
fare and defense" This act provides
for the assumption of debt of one hun
ired thousand dollars, with forty
four thousand dollars interest thereon,
due the State from the Memphis and
and Little Rock railroad. 1t also as
sumes the bonds issued by the State and
the interest on them. The law under |
which these bonds were issued provided |
that the roads should be taxed to pay |
the interest and to create fund to pay |
the principal. These bonds, while they |
are debt of the State to the bOndhold-
ers, were also debt from the corpora
lions to the State, and they are assessed
by the act.
Fourth-Section As of article says:
dues from corporations shall be Sc
cured by such individual liability Of
and other means as may
be prescribed by law, but in al cases
each stakeholder shall be liable over
and above the stock by him or her
owned, and any amount unpaid thereon
ID a further sum, at least equal in
amount to such stock" Under this
clause of the constitution, the State, as
/ stOckhOlder in the railroads, becomes
for an amount at least as
great as the stock which it holds in each
IF the roads, and total, should there
De only five million two hundred thou
and dollars of stock taken, of the
,ame amount, for which the State
5 clearly liable should there be
iebts to that amount against the
'oads. For example, under this bill
he State would become a stock
holder in the Memphis and Little Rock
'ailroad to the amount of one million
hree hundred and fifty thousand dol
Rrs. This road is under first-mortgags
bonds to the amount of one million
light hundred thousand dollars, with
loating debt Of considerable amount.
suppose the road were sold
lnder the first mortgage bonds, and
purchased for one million dollars:
he remainder Of this mortgage debt
nd floating debt would be held against
be stOckholders, and the state, being
be only responsible one, would have
he whole debt to pay. the same is
rue as to the other roads, all of which
re in debt. The bin was not read twice
4 the committee Of the whole.
REVIEW OF THIS PROPOSED VETO.
FiIst-In replytO the first charge, il is