The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-01-12

that, NO debt OF any kind ever existed;
and more than that, no liability ever
existed; and morethan thst, no confin.
gent liability ever existed on the part; OF
there never was debt due by the State,
at any time, upon which to bottom this
revenue bond scrip. authorized (as it is
said) by the Aot Of 7th March, 1872.
This involves some reference to the
legislation touching the Blue Ridge Rail-
road.
l. We will commence with the Act OF
1868. (Vide Act of that year, 18th Sep
tember. page Is. Sections l, and ~
That Act contained an express condition
that the guaranty by tho State of tho
bonds, and the bonds themselves, should
he issued only in case the Congress OF
the United States or private capitalists
should let the road have So, 600, 900 for
81, ,000,O 900 worth OF bonds, or q less
sum at the same rate; in other words,
every dollar OF bonds was to secure and
bring in dollar OF money. Vids the
paoyiso in the Aot.) This was q public
act, and this condition went out with
the bonds. Trapnel's case is authority
on this point.
This Act, we say, created no debt by
the State. There was not even a contin.
gent liability until dollar for dollar WAS
realized upon the bonds. Even then,
there would be no ''debt" of the State;
aud for the first time, the transaction
would assume the shape of conditional
liability. The Legislature did not re-
gard the Act OF 1868 rs creating any
debt, because they provided no tax to
meet the interest, as they we're compelled
to do, il tho Act created debt. Vide
Section z, Article TX, Constitution 1868. J
The bonds were prepared, and the
State endorsed them. They were use-
less. The State was gaurantor upon
condition. The company could not get
one dollar OF money for one dollar of
bonds. With this condition nnper-
formed, the State could at any time
have Withdrawn its conditional accom-.
mediation uioranty. When, therefore,
the Act Of 1872 vas proposed to the Lo-
gislature. the only place in which these
bonds could lawfully and honestly have
been was under lock and key, in the iron
safe Of the Blue Ridge Railroad Com
pauy TO hypothecate them, even,
would be fraud npon the State, and an
unlawful use OF her guaranty.
But it is said that the State has re.
pealed this important condition, found
in the Act of 1868. When, where and
how? we are referred to the sixth Sec
tion OF the Act of 1871.
Now, does this sixth section repeal the
express proviso" Of the Act of 1868!
We answer, no.
/. Because the sixth section of the
Act of 1871 is in direct violation of the
; twentieth section of Article II Of the
; Constitution Of 1868, viz: every Aot OF
resolution having the force of law shal
} rotate to but one subject. and that shal
be expressed in the title"
2. Because all of tho provisions of the
!, Act OF 1871 are made to depend upon
Columbia Railroad and the Blue Ridge
Railroad into one road, with q new cor
porate name, which has not been done.
, 8. Because the consolidated road is re-
quired to endorse tho bonds of the two
old roads, respectively, which it ia al.
mitted has not been done. Vide seo
! Act of 1879
4. Because the ACT of 1871 was but 6
charter conferred or offered by one con.
tracing party aud not accepted by the
other, which rendered the whole ACT in
operative and void.
This last ground appears upon my
notes Of argument ns most important
point, but by some means it escaped mt
while actually addressing the court. and
} as it was most ably used by my FRIEND
Mr.. Memminger) in his concluding ar
gument, shall add nothing further upol
that point.
!, Tie third ground above stated, viii
, fully appear by the words Of the section
of the Act referred to, and need not be
enlarged upon in these notes required by
the court. The line OF argument can.
donbt not, bo readily recalled.
The second ground was elaborated in
the argument before the court very
: much, in reply to the views suggested
by tho counsel who opened the argu
ment, (Mr. Chnmberlain.) The words o.
the Act furnisii the key to the reply
They can mean but one thing. The
whole Act does but set out the terms OF 6
contract. The consolidation was to be
, the consideration Of the roads. Will
the non performance OF that oonsidera
tion tho contract fell, and the whole Ao
became nullity. II, therefore, the sixth
, section of the Act of III had, in law, re-
pealed the previous condition in the Ac