The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1873-05-29
Majority and Minority Reports on the
International Railroad.
CnNINIITTFF ROOlf.
WIFI II.
AUSTIN. MAY %. 1873.

ClOnal hallrOdu, nave nau the SAINT uHuSI
consideration, and beg leave to make the
following report:
Bv the act of incorporation of the Inter
national Railroad Company, passed August
3, 1870, the State of Texas obligated itself
to donate to said company the bonds OF
the State. to the extent and amount of ten
thousand dollars per mile for each mile of
SAID railroad constructed unccr this char
ter The said railroad company have
fully complied with all the conditions
of said charter and have constructed
their road in the manner required by the
act of incorporation. Over six millions OF
dollars have been invested by the company
in constructing a first-class road, one equal
to eny road in the United States, relying
implicitly on the good faith of the State to
comply with its promise. The company
mas a vested right. The State is bound by
the Contract, the same as an Individual
would be under like circumstances. The
Supreme Court Of the United States in de-
Gliding the Ell Paso case says, THAT the act
of incorporation, and the land grant here
in question were contracts, is too well set
tied in this court to require decision. The
ordinances of 1869, and the Constitution
adopted in that year, in so far as they con-
Germ the question under consideration, are
utilities, and may be laid out of view"
The liability of the State to issue bonds as
provided in the charter of the International
Railroad Company is settled beyond ques-
ton in the same decision of the Supreme
Court of the United States, in the case of
Olcott V. the County Board of Supervisors
If Fond du Lac county, Wisconsin, where
they say:
None contend that the power of State
to tax, or to authorize taxation, is not lin
tied by the uses to which the proceeds may
be devoted. Undoubtedly taxes may not
be laid for private use. But is the con-
struction of railroad by q company incOr-
porated by State for the purpose of build
ing it, and endowed with the States rights
of eminent domain, a thing in which the
State has, as such, no INTEREST," .
That railroads, though constructed by
private corporations and owned by them,
are public highways, has been the doctrine
of nearly all the courts ever since such con-
veyances for passage and transportation
have had any existence.
And the reason why the use has always
been held public one is that such road
is highway, whether made by the gov
eminent itself or by their power to con-
struct it from legislative grant. 1t would
be useless to cite the numerous decisions to
this effect which have been made in the
State courts.
Under these decisions there is no ques-
ton as to the liabilities of the State to the
International Railroad Company to pay ten
thousand dollars per mile in bonds on all
its road now built, or that it shall build
within the time specified, from the East
line of the State opposite the town of Full
ton, in Arkansas, to the Rio Grande at or
near Laredo.
While your committee are satisfied that
such are the legal rights of said company,
and even if it was questionable good faith
on the part of the State would require the
payment. Yet, as the company by their
| authorized agent, expresses willingness to
accept bonds from Jefferson to San antonio
and twenty sections of land to the mile for
the remainder of their line, thereby reliev-
ing the State of debt of over three mill
ions of dollars. Your committee regard
such an arrangement or settlement as highly
advantageous TO the State, and therefore re
port the accompanying substitute and rec
Ommend its passage. Respectfully,
WEBSTER FLANAGAN Chairman,
W. A. SAVIOR,
THos. H. BAKER,
7 q TEtr.y W II
1t.-,t-.- u. t,i1zE, "
D. w. Cole
Senator DOhoneythen submitted the fol-
lowing minority report:
COMMITTEE ROOM,
AUSTEN May %, 1878.
Hon. E. B. Pickett, President of the Senate !:
SIR-A majority of your Committee on
Internal Improvements, to whom was re-
ferred House Bill No. 712, bill to be enti-
tied San act granting lands to the Interna-
tional Railroad" having reported substi-
tute therefor, and recommended its passage.
The undersigned, members of said commit
tee, dissenting therefrom, submit the follow
ing minority report, to-wit:
Without expressing any opinion as to the
constitutionality or legal validity of the act
of the Legislature, by which the Interna-
tional Railroad Company was chartered and
subsidized. We leave these questions to
the courts, which now have cognizance of
them, and where they properly belong.
And without reference to what the
decisions of the courts may be as
to the power of the Legislature to tax
the people of the whole State, for the pur-
| nose of making donations to individuals or
that such legislation is unjust and unequal
in its effects upon the people, and is really
outside the Legitimate bounds of proper
legislation.
As however, this grant to the Interna-
tional Railroad Company has been made
under a formal act of the Legislature
(whether rightfully or wrongfully we will
not NOW discuss), and as capitalists, acting
in good faith. have invested their money,
and have constructed . portion of said rail
road, we are of opinion that if the COM
pany wishes to submit a compromise Of the
matters involved between it and the State,
in reference TO the issuance of the bonds,
in the form of supplemental act, that it
would he right to allow the company the
bonds on the road already actually con-
stTucted, according to the terms of the
original grant, and lands on the remainder
of the line, in lieu of the bonds. Further
than this we are not willing to go, even in
a matter of compromise, because we are OPP
posed to money subsidies, and to taxing the
whole people for the benefit of q railroad
company, and the few people who may re-
side Immediately on the line of such rail
road.
We, therefore, respectfully recommend
that both the House bill. and the substitute
reported by the majority Of the Senate
committee, be indefinitely postponed.
Respectfully,
E. L. DoHONEY,
II. j. AYINGKR.
The government of Turkey has sent to
the United States an order for 400, 900 rifles.
The difference between country and a
city greenhOrn is, that one would like to
know everything, and the other thinks he
can tell him.
" There's one kind of ship always steer
clear of, said an old bachelor sea captain.
. and that's court-shis cause on that ship
tbprp'S alwovC two ,,,atos ,,J - ,o,,.,:,, :