New-York tribune., 1874-08-24
THE STATE OF TEXAS AND THE INTERNA
IIONAL RAILROAD COMPANY.

the "Credit of Texas" and "Unsuccessful Efforts to
Negotiate New State Loan, are referred TO- The SUD
ect SO it touches the issue between the state OF
Texas and the International Railroad Company inter-
ests many your readers and there is 80 much mis-
apprehension In regard to the same with your perns
sion will submit the following statement.
The International Railroad Company was incorporated
by an act of the XIth Legislature OF Texas, passed
Aug 1870 Under the act agreed to donate and
to said Company the bonds Of the State to the
amount OF per mile for each mile OF railroad con-
structed The Company was obligated to extend their
road from some point Fulton Ark across the state
OF Texas Laredo, on the Rio Gronde the esu
mated distance being about COO miles
The XIIth Legislature the first after reconstruc-
ton The act Incorporating the International Railroad
Company assaed from the date OF Its passage ana
the Legislature denounced throughout the stare
1t was almost universally believed and publicly pro-
nounced that members OF the Legislature had been
bribed and further had exceeded their powers ana
| that the act therefore unconstitutional.
The Company, however. organized. constructed %
iles OF railroad and under tue term OF ther charer
demand ded bonds to the amount OF sOOOCo me Sonds
signed by the Governor and Treasurer OF the state
but the Controller absolutely refused to register and
countersJgn them, the act required before te same
could issue be delivered On this refusal the COM
peremptory msndamus The Controller defended, and
among other things set up 1st that the court hau no
hU nrber Sf o aDd oorapn and 3d. that the
act unconstitutional The Court decided IN FAVOR
the ss Controller appealed to the Supreme Court Of the
State. These proceedings were in 1872 and 1873, . ~
i "a
state and resulted by overwhelming maiorities in
radical change of administration. II there was one
Executive Legislature and Judiciary was dispassion-
atey TO evils and OF the past admins
tration whatever they might be- and to restore the
credit Of the State early as practicaoe ine STATE
engulfed She passed her crisis Her debt was in
significant Her resources were great ana intact; N
The International Railroad Company.
Under the present administration and before me
A. Grow President of the National Railroad Company,
presented himself for the relief OF his ComPany any me
islature to make prompt settlement with nus Oonpahy
that would be not a s aaa and sa
isfaetory to the Company No people ever felt more So
every appearance Of bad faith The question with the
Legislature not what they were willing 10 do Dat
for the relief Of the Company. Though it was
believed that members Of the x,h Lsss,asarss Hs1ss
ali contracts yet Legislature was willing to cSnceds
the Of the Ge s ant
The question as @ as O the SaGoad
riSht rG@Pan{ had wa" the legislature under the Con
Gp o the genera GOOD Whence did they derive
power section TO enrich or dement, anOtner:
abe state had been to donate her lands encourage
railroads. She had never given pecuniary and to r'al
roads ouly by way of loans secured by Hens Hence
"ad" to internal improvements spoken OF IN the Con
stitution be construed by way OF oan not OF gut
Many other constitutional points presented them
selves embarrass the sentiment There was no ques-
to the power OF the LegslanTe upder ine won
we'll as the XIIIth was willing to grant LANDS 10 the
international Railroad Company and thus put them on
favored railroad the state The Company refused to
Snn he & ahS ay
they give the bonds unconditlonally, IL wonid
Slate >" to refuse to pay the tax, and thus test
the question Of the ccnsttutionay Of the bonds No
as the only solution Of the dcnlty bill intro
duced the Senate for the relief OF the Company pro-
haf
release the Company from Its obligation 70 construct
their railroad beyond San Antonio-thus reducing the
OF agreed in the charter to thus extent
thus limiting soSn' % a f5 he Of the
bonds to the Company should be conditioned on de-
of the GSg' n ao case on e
questions touching the merits OF tue controversy
massage of this bill would be entirely acceptable
and satisfactory 10 the Company In TINS shape ~
passed the senate In coming before the House In their
extreme anxiety settle the matter aud IN their great
reluctance to make conditional enactment they 80
snS uncopdonaliy bonds TO the Of
completion of their railroad to San Antonio. On the
next day instance and request OF the President
OF the Company, this amendment was reconsdered Dy
the House. and the Dill passed as 1t came irsln the
stated to House that he did SO at the instance OF the
friends OF the Company who pTelerfed 'ha' Tue queS
The discussion OF this matter In both Houses leaves
Tor no man to doubt .nst .ng w
te Company, hut in their anxiety 10 DO so was largely
and manner OF e1fectiDg 1t. have reason TO believe
and do not question that Notwithstanding the grave
doubts OF many 10 their constitutional powers tne
legislature would have given the bonds Internationally
TO the Company had they not DEC ned 70 accept tne,
"a stated above, Why did the Company declnef In
the absence OF decision by the Court, had the Com
pany any cause apprehend difficulty IN the negota-
lion of their bonds
Tho hill conditioned stated, was approved by the
Governor All the Company then desired was favor
able decision by the Supreme Court Ihe case came up,
W. arOned AT great length both sides. and the Court
delivered It's opinion on the l0th of last month !he
nafd
auesons presented further than 10 decide that the
Court mad 30 Jurisdiction OF the case having no power
10 inandaInus the Controller an executive once under
the Constitution OF the sta.e Ihe Juagnent OF the
Court below was reversed and the cause dismissed
The International Railroad Company nave thus Deen
left for relief TO future legislation OF the state Inc
Legislature is but an agent creature oi tne oaN. s
nnwers are defined and limited not absolute should 1t
donate bonds cOnstitutionality of which could be
reasonably questioned while 1t might beneht the Com
such believe to be q fair statement OF facts II not,
beg be corrected by Others for DaVe no INTENTION
10 do the least injustice Now, then, submit TO cap
aists Is there in all tins the east appear
ance OF bad faith the part of the State of Texas Dd
not the Legislature do all could have done bonoraby
under the circumstances Would the Legislature OF
any Union have 50 far 10 pass
act framed TO meet and to gratiy the wishes OF
private corporation and conditioned the decision OF
question then pending the Supreme Court OF their
statei Yet there are bankers and capitalists In the
City Of New-York who have been impressed with the
belief that Texas has wroDged the International
toward this Company charge It as the only cloud
hanging the credit of the State. Who responsible
for misrepresentation tins dstrust OF Texasi Are
IN, friends OF the Inter national Railroad Company II
not duty they owe TO the State OF Texas and
70 dscaim 1T and thus place the matter
nj res Would any honorable man have Texas tabooed
and cassed as O repudating State simply because the
nternational Railroad Company have been delayed In
getting bonds State officer OF the State with
hodne his signature doubt acting under the consc
of the duties OF his Office Would