The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1879-03-06


line proposed to be constructed by 1t !;
2, that it be shown by the company
to the Governor of the State that said
subscriptions are good and solvent; 3,
that the company has graded, bridged
and has ready to put down the neces
saly timbers, for the reception of rails,
and fully prepared a specified mum
her of miles at either terminus,
in good and substantial manner,
with good materials, for putting the
iron rails and equipments; 4, that
the specified number of miles thus
prepared, and no part thereof, Is sub
ieet to any lien whatever, except those
created in favor of the State; D, that
the Governor be notified of these facts
by written dfidarits of the Chief En-
gineers and President of the company,
together with the written affidavit of
Il competent engineer appointed by
the Governor toexamine the specified
section; 6, an affidavit of the Presi>
dent of the company, ana resolution
Of a majority Of its Board Of Directors
for the time being, that the bonds is
sued to it shall not be used fol any
other purpose than for procuring the
iron rails, chairs, spikes and equip
ments, and for putting down the iron
rails on the specified section for which
they were issued. That the President
first deposit in the office of Secretary
of State. full, true and accurate list
of all the stockholders, with the sums
subscribed by each and every stock
holder. These precedent conditions,
with some few changes as to who were
to make certain examinations and
affidavits, co exist with, and form a
part of every subsequent act author~
izing the issuance of bonds to railroads,
except the Omnibus" railroad bill Of
1867. The subsequent act of 1854,
which was amendatofy of the act OF
1852, required imperatively that the
bonds issued in the aid of internal i'm
provements he sold at not less than
par, and all the bonds issued by the
State in and of railroads, except $3.50
900 issued to the East Tennessee d
Georgia road under the act of Jan.
50. 1850, were issued after the act OF
1854.
Of these eight conditions upon
which bonds were authorized to he is
sued, seven were, i'll the opinion OF
your committee, conditions precedent,
and without compliance with their
requirements, shown to the Governor
in the mode, and by the evidences
specified in the statute, he 1cas vested
,CM no pOlCer to issue bonds to compan-
les hereunder. rs....
The act says, "before any bonds,
under its provisions shall be issued to
any agent of any railroad, and that
when these things shall be made to ap.
pear to the Governor by the special
evidences, he shall issue a specifed
number of bonds successfully to each sec,
ton as the road may progress in Its
completion. 1T is to be observed
further, that the act, section Is, ex
presslv provides that the "Act shall
be deemed and taken to be public
act, as to all purposes of notice. and
all the bonds of the State issued in aid
of railroads, under the act of 1852,
and it's amendments, 50 far as your
committee have learned or discovered,
recite on tAeirJace the Act under which
they were issued. We are well sus-
tained in the principle of the position
taken that the conditions above emu
merated, at least seven of them, were
conditions precedent by previous un'
assailed and uncontroverted executive
construction, anu by previous unas'
sailed, uncontroverted, and approved
legislative action with respect to bonds
issued under this act and its amend>
ments. The principle is also well sus
taineG by ju iicial authority.
In response to the fourth command
of the senate resolutions, We say that
with scarcely single exception, the
11,221 outstanding bonds amounting
to Sl1,22l 900, issued before and
since the war, under the act of 1852
aforesaid and its amendment, as aids
hereunder to railroads, were issued
or sold, or beth, in violation of its con
ditions and restrictions. Hence theiT
payment, settlement or adjus, ,ment
rests, or should do so, not upon the
assumption of their legally authorized
contract validity, cor upon any ethical
sanction, but upon the determination
and conclusion of a wise State policy
This, observing present relations and
their antecedents and properly fore
casting the future, will adopt with
reference to them that which is most
equitable and for the best public wei
fare. With respect to the 2,246 out
standing bonds Of the series issued un
der the act Of 1865 to fund interest
accruing during the war, your COM
mittee have no hesitation in saying
that they were authorized by an act
passed when passion and demoraliza
tion were prevalent; when the voice
and will of the people of the State
were unheard and unheeded In hel
council halls; and that Its enactment
was the result either of mistake oi
law or criminal ignorance, or still
more criminal disregard of the right:
and welfare of prostrate and disfran
chised people.
As to the 4,867 bonds outstanding
of those issued under the funding acl
of 1873, quite the larger number ot
them embrace either directly oil
tbrouoh tho reat,lt Of legislative trans