The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1881-02-03


As IL ihs legal aspect Of the controversy,
relating 10 the WashlngtO County railroad, as
n m opinion S Of '' he poS. 9eooc Meteor
mick, as attorney general Of the state, Who VI
my request, investigated The matters Involved,
aud gave his opinion thereon.
Respectfully submitted
o. M RoBEkTs, Governor.
ATTORNEY ENERAL's OTwoR,
AUSTIN, December, 1880
HIS Excellency, o. N. Roberts, Governor Of
Texas
HIR-I have the honor to acknowledge The
receipt Of your communication OF date the eth
instant, calling my attention 10 Masters con-
nected with the loan OF It's school fund to rsil-
road companies, and requesting teport from
this Office of Its history and legalc IMPLICATIONS,
In which you also requested chat suggest such
remedy for tho settlement OF the papding
CONTROVERSY bstween the state and th9 COM
panles ae may desm pJ oper TO Just; and that,
In considering tho questions involved. jou
desire me TO cons der and present separately
the law and focis rotating to the Washington
County railroad company, now claimed by
and under the control Of the Houston q Texas
Central company, etc.
In answer to tina communication beg leave
TO respectfully submit the following:
The r0oords In the com ptroll er's Office show
that the following loans OF ibe special school
fund were made to the following railroad
companies, to-wit:
l. To the Buffalo Bayou, BrsZos 4 Colorado
railroad company now owned by the Calves
ton, harrisburg & San Antonio company, the
sum of $4,000, and between the LIST day of
March, 1855, and the 10Th day of December,
1850
.. To the Texas Il New Orleans railroad
company the suEa OF A3s 800, and between the
26th day Of April, lS6O, and the 10Th day Of
3. TO the Houston Tap 4 Brsxsria railroad
company the sum OF S300,s0 and between the
ed day. Of December 1859, and tho 18th day
4. To thu Houston & Texas Central railroad
company the sum OF $3.50, 600, and between the
18th day of April, 1857, and the I'd day of Au-
s. To the Washington couHty railroad COM
pany the sum of 500, 600, on the 2sth day of
| June, A. D., 1859.
6. 10 the southern Pacific railroad compa-
ny the sum Of Sl5o, 900, on the 3lst day of May,
Il is thus seen tbst rll the loans were 80
made between the 18th day Of April, 1851, and
| the 3lst day of May, 1862
| The act under which these loans were made
was passed August Is, 1856 General Laws,
| 1865, page ol.)
| 1856 General Laws, page BY; and again on
| JANUARY p. 1875 General Laws 1855, page 57) :.
AN examination of these smendmsntS viii
| show that they cut nS figure with tins queE-
| tiens now uE der consideration; as neither do
the acts Of Jasusry II, 1859, and January
| IA, 1862.
| As the nrst act, jan IL, 1852, was intended to
relieve ths companies, who hAd borrowed the
| fund by extending the tune within which the
| interest and sinking fund should be paid until
| January .lsf4, or until six mo.ths sitter me
| termin alton OF the war thes bsing waged, and
| contained Il prOviso that the act In nowise
| Should impair the lioa Of the state, etc. And
tho sct of January IA, 1852, provided for the re-
Investment Of the fund, etc, or rather the re-
peal of the act of February IL, 1860. These
acts, il 10 submit d, do not in any mannsi
aneet the questions now being considered bn
the transactions between the state and TIA;
| conn anies (P. D., srtH. 3Jll, ct seq)
we come row to the considsraii9n Of tht
acts of December 13, 1858, and of Aay 2S 1884
aud Move mber 10, lSGi ZEE T. D., s'ucles o522
ct seq) 800 ,,,
| comptrnllerto receive from the railroad com
| pauies indebted 10 the special echsOl fabd
All intere So on their boUds then dNs, OF TO be
come due, provided the same were rendered
pre- viously 10 the me Ting OF tho succssdlnl
| r.gulAr Sc sloD OF the legislature.
Tais act was amended OF May %, 1854, 81
that its provisions should not sppy TO any
cOmpsny that sheuld fail or refuse TO take tucl
bends or warrants for freight and p@ssags, a
par, with SPECIE etc. (See r. d. articles
Again, on tho 18Th day Of Noyem,
permitting theae com psn!es 70 Indebted tc
The special school fnnd TO continus.i TO pay The
inherent thereon in the warraatsI bonds ano
coupons of the state, >nd TO discourage The
whole or any part of the principal Of their In
debtedness in the same manner, provided th }
should satisfy the comptroller that the war
rants bonds and coupons of the state are re-
ceived by them at par with specie lor irelgh
and passenger travel, etc. (See Genera
Laws, 1864, page ii, L. D., articles 3o.S anC
3,529 ,
Under this Liquidation, to-wit: the sets o
1868 and 1Ssf-ahove referred to-the Buffalt
BAYOU, Brazos n Colorado company, Thu
Houston g. Texas Central company and tn
Washington County railroad company claim
| To have made large payments % the stale II
her bonds, war; ant. and coupons. (Se'
comptrDllar's report
These payments, If payments .they may b
called aprear to have .oseh m, msue 9. ~
, eregate the num of $3.50, SSS, not including
those msds by the Houstos Tap Brazori'
roads, afterwards sold out by the state;
1 This brinEs us to n consideration ~ the law
of the state upon the subject Involving tines
: loans, passed since the close OF the war i
May, 1885,
Glazed by Ordnar ca, aAong other things, tina
a ali debts created BY the state OF Texas IN az
81 the late war, directly.or indirectly should .
/ null and void and thzt the legislature shout
bSve no authority to assume or make any pro
I vision for the pay meat thereon C9se oIoihahe
: No. 2
E In addition to thisNhe Legislature was FL
/ hidden by ordinancerf the convention 10 as
sumo or provide by taxation or otherwlss 10
n tI- t,-r+r- enf ~ rnv cinim or pretended lie
lYilifr ~ the stats to this special fund, excep
( | 70 provide for Issuing coupon BONDS OF u
r state for the amonnt thereof that had bee
q transferred from the university hnd 70 STAT
Y revenue account IN February, 1860 kSee oidl
rance 10. u, CONVENTION lo60 J
4 n Is unnecessary 20 consider further the pro
Q visions OF the constitution of led5 aud IN
) ordinances OF the convention which framed
: tn 40 20 saw that, In so far as tue conyenuo
1 was con cerned, IL did nothing thst could ,
q conxtrued as changing the status OF THE tAnt
4 The next legislation upon THIS subject
= found in the constitution " lsC9.
a This instrument required ths Legislature
4 invesi the principal Of Che school iund IN To
bonds OF the United States g vernment, On
= forbid lie investment IN amy other security
e (section 2, article %.
Ana declared that, as n basis for the estsh
Il lishment and endowment ofpnblicfre4 school
4 all the funds, lands and other property hereto
fore set apart and Appropriated, or offeafte
q eat apart and apprepiiatsu for that = Ipos'
a should coDtinue the public school iunni an
q thai no law should ever be passed approprh
. ing such fund for ANY othsr use OF pufpoi
v Whatever. (9ectlon 9, article 81.
! The frsf Legislature assembled afier ~
: adoption Of thu constitutisn Of ict9i on IN
= 18Th day sfAugast. 1870, pass,d an sct entite
a A. ssact for the relief OF railroad companis
indebted 20 the state for loans from the s,r ca
o school fnas" f5eneral laws, 1877, page ~
! This act, as iis preamble Ieciier. vas "
=. | tended 10 relieve the raid companies from 81
: penalty Incurred By their f.iure o. fsy n
A Interest aud sinking fund upon the sums Dol
r. r0wtd from the state.
This act DersIifted companies 20 tndebcbte
% 70 avoid the sale Of their roncs BY paying ini
| tie treasury on the let cay Of fOFcnbef, Ia
y tx months interest on the eEgrtgnte efnoui