The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-02-01


I eThndsm found In tho letter book In thu comp
frsller's ofiice previously exhibited, marked
exhibit A, which Is an innate Of principal
ana interest ,das on the fret OF March, 1870
! leaving cut the payments IN state treasury
warrants, and as 10 must have been for some
practical purpose, II may hare been made by
the diree elton Of tho Hon. A. Biedsae
| comptroller, TO give Information % tbs lesis'
laturs preparatory TO the passage OF the act 81
| the ~ OF August, 1910
II T. but just, however, to refer 70 q fact
which may lead TO II different construct n OF
! Legislative mention than that evidently mRdt
on Ibis part Of the law by the comptroller,
a. EledsOe, which Is an expression IA
AZ other Ian passed b. the sem1 legislature
(if indeed IL was passed into = Jaw which has
questionedl, being fGund In tue speclsl laws d
that session, with an eNpiauaiian by thi
theB secretary OF stale Of how IT came lntC
hin Office after the end OF the session, pur-
porting 10 have been passed over tnC
goyernsr'J veto In the hSusf
IT representatives. OH The 9Th and
in the senate on the 18th Of August, 1870. (Set
Special Laws fthe twelfth legislature, called
session, paBe325.)
THIS law Ia entitled "An act for tho relief oi
Houston & Texas Central railroad company ,
1t cOnBolidates and mHfges the Washia gtOu
county railroad into the Houston Il Texas
Central railway company, and authorizGs it'
extension 10 Aus in. IL authorized an eX-
ange of the loan bonds Ot.thc spcci0l Ncheol
fund, given by said TWO COMPANIES "a the
amount due first OF July, 1879, for the 'sereu
psr cent land grttt sinking f.nd 1Tst mnr,-
gsge gold intcrest -bourng bonds Of sHid com
lpAny. (Sea seciion2.l
in the same section II Us provided that "iu
Houston & Texas Central railway cOmpRny
lthsll be allowed credit tor ihe SUNNI phid in
treasury wHriN Giihe -tatetuIing Tho years
| 1861 and 800 by said company and by br
| WGshirglpnion count riiirQad mpany upan
the accounts on Wdlch dsNms We're gsuect-
| lively paid by tad copp0ni8e, The said suws
! amounting in the aggregate 10 si5s-
s6i % " This act was certainly be-
fore the two houses Of the Iegn-
laluraHt thc same Tine Tie one was that /,
first referred 10, which WA approved ON ina
18th OF August 1870, a. II may be inferred from
the time 1t Yves vetoed by inc governor and
passed by the Two houses over the governor
yoto.
An examinations Of the proceedings Of both
houses Mt that session has been made, aud Il
Is iuqnd that an the record Of them appears,
this act did pnss both houses over tue govern
or's veto during he session ofthe Legislature.
zine exchange Of bonds was never made and
the reason II was net does not appear fiomauy
lEcOrds IN tho comptroller Gtiicc, or any.
where else GO i9r ne ! know or am informed
Attic Tina l Was Informed by the comm
! irullcr (NOycmbor eth lb7U of the default 10
! pny the interest aud sinking fund by fine
Houston TcXas Central railway company.
due from the Washington county railroad
company Ohe accounts having been kepl
separately, there had been 30 decision Of Tie
supreme court uuOh the validity Of, or eXIk-
tence Of thlsact no law.
Since tnai time during the late term Of the
supreme court at Au.tiH, the sYistgucH of thni
Hat as being 6 law did arise IN the oa,o
II the Houston & Texas Central rail-
way company VS.. y. NJ udOm, simply i1yoly-
! ING 'he light TO extend the road mo the city
OF Austin (oreGme such question:, axd not re-
iatHg Ito validity as an act 10 Oh 4Age tua
Brcuitiss Of the school l0ar ~ 10 fly tue
amount Of Indebtedness Of the compunyto sgid
ltuud, In mt cne the supreme court Saws .
| "Ahe court tbeloW) admitted the set ~ be read
| lirm Unpublished special laws certified 10 10y
| the secretary ~ state, and as ID s..HsA con
! ctudCd i.ct Inst the juGruals show its rasaate
| required tWu-ihlIdg Of the members resent
OF each house, IT iB not material whether Il
| was prouery csuintd or not"
This case only dec we'd ijs existence rs r
| law upon the 'cuDcludCd fact " and lis
| validity 10 suihori2a The extension of tho
load TO the city Or Austin, and ~ IS wei
Jeht1DlishCd that an net utay be valid H. ptrt
ana not valid foi al purposes provided by
ani therefore lIs competency 70 chnAg0 the
securities Of toe Echaol fund loan, Sud 10 by
me amount Of tho debt If the com any, under
| th5 hct OF The 18Th OF August, 1870, IN the
general laws, has not yet been determined hy
the supreme court
hayedtemcd 1t proper to bring plainly snd
lu'ly 70 Inc view Of the legislature, ali OF the
IhcIiTecords,snd laws pertaining 10 this costro-
yorsy, 30 tEr as have becn enabled 10 aacsr-
liln them, hftt,t1 show why did not believe il
Tot tho iolcrtstof tie state for me To undertake
an advertisement aud sale Of ths road, snd
secqndiy, 70 such legislative action rs may ba
neoinad proper 10 bring thia lCng.coutinued
disagreement 10 satisfactory Conclusion II
possible.
The amount OF thls default +, snail com.
paIed TO The whole amount Involved In the
OF dollars, principal aud interas, OF the school
luna, owing from HAT and ether railroad
companies
IT The attempt had boon msde 10 advertise
anu sen llg road, there Rro grounds that could
ans W0sii have been sufficiently plausible 10
haya obtained on iSiunCtiGn rcairainiup The
bsle, Whicl would have been moas probably
Obthlhed from tho ie0rraj court, aud sale,
uourr ~ 81 tue clouds oy'rhsugmg this mat
tor backed BY such eu Injunction, would have
shouhoed whatever interest the Rchusl fund
hhs m the loan dc on the road
HNd the govsTnor bought in ths read for the
asclaslly OF me lnnd, as permitted by the law,
anu appointed areceNer, without any appro.
plAtlon TO delray the expenses oi and employ
heut OF persons running the roBd, II would
have been impractlcRblo TO use 1t to any prof
itabe purpose.
There has been no authoritative legislative
denomination liking tho amount of the debt,
htvlng reference 10 tho legality or illegality
Of the credits which constitute tho matter Of
controversy.
In the law Of 1856, under which these loans
10 railroad companies were made, there IL n
provision In the following Language, to-wit;
Pas. Dig. cart. 35l2 40 Tho stale of Texss
expressly reserves the right TO exact hereafter
al soch Jaws 90 may be deemed necessary Ia
project the Interest of the special school fund
In securing the payment Of said bonds, and In
enforcing the lien reserved thereon,n
IDS w an important reservation, which will
enable the legislature to remove oil the Obseu
riiy OF construction, and enable the executive
officers OF the state 10 act under and in nc.
cordanco with the expressed aud plain dlree-
uohs OF me legislature, without the risk of In
fVlilng the sJate IN expensive LITIGATION upOn
poss,h'e MlSc0nstructiCn Of tho law, and
meons can he provided IN advance to enable
them 70 subsorve the Interests OF tho state in
practical manner.
With regard to the merltsot The controversy,
1 neg l'nHe to submit that tie contempora.
neous construction Of thclaw Of ltth of August,
isip, by The executive onicers OF the STATE, ~
exhibited b. the amoWntof interest required "a
be paid, IL most likely To- have bcen Ia har-
mony with tbs linton ton Of the legislature In
uNing thu gggrs gate debt, and The railroad
companies, for whose relief the act was
passed., wsro likely to have known aud well
understood such Intention. They aocePtcd
tho benefits oil mo act winch saved them from
me s9criilcc and ruin of their Interest, and
should he required 10 comply with such intOr.
probation OF the law as would Justly project
the lsterests Of tho fund Of tho public free
schools that was loaned to Thorn, Aud bv
which loan they were enabled to build the
roads.
AS to the legal aspect or the controversy.
relating 10 The Washington County railroad, az
well 1s others, respectful ly rsfer TO the an
nsxed opinion of The Hon. George McCor-
mlcE' rs Encouragement OF the state, whe, At
my request investigated the matters iavolysd,
ard gave hia opinion thereon.
Respectfully submitted,
.. ". RODENTS, Governor.
ArroRSEY-GENERAL's OFFICE,
AUSTIN, December, 1870.
III