New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-14
THE ARKANSAS STATE AID BONDS.

To the EdttOr or The Trt6Hne.
SIR: In y0ur issue of this date there Is pub
lishcd letter o C. Huntington. the attorney OF the
two railroads in the Arkansas. the main purpose
Of which deny any legal liability Of the roads he
represents upon the bonds issued D' that state com
monly known as the "ralruad aid bonds As the IN
doubted object OF these two companies III retaining Mt
Huntington was avoid this liability, 1t Is not surprs-
Ing that he enters the performance Of his duty by the
Official denial contained in his letter; and although II Is
not the intention the bondholdcrs to try their in
the newspapers may not be auSs briefly TO presrut,
through the columns your journal the precise grounds
upon which they their claim 10 the amount
OF these bonds from the railroads.
In 1865 the Legislature of Arkansas enacted law
subsequently ratified by vote OF the people
of the Stately which the Governor was an-
tbortzed to issue the bonds Of the State ia
The presidents of the railroad companies receiving tho
bonds were required file Official receipts for each Is
sue aud the Legislature directed to impose upon
each railroad receiving the same tax equal 10 the
amount Of the annual interest upon such bonds II Is
perfectly obvious, and the Supreme Court Of the United
States has ~ held the Florida that by the act Of
receiving the bonds the railroad companies became
bound by all OF the conditions which imposed by
the law authorizing their issuance. am, therefore,
that the learned attorney OF the roads IN ques
ton should assert that statutory mortgage or lien
was created or reserved by the State Of Arkansas
claim that such statutory mortgage and Hen,
and without resting tins statement upon assertion
quote the act itself d" Tho taxation in this section
C7t provided 10 continue until the amount OF bonds Is
sued to such company with interest thereon shall
have been paid 10y company herein specified, in
which case sad road shall be entitled 10 discharge
from all aims OF liens the part Of the state pro
vded that nothing herein contained shaH he so CON
strue TO deprive any COMPANY securing the loan OF
the bonds Of the state herein provided Tor IRON aging
the whole amour: due from such company 10 the state
az any time in the bonds OF the state loaned IN
aid " railroads. the coupons thereon, ~ money
Tue roads which avdilcd themselves of tins act, ana re-
ceycd the bonds OF the State, brought them 70 New
York where they sod them through wellkn1wn bank
houses, AT prices ranging rom % 10 80 per cent
bond bore its face specific reference TO the law
under which Il issued well az the name or me
railroad COMPANY which it given, that the act
aug manifcsty enured to tee benefit OF the bond
holders, upon principles of law daily and invariably
applied of justice. The position OF the bond
holders therefore, simply this: That these cUTpOr-
auns having received the aid bonds from the state
brought them to New-1Ork ana SOFA them ahd pocket
the proceeds are now absolutely bound IN law as wen
morals hDugh We do not rely much on lhe latter
ground) to pay tie same. Nor can these companies
their lust liability by the fact which appears to he
emphasized in Mr.. Huntngtous letter. that the roads
have passed into the control Of other parties.
hr,.,use the foreclosure of these roads, in utter
state aid bondhoGers cdun0t bar their present claim,
any more than transfer Of property by owner 10
third person could deprive valid Hnd suDsstlng mort
gage OF lien will only add that these questions have
an been definitely settled BY the Supreme Court OF the
United the Florida case III favor Of the hJders
aid bonds and IN pursuance 81 the principles
enumerated ia that case the highest law officer OF the
State of Arkansas well the Governor Of the state,
have inst declared that the railroads Arkansas
fully liable to the holders the bonds, and their opinion
has been cOuciTTcd In by Senator Ghrand Inc chairman
OF the Judiciary Committee OF the United states Yours
very r.snectiully. JOnN X. DOS PAsSOs,
OF Counsel to Railroad BOndhoders.
DreTei BiiidiIt0 NeU York, Nov. -, 1881