Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1882-05-25
WALHALLA, SOUTH CAROLINA,

oe eutOroeu. lhl6 was SHOWN TO De the
delivery to the State Treasurer Of certain
bonds Of the Blue Ridge Reilroad Company
guaranteed by tho State, which we're to be
issued for the purpose Of constructing the
road. But, 10 the Act authorizing the
guaranty of these bonds by the State, it Is
provided thst the bonds shall "not be
used" unless Congress or private capitalists
shall furnish three millions of dollars, or 80
much as may be necessary, in exchange or
upon the security of the bonds. This pro.
teoted the bonds from being Issued at an
under-rate. Finding this difficulty 10 tho
way the promoters of the scheme induced
the Legislature to pass en- Act to promote
the consolidation of the GreenviIe and
Coumbia Railroad Company and the Blue
Ridge Railroad Company, in which was
inserted section repeating this proviso.
This repeal, It is contended, never took
effect. 1t was part and parcel of plan to
consolidate two railroad conpaxies, neither
Of which ever accepted the Act, which thus
became dead letter. The failure of this
main object oarried with it all the details
We arrive ut the result then that the State
had placed 10 the hands of the Blue Ridge
Railroad Company certain bonds, with the
States guaranty, for the purpose of con
structing the railroad with condition
attached that they should not be used until
dollar for dollar could be had for then,
These bouds could not, it is maintained,
create liability against the State until
they were issued in pursuance of the COO.
dition, and never having been so issued
there was no liability whatever that could
create u consideration for the redelivery of
them back to the State. The promise
which the State is oharged with having
made is to Issue nearly TWO million dollars
of scrip, in the awouots and form usual to
bank nutes, which are to be acc pied for
uli taxes aud dues to the State. This
would be contrary to public rolioy. for it
Que Stute may be, flooded with dabased
currency so may every State It was also
urged that the Revenue Bond Scrip wus
obnoxious to all the objections incident to
bills Of credit. 1t was clearly intended to
be used as circulating medium. Another
Obi. .ction nude by the defendants Sas that
the Act OF March, 1872, created debt 10
disregard of the Constitution of the State
which provides that public debts shall only
be contraoted for the purpose Of delrayiug
extraordinary expenditure, aud that such
debts shall be iu the form of bonds, not
less than 500 10 amount, bosring interest
aud payable thin twenty years. The scrip
did not cover debt then existing A
guaranty is not debt or 90 expenditure,
und the scrip, in no single particular, oon-
formed 10 the requirements of the C0nsti
tuition. There were good grounds, there.
plainaDt, and we do not doubt that the
81, A.
by the Supreme Court Of this State and
will reverse the Circuit Courts decision
MIR. Wesley, no doubt, acted in good
faith, and has sound equitable claim
against the State for the amount of money
he advanced. The justice of demand for
what was honestly lent is not deuied. The
State, too, was relieved of a quasi liability
by the cancellation of the Blue Ridge Rail
roud bonds. The holders of bonds who
took the scrip iu exchange are in worse
condition than if they had retained the
bonds. But as the Supreme Court said,
"lf the issue of the Revenue Bond Scrip
by the Treasurer involves the State 10 como
obigution to the holders, which good faith
requires it to meet, the duty rests with the
Legislature, not tho Courts, to measure it's
extent, and declare the mode in which it
shall be fulfilled"
The power proposed to DO exercised by
the Uuited States Court in the present oase
is enormous. Not only are the State and
county officers to levy tax for the paymen.
of the scrip, but if they refuse to receive it
.or taxes when rendered, they are TO bo
restrained from selling the property taxed
and from taking any other steps to enforce
the collection of taxes duo upon it. If
this can be done, tho State is as much
subject to the United States Courts Us
private debtor is. The question is of
tho gravest importance, aud needs to DO
presented with all tho learning that she
State oan command. No induoement
,h rcto is lacking There is no telling
where this machinery of mandamus and
injunction will stop, il it be not arrested
by the Supreme Court. The door once
opened, when shall it DO closed? Then,
again, fraud tuiDts this whole Bluo Ridge
Railroad bond business. 1t is Radical
job all the way through. The Act Of
March, 1872, was too much for even Gov.
ernor Scott to swallow, and the act became
la~ without his approval. Three series
of the Revenue Boud Scrip were issued
and no ono can tell how much is outstand,
ing. Patterson was the originator Of the
swioGle and the Joint Committee on Frauds
publish in their report letter Of Patterson,
dated March 4, 1872, directing the State
Treasurer to pay r. b. Elliott $1l4 $50 in
Blue Ridge (lsevenuo Bond) Scrip, on
condition that $42,875 Of it shall be used
"for paying the expenses Of pnssing through
the House Of Representatives" two other
n -