Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1882-01-21


more interest in the Mrs. Legends,
Mrs. JArvises, the Aristobulus Broggs
and Steadfas, Dodges of Gotham than
now agitate New York "society." In
the name of twelve Caesars what
shall we have next?
HANNIBAL AND ST. JOSEPH BAIL
Road TROUBLE WITH
THE STATE.
from the Columbia Statesman.l
We are asked to etate in plain
words. $50 we can understand it,"
the nature OF the trouble between the
Hannibal & st. Joseph railroad conf
pany and the state of Missouri, aud
the effect of. the recent decision OF
the supreme court in regard to the
points of difference.
We think We can do so.
For the purpose of aiding tine COM
pany to complete and equip its road.
tho state of Missouri, by an act ap-
proved Feb. 20, 1851. loaned her cred
it to the Hannibal s. st. Joseph rail-
road company to the amount of ST.
100000, iii the form of 80 year Fer
cent bonds. This was followed by q
further loan OF state credit-20 year
per cent bonds-to the amount ot
81 .500,O0 under sn act of Dec. 10,
1855. For these two amounts, aggre-
gazing the SUN OF $S,0O0,OO0, tho
state issued its bonds and delivered
them to the railroad company, aud
has been carrying them ever since.
AT the time of the issuing of the
bonds the railroad entered into q
contract with the state, from year to
year to pay the interest, $4,000 per
aunum, on the bonds as 1t became
due, and the principsl also at maturi-
ty, the state retaining q fret lien on
tue road to secure the payment of
both principal aud interest.
lu 1874 when ST. 500, 900 of these
bonds approached maturity, tho COM
pany acknowledged its obligation to
pay them, but begged for, aud by the
act of March 81, 1874 received from
the state all extension of the loan tor
another twenty years OH the identical
conditions Of the original loan, the
renewal act and the compauy's &C.
ceptance thereof expressly providing
for the renewal and perpetuation OF
the conditions Of the original loan.
The semi-annual interest on all the
bonds has been promptly paid from
the beginning by the railroad COM
pany 10 the present time.
Having the funds At command, and
DO doubt believing that under the act
of Feb. 20, 1865, they could avoid the
payment of tue $18O,OOO interest all
nuAlly until tho mat urity of the bends
IN 1S94-7, aud throw that burden on
OF Of - los
pamy made a formal tender OF the 49,
OO.OUO. the principal, and Of the in-
terest ($90, ,OO0) to July 1, 1881, to the
fund commissioners, consisting OF the
governor, state auditor. aud atter.
ney.geusra!. The fund commission
ers Investigated the subject and final
ly determined that the state treasurer
should 90 to Now York aud receive
the money.
This he did, and OH June 20, 1881,
executed u certificate or receipt for
the same as go much paid "on ac-
count Of the statutory mortgage the
state held against the Hannibal s. St.
Joseph railroad"
On the 9th day Of July, Mr.. Geo.
w. Essley. as attorney for the CON-
pauy, made formal demand upon the
treasurer Of the state. Phil. E. Chap
pell, that he certify to the governor
that the company by such payment
had fully discharged all its obliga-
tions to the state on account of said
bonds. The treasurer refused to make
The certificate, because tho bonds
were not yet due, and because if ne
gayc it the state would III law he held
liable to pay the interest on them uu.
til they should become due. AS the
bonds are not due until 1894 and 1897,
bear six per-cont interest payable
setnl-annualiy, aud are not Oh the
market even at a large premium, the
practical business difference betw weeu
the state and the company is ques.
tion of interest, which, it will be
seen, will aggregate Sits. .490-au
item of no small amount.
The ground for this demand bv the
company for receipt in iull of sl
liabilities and obligations to the
stats, is the act Of Feb. 20, 1865, pass
cd to enable the company to issue it.
own bonds to the amount of s. ,OOO,.
600, to three trustees, to whom were
TO be assigned all tho rights of the
state against the company, whenever
said trustees "shall pay into the
| treasury Of the state q sum of money
e4ua i'll amount to all the indebted.
ness due or owing by said company
to the state, and all liabilities incur.
red by the state by reason of having
Issued her bonds and loaned the same
to said company. together with ali
interest that has, aud may. at the
time such payment shall be made
have accrued and remained unpaid Uy
| said company"
1t should not be forgotten, in order
to full understanding of the case
that section 5 OF the same act de
clared aud explained that none of it.
| provisions should be construed "to
modify, release, exonerate, discharge
| or relieve the company from aux
duty, liability, obligation, psualty OF
forfeiture" imp osed on il by the term,
OF the original loan. lu the Language
of the Kansas City Mail, all the pro
Visions and the whole tenor OF tn,
acs, as we'll as the pleas by which 1t,
passage was procured, show that tn,
whole Intention was 10 enable tn,
company TO take advantage Of ths
low price of bonds, and discharge it.
Obligations to the state, by sxtin
gushing too her, or providing he,
With the means to exIInguish, abiIi
ties equal in amount TO those she had
| incurred on account OF the cumpaDy
Nevertheless the company prose
c1;ed lis suii III the supreme court OF
sn agrceu statement of all tb. facts
and On the 10th inst, the case came
up Tor final hesring, and the court
notWi' hstsndlug all the abuse they
had received from the Globe. Demo
crat ald other papers. unanimously
sustsined the action OF the state
treasurer, Gov. Crit;en,ieu and the
fund Commissioners, Judge Nortou
delivering the opinion of tns court
Ihe main point made aud daciued
wss that the state constitutions OF
1873 repealed the act of 1865
unher vhich the company paid
the SS,OUO,OO0, and claimed a release
ihst This repeal was perfect. because
tue cnmpsny, not having taxen ad.
Vantage OF tie act OF 1865, which
was eTPdrte, cannot now claim that
such repeal is III violation of their
contract; and that the state, III &C.
cordahce viii, iaa act creating the
lien, which was passed in 1856, eau
proceed to enforce it at pleasure.
Col. Wood E,sley, attorney tor the
railroad company, has fled motior
with the CLERK Of the supreme ronr'
| for re-GeariHg Of the case, In n b ch
| he controverte the conclusions Ot