Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-10-07


Dolsted the important words legally iesned"
before the word bonds, but provided no forum
% sdiudicale the question as to which oil the
pouds were fraudulent snd which were not;
and the whole we're accordingly hurried
through the mill without question. But
Judge Wright says these laws were INTENDED
Ito hasten the payment OF the debt, ano sever
the States connection from the railroad com.
pauies; and that such provision could not
prejudice the State, inasmuch az 1t was
! ali the same' to the State whetner
a given smouni OF its Liabilities
f, houId be extinguished by surrender oil one
aet Of bonds or the other" We have no
doubt that this matter appeared Just IN TINS
light to the honest and unsuspectlng minus
of such men as Francis b. Fogg, Robert >
Mckinney and Archibald Wright 1ney
know nothing oil the true lnwsr9ness %
this masterIy flank movement OF the STOCK
iobbers and gamblers, and were strangers 10
ALL THE DARK TACTICS
by which the lobbyist moves, in mysterious
way. his wonders 10 perform. But Judge
WIGHT asks if it "can be doubted that, I'M
der The twelfth section of the acts OF 1S5l-52,
commonly called the State aid law, the
Legislature had the power to provide Tor
final release of the companies by payment
of any of the bonds of the Slater We an
sver that it can be doubled, and that " IS very
orarety doubted whether the Legislature oil
lS69-70 was not in absolute deIogatIon and
contempt OF the twelfth SECTION of the act oil
lS5I-52, which he so confidently Invoked
Tie Stale had entered upon the perilous
experiment OF aiding the development oil
system of railroads by the loan of its credit.
The series of loans for this purpose were
written by a master hand, and II there be
one idea that predominates above all others,
/, ia that not one dollar of The bonds TO be issued
uds ever 10 be paid by the taxpayers Of the
State, but erery dollar iOas 10 be paid, PriH,,
cipcI. interest and all, BY The railroad
companies. Indeed, il was gravely questioned
whether the State could issue Its bonds Tor
any purpose except for q pecuniary consid-
Grafton passing directly to the State itself
In this case the entire money consideration
passed directly to these great corporations
and the benefits expected to be realized by
the State were only incidental. There was
no direct and undoubted constitutional war.
rant 10 issue bonds in such cases. Article
III. section 9, of the constitution only pro
vided that "a well-regulsted system of inter
nal improvements is calculated to develop
the resources of the State and promote the
HAPPINESS AND WELFARE
| of the people, therefore it ought to be en-
coursged By the Legislature" This was all
| the Legislature had to rest upon, and THU
being The situation it was very grdrety d0ubtet
whether the power existed; and many able
men voted against the act OF 1882, chapte
| 1871. upon this ground, and many other
voted for il because there was an absolut,
guarantee that not dollar OF the deb
| should ever fall upon the State. Man.
| adiudicated cases were cited In support o
| The power, none ot which, however, touches
| The direct question, but relate exelusivel,
| to the bonds of municipalities, counties, ana
| other corporations, where there was a'pccu
| piary consideration passing directly TO th
! corpor ation-or to the bonds of the Stat
| itself when it took stock in its own turnpike
or banks-and expected to realize direc
pecuuiary consideration therefrom. (Stat
Us. Jefferson Turnpike Company; Hum
phreys, sos. State U.s. Central Turnpik
| Company; 10 Humphreys, 1888. Hope u
Desderick; Humphreys. Union Bank .
Jacobs; Humphrey, sic. Ohio Life Ii
surapce Company u.s. Nashville Life Insul
ance Company; IL Humphreys, u. We sa
that the question is still an open one in th
State. while in others it has been ruled di
rectly the other way. (Whiting rs. Sheboy
gan Railroad Company; American La
Register, 156. Hanson Us. Vernon; "a low
Tbs People rs. the Township of Salem;
American Law Register, 4S7. Allen Us. tn
Inhabitants of Jay; IL American La
Register, 4Sl). But it is too late now
|
upon these authorities except to show III;
the members of the Legislature who double
the power then were moi altogether wilhol
grounds to stand upon. Now, under
ALL THESE CONDITIONS,
The twelfth section of the act Of. S51-5
chapter ISL, was enacted, and here it
1.-THE State of Tennessee expressly reserve
the right to enact by the Legislature a
sucb laws as may be deemed necessary
protect The interests of the State and 10 secure
State from loss, in consequence OF the Issu an
of such bonds, but go as not to impair Il
vested rights of the stockholders" Mo-
where can be found the shadow Of a pr
! tense that such an act as this-expTessir
upon its face its only purpose to be 10 pr
tect the State against all loss-couId justi
} The acts of I869-70 by which debt of mo
than S2O,O0O,0O0 was artistically taken OH
| the railroads and fixed like an incubus upt
the taxpayers of the State. Now, where W
the necessity for hurrying in this matte
: The bonds had many years to run; the Sta
was absolutely secure in Its liens upC
} the solvent roads. The solvent roa
; themselves are now counting their rev
} nues by the million. They could have m
| the interest, and, at maturity, could pay Il
, principal; and where was the necessity
this wild and improyident legislation
was not call the same" to the State wheth
the railroads discharged their liabilities
J one set of bonds or the other, for the Sta
! could have defended itself against these su
! stituted bonds, and left the solvent roads
pay off those issued to them according
contract. But, while all this may pallis
r and explain the dissatisfaction OF the peoI
! il can neither effect the vested rights OF I
/ railroads under the executed contract, n
: add any strength, in strictly legal way,
E the popular demand that the present bon
: holders, who are without completely IN t
: matter, should sbate their demands. Th
: question will be considered in the ne
s paper. MAJ "EhtoN'