The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1883-01-09

payment made was not . discharge of
the obligations of the company. under
the provisions of the several acts,
under which the loan of credit was
made. and, consequently, refused the
injunction. The company. with un.
flagguig zeal to wrong the State, there
upon amended its bill, praying the
same relief as originally asked, and
in case that should be denied, asked
the alternative relief of repayment Of
the S.. 600, 600. On the faal hearing
Of this bill. at Keokuk, Iowa, by
Judge McCrary. an interlocutory
decretal order was made, prescribing
legal rules, by which the amount due
by the company to the State may be
ascertained, and retiring the whole
matter to a master in chancery-Hon.
John K. Cravens of Kansas City
with directions to take an account
thereof and report the result arrived
at to the court, at an early day. In
accordance with the agreement of
counsel on both sides, sanctioned by
the Master, testimony has been taken
and argument made before the Master
by the respective attorneys; and
II am informed that the re-
port will probably be made at the ad-
journed term Of the. court, to be held
in jefferson City on the first Monday
in March next. So far, the courts.
State and Fedeaal. have uniformly
held that the company has not yet
discharged its obligations to the
State, and the Federal Courts at each
hearing. have required the company
to pay the matured interest on the
bonds. In 50 doing, those courts have
sustained the position held by the
Fund Commissioners, from the be-
ginning Of the controversy; they con-
tending that the amount paid on the
10Th day Of June. 1881, VAS not "a
sum Of money equal in amount to all
Indebtedness due or owing by said
company to the State. and all liabil-
tiles incurred by the State. by reason
of having issued her bonds and loaned
the same to said company, as q loan
of credit of the State" What that
amount is. now forms the question at
issue between the State and the COM
pany. and must be determined by the
Federal Courts.
The controversy shows the wisdom
of that constitutional provision inhib-
iting the State from Contracting any
debt or liability on behalf of the State.
or to issue bonds or other evidences of
indebtedness thereof, except in renew
al Of existing bonds, and to create .
debt not exceeding $3.50, 600, to meet
an unfo,seen emergency or casual de-
ticiency." as the iberality of the State
has been 80 often abused BY the re-
cipients Of its grace. 1t is a matter
Of regret that this company, after
having 50 long and 50 faithfully met
its maturing interest On the bonds
should have sought an opportunity,
under the act If 1865-cunningly
drawn, as it was supposed, in the In
terest Of the road-and the advice and
direction Of hired counsel, to violate
the most sacred obligation that can
exist between . creditor and debtor.
The State, from the beginning. dis
countsnanced the construction placed
upon that act by the company, and
simply demand . ful6llment Of the
obligation nominated in the bond and,
at no time, has it acted otherwise than
Justly and leniently with the road.
even when reverses and embarrass-
mepts surrounded 1T and almost
wrecked its financial existence. No
read has asked and received more
kindness from the State than the Han
nibal and st. Joseph. The more it
has been accommodated, the more it
has demanded. 1t received from the
: tate, under the act Of 1851. 81. 50O,-
600 special bends, ~ loan of the
public credit, redeemsble at the pleas
ure Of the Legislature At any time after
the expiration Of twenty years from
the date Of issue and, again, under
the act Of 1856. it recsived the same
number Of bonds, of the same char
acter, redeemabls in thirty years, and
in 1874. upon the urgent application
Of the read to the Legislature, the
800, 900 bonds issued under the
ect Of 1851, we're renewed for . fur.
Their term Of twenty years. Thus, in
fact, receiving from the Stae 8, Co.,
600 in. special loan bonds, redeemable
in thirty and forty years. favor not
solicited BY, nor extended toany other
company. In consideration Of this
fact, and upon principles Of honor,
the road should be slow indeed in At