Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-02-14
THE RAILROAD COUPON CASES

Whoever has read the decision of the
Superior Court of this county in the rail.
road bond coupon cases must, if dispas-
sionate and just, conclude that the law is
correctly interpreted therein. The fact,
however, does not prevent the rabid press
from assailing the Court that rendered the
judgment 1t is another manifestation of
the mania which afflicts portion of the
press. When the action was brought,
the anti.railroad maniacs at once assumed
that the coupon holders must be defeated.
It was no! deemed necessary to examine
into the facts-it was sufficient to know
that indirectly the railroad was related to
the issue for the howlers to conclude that
judgment, right or wrong, must accord
with their vicious ideas of justice.
Now, there could be but one outcome to
the action-it goes to the Supreme Court
at once, and we venture the prophecy that
that tribunal will be unanimous in affirm.
ing the judgment. But it is not probable
that the Court below will thereby be
righted by the hyenas which have assailed
it, notwithstanding that the Judge who
sat in the case passed upon it as a cold
matter of law, and has not given ground
for the assault made upon him. Sub.
Eerviency on his part to the assumed pop
ular clamor which demsgogues "whoop
up" so diligently would have made
him a most wise Judge, in their
estimation, but the law would
have remained just the same. 1t was
very simple case. The State guaranteed
the payment of interest on bonds issued by
railroad company in 1864. For that con-
sideration the company contracted with
the State to do it certain service forever
that is to ssy, during its existence. The
contract provided that if the corporation
failed in any respect to comply with its
agreement, the State should sue and re.
cover back from it all the interest paid
out Obviously, by this very provision
the payment Of interest was independent
of and not dependent upon performance on
the part of the corporation. The purpose
was TO give value to the bonds, but it will
be apparent to the dullest intelligence that
no such credit value would have been con-
ferred whatever II it depended upon the
continuing conditions. That is to say, no
man would have put money into such
bonds if he knew that the security given
by the States Endorsement as to interest
could be rendered OF no value. This we
pointed out year ago when the matter
first came up, and when an action
was brought against the company to re-
cover back to the State the interest paid,
on an allegation of violation of the con-
tract. Yet on the heels of this complaint
and which has Just been defeated on de-
murrer in San Francisco Court-the State
refused to pay interest coupons held by third
parties. Whenever, if ever, the State
brings the first action to trial. it will prob.
ably develop that the compact has not been
violated, for the corporation people would
be more than fools to render themselves
liable fox large sVm of money by refus.
ing to carry out the provisions Of the con.
tract, which requires State messengers to
be transported free, and certain granite
duarries to be decided ts the State when
ever the General Government gives the
company patent thereto. These suits
have not had the Endorsement or couaten.
ance of lawyers familiar With the facts,
and jealous of their reputation Cor
legal acumen, and it is safe to &C.
sumo that the Attorney General die
not appear in the coupon case be- !
cause he knew that the law and justics |
would not justify the Court in upholding |
the refusal to pay the interest. 1t is just
possible that even case to which rail.
road company may have remote relation,
may, according to the dictates of justice,
go against the anti-Eailroad :maniacs; but
in their estimation there can be 10 such an
honest outcome. If it happens that there
is complete defense to some of their
claims, they cover their defeat By ass:iling