Savannah morning news. [volume] (Savannah) 1868-1887, 1886-11-19
NOETH GEORGIA RAILROAD
BONDS.

Editor Morning A6sS: Inc resolution
m surrender the bonds of the Marietta
and North Georgia Railroad Company to
mat company end discharge it from the
payment thereof, was Introduced in the
House on July 1, 1885, and referred TO the
Committee on Finance.
THAT committee referred it to sub
committee Of three, who gave it fun
AMI thorough Investigation aud came TO
The unanimous conclusion:
l. That il was in violation of tie con-
elitution of the State, ana
.. That it was without facts TO sustain
IT,
On the first ground, art. 7, sec. 5, par. l,
lis the following words:
"1be credit of the State shall not be
pledged or loaned to any individual, COM
many, corporation or association"
The resolution by its terms authorizes
the Governor, as the building of the rail
road progresses, to credit the sum OF
- 800 for each mile and half compl ted.
Now if this is not aiding the corporation
no build railroad, the English language
loses us meaning. 1t even goes beyond
she restriction OF the constitution, above
nuoted. and worse than Dedging and
loaning the credit of the State, 1t actually
gives the bonds belonging and justly
0wIng to the State to this corporation, to
enable it to build it's road, and these bonds
REPRESENT precisely that much of the
taxes of the people OF the entire State.
Argument would lose its force in the
plain statement OF this proposition.
>. The resolution further states that
after the completion OF the road 10 the
North Carolina line the entire amount of
the bonds are to be canoe ed aud deliv-
cred up to said corporation. And this
delivery of the bonds is to be a full and
complete settlement OF all the equities
existing between the State and the rail-
road company.
Now. if there were equities existing
that called for THIS "donatiOn" on the
part of the State, why not settle them by
ihe delivery up of the bonds without eX-
acting conditions? Ii the conditions
were s'that the company build the road"
is it not plain that the "pay" went tor
that purpose? And if the "pay" went
for that purpose is it not just as PLAIN
that the mention of equities was only a
pretext, and the whole scheme was to pay
Tor the building of the road.
But 1t is as fully plain upon investiga-
ton that there we're no equities. Why?
All the equities that the railroad COM
psny claimed arose, as they alleged, from
the loss Of conVicts. Let US examine
this.
By an act of the Legislature Feb. %,
1876, the State granted to said company
the use of $50 coBvicts for the term of
three years without charge. This was
simply a donation, gratuity. Ii the
State mad failed 10 furnish convlcts &C.
cording to that act--it being a gift-it
would nave raised no equities between
the Stale and the railroad. Neither a
legal or equitable claim can arise without
consideration, and there was no consider
for ha rrif an alo IN Z n rai
company.
But say that position is incorrect. The
only legal or equitable claim that the rail-
road company could have had against the
state was The claim for It's iultillment of
its grant or gift. If it did this there was
no claim it could urge against the State,
either legal or equitable.
Well the State did this and fully COM
piled with The acts OF 1876 in giving them
the use of $50 convicts for the term of
Ghree years. This is shown conclusively
ID Il Georgia Reports, PAGE 302,
In this case the Marietta and North
Georgia Railroad Company was party
and legally ana morally bound by the de-
cislon. Ii was shown that the "railroad
company had, on December II, 1885. re-
ceived the use OF $50 convicts for the term
Of three years" What more could it k
for? The act of 1876 was complied with,
the act of February, 1877, loaning them
$4,000 was complied with, and this ought
TO have been an end OF the matter.
But they say that the act of 1883 granted
Them the Use of the convicJs as long as
the road was unfinished. But the act of
1888 was an enlargement of the gift OF the
state, and being passed after he consti-
tuition OF 1917 was null and void, as CON-
tfary to the provisions of that instru-
ment. Inis Is not an open question, as it
IS decided by the Supreme Court in the
case above cited, the Legislature not
having the power either 10 make or en-
large grant in aid OF building a rail-
road, or donation to any person or cor
poration after 1877.
soft is clearly shown that the cancel
IAllon OF said bonds, ii done for the first
purpose mentioned in the resolution, was
palpable violation OF article Z, section
D paragraph l, of the constitution quoted
above.
II lot the last mentioned reason, the
pIeteXt OF equities, the same not being
true as shown above, and this, too, by a
oeclslon oil our own Supreme Court, in
"hlch the railroad company were parties
ana acquiesced therein by sinking an
Investigation before jury OF their
country, as directed by said decision, and
ndFihg then and there the equities they
no" insist upon, the ''dOnatiOn," was
fraud upon the people OF the State in
ufefting the money, which should prop
swny 20 TO tightening their taxes, TO an
Iuegal purpose.
AM, ana nnally having no legal ground to
1'and upon, and having no facts to justify
IT, Is simply donation, gratu,iy, and
- ialis directly and positively upder the
uat OF article I, section Is, paragraph /, OF
lolows: 40 ~
90, Inc General Assembly shall not by
'V@' resolution or order, grant any dona-
e ~ou or yiatuty in favor OF any person,
'V,poTatlon or association
r, nut mere was another objection TO the
,so.u'ioh' While it purports TO be in
Sn 'oI oil TIE Marietta and North Georgia
e",,' Jad Company. its benefits really
~" iuto quite different channel.
by contract made in August. 1881. be-
p,vIh the Marietta ana North Georgia
canlau Company and kinsey OF GIN
TsmaAaatl, ana George Il. Eager, of Boston.
a, uese parties, Kinsey and Eager, GOV.
coonleu with the railroad company for a
roaS aesIation that eventually placed the
,b 5au com CON pletely in their power, to assume
~ Pay ment OF these bonds and relieve
Tba e,ohpany from any liability thereon.
ari as contract finally ousted all of tn.
s.t ei,ns a. stockholders from any real inter-
eon' con" 'ne ROAD, Its consequences being n
Kplete sequestration OF their stock, and
| itn ssGs5 una Eager becoming themselves
. 'aiietla and North Georgia Railroad