The Lexington dispatch. [volume] (Lexington, South Carolina) 1870-1917, 1896-07-15
Have Entered Suit.
The State

sue in the year 1887 by Columbia
township in aid of the construction
of the Columbia, Newberry and
Laurens railroad through the said
township, h IS, through its attorney,
Col. John T. Sloan, Jr., brought suit
against the county board of comm;s-
sioners for Richland county, acting
as agents for the payment of the IL
terest coupons on said bonds for
the years of 1888 and 1889. The
sum sued for is $500, int crest and
cost.
These coupons are from the boncs
which, to the amount of 10000, were
issued by Columbia township on
Aug. 7, 1887, in payment of the sub
scription of $4,000 by the township
TO the capital stock of the Columbia,
Newberry and Laurens railroad, un-
der the act of the general assembly
approved Dec. 26th, 1885, and the
act amendatory, approved Dec. 24tb,
1886. These bonds, with the coup
ons attached, were issued and deliv-
cred prior to the completion of the
said railroad through Columbia town
ship, and the general assembly, upon
request of the county commissioners
of Richland, on Dec. "a, 1887, auth
orized the levy of tax upon the tax
able property in Columbia township
to meet the coupons maturing on
July next thereafter. During that
year the constitutivnality of the acts
of the general assembly under which
these and similar railroad bonds were
issued. was brought into question,
and on Nov. 80, 1858, the supreme
court of this State, in the case of
Floyd VS.. Perrin, declared such acts
to be unconstitutional, and that no
tax could be assessed and collected to
pay the interest upon such railroad
bonds. In the meantime the tax
levied on Dec "a, 1887, in Columbia
township to pay the interest on these
bonds had been collected by the pres
ident for Richland county; but after
the decision in the case above men
toned, and in accordance with the
instructions of the comptroller gen
eial, the said tax was refunded by
the treasurer to the taxpayers OF
Columbia township.
On the 23rd of December, 1888,
the general assembly passed an act
the effect of which was to make the
township bonds previously issued in
aid of the railroads valid debt of the
township which authorized the issue,
and providing for the assessment
and collection of the taxes to meet
the payment of interest; provided,
moreover, that no tax could be levied
to pay the interest on any township
bonds until the railroad in aid of
which they were subscribed should
be constructed through such town
ship and accepted by the railroad
commissioners; and the legislature
further provided that no tax should be
levied to pay the interest that may
have accured on said bonds before
the completion of that railroad.
The c., N. & L. railroad was not
frished through Columbia township
and accepted by the railroad commits
sioners until some time in 1890, and
for that reason the coupons Oh the
Columbia township bonds maturing
in 1883 and 1889 have never been
recognized as valid obligations Of
Columbia township, and no provision
except that of the tax rebated as
above mentioned) has been made for
the assessment and collection of any
tax to pay the same, but the intrest
of the years following that of 1888
and 1889 has been levied, collected
and paid annually.
Recently the supreme court of the
United States, in the case of Fulsom
vs.. the Township of Ninety Six,
affirmed the constitutionality of tie
act under which railroad township
bonds were issued in South Carolina,
thus overruling the case of Floyd VS..
Perrin decided by the supreme count
Of the Safe, and presumably on the
strength of this decision, the owners
of the 1SSS-S9 coupons five or six
weeks ago made a demand upon
County Treasurer Folk for their pay
ment. He referred the matter to
County Supervisor Weston, and that
officer, alter tax ng legal advice,
authorized the treasurer to decline
payment on the ground that the cou-
pons has never been made vailed by
legislative enactment. and no fund
had ever been provide for their pay
ment.