Year: 1874

LITTLE Rock, ARK, March l6, IA
A. II. Johnson, ESQ, President of the


Arkansas Central Railway:


Your application, filed sometime since
for O further issue of the bonds oil this
State to the Arkansas Central railroad
company, under the provisions of the act
of the General Assembly approved July
21st, 1868, has been fully considered, and
shall proceed to state briefly the reas
ons that constrain me to refuse your ap
plication.


Before doing SO, it is proper for me to
say that shortly after was inducted into
the office of Governor, and before had
either time or opportunity to critically
examine the facts and law on the subject,
application was made by your company,
and also by the Little Rock and Fort
Smith railroad company, for the bonds
of the State claimed to be due them re-
speetively under the act referred to.
Upon looking into the applications then
made, and finding they apparently eou


formed to the requirements OF an act APP
pearing on the statute book, and then
supposed to be the law, and that they
were identical in form with applications
on file. made previously to my coming


into Office, and upon which bonds had
been issued, issued bonds to your com
pany to the amount Of 100000, and to
the Little Rock and Fort Smith railroad
company to the amount Of 100000


Since your present application was


filed, / have given the subject a careful
and critical examination, and my investi
CATION has been the more thorough be
cause my action, in issuing the bonds
above referred to, was called in question
and criticised warmly and ably by officials
whose position am bound to respect


am now satisfied erred in assuming
to issue tuose bonds, and that neither
myself nor my predecessors had any au.
thority to issue the bonds OF the State
popularity known as "railroad aid bonds"
and that said bonds are void, and all ac-
ton had in relation thereto by the Execu
tive or the Legislature is of no effect


This declaration is not inconsiderately
made In matter of such magnitude
ullV importance w IHC JtoliV VI thV cs"NSs
as well as to the holders OF these bonds,
have felt it my duty to act with the ut
most caution and delberation, and not
promulgato hastily an opinion which the
facts and the law would not warrant.
And though, after full examination of
the matter, was clearly satisfied in my
own mind as to my legal duty in the
7 pt,,rn 90 sol ~,
my judgment alone, but soughtthe coun.
sci of gentlemen whose integrity and
sound legal judgment cannot be ques
toned, and was advised that the step
purposed was the only one consistent
with my sworn duty as an officer, and the
legal rights Of the people of the State.


This Is not the place to go into full
argument and citation OF authorities to
support my conclusions But it is due
to you and others similarly interested,
that | state with some distinctness the
exact grounds upon which ! shall refuse
to issue any more railroad aid bonds:'


Section 6, article 10 oflh. constitution
of this State declares, " The credit of the
State or Counties shall never be loaned
for any purpose without the consent OF
the people thereof, expressed through
the ballot box"


This provision Of the constitution
manilestly contemplates the passage Of a
law submitting to the people plain and
distinct proposition to loan the credit OF
the State In some specified form, and for
some certain object and amount; and
also prescribing the time when, and the
place where the sense Of the people, at
the ballot box, shall be taken on such
and the manner in which it
shall be conducted and its results de-
clared


Without such law there would be no
time for holding the election, no places
for receiving votes. no person authorized
to receive them, no clerk empowered to
canvass the returns, and no officer OF
State authorized to declare the result.
In word, q vote taken without such
law in force would have no sanction, but
would be q mere voluntary and vain act,
having no legal force or effect.


The last section of the act, relied upon
to support the issuance Of these bonds,
reads as follows:


That at the next general election to
be holden under the provisions OF section
3, of article 10, Of the constitution Of this
State, the proper officers having charge
Of such election, shall, upon poll, as in
other eases, take and receive the ballots
of electors qualified to vote for officers al
such election for and against this act, in
with section 9 of article 10,
of the constitution, such ballot to contain
the words, For railroads or Against
and if it appears that ma
jority'so voting have voted for railroads
this act shall Immediately become opera
tive and have ful force. and oil laws hereto
fore passed for loaning the credit of this
State in aid OF railroads shall cease aud
be void; but il majority shall be found
to have voted against railroads this act
shall be void and Of no effect.


Section 90, article 8, of the constitu'
ton of the State, provides that" mo pub
lie act shall take effect or be in force un
ill ninety days from the expiration ofthe
session at which the same is passed, un
less it is otherwise provided in the act. "


BY the terms Of this constitutional pro.
vision the General Assembly might have
" provided in the act that 1t should take
effect on it's passage, or at any subse-
oucnt date, but no such provision is
found in tho act