Powers v. Inferior Court of Dougherty County

23 Ga. 65
Supreme Court of Georgia·Decided June 15, 1857·Published·Cited by 9 cases

Opinion

By the Court.

Benning, J.

delivering the opinion.

The only question in this case is, whether the Act of 1855, “to authorize the county of Dougherty, to aid in constructing the Georgia and Florida Railroad between Albany and Americus, or other Railroad running to said county, by the subscription of stock and the issue of bonds therefor, upon a vote of the citizens, is constitutional ? If the Act is constitutional, the decision of the Court below, there is no doubt, was right.

This Act makes “ the county of Dougherty,” a corporation ; makes the Inferior Court of that county the representative of that corporation ; requires that Court, at the option of the “legal voters” of the county, to subscribe, not less than $100,000, nor more than $150,000, to the capital stock of the Georgia and Florida Railroad Company, or such other company as might be “indicated” by a majority of the voters of the county, and to issue to such Railroad Company, in payment for the stock that should be so subscribed for, the county corporation bonds, bearing seven per cent interest per annum, of which bonds, the principal was to be payable in not more than ten years, and the interest semi-annually; [70] pledges the stock that might be thus subscribed for, “ as well as the resources derivable from” a county tax, (for which it provides,) for the redemption of the bonds; prohibits the stock that might be subscribed for, from being “used or transferred for any other purpose,” but says that “the dividends of profit shall be appropriated to the payment of interest on bonds, and the stock” shall be appropriated to the “redemption ;” and authorizes and requires the Inferior Court, to “ assess and collect a county tax of such per cent, upon the State tax, as” should “ be sufficient to pay the interest, protect the credit, and, should it be necessary after the application of the county Railroad stock for that purpose, to provide for the redemption, at maturity, of such” bonds as might be issued under the Act. Jicts of 1855-8. 184.

For the interest on the bonds, the “profits” of the stock were to be primarily liable, and the tax-payers secondarily liable; for the principal of the bonds, the stock itself was to be primarily liable and the tax-payers secondarily liable; in other words, the tax-payers were to lend their credit to the county, and look for their security and indemnity, to the Railroad stock got by the county on that credit, and to such benefits of a general nature as might flow from the Railroad. This was the great effect of the Act.

This being so, it is manifest, that whether this security or indemnity was sufficient or not, would depend on what would be the value of the purchased stock, added to what would be the value of the benefits conferred by the Railroad. If it should be so, that this stock would all the time be at or above par value, the stock itself would be a source of full security or indemnity. If it should be so, that the stock would be below par, yet, still, if its value added to the value of the benefits conferred by the Railroad, would make a sum equal to what would have been the value of the stock, if the stock had been at or above par, then the stock and these benefits taken together, would be a source of full security or indemnity.

[71] It could not be known before the completion of the road, what would be the value of the stock, nor what would be the value of the benefits to result from the road: indeed, what would be the value of these benefits, could not be known with anything like certainty afterwards. All that could be known before-hand on these points, was what might be the opinion on them, of those persons best qualified to form an opinion on them, and most interested to form that opinion correctly. Those persons, in very large proportion, were the voters of Dougherty county. And, for knowing their opinion on the points the Act provided.

And their opinion was ascertained. When those voters voted "subscription,” they proclaimed, that they considered the value of the stock and the value of the benefits to result from the road, to be at least equal to the value of the bonds, for in so voting, they agreed themselves to endorse the bonds on the sole security of that stock and those benefits.

As to the sufficiency of the security or indemnity, this, then, was the opinion of the persons who were, in large part, those who were best qualified to form an opinion on that subject, and most interested in that opinion being a correct one.

And this opinion has not yet been refuted. Indeed it is an opinion that can be refuted by nothing but the event; andjthe event lies still far in the future, as far in the future as the winding up of the Railroad company. And indeed it is an opinion that stands as yet, unweakened by any counter opinion. There is not a counter opinion expressed even in the bill. Whereas it is an opinion that stands supported by the concurring opinion of all the stockholders in the road. And many of them must be persons who can look only to their stock for their security.

If this opinion was correct, then, (he security and indemnity provided by the Act for the county tax-payers was full, [72] And certainly such an opinion as this is entitled to some respect.

At all events, such was the only security and indemnity provided by the Act, viz: the stock taken by the county and the benefits to result from the road.

Is it proper to count these benefits in counting the security and indemnity given,to the county tax-payers?

There is a law which compels every man to contribute so much labor every year to keeping up the common roads. And in counting his indemnity, there is nothing to count but the benefits of a general nature to result from the existence of common roads.

Every man has rights in the common road ? True. And every man has rights in a Railroad. A Railroad is a common carrier; and every man has right to compel a common carrier to carry him and his goods, on the payment to the carrier of what the law deems compensation.

The difference in the two cases, therefore, is one merely of degree. The compensation may perhaps be better in the one case than in the other, that is all. One thing is certain; these are real benefits, such as “ put money in the purse.” In the neighborhood of the Railroad, land rises; wages advance.

So much, then, for the Act viewed in its great effect; the effect complained of in this bill in equity. That effect, as we have seen, was, in substance, to compel the payers of the county tax to lend their credit to the county on the security and compensation of the Railroad stock taken by the county, and of the benefits to flow to the public from the existence of the Railroad.

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Powers v. Inferior Court of Dougherty County, 23 Ga. 65 (Ga. 1857).

23 Ga. 65 (Powers v. Inferior Court of Dougherty County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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