So. Ca. R. R. v. Jones

25 S.C. Eq. 459
CourtSupreme Court of South Carolina
DecidedMay 15, 1852
StatusPublished

This text of 25 S.C. Eq. 459 (So. Ca. R. R. v. Jones) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
So. Ca. R. R. v. Jones, 25 S.C. Eq. 459 (S.C. 1852).

Opinion

The opinion of the Court was delivered by

Dunkin, Ch.,

[who, after stating the facts and quoting, lastly, the provisions of the Act of 1849, above quoted, proceeded as follows :] It seems difficult to misconceive the purpose of the Legislature in this last provision. In all charters of this character it is the great duty of the Legislature to protect the interests of the public. Corporations or individuals, applying for franchises or exclusive privileges, are usually sufficiently awake to their own interests. But while the Legislature should promote enterprises whose object is the public convenience as well as private» emolument, they should adopt every reasonable precaution, that these exclusive privileges should not become instruments of oppression or annoyance. When application was made to the Legislature, in 1848, it was well known that the City Council of Augusta had a toll lrouse on the Georgia side of the bridge, at which they received tolls from all persons, &c., passing over the bridge from the Georgia or South Carolina side. It was expressly provided that no tolls should be collected by the grantees until the Supreme Court of the United States should recognize and establish their rights against the City Council of Augusta. It will not be suggested, that under that Act, strictly provisional, the grantees had any authority to collect toll until the right had been determined by the Supreme Court in their favor. This proviso was repealed in the subsequent Act of 1849. But in lieu of it, the Act declares, not only that the grantees should not col[462]*462lect toll “ from persons coming from the Georgia end of the bridge,” but that the collecting of toll from persons going from the South Carolina end of the bridge should not subject the Rail Road Company, or the community, to the payment of double toll.” It seems superfluous to say that this provision was not intended for the benefit of the grantees. It was to protect the travelling public, and particularly the Rail Road Company, from the annoyance and injury to which they would be subjected by the conflicting claims of the City Council of Augusta, and those who might demand toll under the authority of the Act of 1849. It is objected, that this construction renders the charter valueless. That was for the consideration of those who accepted it. It certainly was not the intention of the Legislature to subject the citizen to the payment of double toll (contrary to their express declaration,) and then leave him to the casualties and expense of litigation in order to ascertain from which party he might be entitled to redress. Happily the Act imposes no burthens on the grantees, and exacts no consideration from them. The utmost that can be said is they have not derived from the munificence of the State the advantages which they hoped and contemplated.

Many other and far more difficult and important subjects have been brought into the discussion, but upon which the Court deems it inexpedient, on this occasion, to express any judgment.

On the second ground of appeal taken by the complainants, the Court is of opinion that they were entitled to the injunction as prayed by the bill, which is ordered accordingly; and the decree of dismissal is reversed.

JohNStoN, EargaN and Wardlaw, CO., and O’Neall, EvaNS, Wardlaw, Frost, Withers and Whither, JJ., concurring.

Decree reversed.

The following case, Yarborough fy Shultz vs. The Bank of Georgia and others, tried before Harper, Ch., at Edgefield, June, 1842, is appended as a note to the above case :

Harper, Ch.

In 1813, the State of South Carolina granted to Henry [463]*463Shultz and Lewis Cooper, a charter for a bridge over the Savannah, river, extending from this State into the town of Augusta, for the term of twenty-one years; and in the year 1814, the State of Georgia granted a charter for the same bridge for the term of twenty years. In 1816, the said Henry Shultz and John McKinne formed a partnership in the business of banking, under the name and style of the Bridge Company of Augusta. Being then the joint owners, they entered in the partnership book of the Company the bridge, valued at $75,000, and other property, as the partnership stock, with various stipulations which it is not necessary to recapitúlale On the 21st April, 1818, the complainant, Shultz, sold and transferred his interest in the partnership to Barna McKinne; conveying the bridge and other real property. The consideration for this transfer was the sum of $63,000, in which Shultz was indebted to the firm, and which was paid by giving him credit on the books of the firm, and charging the amount to Barna McKinne. The Company became greatly embarrassed, in consequence of the failure of certain mercantile firms, with which John and Barna Mc-Kinne were connected, and they being indebted to the Bank of the State of Georgia, in the sum of $40,000, applied to the Bank for a further advance of $60,000. The evidence is, that in making the application to the Bank for the advance of $50,000, the. object of it is stated to be to relieve the Bridge Company, and enable it to wind up its affairs; but after the loan was effected, only a portion of the sum, perhaps two-fifths, was applied to the use of the Company. Notes were given for the advance of $50,000, signed by John McKinne, and endorsed by Barna McKinne and James Lampkin. To secure the payment of the entire sum of $90,000, a mortgage was executed by John and Barna McKinne, of the date of the 3d of Ma.y, 1819, of eighty negroes, the property of John McKinne; of McKinne’s warehouse square, and of the bridge; conditioned to be void as to the negroes upon the payment of $40,000, and upon the payment of the remaining $50,000, to be void altogether-. In consequence of some mistake in the corporate name of the Bank, another mortgage of the same tenor and effect was executed on the 10th June of the same year. On the 29th of May, 1819, the Bridge Bank stopped payment. Upon being apprised of this, the complainant, Shultz, who had made arrangements for going to Europe, returned and resumed his place in the firm, by some agreement with Barna McKinne, who quitted it, and took no further share in the management of its business. The evidence is, that Shultz advanced $15,000 of his own funds, to pay the deposites in the-Bank. An advertisement was issued signed by John McKinne and Henry Shultz and Barna McKinna, stating the resources of the Bank, in order to prevent the holders of the bridge bills from sacrificing them, with a notice signed by John McKinne and Henry Shultz, advertising for salea number of negroes and the bridge, and'stating that before the making of titles to the latter, the lien which the Bank of the State of Georgia had on it should be removed. By a deed bearing date the [464]*464first of July. 1820, Barna McKinne re-conveyed, released, and quit claim to Henry Shultz, all his interest in the firm or its property. The mortgage to the Bank is charged by the bill to be void, by virtue of the Act of the State of Georgia, which provides that if any person unable to pay his debts, shall make 11 any assignment or transfer of real or personal property, stock in trade, debts, dues, or demands,” in favor of any particular creditor, whereby other creditors shall be excluded, “ such assignment, transfer, deed, or conveyance, shall be null and void, and considered in law and equity as fraudulent against creditors ; provided, nothing in the Act contained shall prevent any person from bona fide selling any portion of his property.

In 1821.

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25 S.C. Eq. 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/so-ca-r-r-v-jones-sc-1852.