Self v. Jenkins

Citation6 Chi.Leg.N. 397, 71 N.C. 578, 1 Hughes 23, 21 F.Cas. 1033, 1 Am. 368
Case DateJune 18, 1874
CourtUnited States State Supreme Court of North Carolina

1 Am. Law T. Rep. (N.S.) 368
1 Hughes 23
21 F.Cas.
1033
6 Chi.Leg.N. 397
71 N.C. 578

SELF
v.
JENKINS.

Circuit Court, E.D. North Carolina.

June 18, 1874.


In equity.

*1033 WAITE, Circuit Justice.

Article 5, § 5, of the constitution of North Carolina is in these words: ‘Until the bonds of the state shall be at par the general assembly shall have no power to contract any new debt or pecuniary obligation in behalf of the state, except to supply a casual deficit, or for suppressing invasion or insurrection, unless it shall in the same bill levy a special tax to pay the interest annually. And the general assembly shall have no power to give or lend the credit of the state in aid of any person, association, or corporation, except to aid in the completion of such railroads as may be unfinished at the time of the adoption of this constitution, or in which the state has a direct pecuniary interest, unless the subject be submitted to a direct vote of the people of the state, and be approved by a majority of those who shall vote thereon.’

Article 5, § 8, is in these words: ‘Every act of the general assembly levying a tax shall state the special object to which it is to be applied, and it shall be applied to no other purposes.’

The Wilmington, Charlotte and Rutherford

[71 N.C. 579]

Railroad Company was incorporated in 1855, to construct a railroad from Wilmington to Rutherford. This railroad was unfinished at the time of the adoption of the constitution. By an act of the general assembly, passed on the 29th January, 1869, the capital stock of this company was increased to seven million dollars, and, in order to complete the road, the public treasurer was directed to subscribe four millions of dollars to the stock. Payment of this subscription was to be made in the bonds of the state having thirty years to run, the interest, [21 F.Cas. 1034] at six per cent., being payable semiannually. To provide for the payment of the interest and the principal at its maturity, the act imposed an annual tax of one-eighth of one per cent. upon taxable property of the state, to be levied, collected, and paid into the treasury as other public taxes. This authorized subscription was made, and bonds to the amount of $3,000,000 delivered to the president of the company in part payment thereof. The special tax provided for was levied in 1869, and $151,491.13 collected therefrom and paid into the treasury. Out of this, $29,400 was paid on account of the interest accruing upon the bonds; but on the 20th of January, 1870, a resolution was adopted by the general assembly instructing and directing the treasurer not to...

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1 practice notes
  • Swasey v. North Carolina R. Co.
    • United States
    • North Carolina United States State Supreme Court of North Carolina
    • June 30, 1874
    ...of the stock apportioned as security to the plaintiff, and those he represents, as may be necessary to pay the same, be sold. If on or [71 N.C. 578]before the day of sale it shall be made to appear to the court that the state has, in good faith, levied a tax to pay the arrears of interest o......
1 cases
  • Swasey v. North Carolina R. Co.
    • United States
    • North Carolina United States State Supreme Court of North Carolina
    • June 30, 1874
    ...of the stock apportioned as security to the plaintiff, and those he represents, as may be necessary to pay the same, be sold. If on or [71 N.C. 578]before the day of sale it shall be made to appear to the court that the state has, in good faith, levied a tax to pay the arrears of interest o......

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