59 Ga. 364 | Ga. | 1877
This -was a bill filed by the complainant against the defendant, with a prayer for an injunction to restrain the defendant from applying to the governor of this state for an indorsement of its bonds to the extent of fifteen thousand dollars per mile, as provided by the seventh section of the act of 1870. Upon hearing the motion for the injunction prayed for, the chancellor granted it, and the defendant excepted.
By the constitution of 1868, the general assembly is prohibited from granting, or loaning the credit of the state to aid any company, without a provision that the whole prop
The seventh section of the act of 1870 provides for the indorsement of the bonds of the company by the governor of the state at the rate of fifteen thousand dollars per mile, whenever said company shall have completed and fully eqiripped twenty continuous miles of its road. The ninth section of the act provides “ that before such indorsement shall be made, the governor shall be satisfied that so much of the road as the said indorsement shall be applied for is really finished and in complete running order, and that said road is free from all mortgages and other legal incumbrances that may endanger the security of the state, and upon the further condition and express understanding that any indorsement of said bonds as aforesaid, when made, shall not only subject all property of any kind in this state, which may be purchased with said bonds, to the obligations of the first mortgage lien until all the principal and interest due on said bonds, so indorsed, shall be paid, but the said indorsement shall be, and is hereby, understood to operate as a prior lien or mortgage on all the property of the company to be enforced as hereinafter provided for.” There is no provision in the act of 1870 requiring tfiat an equal amount to that of the indorsement applied for, shall have been already invested by private persons. The tenth section of the act provides for the enforcement of the mortgage lien' in default of payment of said bonds, or the interest due thereon, by the company.
On the 25th of February, 1874, the general assembly passed an act repealing all provisions contained in charters theretofore granted to the different railroad companies in this state granting state aid, no matter what the terms of the same may be, or by which in any manner or form state aid is authorized to be granted to said companies; provided, that any company to which said state aid has been granted,
By the several acts of 1870, granting state aid to railroads, and esj>ecially by the act of 11th of December, 1871, the duty of making the indorsement of the state on the bonds of railroad companies, is devolved upon the governor of the state, in the manner, and under the restrictions, therein prescribed.
The prayer of the complainant’s bill is, that the defendant be restrained from applying to the governor of the state for the indorsement of the bonds mentioned in his bill, or from applying to the governor for the indorsement of the state upon any of the bonds of the defendant’s company, by virtue of any right arising from said act of October, 27th, 1870.
There being no valid law to authorize the complainant’s proceeding, the chancellor erred in granting the injunction prayed for.
Let the judgment of the court below be reversed.