Chapters on the History of the Southern Pacific — John Shaqi
Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
The opponents of municipal subscription now turned to the legislature,
and secured the passage of an act authorizing the Board of Supervisors
of San Francisco to compromise and to settle all claims upon the part
of the Western Pacific Railroad and the Central Pacific Railroad for
cash or other security, in place of bonds claimed by the companies,
provided the power to make such compromise should rest in the Board of
Supervisors only after and in case said board should be compelled by
final judgment of the Supreme Court to execute and deliver the bonds
specified in the act.[57]
Pursuant to this act of April 14, 1864, the Board of Supervisors
appointed a special committee from among their number to consider and
report a plan for a compromise. This action was taken on May 23, and
the mandamus requiring the supervisors to subscribe $600,000 to the
stock of the Central Pacific, which was essential to the adoption
of any compromise, was issued on June 7.[58] The committee met with
Stanford, reported back to the board, and on June 20 the board passed
order No. 582 providing that the city of San Francisco order, execute,
and deliver to the Central Pacific 400 bonds for $1,000 each, in full
discharge of all obligations on the part of the city and county to make
any subscription to the capital stock of said company.
Order No. 582 was duly approved by the mayor on June 21, and became
law on that day. On June 29 the acceptance of the Central Pacific was
signified to the board, in due form, and on June 27 the supervisors
appointed Messrs. Torrey, Bell, and Titcomb a committee to deliver to
the Central Pacific the 400 bonds, with interest coupons attached.
Nevertheless the mayor, Henry P. Coon, the auditor, Henry M. Hale, and
the treasurer of the city, Joseph S. Paxon, constituting the Pacific
Railroad Loan Fund Commissioners, refused to issue the bonds. The
result was a petition for a mandamus directed against these persons
individually, which developed into the case of People v. Coon.
Agreements in Mandamus Proceedings
The main legal points raised in this new litigation were three:
1. The conditions precedent to the issuance of the bonds under the act
of 1864 had not been fulfilled, said the petitioner, in that the board
of supervisors had not been compelled by final judgment of the Supreme
Court to execute and deliver the bonds.
2. The second contention was that the railroad company could not call
upon the supervisors to issue bonds on the city’s subscription unless
the railroad should call in from other subscribers the whole amount of
their respective subscriptions, or until, under the Act of 1863, a sum
at least equal to the amount of the bonds should have been expended on
the road from other sources. That either of these things had been done,
the defendants vigorously denied.
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