Page:Federal Reporter, 1st Series, Volume 3.djvu/692

 rûeetiog ôf the genera,! asflembly, -w^h-en l?yrclpar împlicaiiion the future m.atia«gement or .dispositipu of the road is left,to legislative action. "/ �The contract between the state and the company ïs that the state shaU. bave a lien "for the payment by said com- pany of said bonds," but it is nowhere required by the state, and therefore not assented to by the company, that the lat- ter sball pay to the hond holder. It was urged that this lan- guage imports payment by the company to the only person then entitled to ask or enforce it. The language must, how- «ver, be understood to relate to other parts of the statute, which prescribes specifically the manner of payment by the company, via.: payment annually into the state treasury of a Bum to be employed as a sinking fund, : �It is made optional, by section 5, with, the Qpmpany ■whether it^ will depoait the interest as it becomes due \^ith the fiscal agent of the state, or pay the same to the bond holder; apd by section 7 the principal was to be paid by set- ting apart annually, after five years.from the complfition of the road,:a certain per centum of the amount of bonds i^sued to the company, investedw any bonds of the state /and as- signed to the governor. This sinking-fund provision would, withia the period which the bonds had to run, place in the treasury of the state an arnount suffieient to.nearly or squite -enableithe, state to pay, the bonds. . The. ^^lennessee bonds were generally 6 per cent., and funded in those the time re- quired would be 33 years^and two months., ,. -i- �There is- nothing in the act to indicate tha^; after the com- pany bas complied with these provisions as. to interest and sinking fund, and has thus provided the state with the means of payment, that the company was also required to pay to the bond holders. Certainly thia was not the condition of the security, as the only way in which a default could occur was by failure of the company to provide for payment of the interest and principal in those specified ways. �But it is said the sinking fund was not to be commenced until five years after the particular road should be completed, and that that event might not take place at ail, or not till half ����