Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1844-11-29

ne, under mortgage to indemnify hef-ana
creditors must rely mainly on the ilberailty OF
the State to permit them to get their money
from the corporation.
It is believed, from the success attending
the operation of this road, notwithstanding It's
heavy losses by fire and at sea, that II indni.
ged for few years, it will be able to meet all
it's liabilities, and extricate itself from debt,
appreciate the value of its stock.
This indulgence, it is believed, may be ed
silly given without any further risk to the
State.
Already the Literary Board holds of the
bonds of this corporation. endorsed oy the
State, as before stated, $4,000; the State
Treasurer holds $4,000 more, paid tor by MIN
ont of the funds of the same Board lying In
the Treasury; and the Lileary Board, by cob
lecting in its debts, will be enabled to IKE up
the otheI bonds, or, at least, the larger part
of them, as fast as they fall due, And doubt
not the corporation would promptly pay the
interest to procure indulgence on the principal,
whereby it will be enabled to meet other liza
biities which press, and sometimes embarrass,
its operations.
The Literary fund should be in safe and
certain investments. What safer or more GER
tain investments could this fund have, than IN
these bonds? Safe, because the State is Sc
curity, and has mortgage upon property,
costing more than two millions of dollars, to
secure their payment certain, because they
yield semi annually three per cent. interest
which does not fuctuate like the dividends OF
Bank Stock. ..s ~ ".
Should this course be adopted, the Board
will be aided and relieved; the Literary Fund
will have a safe and certain investment; and
the State will be no further involved.
Whether you will adopt this or some wiser
course, is submitted to your consideration.
But whatever course is pursued, ample proVl-
sion should be made to sustain the credit OF
the State, In every possible contingency.
In regard to the Raleigh and CASTOR Rail
Road, this work too was constructed, as be-
fore stated. mostly upon credlt-tha balance
due for its construction, altar exhaustlng the
whole Of the stock subscribed, amounting TO
sum much larger than the whole stock.
This corporation having failed in January,
1913. to pay the interest due on Its bonds en-"
dorsed by the State, the Public Treasurer
promptly paid it, and preserved the faith OF
the State, and has continued TO do so ever
since. The amount thus paid will appear
from his report.
A Bill in Equity has been filed according to
the requirements Of the acts authorlsing the
endorsement, to sequester the profits OF the
road to indemnify the State-and receiver
has been appointed. 1t is believed that the
receipts Of this road for years to come will be
insufficient to keep it in repair and pay the in
terest upon its debt; consequently its debt
must continue TO increase. 1t is, therefore.
respectfully submitted whether it would not be
better for the Stockholders, the State, and the
public, that the road and its effects should be
disposed of under the mortgages; SO that whe-
Their 1t falls into the hands Of the State or into
the hands of new set Of stockholders, incor-
porated for the purpose-it may be dlsembar-
raised for little doubt is entertained, that
with even, its present prospects, it will not
only keep itself in repair, but will yield be-
sides considerable income.
Should you determine to take this course.
such steps should be adopted as will be best
calculated to enhance the value of the proper
ty. This course is due to the State to protect
her against her liahilities-it is due to those
individuals who voluntarily entered into bonds
to the amount of 100000, to indemnify the
State against her endorsement ; and it is due
to the stockholders to make the property, IT
possible, bring more than the amount OF the
debts due from the corporation SO that the
stock may not be an entire loss.
And, in connexion with this subject, l will
respectfully refer you to the message submit
ted by myself to the last Legislature, relative
to ettecting communication by rail road be-
tween this road and the several rail roads
which terminate at Weldon. and to construc-
ting turnpike from Raleigh westward. These
two Improvements would greatly enhance the
utility and value Of the Raleigh and CASTOR
rail road, and l doubt not, would cause it to
bring much higher price.
Since the adjournment Of the last Legsa
ture, portion of the Portsmouth and Roanoke
rail road, within the limits of this State, was
torn up and rendered impossible, by an ind.
vidnal claiming it as a purchaser, at Il sale
under an execution against the corporation,
whereby the travel and tr.nsportion on the
road were for a time Distracted. The legali-
ty of the course pursued by the purchaser has
undergone judicial investigation, and the mat
ter is now pending before the Supreme Court.
1t is not my design to express or intimate
an opinion as to the propriety or legality OF
the course pursued by the purchaser.
The interest which stockholders have in a
corporation created for the public use. and con-
venience, should be subject to their debts; and
the property held by such corporation should
be liable to its debts; but this interest and pro-
pefty should be reached by the creditor in
such way as not to put the public to nconven-
fence, destroy the franchise, and defeat the OBJ
ject had in view by the Legislature in its Gre
alton. If there be no law to enable creditors
to reach the interests of stockholders and the
property of interpretations, without detrimeni
to tile public, such law should be passed as
will enable creditors to secure their debts, and
at the same time, secure 70 the public the be.
nefit and convenience intended by creating
the corporation.
INTERNAL IMPROVEMENTS.
Upon the subject of Internal Improvements
respectfully invite your attention to the sug.
gestIons made in my message to the last Lee
/ Ulsiatnre. And. In addition 10 thnse sunnes.