Wheeling times and advertiser. [volume] (Wheeling, Va. [W. Va.]) 1839-1849, 1848-01-11

murh oTevity as proper exposition OF Tie
suhect will admit 81! 1t is possible that
nav under estimate the value % some, sud
oyef rate that OF other Of the means 90 which
lam now 10 ailude, ani it j. quite probable
that, Ia he details ot lha prinupal resource to
which ! would resort, have not estimated
the bes, 90 all the advantages uf whirl il is
susc, piible. These latter. however. being
matters OF detail, must be more or less con.
trolied by events, and NAV be- easily modified
as occasion may demand. without implir1g
the substantial advantages OF the general
scheme,
So iaras have been able u Investigate this
subject. the only means upon which any re-
lance whatever has been placed for the ex-
tension ot the road NAV b. comprehended in
one or all OF the following resources:
First. The subscription by the State OF Ma
ryland. paid finally by the delivery 10 the COM
pany of S3,200.000 in five per cent StrrlIRg
bonds. reiinh Ursahlr after the year 1883 II
| thesr bonds could BE- realized upon satIslacto
nv terms. the whole amount would remain IL
the form OF "a perpetual loan, secured by an
existing mortgage upon the entire property OF
| the COMPANY, and from The time OF their lie,
in any condition of the work. would absorb
annually 10000 of the revenue before any
dividend could be made TO the Stockholders.
confess, however, that am nol sanguine e.
nough to suppose hat any considerable por
ton of the bonds could be disposed of in sea
sion To aid in the early extension OF the road.
unless alta sacrifice injurious TO the State and
public creditor, and extremely prejudicial to
the future interests OF the other Stockholders.
Ii is proper to state here that the Company do
not hold these securities in virtue of the law
authorizing the subscription BY the State but
of an Act passed some years subsequently,
aud intended materially to change the terms
of the original law; and it'must be admitted
that the Stockholders have been grievousy
disappointed IN the fruits expected from thi:
subscription. BY the law originally authori
zing il, (the law OF 1888. oh. 1851 the sub
sCription was intended to be paid TO the com
psny In money, and was accepted upon tina a.
one OF the conditions. The scheme was Il
issue currency bonds of the State, TO BE- sole
BY Commissioners appointed BY the Cover
nor, at premium OF 20 per cent and reserv
ing the premium in the Treasury as sinkin,
fund, the par OF the sales was to be paid I,
the Company IN money, in instruments no
exceeding ) 1000 per annum. The bond
were accordingly issued and commissioner
appoiu,ed 20 sell them. The extraordinary
revusi n that Immediately followed the issu
OF the bonds. however, etlectuaily defeated
this part of the scheme, and unless the com
pany would have consented. by the paymen
into the Treasury OF the par and the premi
UNI, in order to receive back the former, i
was not posi- ole to revive it, .,,os.d :,
In April, 1899, the Legisla.pht and. in lien
rescind the original .ampany. in full of the
of it, 10 nenption. the Sterling bonds al.
Stay mentioned, taking a mortgage for th-
interest. 70 this the Company accpded and
received the Sterling bonds it now holds in
fall and final payment.
In virtue oil TIA, last Act a mortgage nur
suant to is terms was duly executed and re-
corded; the five per cent. Steriing bond:
were delivered 10 the company. free nor mn
~ from The restrictions OF the Act of 1898
chapter so, bu; from any condition what-v-
er, except as 10 priority of the State as a stock
holder to The amount OF the interest. the
control OF The company over the bonds. there
lore, Is ao>oIule.-as absolute as it couH have
Deen over the proceeds il they had been sold
ana the money reserved for future use. Nor
Is 'here any obligation whatever /, apply the
SECURITIES or the proceeds of future sale. +,
any one purpose. or To pay any particilar.e..
tlon OF the road. Wherever The ,.onn,nr
nave authority 70 cxpend their .roney. in or
out OF Tue State. Tor any object OF the charter
OF Mariland or Virginia, they may rgAttully
use thess bonds OF the proceed, for that pur-
pose Ihey are applicable, not on!v to the
actual extension or construction OF The road
or any part at 1t, between Wheeling and Cum
oer'and, out may be rightully used to dis
charge Obligations incurred in completing the
work from Harpers Ferry 10 Cum ,rlanI. or
10 'hr purchase OF new power and machine
ry; or to provide additional tracks, or to any
other object OF capital. The company bnid
the POINTS aud not money, because, before
they could lie Introduced into market tbe d..
aslrous effects OF the general revulsiou had
talAted even The credit of many OF The States
and the Treasury being unable 10 pay large
accumulation OF interest unexpectedly lhr,,yn
upon it by the sale. at great Ios.. of nthat
Maryland bonds given to another compsny |
the credit of this commonwealth beam. ~
better than that OF any OF her sister States -
This company could not be tempted mo =
similar sacrifice OF the bonds it had received
and, with the exception of Is 900 sofa a,
their par value, and on which the co,nnanv
has continued punctualiy TO nav the interest
the whole amount is yet in its possession.
Il need scarcely be remarked thai iro,,
that period, it has not been in the nn,ver of
the company 10 make any use of these bonds
without mourning both merited Censure and
ruinous loss. AT length, however. il miohr
be hoped by some that the wise and creliIa.
Die measures OF the Legislature, in sunoort of
the State faith, wonid restore he public cred.
IT, and, at no distant day, enabl. The S,er,i,,!
oonts 10 be disposed OF to advantage. am
oohged to confess that, IN my opini,n such
result is rather to b. desired than eX.,e,ip3.
and would consider it neither safe nGr v,iss
" render the prosecution of the work tn ,h4
ONO river IN any manner. or to aag extern
dependent upon such resource Nltyitt.
s'dhdlnS the lan1dble measures of the lsgis.
id'ure, ant the sanguine expectations OF iiI'.,r
success, am OF opnlOn that much time ana
caution VIII be required Before 6r confidence
OF the Public. at home an | abroad. can n.
inliy established, and | cannot doubf th.t
any attempt 10 introduce into the market a
'df'hef aud .dfg' amnunt of the Stale securi.
Ties would oe attended with lnsc levious r.-
sui 20 the company, 10 the public crsdiror
ana 10 the state. l am persuaded that il il
were ackhoW led5'd by the company and nm
deTstoud by the Public, that the extension of
their road or the preservation Of their charter
was dependent upon an early 50 lie OF the Slate
bonds, ana talt 1t Was the Intention of In.
company TO use them 10 effect those oh;act. /
the inevitable consequence would be, On eve. .
ry ground, TO depress the value Of the bond.
and effectu4lly 10 defeat the sale. unIes. At
the most FuinoGs sacrifice. Such state nj
thn5s, al 50, by creating an apprehension. at
nome and abroad, of further issue o. new
bonds, and greater accumulation Of the puo-
lie debt would Immediately depr-ss the vel
ue OF those aiieady floating, ana iniols the
present creditors; would inspire new distr,,,I
IN the ability OF the State 10 meet hey new
and accumulated engagements, and Indefinite.
y prolonS, not on,y the restoration of the
Puo'ic credit, but the advantageous sale Of
The bonds held by this COMPANY, am oil
opinion that the credit OF every Public com,