Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1853-02-08

ruin II is rot be assumed ol calculation
that the General Assembly will sanction usnry-wil lcg1lze
an moral turpude, merely authorize these compa
MES nlic on the State celin loss Of more than ha
million OF dollars. For these rensor- Insist the second
item ii gains in the calculations OF tho gentleman sh. ne
/ rejected and excluded "a inadmiasaoie.
Up this point it has been conceded for the sake Of Tho
argument that public credit may D. funded at c''nm o
10 per cent II than n Hypothetical cgnccs
sion. il is mystery Of the dark future 10 tie solved ong
by rhc running Of rcthe result tcrg marrai: d'pcr-
dent the public virtue Of public Wisdom 'a:h,
moderation and econn:ny tsc7iial {" the "hntiancH
Of ruhi:c credit. l,!c OF The Stale shall be
MAJ Ec by wisdom in the selection VI Objects OF sxGenii-
,urc moderation in III! numb"r II those "!ac!s sr'"nE"
i'll the administration ri public finance; rconom? and !ir
u in the construction at wo:ES AMI application oi he
fund.- pnhic credit b. preserved Ii folly AMI cNirava
gluCe prevail in our public councils HGbtc rrl: nj SINK
it viii pass and vanish Tic hgs-l"s- ah. ni a
vision Sir, public credit is pam a. ecacY-4 sensitive
pcnns slightest breath ngcs III" reputation Of ;hc iai:cst
amsc" Let the sanctily Of public credit become too
familiar with the gentle woolng ionch OF The pFesunpiG'
QUE and seductive hand Of the broker Sir remember
blight lmprudence may occasion panic and bring into
market the fifteen miJns Of stock already in he hands ."
the public Small then will be your chance fer premium
Sir submit has been shown the first and second items in
the list Of gains which form The plan Of the gentleman from
Petersburg iusory would produce no prohts hu! must
inevitably result in loss 10 tive Stale proceed 10 the cH-
animation the third. The gentleman from Petersburg In
sists II the nan system be adopted the three great raj
roads on South side Of james River, will completed
TIRE. years hau they otherwise s:!l rnd that,
when c0mpcej they will pay per cent annually on Tie
p.n,un 81 the loans and rcr annually
,vhcH j. $1,000 o0 10 whieh he add 1855 600 ." stock Of
Tie Commonwealth in IL. Richmond and Petersburg Rai
Road 81 that il ,o3 81! Well per cent HhE
ts VOL: Is 5orgh' int his ctnneN'on or way ie ssn,'r
man !nIaa" t.t BY somu ta!!aiahc toic or 'Hiic
shock, a :tar;" II int" activity ana s'nsl y WIN ~
vitality and power yield dividend 81 per cent am ~
tcr!y * loss conceive; ye. does N assume maj me
three companies will ler cent anhu"y on no ""s
and after mourning al the expense OF general administrator
and Ire maintenance Of the works in Il state OF per
sec,ion the our will declare dividend OF per cent
on The stock Is this u reasonable assumption 10
,I;sn In fhpuf
loans, 5000 doars-and then, after meeting al tnrr
expenses aud r,ving privnt. stockholders pr cent,
tey must pay $3.50 800 dividend the stock q: INC State
Their obligations State will amount To S5!o oUo annu
ally wncn, If lhy fail 10 pay, we shall be without an man
ncr Of resource il the foreclosure Q! mortgage "'h
no heevss will be enorcet. Does any man O1IleSe
they will pay This large amount! Sir we may reason
from the past future shall be le encouraged 70
indulge upe. Ii has been shown in this debate that ~
our loans 10 on stock companies have resulted in hey
oss But ajiucc in vain this long black catalogue ct
coraoratc e!nocrccs and public losses Gentlemen rcct
he nrrc Of cxE and refuse 10 pFoht by me lessons 81
experience.
in vain do we rccGr The Instructive example Of The
James River Cpmasnv viii! lis virtual i0an OF Sio0"UJV 10
Ajdlt!aa 10 i25uUOV 1i ComHon".li,n s"t" !" .,'e
Company yelling Dividend At all whilst y" are often
called upon 10 pay The interest on 'no loan 81, te Dans
The rail companies nave been even more disastrous
than that 10 The canal. Let ua adaUcn ~" exam
The Commonwealth held STOCK in tho Winchester and tar
pes Ferry Rail Road equal I" s5O5 900 aud made loan OF
S2g two sums amounting s270O0O The annual
interest being S62UO For many years we received neither
diyd,oi nor interest and eventually compounded for
nuily OF s. renQuishng our whole nteIes! IN The
Ths Commonwealth held eock In the Portsmouth and
Weion Rail Road equal 10 s2550oo She made lean 10 tie
company o! sl50OCc, taine :ri On HE S"'K nc STOCK
and the loan utterly unprOducve Ey general atqnl'
essence lhe lien attempted 10 be enforced lne "hor
wark sold ior inc OF s5Utoo. an even i's cam
! wa ultimately rc,Gqulsli.i and rci"t- ",i
The Richmond AMI Petersburg j Road Company Is
mos, s,ri.;nr ILLUSTRATION Of the inpJicy OF loans The
| Commonwealth held stock III tbs; company equal 10
100000 She nar iaau o: $l5op30: hc stock ana lie
oan be unariGci'Ee In !nef4s Que on vac !""n
H lf.s
eventually SUBSCRIBE: preferred stock nj" ne company
;c M * hstnd!ng t7r:rGn@2r TIE dividend was n"
paid On any pirl The amounting 10 $50 wv hhi
suffered Accumulate S33 OS: Tor WHICH the company
has cxecutci It's h"ni-and the annual interest on 'h
e3 dos s all wh. receive Tor The Whole investment Of
1855 0uU.
Oh- examples equally striking nave been 1dduced by the
gentleman from Northampton and CdlpePer Ai!--nIl are
aud urged an 10 the system o. loans win
much aud cOnidcnce as the system were
commended hy brilliant successes
srhr hlr. Speaker il is s.ewn tha; nothing in history
sustIaS The po.tu.lr Of the gentleman from Petersburg,
that companies vii! pay per cent on the ban
He urr, asspIrs ttai he loan 70 J"c;ri The c'nra
ns VIII ,a no trlienJ ur five Years lud that II e loans
be they will st The close of two ycar- pa? annually
dv;deu! ni ciy, cent, ;!e s!"r 81 The Common
wealth; welding $3.50 500 ~ Ia the first branch 81
this propositions 1T lai no dividend nr OF de-
clne in iva rnasEay m0T" pcht"- the tenn may De IN
definitely cxtcneani they may neEcr pay hui the sEfs
ri tn 3an run"!ni'i becaH:r '"y have i;'ci i'a'
~" w., Is "a y.,tt rrnr i-i.Hi tic ccst al con
s';:cr.a at they Gsad. ii the second orinci
r ,ic i 81 tie r;r, bacaGsc il In
iac iari,ras M un.hiI. ns .Tn {" me gentleman
'rnu r. erburgw.lich III truth, IS Only 'i plan "s me
Union Convention proposing I" raise roE"v on the cf!'
Of he State invested III loans In Joint stock companies
on such security =: hey can eve az" ,'"'?ysu .! .S
il tie construction n pnhc works. II Is important |"
examine ri the srcnriiy ard the probable ca
pacity Of the works - Weld arc'nnncratvs revenue.
TIL. security offered Is lien the entire WORKS o. Tho
company, ard this maintain is grossly lna"'1nie "hen'
ever the thu loan bears large proportion 10 ic
c,ui,u stock III company This expect 70 rake man
fest by using illustration the facts involved in the DILL al
bar.
no Snu l.Si]
loan Of $500 COO ana lake security, a lion IN III
works % company The capital stock Of that c"mpan!
about s jS 200 held in the following proportions; ~
t,r e nmongcal sos 50O .. individuals and co"@'-
lions $50 100 In" Commonwealth has nrraf" N aaNl
luc popcry IL the ',nt Of stock owned =! Hr' II
absurd assume, HAT lien on TIM; part ~ tc Stock WIZ
ri. security he ayInen at tfr an; t'c1i8 r
tiaio il lien her property, . s'cRs iac 'y
men u n hc5, tt"rs.i' Il lis ar"n BE- deducted !r"n!
th ea;:,a socE thr:r gras cm. $751; 40 stnc. belong
Ing naiinals and coroa'ions, "n "n'ch n' hen can
,ccuy rt t- value Of $3.50 700 for deb al $500 900
/, Sat the stock NJ the COMPANY rot n pa: ani co"!i no.
conn,and ;:Iha riy dollars per share. So that N tact
sh have lien 81 The value 81 ABOUT SoVyQJ 20 stcG
oan Of $500 600.
Blu, il is idle to speak of The security If lien corro-
rate property 10 secure payment 70 ne STATE: No man
dresms will DC enforced and the very suggestion 9" lore
closing mortgage the works Of the James River Com
pany has bsen s!gmstscd here ~ conRscaon Of Inc
property OF private ccrpofaiprs. The gentleman from Pitt
.ylyana announced III his place that such procedure
does into the calculation 81 any ircE' c public
improvements Now, sir The security Of the len D" iIu
ard irr !icin results that The se SECURITY IL 10
b. derived fran The annual proincts Ct he WORKS 90: II me
works shall yield per cent en- tie amount Z; their capt
tai stock.
Three iifhs Of the paid A. interest on the o'n OF
$500 coo viii &c derived from the !uni which shoGi b"
paid dividend tic stock o n" Commonwealth
amounting SSQ2 coo hua the dividend o. ii" stock II
the Commonwealth vii ," appropriated 7'!-!r the niccs'
on loan the stock of Sla'c rendered unirodnc
TIC ami vaIIrirss
TO e-cspc l,na Ibis category, the eeu,l n,n from Peters
burg has ben forced 10 assume thl the work VIII re ahe
pay The interest hc oan 10 pay the rost Il the gene
raj administrations usually computed IS "ne hall The earn
ings of rail road provide fund nr repairs ana c"ntn
s.nc!ca declare annually for 81 yraCs crieEh 81
per the entire capital OF The companies Add his
must be realized not merely in regard 10 the Sonrh Side
Rail K any enjoying peculiar advantages but
to all ac ks conprehcnded in the system and regarded
as entity
Sir think has been shown that this principle Of loans
must be regarded applicable, generally, 10 all
the rail roads of he STATE aad after defrayng all the
pandures indicated Sustain The scheme OF The gentleman
from Petersburg they yield annu, dividend
of per according 10 his postuatc. propose
enquire into their probable capacity to meet snci
:-Guis;ii"n.