Cooper's Clarksburg register. [volume] (Clarksburg, Va. [W. Va.]) 1851-1861, 1853-01-05

! guarsntied the bonds of that company;
made It loans OF State bonds, and, IN adj
dision to this. that company has agreed
( to pay the State of Virginia an annuity
of sS21 900. And 10 secure the payment
of the semi annual interest. as they be-
come due. on these guaranteed bonds,
and the State bonds loaned to this COM
pany, and 10 secure the same annual pay
ment of the annuity of SCI 200, the
James River and Kanawha Company
has executed to the State its mortgages
on all the net receipts of the company.
and its real and personal estate. Now,
the interest due, or which will be due on
these bonds, loaned by the State to this
company, is not due to the holders of
these bonds from the State; and the
James River and Kanawha Company has
executed these mortgages on its entire
property, conditioned to reimburse any
amount of interest thus paid by the States;
and the Board of Public Works, under
existing laws, pay this interest to the hol-
ders of these bonds, even should no law
pass this body in relation to it. That
board pays this interest, precisely as they
pay the interest due on any other State
Bonds. 1t necessarily follows, that if this
item is struck from the bill, the State Gre
dit will not suffer. And the only con-
sequence would be, that the liability of
that Company under the mortgages it has
executed to the State, would not attach !;
and, as to the payment of the instsllments
of interest due on this loan in January
and July next, the mortgages executed to
secure its payment to the State, will be as
though they aCere not. AS to these install
ments, these mortgages will in effect be
cancelled by this bill if it pass. The same
facts exist in relation to the annuity
This annuity is due from the present
Company to the State. and from the
State to the old Company. And when
the State makes Il loan to the Company
to pay this annuity, she virtually makes
a loan to pay debt due to herself-and
a loan too. that is unnecessary to preserve
the State credit; for, under laws now in
force, the Board of Public Works will
pay the annuity due from the State to the
old company, without any reference to its
reimbursement on the part OF the present
company. This item, then, may be struck
from the bill without endangering the
faith of the State and the only object
which can be possibly obtained by keep
ing it there. is to relieve that company
from the obligations of its solemn con-
tracts, entered into to secure the State
against loss under the very state of
things which now exists.
The case is somewhat different in refe-
renee to the interest on the bonds of that
Company, which have been guaranteed by
the State. Even here, however, the
State does not occupy the position of CO.
obligor; but it has assumed to pay this
interest when it shall become due, pro-
vided it shall not be paid by the company.
The credit of the State cannot be involved
in reference to this item, until the Compa-
ny hall have made default in its pay
ment, and the State shall be called upon
to do SO under its guaranty; and the sub
stitute amply provides for such a contin-
gency. The substitute has for its OBJ
ject the preservation of the honor and
credit of the State. so far as that honor
and that credit can be involved in conse-
quence of any liability incurred by the
State, in behalf of this company but it
does not provide at the same time, for a
virtual cancelIing of the securities given
to the State by that Company. Dir. L.
said his object at this time was merely to
call she attention of the House to the
character of the bill and substitute. in or
der that the questions involved might be
fully investigated by members before they
would be called to vote upon them.
On motion Of Dir. Lewis, the bill and
substitute were ordered to be printed.