Wheeling daily intelligencer. [volume] (Wheeling, Va. [W. Va.]) 1852-1859, 1853-03-10


and which at this time dooms her toinsignifcance.
On every consideration of economy, then, it is
policy 10 retain the loan principle of the bill, and
to extend tito others oil similar character
The only remaining inquiry is, can the State
safely make the proposed loan Of her bonds?
The gentleman flom Northampton, and the gen.
tleman from Mt cklenburg say not: that the loans
will be a total loss. Sir in my Judgment, we may
with entire safety make the loan, and because the
security is ample.
The gentleman from Northampton, and those
who agree with him, draw lugubrious forebodings
from the past history of loans. TO "frighten us
from our propriety," they drag forth, first, the
ghost of the old Portsmouth road. True, sir, the
whole interest of the State in this road, both stock
and loan, has been sunk, though on its ruins
oil the best railroads in the country has been
ed, without additional cost 10 the State; but ii is
equally true that, constructed the road origin
ally was, it was bound 10 be failure. 1t had no
western terminus of trade TO give it business. Had
it been extended to CASTOR at the falls of the Ro
anoke, there to compete for the descending and as
cendng trade Of that river, and to form connex-
ion, by the Raleigh and Castor Railroad, with in
terror Carolina, this road had never been an abor
ton. Often, sir, have urged, orally, and column
after column iii the Norfolk press, have | filled
with the best arguments could use, urging this
conneSion, but the counsel was not needed; the
road event to the dogs;' and this result was not
a little helped on by the Instant disSentions be-
tween the cities OF Norfolk and Portsmouth. Be-
sides, this road was constructed in the infancy of
the railroad SyS' en- when railroads were so ndii.
ferently constructed, though at great cost, 10
qure most of the revenues to deiray expenses
From roads constructed under circumstances
unfnvorable, no argument can be justly deduced
against those OF modern Construction, combining
greater cheapness with greater durability.
Gentlemen next bring up as unfortunate exam
pies of the loan system, the Rappahannock Canal
Company, the Chesapeake and Ohio Canal Com
pany, the Winchester and Potomac Railroad Com
pany, and the James River and Kanawha Com
pany.
As for the Rappahannock Company, its failure
was unavoidable, and made so by our own action.
Before the Company's works were in successful
operation, we raised up two rival improvements,
the Orange and Alexandria and Manassas Gap
Railroads, which share business and profit which
had been otherwise monoPolsed by the Rappahan-
mock Canal, and which, had they been monopoed,
would have enabled the Company to meet all It's
engagements. The failure i'll this case was of our
own CauSing-one of the unfortunate examples Of
the antagoniSm existing III our internal improve
ment System, to which l have already advert
ed.
In regard to the Chesapeake and Ohio canal
company, it is enough TO know that its inability to
meet the January inStnlment OF interest on its
bonds guaranteed by the State, arose flOm cX
traordinaIy flood which swept away portion of its
works, and temporarily crippled its resources. But
the consequence of this mishap will be temporary
only, and no seriously entertain fear that
we shall lose dollar by this company, or pay fer
it even another inStalment OF interest.
With respect e the case OF the Winchester Rail
road Company, it proves no more than this: that
when the State sold out its subscription OF Sl20,
600, and its loan of $4,000, for an annuity of
$4,000, it made "shocking bad' bargain; for this
company declared last year, dividend of ~ per
cent! Where was my watchful friend from North
ampton, when the legislature was humbugged aud
induced TO sell out the States interest in the stock
Of this company, as the auctloneerS say, "Shame
fully below the value?'
But the James River and kanawha company,
that. says the gentleman from Northampton. is an
example of the loan policy as it is of the ILL., al
vised action of this house. 1t is unfortunate that
the company has been compelled, i'll its neceSSi-
ties, to call upon the State TO pay the interest
its guaranteed bonds; but the case is not SO ILL.,
starred, by half, rs gentlemen represent.
Sir, no company on earth, circumStanced as this
has been, could have escaped serious embarrass-
ment. II was required TO pay from the start the
interest on the money borrowed for the construc-
ton Of it works, a hard and almost impractcablc
condition, which has been imposed on no other in
ternul improvement company. 1t started i'll en-
barraSment. Ere the first spade was stuck, twas
encountered with debt, annuity OF S2l 600,
Representing cash capital of S35O,OOO,) to the
old James River Company, to be paid from the
revenues of n work not even begun. And its
cash resources were Materially impaired by the IL
liberal provisions of its charter which put in as
part of the States subscription, the works of the
old company, valued at million of dollars, when,
III fact, they were not worth single dollar 10 the
new company. So that the company, instead of
commencing lis wOrkS WIN cash capital oil
So, 100000, Started with only SO, $50 900. Under
such circumstances, embarrassment was unavOid-
able, and the wonder is that, under the difficulties
by which it has been beSet. it has done well.
Sir, If the State had put in really capital OF
SO, 100000 her subscription instead OF the
worthless ard unavailable works of the old COM
pany, the present company would net be now
knocking at the doors OF the treasury for interest
money, and if she will do now what, in generosity
and in Justice to the private stockholders, she
IN e. ne for ,yi cb
her subscription is really deficient, should hear
no more of the failure of this company 10 redeem
its obligations.
But, Sir, have not fear that the Sta e will
eventually lose dollar by this company. An all
abiding confidence have that brighter deStinieS
await it. When all its sources OF revenue shall
have been unlocked and in full contribution; the
tide water connexion completed, giving TO the
company's fiSc, an augmented revenue OF $4,000
per annum; sthe Southside, Revanna and North
nve1 connexions finished AMI making contribution
10 the business of the canal; when the second di-
vision from Lynciburg 10 Buchanan shall have
been sufficiently long in operation to mpart to
the surrounding country, its stimulating impulse;
and, finally, when it shall have reached Coving-
ton, forming n continuous line Of cheap transport
from that point 10 the waters of the lower James
river, with all It's auxiliary connexions in full
play, have not doubt that this company will
have ample means 10 meet its divers Obligation TO
the State.
This is no extravagant expectation, Mr. Speaker.
The gross incomeof the company, under the pres
ent disadvantageous Giro instances, exceeds $780,,
900, and may well argue, that if, with its auxil-
larry works all unfinished, and with its second di-
vision in operation, not twelve month, it has
realized revenue of 100000 it will, when ex-
tended to Covington,, and in perfect operation in
all its parts, have annual income OF at least half
million. And when this point in its revenues
shall be reached it will be fully able to discharge
all arrearages, and meet all engagements
And one thing is as sure as the shining of the
sun, that when the improvement shall reach the
Ohio by rail road from Covington, its income
will not only be ample to refund to the State all
her advances TO the company, but furnish large
| revenue to the treasury. And gentlemen should
look 10 this point They should not tleduce from
the present imperfect and undeveloped condition
OF this great work an argument against the loan
principle. LIE: them look forward to the final con-
summation of the imnrOYement. when il shall liz.