Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-01-14


he resolution adapted by the ioa,e Of Dele
gates on the 18th ult.
/ l. The Indebtedness on the part of the Board
! for estimates of works done, remaining unpaid,
amount to s5I6955 02
, The acknowledgements given BY the Board
TO persons entitled to pa, mcnt consist of drafts
drawn upon the Board If Public Worksby the
Engineer. and Superitendents in charge of
/ works conducted on State account. and by the
! Presidents of Joint stock companies. for the
/ amounts due by The State on account of sub
scrpon- 10 their respective capital s'"cks.-~
| These drafts hear two endorsements, one by the
Board of Public Works, authorizing their pay
ment, and the olbrf hy the second Auditor, slut
ing that they will be paid with interest, when in
finds.
3 On The 9th of February last. the Board
pas srd an order declaring that they would pay
interest upon all drafts on the fund Of internal
Improvement from the time said drafts
dered by said Board to be paid
4. In answer 10 the last enquiry, ITO state by
what authority it ha. been undertaken to bind
the Commonwealth for the payment Of interest,"
the Board have to say, that in regard to that
portion Of the above stated Indebtedness, which
had been incurred in the construction of works
solely on State account, in the absence of any
statutory inhibition, the Board, as the represen.
tntvr If The State, in this instance debtor. un-
able to pay debts due by contract, and with
view to The safety of the credit and good faith
of tho State, did not feel at liberty to refuse to
give the assurance so common, and not more
common than just, between debtor and CREDITOR
that when payment was made, not only the prin-
cipa would be liqudated, but the interest that
had accrued,from the maturity of the debt.should
also he paid.
In regard to the claims of joint stock compan
les. there was difference. which consisted sim.
ply in the fact. that the payment of interest ON
them prohibited by statute. Whether that
statute ever contemplated such an extraordinary
state of affairs as has been in existence for the
last twelve moah-, or merely looked to the pro-
lection of the fund of internal improvement
gainst unnecessary demands, is question which
may be regarded as irrelevant to this conmunica-
ton. However, the Board of Public Works
and the companies having charge If the i'm.
portant improvements in the State, were inyolv.
ed in serious embarrassm ents; the Board were
unable to sell the bond, of the State at their par
value; the companies had made contracts for
the vigorous prosecution of their respective
works, and the contractors had in their employ
large and expensive forces; besides, the Lpgisla
.ure was not in session and would not be for
rral months; the alternatives, therefore, present
! cd Ia the Board they supposed, were IL agree
/ to pay interest on their drafts. and thus make
/ them negotiable aud enable the companies to
realize cash Tor them and continue their works:
/ topny interest. and thus deprive the companies
/ of the power t. borrow money upon them, and
/ force them to pend their work, dsband Their
forces, bankrupt Stockholders and contractors,
and bring into disrrpate the good name aud cred
! it OF the State. The alternative chosen, the
Board are happy to believe, however opposed it
may be 10 the letter of the law, has resulted in
great advantage to the various improvements in
trrested, without the loss If n d,,llar in money
to the Sta,e--fur il is proper here to remark that
under existing circumstances, tie State is re
! quircd to pay no more than if the Board had
sold bonds to the amount Of the present out
standing drafts
In conclusion the Board direct me to say. that
! Mt their present meeting. new drafts have been
| presented for payment amounting in the nggre
gate to slip,aO7 43. md it may be that before
| they adjourn, others will bc presented. Of those
now on their ;uhie, the sum of s}l 5l6 50 is foe
works constructed solely on State account aud
! the Is ard will f. 81 no hesitation in or,'erin, the
PAYMENT of interest them a. heretofore. The
balance 500 5l7 81. is composed entirely of the
| drafts ii nj stock companies. upon which. and
all future drafts OF II similar character, the Board
will decline to pay nesest unless otherwise d.
rected bv the Legislature.
Very respectfully.
Your "sedient servant.
W. II. DRINKARD.
Secretary Board of Public Works.