Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-06-01
SPEECH OF JOHN c. RUTHERFORD,
a.. r.curSn M.Kcu lShS

-iGtaH1iA't h It"'' t'&' ~"
Mr.. RUTHERFORD proposed 10 consider ihi'
pill--iirsi, upon liz own lMorit1, and afterwards, ~
part of a schrmc oi legislation which embraced ny
preparations 10 various other public works IN different
parts of the State.
IL had been advocated upon ihnau grounds: thnt "
would complete u great Stats work: that II w"ui"
bring money into the Treasury; aud that, III any event
i, provided ample security against luSs To III" Com
mJuweaith. All tho Arguments oil Ills friends "nr,
embraced. he thought, under thes" three heads hid
in this order he would consider ih"in.
Let il be- conceded. for tho present., that Tile pro
noaed loan of SiON, uUO Ia The Orange md Alexandria
Rail Road Company will enabls them 10 compl1i-
their road. What great State object will ba accom-,
piished by filling tn. gap betwrsn CharlotiesVills ana
Lvuchburg| 4 continuous rail road through Nr
yiniu. from Tennessee tn Maryland th" ahort-st line
OF travel from tn. South Western to the North East
-ru States-is tho reply. But will Virgins ha bsne
fitted by shortening the high WAYS which lead to
Baltimore, Philadelphia and New York, by the transit
OF travel or of trad. over her coil, if they never stop
nj her cities nor larry within her bordersl We have
expended from the State Treasury many milhors on
the canG! and the great roads running from tld'
water to the West and South. est, aud We have
been hardened with debt and tsXes, that Wa might.
by means of these improvements, build up n great
city on our own soil. AID thus establish direct Euro
| bean trade and secure commercial Independence
Yet, lust as these great roads from the West pass the
i}lus Ridge. on their way To the ChesHpeHke-beiore
they reach a Virginia seHport-thry ara met ny the
| Orange aud Alexandria Rail Road, running down
from baltimore, 10 turn aud intercept their trade and
travel. Fill the gap, then, between ChariOtesVile
aud Lyuchburg, and you further no State work; out
| you hazard aud postpone, if you do not forever de-
| feat the accomplishments OF n truly great o6Iect-one,
| towards which millions have been expended. and
| which! appeals Ia the Interests ~ well as tn The PRIDE
| and patriotism Of every Virginian-the commercial
independence oil our State. You make q Legislative
pr, edent, which would give IL Baltimore a road
! through the Valley. ~ well as through Piedmont,
| which would ill the gaps between Sfrasburg and
| Winchester, Salem and HerrisonburG, az well as oe
| tween Lynchburg and Charlottesville, end which
would send giant tributaries TO the wealth OF the
| North from cur great State road, West OF the ALE
| ghanies, rs well "a East OF the Blue Ridge. Let
| State roads, like this, he extended through Western
| Virginia, and the internal improvements which nave
cost III go much, building up no great centre Oh tfaue
in our State, breaking down the local centres ~hich
we have, will rive. the chains OF our conWerclal
thraldom TO the North.
But il il ss a measure Of finance that the Dill hat
| been most earnestly advocated. Ii has been urged
| that, il this bill be passed, the road will DO COM
| Melted TO Lynchburg; that when this shall be done,
| and not until then, the stock will pay dividends, and
that thus by r loan of Si0O,0OO, the States invest
ment of SS0G, 600 in thu stock OF the company will
be made productive. But how Ky the increased
business Of the road. we are told. unhhppliy, how
ever, for this argument, il ia from the Virginia and
| Tennessee road, TO be met at Lynchburg. that this
| increase of business il anticipated, aud that when the
Orange and AleXsndria road receives 1t, 1t i' diverted
| from the South Side roHd and the james river
canal. Now if the State has al lnterest OF more than
$500 n0n in tho Orange and Alexandria Road, II has
Nm interest of more than $4,000, 600 in the South Side
Road and the Canal. Shall We take then from the
value of the last to add TO the value oil The ntst!
Will it bring money into thu Treasury, II We ih
prove a work in which We have invested one miliiph'
nv iniuring works in which we have ten millions!
Nor il il nv any means certain that, even at THIS
cns, Tn in. State, the Orange and Alexandria stock
will he made to pay dividends to lts holders. WIN
q csuiial stock paiI in, OF Sl,iS9,2JJ, the company
hpa. 'by the last report, q funded debt OF Si,ldU,9Ir
and a floating debt al $332,7S7. Add the loan from
the State, now proposed, and the debt OF the Com
pnny will exceed its paid i'll capital. Add the whole
sum that will in fact be required TO hnisil tns r"ad 10
Lynchburg, and The debt ot the company VIII exceed
two millions. Take the interest upon TINS deot, al
the rates contracted for. from the net earnings OF the
road under a tariff OF tolls. made low by composition
arj il there be still lett II ak per Cent dividend LOT Inc
stockholders, then the Increase OF business 10 De de
rived from the LynchburS connection must, indeed,
N. enormous. To convince III that this increase Will
he sufficient to pay both dividends and interest, we
! have been referred to estimates Of gentlemen Ot the
first authority in railroad matters l Will not exam
inc t;less estimates. Others have already done so.
But, having been always heretofore deceived ny
than, | must bs pardopes for not c%ontiding, now, III
the railroad estimates Of railroad directors and en-.
yip-ers. Had such estimates, III the past. been an
approxination 10 the truth, ins State would be now
receiving q noble revenue, instead CT a very small
fraction OF one per cent. Oh Z III &c ~
Internal improvements. These tables OF pr0hte sno
rece;p;s, 10 the future, ore prepared tor the Legis'
lsture, when appropriations are wanted, by gentle
men who desire that the appropriations shall be made:
and who deceive themselves rs well az others, I'D
their ~sanguine antlcipGtions H. TO the SUCCESS Oh
those .uterpriZes. to wh,ch both their feelings
and interests unite them. Their calculstiona
have certainly lees weight with my mind
than those which are made by shrewd capitalists
when they ure seeking To invest their iund5. lei
.t $50. ...It. q ..,hI .xt.n AZ ttrInn q
interest, for temporary speculation. upon the faith oil
those estimates, by which Virginia Ia now to be per
suaded Ia lend at Elk per cent. tor permanent invest
ment. For, if the Orange and Alexandra Company
could borrow money from others than the Stare un
der tie law of thu last seasion for he relief ot railroad
companies, would the State be asked for this loan
ought it 10 be asked OF her {!
Even if these ra,ltoad statistics for the future were
wholly reliable, and you were doing no injury to larger
~interes's in thus improving a smaller, Inc AID of Inc
State ought not TO be- asked-ought certainly not 10
b. granted in the present condition OF our finances, II
without suci, aid, the road could be finished. Sir,
when this right OF way was asked for at the session OF
1853, and strongly oppdsed, it wac said that IT the right
of wa were only granted, the road could be EXTENDED
from Gordonsville to Lynchbury without appropria
ton from the treasury. ! believed 80 then. i believe It
now; not because money, in search of profitable in
vestinent, is likely TO be attracted by the STOCK or
bonds OF this company, but because many millions ct
capital north of the Potomac, AZ well "a IN our own
State, are deeply UItTesttu III SuhhpIetlhe mo Voihi
even though the company should never pay either di.
yidend upon its stock or interest upon its loan. But
this private capital will surely be lsggard IN the cause,
M long az there is the slightest reason to nope That the
Treasury of Virginia can be made to bear the burden.
Defeat this bill, extern mate this hope tor ever, ana
whatever The financial benefits or mischief Of this
Lyucnhurr connection, Virginia vii! reap them with.
out adding Ss4UD, 600 10 her debt.
But, At least, say the friends Of the bill, the Stats ia
secured by the mortgage, and nothing will be- added
TO our taX-s; for the puuctual paymtnt OF seven per
cent. by the company, will in thIrty.four years, re.
dem both principal aud interest OF the debt. What,
then, is the security Why, one'halt OF what Is to be-
mor;gaped To the State il her own property, and the
whole ia already mur;saged to securea prior debt OF
NOR :hna u million Aud OF wha; value Is u mort
gag, ahich will never be enforced TN this point,
1 i. yoke the reasoning 81 we'll As the authority OF the
gentleman :gOm Cuipeper, himself, the patron OF this
bill. In his able argument, at the session OF 1898,
sgaias, the bill! making a loan oil SSOu.U0Ot 10 the South
Side road h. said 'Ihese appropriations are de-
nominated loans. II is an GocLc Of language to call
them 20. The S;ute never hru and never will occupy
the r-Yl stern reistion of creditor and debtor g!th large
associations Of her own citizens who embark ID useful
pubic enterprises. The * pa,ienoe o! the past shows
that she never did truly ~ .iutaln that relation, and It
j. III .asonable 10 suspect that abe will in the future.
The history Of former Tonne he's siready been too
iuIly detailed here, for lie now 10 enter upon @ minute
review Of it. We have loaned to other raiiroad COM
panjes heretofore; and. AZ has been shown by other
v.rr.d into stock. When the work fails to yield six
per cent. upon the entire Investment, they urge the
Injustice of paying the State s1 per cent. ON her part
Of the investment, while The private capitalist drawa
nothing upon his. They claim an equality and re-
uuirs the loan to he converted INTO slock. These
notifications havs never yet been successfully re-.
sisted, and il ~ not probable tina. they will b-,
when made by the combined powers OF the com
panies now asking loans. OF what avail! ia u mort
rrr, which is never to be enforced You have
now a forfeited mortgage on the James Liver I'M
provemcut. Does any one expect to SEQ tnst fore
closed The bare suggestion hiss already i.een de-
ncuuced here IA q violation OF property rights-aF u
measure OF ccuiisCutirn. Sir subsequent experience
hns hui add.d iis sanc,iou to the iustice of Theses views
OF the gentleman from Culpeper. The loan asked for
in 1853, was made 10 the South Side company. The
same year, a million was loaned to the Virginia and
Tennessee company. Boil! companies have failed to
nav the interest upon the ~ oans-and who talks Of
f,ieclosing either mortage7 Yet "~f:limates,' then
too. were read upon this floor, in the debate on the