Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1858-11-19


,Ieus around which larger may be built up Board
very able and experienced gentlemen appointed to
,onfded to Them who will doubtless lay before you vau
able information and suggestions to its increase what
1e as thew fall due and as to the best means to be adop
ted for the preservation of the public credit
Railroad stocks belonging to the State and not before
appropriated to other purposes constitute the chief part
the sinking fund The receipts far have been mainly
entirely from dividends on stock in the
and CASTOR Railroad Company 1t was hoped, and, pc
eve generally expected that after your last session. d
dends would be made by the North Carolina Railroad Com
her last subscription of million of dollars In alton
this question has arisen of some Importance to the State
well as to the individual stockholders, aid to which
deem it my duty to call your attention.
This preferred stock taken by virtue of an act CHI
80, Laws 1885, entitled act tor the completion OF
the North Carolina Railroad and by which it was among
other things provided that the State shall be entitled to
six per per payable semi annually thereon, out
of any dividends profits made by said company before
any dividends shall be paid any other stock the
In the two last annual meetings the Stockholders the
Company insisted by Judge Ruin the State proxy,
that out of the receipts and above the necessary ex
of operating the road the State entitled have
dividend her preferred stockand that such receipts
properly applicable to the payment of debts OF the
sct pr to- new works to be constructed Or the latter
they only applicable to such as were indispensaby
officers Of the Company showed that these receipts su
cen pay dividend to the State in each of these years.
pany to the discharge of the existing debts and to the
Company took different view of the matter and insisted
that the fund had been properly and legally applied and
that the State had no just have any Dividend
facts to me- to the end that might take such action in the
premises my opinion the interest of the State might
require In the conflict OF opinion did not deem it advisa
BILE to take any steps assert the claim OF the State but
concluded to submit the whole matter to The General Assem-
bly, for such directions if any, they think proper to
give.
At your last session bill passed, rendering to the
Bank of the State renewal of its charter At general
meeting of the stockholders in the City of Raleigh the mat
ter taken into consideration and Informed that
they declined accept renewal of the charter the
INT Ag41
Bank doing business will expire first January.
1861 although by law it is allowed three years after that
expedient for the legislature at session. charter
institution of the kind to take the place of the Bank
of the State, should into liquidation 1t has been
times suggested that the capital of the Bank of Cape Fear
might be increased to amount sufficient supply banking
making safe and profitable investment OF that portion of
the literary fund invested in stock OF the Bank OF the
State But 1t uncertain whether the Bank OF Cape Fear
would accept such proposition and that difficulty were
removed to that such would be
Objectionable SO long as we have banks OF discount and
pos it would, in my opinions be highly lmpotc to build up
overgrown institution which would have the power in
great control the monetary affairs of the State The
amount of capital divided between two banking nsu
ons with branches in different sections of the State would
be better and saferas each will check upon the other
have particular recommendations to make to the
amount of capital of what shall consist to the
details of any charter to be granted Many schemes will
doubtless be submitted to you and shall only express the
hope that you will be able to select one, which, while
will hold out to stockholders reasonable hope of fair prof
its upon their capital will at the same time afford ample
facilities the public. Nor should it be forgotten that
such institution properly conducted will be able tc
render important aid to the State the management of hel
finances and the payment of her debts.
Our existing laws regulating the rate Of interest money
lent and attaching penalties their violation have lately
extent become topic of discussion. The policy
of such law has been seriously questioned. We live in
highly commercial age and it cannot be denied that in os
of the great commercial centres of the world, the value
money in other words the rate of interest paid for its
use depends upon the supply and the demand and the rs
incurred by the lender and that all attempts law
fine the rate Of interest within certain fixed and prescribed
limits have proved futile Such being the case has beer
Ilrp tn
to be paid for the loan forbearance of mony
and above certain fixed rate where no special agreement
is made and thus to allow money like property to seek it,
own value.
that large amounts of capital owned by citizens have
gone from State seek for profit nvestmen
other States where the rates of interest restricted
by law and that such will continue to be the
serious ment. 1t may be doubted whether at this
time capital Employed in most business enterprises in this
State paying reater rate of Interest than that
by law, be reasonably expected to remunerae the
poyer But however this may be- it may still be we'll ques
toned whether the State should step in and undertake
what contracts not be entered by her citi
zens upon what terms they may engage any business
enterprise Without expressing decided opinion thu
policy of existing laws the subject of Importance
and such commend it to your careful consideration
transmit herewith reports made to by my request b.
the Presidents of the Atlantic and North Carolina Railroad
Company the Western North Carolina Railroad Company
the Chesapeake and Albemarle Canal Company, and thu
Cape Fear and Deep River Navigation Company the on,
works in which the State is interested stockholder
which have been, in of construction
since the adjournment OF the last Legislature.
These reports net full they would have been ha
more time been allowed but they
serve to show the present condition OF these works and
the companies.
In short time hope to be able to present you add
Ona reports from these companies and also reports
other companies in which the State is stockhoder for
bear to comment on these reports you will have amp
opportunity to examine them when printed and laid befo
you.
have often expressed my opinions the Legislature
on the subject of internal improvements that deem it
necessary to repeat them here. Though have incurred
heavy debt i'll the construction of works of the kind it
not one, by any means, beyond ability to pay.
session and for what purposes is matter which prope
belongs to you to determine, and with you shall leave it.
During last summer Board of Commissioners apponte
the Secretary of the Navy under resolution of the
ate the United States visited the Deep River country with
view of asceranng its suitability location govern
ment machine shops for the manufacture of machinery 70
the United States Navy. At the head of this commission
Capt Charles Wilkes of tie Navy gentleman distin
guished not only in the line Of his profession but
c explorer felt my duty, in connection with many
our citizens, to extend to these gentlemen such clvtiCs
report will be made by them to the next Congress of tn
United states and have every believe that it
be of the satisfactory character far the exs
tence in that region in the greatest abundance of iron
coal and other necessarcs for government establishment
of the kind concerned Indeed the examinations mad
during the present year not only by scientific men, but
those having practical knowledge of such matters hav
tended more and more to bring to light the immense mner
resources of that remarkable region.
Some of hsse gentlemen have and cOnversed will
and all concur in these opinions and especially to til
existence there of immense quantities of the most vauabl
was but opinion also to the necessity of prope
means for its transportation With adequate Railroad an
water laces no douDI was entertained by any OF then
to the rapid development of the coal and iron
and that would be speedily followed by others almost
import mt.
deem it my duty to call your attention to the condito
of our militia system. l regret say that have
scarcely military organization in the State except whs
to be found in few volunteer companies. But few reg
mens exist that have officers that called out at
time to perform military duty Should an emergency arise
requiring the employment of any considerable mtn
should, for time be almost powerless or want of an
organization If well regulated militia be of the first in
portance in system OF (and such has bee
the opinion Of our wlsest men, both civil and mitary the
something should be done to nuse vitality that of
State, to place in condition, not of positive eff