The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-12-07

benefit of the industrial and commercial
interests of the State; and no subject can
come before it, connected with our s. item
of internal improvements, of more import
ance to the majority Of the people than the
consideration of what is best to be done for
securing the speedy completion of the line
of railroad between Charleston and Sa-
vannah.
At the time that the war broke out the
Charleston and Savannah Railroad had just
been completed. 1t had cost, with its roll
ing stock and equipment, about three mil
lion Of dollars, of which amount about o
million and half was secured by liens:-
statutory lien in favor of the State, to
protect its guarantee of the bonds of the
company, to the amount of five hundred and
five thousand dollars; and second lien, by
mortgage, to secure the bonds of the COM
pany, to the amount of one million of dol
lars.
When the war ended the road was, for
the most part, destroyed. The track had
been torn up, the bridges burned, and the
rails twisted or broken. The rolling stock,
however, was saved. At that time, it was
estimated that an outlay of three hundred
thousand dollars would reopen the road
through to Savannah.
The company could not raise this amount
by loan, because it had no sufficient securi-
ty to offer to the capitalist. The State, by its
statutory mortgage, had the first claim, and
it was so evident that the road uncompleted
was worth but little, while completed it
would be worth at least two million Of dol
lars, that the General Assembly in 1865
passed On act authorizing loan of five hun
dred thousand dollars, to be applied to re-
building the road. The State agreed to
postpone its own lien, and gave precedence
to the new loan, which was to have first
lien upon the whole property of the COM
pany. This was ample and sufficient secu-
rity; but in consequence of the unsettled
condition of affairs, and the placing of the
State under military rule, the loan could
not be negotiated upon economical or reas-
enable terms.
In the meantime, the creditors under the
second lien, caused the sale of the road and
its property, became its purchasers, and
organized themselves into the present Sa-
vannah and Charleston Railroad Company.
Their bonds, the second lien, they converted
into stock, leaving the road with no bonded
debt but that guaranteed by the State,
amounting to five hundred and fve thousand
dollars, bearing six per cent. interest, and
due in 1877. The new company proceeded
slowly with the work of reconstruction,
using their limited means to the best posi-
BILE advantage, and there is completed and
in good order at this moment sixty-two miles
of the road, supplied with rolling stock and
locomotives in fair condition.
The Savannah and Charleston Railroad
is now paying its working expenses, and it
is evident enough that it's completion would
make the bonds guaranteed by the State o
security second in value to no security in
the United States bearing the same rate of
interest But while the road is incomplete
it cannot pay the interest on these bonds,
and as the interest accumalates the debt
and liability of the State is steadily in
creasing, while the property to which the
State looks for security is daily receding in
value. There is no doubt that it would be
for the general good of the State to reopen
the road st once, and in this instance the
interests of the State, of the people and
of the creditors, oil lie N one and the same
direction.
The present company, unaided by loan,
cannot complete the road for some years to
come, and they therefore ask the State to
allow them to secure, by new mortgage,
which shall take precedence of the statutory
lien, loan of five hundred thousand dol
lars, to be used in the first place for re-
building and completing the road, and
secondly for paying off the arrears of inter-
est now due on the six per cent. bonds
guaranteed by the State. lis completion
should enable the road to pay without diff
Guilty the interest upon two millions of dol
lars, and it would give the company fair
prospect of creating sinking fund for the
final payment of the debt, so as to allow the
payment of dividends on the stock.
As to the justice and moderation of this
request of the company, there can be but
one opinion, for compliance with it on
the part of the General Assembly would
make the State perfeehy secure; would pay
the bondholders their overdue interest;
would increase the trade of Charleston and
thereby swell the resources of the State; and
would be of incalculable benefit to the sixty
thousand colored people who live in Beau
fort and Colleton, who cannot prosper un-
less they have work to do, and the means
of sending their produce cheGply and expe-
di!icusly to market.
Labor and Politics.