The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1869-02-18
VETO MESSAGE OF THE GOVERNOR.
STATE OF SouTn CAROLINA,
EXECUTIVE DEPARTMENT,
COLUMBIA, February 10, 1863.

COLUMBIA, February III, 1863.
To Tie Senate Of South Cdrotind
GENTLEMEN OF THE SENATE return 10 the Sen
ate in which it originated "An act to re.enact
cerlarn acts lending the name and credit of the
State to the Greenville and Columbia Railroad
Company, and to validate the action Of said CON-
pany thereunder," without any signature.
IAN act TO lend the name and credit of the State
to the Grcenve and Columbia Railroad Company
in the readjustment of their debt" was passed by
the General Assembly Of the State Of South Caro-
lima on the 18th of January. 1861 more than
month after the State had seeded from the Union,
and dscaimed allegiance 10 the Government of
the United States. Ii provided that the Comptroller
General should endorse the bonds oflhe Greenville
and Columbia Railroad Company to the amount of
nine hundred thousand dollars, one hundred thou
sand of which sum TO be applied 10 the e1-
tincuishmcnt of floating debt, consisting of
note and accounts. which appears to have been all
tn: d t of the company on 81 lie of the bonded
deb shat existed at that period. The remaining
eigh hundred thousand was for the purpose OF
guaranteeing the payment of the princ pal and in
tcrcst of the bonds of the company besoming due
in 1862, 1868 aud 1864, by substituting for them
bonds guaranteed by the Stale; and for the security
of the State, the bonds go taken up were to be de-
posted with the President ofthe Bank ofthe State,
to .'s,and rs security TO the State, and thereby
give the State the lien under the first mort
gage, until all the bonds secured by mortgage
shall he retired" AS further security to the
State it was provided that after the lapse of three
years time of The guarantee Of the bonds referred
10, the company was required 10 set apart two per
cent per annum the amount of bonds thus
guaranteed, TO be used in the purchase and cancel
ling of said bonds II also provided That the Gov
ernor of the State, the Comptroller General and
the President of the company should constitute
board of commissioners for the management of
said funds to invest the same in the bonds OF the
State or the company when they can be obtained.
And in case the company failed TO comply with
these provisions it was made the duty Of the Comp
troer General to report the fact to the Legislature,
who were directed to enforce compliance with
them in such manner it may deem expedient.
| The fourth section Of the act further provided that
| If the said Grcenville and Columbia Railroad
Company should Ia to pay any of the bonds at
| maturity the Governor Of the State should notify
the solicitor Of the circuit in which the company
had its place of business. who should Immediately
file bin in the Court of Equity to enforce the
lien of the State, which court should appoint
receiver, order sale of the road and all the
property and effects Of the company, and otherwise
decree as may be best to protect the interest of the
State.
twill th;is be seen that in those turbulent times,
when the Confederates States required every assist
ance in transportation, &C., to meet the c1igencies
of the war; the legislators Of that period felt it
their duty TO place the most prudent and whole
some guards and restrictions, that the interests
of the State might be protected while granting the
required aid to the GreeHvllie anu Coiumoin Kali
road Company.
In 1866 under the Provisional Government. the
Legislature was called upon TO alter and amend the
foregoing act, SO not only to reaflirm its provis
ions endorsing the bonds and debt of the road TO
the extent of nine hundred thousand dollars, but,
in addition 10 give the endorsement of the State 10
the certificates of Indebtedness of the company,
issued for the payment OF their Int crest TO the tull
amount which had accrued from the issuing of the
bonds, and 10 accrue up to January l, 1868 TO the
amount OF three hundred and fifty thousand lol-
lars-these certificates, in nl respects, being sim-
lar in character 10 the bonds of the company, with
interest at per cent, payable semi annually,
nnd running not more than twenty years. Still
further. in addition, taere was another provision
for the endorsement by the State of bonds 10 cover
| Il floating debt of the company, then due, of seven
hundred and fifty thousand dollars, principal and
interest The Legislature, however, restricted the
amount of bonds to be issued to the rates of one
10 three OF the debt making The additional respon-
siblity of the State for the company two hundred
and fl1y thousand dollars, and the entire amount
endorsed, and for the payment of which the State
is responsible, one million five hundred thousand
dollars
Ii will TINS be seen that the company, from 1861,
when the Confederate Legislature gave the indorse
mcnt Of the State to its bonds, has not paid dol
lar of its debt, principal or interest, but has been
annually accumulating floating debt, designated
in the act of 1866 as Il "bond debt, for which no
mortgage or other lien had been created, >" amoun-
ting 10 six hundred thousand dollars; and, not
withstanding the extraordinary amount of business
the road must have had during the war i'll the
transportation of troops and Of military stores, it
shows that it was spending every year upwards of
one hundred and twenty five thousand dollars more
than il earned.
The bill of 1862 now under consideration, gives
the sanction Of the Legislature to the acts above
recited wherein fail to anything to encourage
hope of the solvency Of the road or The security
of the State for the amount for which its ndorsc
ment hns been given; but, ON the contrary, the