The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-02-14
s4ss,eso.oo
945,47I.27

~ . (. . 0U.u
Guarantof Of the bonds of the
company. ,............ 80. 945, ,47I.27
Whole interest of the State. 81, 379, 431. .27
For the guarantee the State holds the first
mortgage upon the entire property.
In the message it is stated that the guar
antee is void. That, Of course, is n legal
question which do not propose to discuss
here. 1 have, however, never heard n law
yer, who had examined the question, nor do
believe there is respectable lawyer in
South Carolina who, after an examination.
would come to any other conclusion than
that the State is liable for the whole guar
antee; nor do L believe there is court in
the State, or in the United States. that
would not so decide.
The course proposed in the message is
that which of all others will be most likely
to injure or destroy the interest the State
has in the road, by crippling the credit of
the company, preventing it from re-adjust-
ing the balance of lis debt, and leaving it
IN such condition that it may be so embar-
rassed and annoyed with suits aud other
wise, that its usefulness will be impaired
and it prevented from the payment of its
interest. If sold, Of course it must be in
the interest of the first mortgage bond
holders, if possible to the exclusion of all
others, whereby the State, in common with
all other stockholders, will lose its stock,
and be left with chances of trouble growing
out of oil the complication connected with
its guarantee.
In the message it is stated that some Act
might be passed giving the proper endorse
ment, with proper restrictions but, up to
the present time, / have heard of no sur-
gestlor from the Governor as to what those
terms and restrictions are, and how h e pro-
poses to protect the interest of the State by
| any new Act or amendment. Perhaps tho
samo restrictions and protection to the
State would be acceptable Which are i'm
posed in the Act granting aid to the Blue
Rldgo Railroad, which is understood to be
his pet measure. l have never examined
the Act, but have heard il frequently spoken
OF Ivy those Thought competent to Judge,
as n curiosity in legislation, and that there
are no restrictions or protection to the
State whatever. The debt which is pro-
posed to be guaranteed for the Blue Ridge
Road is for the identical and same purpose
or class of debt as the debt Of the Green
vile and Columbia Railroad Company
that is, for constructing the road; and
should at least so far MS the State is con-
cerned, stand on the same basis. do not
desire to be understood as being opposed to
the Blue Ridge Road, or to the States grant
ing aid to it. l am far from it, and de-
cidedly favor it, and look upon it rs an i'm
portant extension of the Greenville and
Columbia Road, and exceedingly important
to the State; aud if, when completed, it
realizes one-tenth Of what its friends claim,
for 1T, then there certainly could be no
question rs to the ability of the Grcenville
and Columbia Road taking stand amongst
the first roads in the country.
must confess that was surprised when
was Informed that IL veto message had been
sent in. and especially so, as L had under
stood the Governor frequently to assure me
that he would do nothing Whatever against
the bill. During the special session, in q
conversation upon the subject he requested
me to postpone the bill until the regular
session, giving as reason that he wished
to make loan for the State, and as the new
government was just being organized and
more difficulty than would naturally be me-
by State Government of longer standing
in making loans and desired to represent
the indebtedness of the State as small rs
possible; he remarked that if it was post
poned, he would give me all the aid and in
Huence he had, to pass the bill at the regu
lar session [ consented at once, and
instructed my friends when the bill came up
to move its postponemcnt; which was done
J when the Governor was preparing his
annual message, called to see him for in
structlons as to what was required to be
done in response to resolution adopted a
the special session, requiring all railroad
} companies whose bonds were endorsed by
: the State, to make some satisfactory exhibit
of their ability to pay their interest.
handed him q memorandum, in pencil, O
what desired to say. He remarked that i
was very satisfactory, and if [ would write
, 1t IN ink, he would insert it in his message
and refer to it rs an accompanying docu
ment. did write it in ink and sent to him
and he refers to it in his annual message q
the appropriate place, as an accompanying
document. and as very satisfactory I
| never appeared amongst the printed accom-
panying documents, and although I have