The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-05-15
G III A r l. ES TON.
SATURDAY MORNING, MAY 15, 1869.
Tho Savannah and Charleston KaI1roa1

| SAIUNDAX MOhNlNG, MAY Is, 1869.
Tho Savannah and Charleston railroad
The news that q contract has been enter,
ed into with reliable persons for rebuilding
the Savannah and Charleston Railroad.
from the present terminus, at Coosaw-
hatchie, to Savannah, has been received
with profound satisfaction, especially by
those who, like ourselves, were the strenu-
GUS advocates Of the legislative action
which, without sacrificing the interests of
the State or of any class Of persons, has
given q value to securities which otherwise
would nave been worthless, and has made
certain the early completion of most
important link in the chain of Southern
| travel. 'te Nv
| AT the time that this paper first urged
upon the Legislature the necessity of assist
ing the Savannah and Charleston Railroad
Company to rebuild their road, the affairs
OF bhe company were in! a critical condition.
The sale Of the road, the wiping out Of ell
the old bonded debt but the bonds g,taran-
teed by the State, and the reorganization Of
the company with the old second mortgage
bonds converted into stock, had been seffec.
ted, and the new management had sue
ceeded, in the face Of many difficulties.
in opening the road for traffic to Coo
sawhatchie. But there were no means for
carrying on the work. The bondholders.
amply secured as they were by the State
guarantee, were fretful and hard to please.
Speculative individuals, who saw q pros
pect Of profit in thorough breaking up of
the company and radical reorganization.
urged the Legislature to seize the road and
State. Doctors differed as to tho ..tvn. ~e
the disease and the nature Of the remedy,
and when THE CHARLESTON NEWS under
took to prove the necessity Of at once re-
building the road, and to show that it
could be done with benefit to many and
with injury to none, there were few who
believed that our efforts were likely to be
crowned with success. The whole subject
was thoroughly discussed in these columns,
and after long and wearisome struggle the
Legislature consented to postpone the fret
!. lien which the State held ON the road, to
guarantee the payment Of the bonds into
| which the over due interest was to be-
funded, and TO allow tho company. to !bor-
row the sum Of 1--WE hundred thousand doll
Lars to rebuild the road-this amount being
secured by &clean first mortgage over. the
. whole Of the propertyso of the company. a,a,
Under the provisions of this aot Of the
General Assembly, the. necessary bonds
were prepared, and the company have sign
ed contracts for the. rebuilding of the road
through to Savannah by january 1st, while
it is expected that the river will be reached
and communication opened by that route as
early as the 1st of Ootobsar:u So far, ID an
aswer to those who said that the company
wouldinot be able to make arrangements
Tor reopening their road, and that one oail
for help would be followed by another eryiu until
the State pocket and Legislative patience
were alike exhansted.;u s..A.c f,. .ies., i
Another objection was that the holder
Of the bonds guaranteed BY tks State would
be Injured by the depreciation OF their
bonds which must follow the action Of the
State In allowing them to be overriden by
anew first mortgage. Our position was
, that these bonds were not secured BY any
mortgage Whatever, that the stasuto v mort
gage was to secure the Stats OF r,iarantor.
and that the bondholders = must Oh "a. rs.,. nav.
ment to the Stasel' alone, This:9visw Was
sustained by the highest aathoriti es, and
the new loan has been created. And what
t is the result ef, the whole movements The
n bonds guaranteed by the State which were
II TO be made wofthless) are now selling at
60 instead OF 40, the stock (the old second
mortgage) is selling at 20 instead OF, s. and
), the new first mortgage bonds haye been
talken BY the contractors at 3d. Nor should
:. this rapid appreciation d1 value be the
cause Of surprise. The road before the
. war cost at least three million Of dollars.
When completed To- Savannah, it will have
100 miles Of road we'll built and in rood
order, worth at least two million, whils the
whole bonded debt Of the company will be
NO more than twelve hundred and ffty thou :
, sand dollars The frst mortgage bonds for
I half o million are secured by four fsnss
! that amount. The guaranteed bonds are
secured by the State. And the stockholders
have at least seven hundred and Afty
thosuand dollars in property 90 security
i for their capital. These Agurss are suf-
: hcisnt 70 jastify our COURSE, and to preve
that tho plan adopted was that which was
: best for Che State. best for The bondholders
ana stockholders, and best for the public as
large. -4.JS..s.T
The opening Of The road throughout will
) encourage oomtnmnnicatioa m bstHssA Caarlss-
II ton and Savannah; ~ will give nav. HE 10
: the distriets which Il travssses, and bring
fFe I vs. VIZ ~, ~ ~