The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1869-02-25
of President Hammett,

To MESSAGE No. 81 OF GOVERNOR SCOTT:
vEToING THE BILL IN AID OF THE GREEN
VILE RAILROAD.
OFFICE GREENvILLE AND COLUMBIA
RAILROAD COMPANY,
Columbia, Feb. 13, 1869.
Mr.. Editor l have read the Message
No. 80 of his Excellency tho Governor,
to tho Senate, giving his reasons for with
holding his approval of the "Act to re,
enact certain Acts lending the name and
credit of the State to the Grecnvllle and
Columbia Railroad Company, and to val
;date the action of tho said company
thereunder" The account given therein
OF the condition Of the affairs OF the COM
pany, and the history and character OF
tho debt which the State is asked TO guar
antcc, is so different from that represent
cd to the Legislature by the company in
their memorial, and to the world in all
their annual reports. (being exactly the
rcvcrsc in every particular,) that teel 1t
tluc to my own self-respect, and my duty
to the company which [ have the honor
to represent, to correct the statements
made, and to state again, what are the
real facts in the case. In doing this, my
Intention is to be entirely respectful to
the Chief Executive of the State, and
,ncrclv to state, in q condensed form, the
condition Of the company, its history and
prospects, and the history CT the Act
which has been returned to the Senate,
with the veto message OF the Governor
1t is stated in the message that in 1861,
an Act was passed authorizing the en-
dorsement OF the bonds OF the company
for 5000, 900 of which sum was
to be substituted for Il bonded dcot OF the
company. of like amount-and SlOO,00O
to fund Il floating debt; which appears to
be the only debt due by the company out
side their bonded debt at that time.
in the memorial of the company, page
4. (of which the Governor and each mem
ber of the Senate and House of Repre-
sentativcs were furnished printed copies
last July.) it is stated: sin order to pro-
vide for the difference between the cost OF
the road and outfit. and the capital stock
paid in, the company issued their bonds,
bearing date from January, 1852. to
March, 1851, respectively, having ten
Years to run, for sS00,OC0; and in order
to give them higher market value, Oh
the 18th of January, 1851, they executed
to Charles NJ. Furman, as trustees Il mort
gage upon their entire property, to secure
their pavmeui. They subsequently, is
slc.l their bonds, bearing date July, 1853,
and July. 1858, respectively, also having
ten years to run, for S6O9, 900. There
was II. mortgage or other lien executed
10 secure the payment Of this latter class
OF bonds"
BY this it is shown that the whole
bonded debt Of the company, which they
are now desrous to complcte the re ad-
is,ment of, was issued III 1852, 50, 81,
50. aud '5S-long before the war, and had
noshinr whatever to dc with the war-
aud that the debt of $3.50, 900, spoken OF
il the message as u floating debt, created
during the war, and which the State is
prohibited from paying BY constitution
al provision, and an ordinance OF the
Convention. is bonded debt issued in
1855 and 1853, to complete the payment
of tho cost of the road, and for nothing
else
The following statement will more fully
explain how the whole bonded debt oil
the company was created:
Cost of road outfit and real
estate s3,GS1 1882
Capital stock naid in 1,510,374.54
0ea Stock paid in.......... 81 sss.9s
Stock held in other railroad
companies ...-......... oo,+S9.oo
Cost of road and property
over capital stock paid in. 81 ,65l ,333. .OS
To meet this deficiency, the company
issued their bonds as follows:
,5s. and '54.............. ssOo,ooo
Bonds not secured by mort
gaze issued in 1858, and '5S. 100000
S1,40O, 900
The whole issue of bends had ten years
to run, and consequently fell due in 1862,
'G3, 'G4, '65 and '6S.
In the message it is stated that the
company has not paid one dollar of its
debt, principal or interest, since 1861. On
The contrary, | state that the company
ncvcr failed to pay every dollar of It's in
1crcst promptly, on presentation at ma
turitv, until after the termination of the
war, and | challenge proof of a single in
stance TO the contrary. Since the war,
the net earnings have been applied to the
restoration of the road and property dc
.stroycd during the war, and the payment
OF interest has been suspended This
course was tor the interest Of all concern
cd, State, bond-holdcrs and stockholders,
because, as the property increased in
value, the security for its debt was i'm
proved and the road enabled to do lar
gcrand more prosperous business in the
tnlnrn EeSilnS this courSa las hcru