The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-02-14
Orr1cE GRERNv1Ens AND CoLuMBrA
.oE - RAILROAD COMPANY,
CoIuMpIA, February l3, 1859.

O1. OI his EACelienCy Lno dOVeruOrs 10 Cne
Senate, giving his reasons for withholding
his approval Of the ''Act to re enact certain
Acts lending the name and credit of the
State to the Greenville and Columbia Rail
road Company, and to validate the action of
the said company hereunder" The account
given therein of the condition of the affairs
of the company, and the history and charac
ter of the debt which the State is asked to
guarantee, is so different from that repre-
sented to the Legislature by the company in
their memorial, and to the world in all their
annual reports, (being exactly the reverse in
every particular,) that feel it due to my
own self-respect, and my duty to the COM
pany which L have the honor to represent,
to correct the statements made, and to state
gain, 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 merely to state, in n condensed
form, the condition of the company; its
history and prospects. and the history of the
Act which has been returned to the Senate,
with the veto message Of tho Governor.
1t is stated in the message that in 1861,
an Act was passed authorizing the endorse
ment of the bonds of the company for
$500, ,OOO-SS0O, 900 of which sum was to be
substituted for bonded debt of tue compa-
ny of like amount-and 500. 900 to fund n
floating debt; which appears to be the only
debt due by the company outside their
bonded debt at that time.
In the memorial of the company, page 4
(of which the Governor and each member
of the Senate and House Of Representatives
were furnished printed copies last July,) it
Is stated: "In order to provide for the diff
ference 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, 1854, respec-
lively, having ten years to run, for $500, 900;
and in order to give them a higher market
value, on the 18th of January, 1854, they
executed to Charles NJ. Furman, as trustee,
c mortgage upon their entire property, to
secure their payment. They subsequently
issued their bonds, bearing date July, 1856,
and July, 1853, respectively, also having
ten years to run, for $6OO,0OO. There was
no mortgage or other lien executed to 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
desirous to complete the re-adjustment of,
was issued in 1852, SO, '54, 55 and '5S-
long before the war, and had nothing what
ever to do with the 'war--and that the debt
of $3.50, 900, spoken Of in the message as
floating debt, created during the war; and
which the State is prohibited from paying
by q constitutional provision, and an ordi-
nance of the Convention, is bonded debt
issued in 1855 and 1853. to complete the
payment of the cost of the road, and for
nothing else
The following statement will more fully
explain how the whole bonded debt Of the
company was created:
Cost of road, outfit and real
estate ....-.. 81, ,OSl 2l3 D:
Capital stock paid in. ~ 1,51O,374 81
Cost of road over capital stock
paid in. ..................S1, SIC, ,S3S 9S
Stock held in other railroad
companies. ....... SO,495 O(
Cost of road and property over
capital stock paid in.. 81, 651 1873 9S
10 meet this deficiency, the company is
sued their bonds rs follows:
Mortgage bonds issued in 1852,
% and o4. .:.......... $500. OO(
Bonds not secured by mortgage
issued in 1853 and '58. .... GOO,OO(
$1,4OO, OO(
The whole issue of bonds had ten year.
to run, and consequently fell due in 1862
'G3. ga, '65 and '6S.
! In the message it is stated that the com
pany has not paid one dollar of its debt
principal or interest, since 1861. On the
contrary, I state that the company never
failed to pay every dollar of its interest
promptly, on presentation at maturity, unit
after the termination of the war, and chal
lenge proof of n single instance to the con
trary. Since the war, the net earnings have
been applied to the restoration of the roal
and property destroyed during the war; ant
the payment of interest has been suspended
This course was for the interest of all con
cerned, State, bond-holders and stockhod
ers. because, rs the property increased il
value, the security for its debt was improved
and the road enabled to do a larger ant
more prosperous business in the future
Besides, this course has been pursued b,
most railroads in the South since the war
au1 70 tho a.