The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1870-03-04

| Noo "a 'ho Sohapany 10 % eT oUtctO
members, and at the same time Judge
James L. Orr, Mr.. Joseph II. jerks
and General VIM. Gurney were unan-
imously elected.
at meeting of the Executive
COMMITTEE, held at Columbia, Decem-
bia, December 3, 1869 - Present: |:
Judge James L. Orr, Mr.. Joseph H.
jerks and General VIM. Gurney-the
following resolution-"Resoived, That,
in view of the unexpected difficulties
which have arisen to embarrass the
prosecution Of the Blue Ridge Rail
Road Under the contract with Cress.
well & Co., the Executive Committee
be instructed to confer with the con-
tractors in reference to resembling the
contract on terms just and equitable
to both parties"-together with the
resolutions of the Board of Directors
and Stockholders at the annual meet
ing in Charleston, which was referred
to this Committee, and, being under
reconsideration. Judge Orr moved the
following report, which was adopted,
and ordered to be submitted to the
Board Of Directors:
REPORT.
The Executive Committee, to whom
was referred the following resolution,
to wit:-Reso'ued, That in view of the
unexpected difficulties which have
arisen to cmbarrass tho prosecution of
Tic Blue Ridge Rail Road under tho
contract with Cresswell & c., the Ex-
ecutive Committee be instructed to
confer with tho contractors in refer
ence to resembling tho contract on
terms just and equitable to both par
t'es"-rcspcctfully report:
On the 9th day of August, 1860, a
contract was mado with the Blue
Ridge Rail Road Company by Messrs.
Cresswcll & Co to construct the road
at price WEIGH, according 10 the es-
timation of the Engineer of the same,
was not to exceed the sum Of eight
million seven hundred thousand dol
lara, s8,7o0,O00) When that contract
was made gold was worth Iae.
On their part tho contractors agreed
to place to the credit of the compa
ny, on the first day of September,
1869, three hundred thousand dollars,
to be used in liquidating the bonds,
coupons, and floating debt of the
Company. Before that date they no.
tilted tho President that he could
draw against that sum.
The said parties also entered into
contract with Mr. Thomas Steers to
do tho work, but q very small portion
OF the work had been performed, as
the sequel will show when tho con.
tract was annullcd.
The contractors undertook to exc.
cute within eight months from the
date of their agreement not less thar,
ssesveh hundred thousand dollars worth
OF work, which amount they agreed
to advance, taking only as collateral
an equivalent sum in tho bonds of the
Company, with tho understanding
that the said bonds were not to be dis
posed of without the conset of the
Company, until after the meeting of
the Legislature. The great induce
ment to mako such a contract was the
fact that the engineer having reported
that the cost of construction would
be between eight and nine millions of
dollars that an absolute safe Of any
portion Of the bonds necessary to
carry on the work until the meeting
of the Legislature would have pre-
vented that body from authorising by
an amended Act, the .issae of sufi-
cient number Of the same class of
bonds, to wit: First mortgage bonds
to complete the undertaking. The
Company werc fully convinced that if
the road was to be finished it could
only be done by State aid through
guaranteed bonds, and that DISPOSE
tion absolutely of any of tho four mil
lions would have compelled the Leg.
islature in granting additional assist
ance to issue second class mortgage
bonds,. which would have materially
detsriorated in value and unnecessa.
rily injured the interests of the road
and of the State. Hence tho object
of the agreement with Messrs. Ctess-
well d Co was to compel on advance
by them of seven hundred thousand
dollars worth for work for work done,
in addition to the three hundred
thousand dollars first alluded to, and
thus save to the Blue Ridge Rail Road
Company all Of the original bonds to
tha end that when the Legislature
took further action in the mstter, the
additional issue of. bonds requisite tc
complete the road might. be of the
same class, 90 " .''
Up to- the 9TH Of December, the
| on h ofnr rnIo~ M.o...