The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-02-23
SOdhtfTEE ltUOhSt
COLUMBIA, S. c., February 81, 1877

under concurrent RESOLUTION ol the General ASSEM-
| bly, to investigate the affairs OF the Blue Ridge
| Railroad Company, beg leave to report:
That they have discharged the duty assigned
| them and submit herewith the accompanying
| statement.
Your committee met at the Office OF the COM
pany, In this city, Wednesday, February &c. 1870.
They were courtet usly received by the presi.
| dent General j. w. Harrison, the chief engineer,
Colonel J. p. Low dby the members OF tile EX.
ecutive Committee, his Exce.ney Governor K.
K. Scott, Hon. James L. Orr, Vim. Gurney, ESQ.,,
| J. II. jerks, Esq. all OF whom were present.
The committee, In the outset, desire to express
| they were received, and the readiness and dis
position cvlnced by the officers Of the company
and the members uf the Executive Committee to
facilitate your committee In the object OF their
visit, and meet the wishes OF the General AS
semby.
The committee found the records Of the COM
pany carefully kept, embracing minute detail
OF tie work, its history, the reports of its former
and present officers and engineers, also the pro-
ceedings OF the Board OF Directors ana Executive
Committee, together with oil the facts and infor-
| NATION relative to the contract with Crissvcll 4
Co., and the causes which resulted In the rescind-
| Ing Uf the contract.
After careful examination or the records OF the
proceedings OF the several meetings Of the Board
of Directors and the Executive Committee, held
at Charleston anu Columbia, your committee fully
concurrcd i'm tho opinion and request of the stock
holders aud directors, that the proceedings, in
Guiding the annual reports OF the president and
| chief engineer, should not be published until q
final adjustment OF tile contract with Crlssrell u
| Co. was made. The committee also find that an
other reason why the annual reports to the Gen.
eral Assembly have been delayed, Is that the COM
pany have had In the field, for the 'lS. two
months. corps OF engineers running an expert
mental line. which, 1t is believed, will avoid oil te
| tunnels in South Carolina, cross the Blue Ridge,
or Stump House Mountain, with tunnel Of hut
three hundred feet in length, be saving Of two
miles In distance, a great saving VI time and a
ntr,tn IN
clement weather, the report of this corps Of engi-
neers has been delayed, the company being de-
slrous to include statement OF this new survey
in their proceedings. The committee, however.
are pleased to state thatall the reports and pro-
| ceedings are now being prepared for. publication
In pamphlet rorrn and, 1t Is hoped, will be ready
to be laid before the General Assembly prior to its
adjournment.
THE FAMOUS CONTRACT.
Your committee, however, directed their prin-
cipal inquiries Into the lacts and particulars con-
nected with the award and resembling OF the con-
tract with Crlssvell & 20. Alter hearing the eX-
plantations made by the executive committee and
officers OF the road, your committee were fully
warranted In Withdrawing from that contract
and eirecting compromise by which the compu-
ny, at the prices fosyhich the work can now be
let, save 1t least ono million four hundred thohs
and dollars, chiefly by the great decline In the
price OF gold, aud tile prices at which labor can
be obtained, and the prices also at which iron and
other materials can now be purchased. As o fur
ther explanation OF this great difference the at
tenti0n OF your committee was directed 10 the
price OF gold in,July last when the contract With
Crssvcll 4 Co. was made 1t then being at one hun
lred and thlrty.sX and the present price Which
Is one hundred and nineteen or twenty. Thls de-
cline OF ITSELF tile officers and members or tile
executive committee claimed, Effected saving
to the company OF at least fifteen per cent.
Your committee, with view 10 bring to the at
tention OF The General Assembly more fully and
particularly all the facts and details connected
,yf In mn bil
accompanying documents including report OF
Hon. James l.. Orr, chairman of The Executive
Committee
THE COST OF mur WORK.
rru,,, ru,- ryr,,rrr.nrion made 10y yUue---.
tee II appears that Crlssvc & Co., In their COIL
tract undertook 10 complete the entire road; 10
make 1t ready for the rolling stock. and receive III
payment, at the prices named III their contract,
the bonds of the company ut par, and for reasons
which are fully set forth In the above report a.
luded to, OF the chairman Of the Executive Com
mittee CrisSvcll Go. also undertook to advance,
from their own means, within the first eight
months, to the Blue Ridge Railroad Company,
one million OF dollars Your committee, after re-
viewing all the circumstances connected with
consideration OF the prices vt which the contract
was awarded Crlssvell & Co.. especially consider
ing the price OF gold, the cost or materials, price
Of labor and the further fact that they were to be
paid In bonds at par. and which, Mt that time, 1t
is known, could not have been sold for more than
eichty.ave cents on the dollar feel compelled 10
say, that the prices, In their Judgment, were Mt
least not eXtravagant. 1t was, however, shown
to your committee that the company were not
disposed to eypend four millions or bonds on the
work, without providing securities OF similar
character for the whole cost Ul the road, anu Ut
that time 1t was proposed to ask the General As.
senlbly for an additional guarantee to that
amount. This made 1t necessary lor the company
to keep within Its control the issue OF the four
millions OF bonds, until such time as some action
could be taken by the General Assembly. The
failure Of Crissyell & Co. to expend large
amount upOn the work was . severe olsappolnt-
ment TO the company.
The intended application 10 the General Assem-
biz was rendered, premature and injudiclous, un-
less the company were able tO show large
amount OF work donc and certainty that these
contracts would complete the entire roadln the
space of two years.
Prom nil the facts and evidence before them
your committee are satisfied that the Executive
Committee, In making the contract with Crss-
veil & Co. acted with the usual clrcumspccti0n
and good Judgment, hut could not guard against
the rapidly Occurring contingencies or nuctua-
lions In the h
ana continued low prices Of state securities In
Lie great money markets.
A TREMENDOUS SAVING.
The great advantage which the company Will
reap by the resembling the contract WIN Crlss-
veil < Co. Is shown In the negotiations now ma.
from Tahnlla to the North Carolina line, dis
tancc OF about tlirty.lvc miles, including the
corIhworks tunnelllng and masonry ut prices
fnr below those stipulated for In the Crissyel
contract Even on that portion or the work the
saving will be nearly two hundred thousand dol
lars: and, taking that as basis, the chief engi-
neer expresses the opinion that, at the same
rates. the saving on the whole llne a. tile present
rates Of geld, would be one million four hundred
thousand dollars; and should gold decline 10
mar with currency, the saving then would be Or
teen per cent. more.
In this connection your committee would state
that Mr.. Steers comes highly recommended as an
old and experienced railroad contractor by some
or the weathIest capitalists and directors OF
Northern railroads, "lth WHICH MT. steers was
connected as contractor.
Accompanying this report, the committee sub
NIT n statement OF bonds Issued under act Of the
General Assembly, September, 1865.
TIE WORK or TIE PRESIDENT.
Your committee after q patient and laborious
examination OF all the records of the company, do
not hesitate to express their high appreciation Of
the zeal and management OF this great work by
the nresident. Geaeral j. w. Harrison, and The de-
yoliun he has exhibited in his unwearicd Efforts
10 push II forward to completion. They also take
pleasure in tcstiiying To the energy and abilities
of the chief engineer Colonel j. p. Lowe, as uaDl-
tested by the elaborate reports In detail OF the
workings OF his department. The committee feel
assured that the officers Of the company and the
hoard OF directors have display Ell u ommendaDle
zeal I'm the prosecution OF tile work, and they can
not but express the hope that they will receive
that announcement from the General Assembly
which will inspire them with renewed energy and
confidence In pushing forward to completion
work which must he ol SO much permanent ad-
yantupe to the State at large, and which it has
been the highest wishes and ambition OF some OF
its Yisest men and statesmen to complete. The
eommittc tee aSk 10 be discharged.