The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-12-10
The Blue Ridge Railroad.

The Board OF Directors, in their annual
report Just published, notice in genera
terms the settlement effected with Creswel
& Co., the defaulting contractors, by mutua
consent, and then pass to review OF what
has been done in the direction of completing
the road. AS first step they made con-
tract in February last, with Mr.. Thomas
Steers for thu work on the line from Wal
balla to the North Carolina boundary, en-
bracing large proportion Of heavy grading
and tunneling. They then pass to the
financial problem, and say:
latter dlllgent inquiry in New York, Mcssrs.
Henry Cews Co., and Mr.. Il. Il. Nmpton, were
constituted agents for the company, with lnstruc-
tions to inquire and report upon the practcaoiity
of an early and satisfactory negotiaton.of a por-
ton or all OF the State guaranteed bonds OF the
company.
SIN April, these gentlemen reported their belief
that sale could be effected In Frankfort, Ger
many, OF the entire four millions OF bonds, at
such rates as the company could accept, and ad.
vised prompt preparation OF said bonds and
their delivery; the earlier preparation Of these
bonds having been prevented by causes to which
reference has been made In former report.
"Whie the president was diligently engaged in
the execution OF the bonds, and procuring the
signature OF the comptroller general, who inter-
posed no delay, certain taxpayers OF the State OF
South Carolina Instituted legei proceedings for
the issue OF an injunction against the said com.
pany and the said comptroller.general, before
Judge Melton, and obtained temporary order
therefor The case coming up to be heard regu.
larly upon its meri's, the judge decided In favor
Of the rights OF the company and issued his order
dlsselvng the Injunction and dismissing the CON-
plant. An appeal from this decision was threat
ened, which caused further delay OF sixty DAYS.
.'At the expiration OF this tlme further pro-
ceetings on the part OF the complainants having
been abandoned, the execution OF the bonds was
completed, and the bonds were forwarded to New
York, too lare. however, for the company to ben.
eft by the negotiation which had been commenc-
ed, as the incer:!on Of the existing European war
had entirely arrested the sale OF American rail-
road securities.
.sThe Board or Directors are reliably informed
that no such sale has been made since, or can
,aoD be negotiated.
.At meeting OF the Board of Directors, held
in the City of Columbia, in August last, Hon.
James L. Orr, General VIM. Quincy, and the
president, were appointed a committee to visit
the City OF New York, and authorized to sell a
portion OF the said bonds, or finding that imprac-
ticable, to negotiate lean OF five hundred thouS-
and dollars, by hypothecation, to meet the press
Ing financial necessities OF the company. The
committee soon found that the sale OF the bonds
was impracicable, for the reason already stated.
After much labor and decay, the committee, how.
eyer, succeeded in negotiating small loan Of
fifty thousand dollars TO meet estimates then due,
and other current expenses. with the, promise on
the part OF those with whom they had negotiated,
to make further advances from time 70 time, until
the bonds could.bc sold or the company should
make other arrangements.
:. ION the 10th OF September, 1870, when the
president and General Gurney had left New York
on their return home. Mr.. Thomas Steers, the
contractor. without cause and without notice, in
stltu,ed certain proceedings against the executive
committee OF The company and their financial
agents, claiming relief under his contract, and
the appointment of receiver Of the bonds and
assets Of the company.
s.Those bonds which the committee failed to
negotiate were left in the possession of Mr..
Henry Clews, who had been appointed one OF the
trustees under the mortgage, for his signature as
such trustee, portion thereof heing hypothe-
Gated under the authority referred to above, to
cover loans made by him Ind Mr.. kimpton."
This account OF the attempt to negotiate
the guaranteed bonds OF the company, dill
fers materially from the version previously
in circulation. Three million dollars out
of the four million which the State guaran-
tees, are not 10 be used unless three million
dollars in currency, "or as much OF that
"sum as shall be necessary" shall be fur
nished "in exchange or upon the security
"of said bonds" The mode OF operation
is said TO have been this: One million dol
lars of bonds upon which there was no lin
itation Of price, were TO he sold, aud the
money so realized was to be used in making
up the difference between the market price
of the remaining three millions and their
par value. This pretty plan, however, fell
through. We suppose it was purely on ac-
count of the "inception of the existing
!" European war"
The board state that the new surveys re-
duce the cost Of completing the road and
will lead toa considerable saving in distance
The trains on the road have run with regu-
larity ana safety, and the gross income has
increased steadily. In regard to connecting
roads, and with regard to the debt and liza
billties of the company, the board say:
"The corporations formingthe connecting links
in the States Of Georgia, North Carolina and Ten.
nessec, still preserve their separate organization
The proceedings Of the annual meetings and or
ganization OF The B!ue Ridge Railroad Company
tGcorgia,) aud Of the Tennessee River Railroad
North Carollna.| accompany this report. 1t would
be judlc!ous for the Blue Ridge Railroad Com.
pany, In south Carolina, owning the controlling
stock IN each OF these corporations, to effect a
legal consolidation as scon as possible, and for
such purpose application should he made to the
: Legislatures OF Georgia aud North Carolina for
the necessary legsl ,tlon. The Knoxville and
Charleston Railroad Company, in Tennessee, Is
asother connecting corporation, the condition OF
which calls for immediate attention. The means
for ret ing the line OF the State OF Tennessee Cn
that part Of the road now in operation, should at
once be looked 10. aud the board would recon-
mend that memorial be addressed to the Leyls.
lature Of the State OF Tennessee for aid in that
matter. 1t may be proper TO add here that the
citizens along the line OF the road iu Georgia have