The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-03-16

75 the Honorable, the House of Representatives
GEErLEMEE: Having at all times persisMnt
ly and earnestly opposed any measures tending
10 increase the debts and liabilities of the Stlte
deem 1t not inappropriate to communicate
nay reasons to the General Assembly for ap-
proving an "Act to promote the consolidation
Of the Greenville, Columbia and Blue Ridge
Railroad Company" as the criticisms on that
bill tend to mislead the public in regard to it,
which in my opinion will complete, without the
addition of single dollar to the public debt,
an enterprise so important to the interest of the
whole State, as the perfection of our railroad
connection with the West. 1t has been long
evident to all thoughtful and practical men,
that the Greenville and Columbia Railroad,
and the Blue Ridge Railroad, being identical
in interest, should be under one efficient and
economical administration. While they are both
In their present condition, embarrassed in find
ing the means to prosecute vigorously the work
necessary to their success, it is think, equally
clear that their combined means can achieve
the completion of their common purposes.
The act before me proposes simply to allow
them, upon fair and equal terms, to combine
their resources.
In postponing the statutory lien of the State,
for the endorsed bonds of the Greenville Rail-
road, I cannot feel that am consenting to
abandon any real security on the part of the
State, rs this road has not only paid the inter-
est on debt, almost equal to the combined IL
ability of the States endorsement and the sec.
ond mortgage bonds. At the same time it has
been compelled to e1pend an extraordinary
amount of its incomess for repairs, which, for
the want of iron, had to be almost daily re-
newcd, coupled with the destruction of rolling
stock, and damages for the loss of life and
property. It is rendered absolutely certain
that when the road is put in proper condition,
with the necessary means to do the business of
the country through which it passes, it will not
only be able to pay the interest on both clas-
ses of bonds, the aggregate of which is less
than $4,000 to tho mile, but will have sur
plus that may be applied to the payment of
the interest on the Blue Ridge bonds, while the
road is in process of construction.
In reference to the Blue Ridge Railroad, by
an examination Of the several acts, it will be
seen thatthe only change which has been madei
to give the bondholder the first lien, and the
statutory lien of the State the second, by which
it is secured as effectualy as it was in its origi-
nal status. The necessity for this legislation
will be recognized when it is known that one OF
the principal difficulties in the wayof the ne
gotiating for the sale of these bonds, the mort
gage executed and placed on record in the
States through which the road passes, ylz;
South Carolina, North Carolina, Georgia and
Tennessee, to Messrs. Gourdin, Cameron &
Clews, as trustees, by it's priority of date, was
made to be first mortgage on the property of
the road, while the act authorizing the endorse
ment gave the State a first lien. This was
made cause of objection by those who were
disposed to accept the negotiation of the bonds
the purchaser was desirous that his security
should be first lien on the property, so that,
on failure of the company to meet their obliga-
tions. the holder of the bonds could make a
claim against the road, aud not against the
State, as they could do nothing in the courts as
against the State, while they could enforce
their claim against the incorporation. Thus it
will be seen that it became absolutely necessa-
ry that this difficulty should be corrected. AS
to the other change of the law of 1868, where
by it gives the privilege of negotiating the
bonds at the market value, instead of being re-
stricted to selling at par, every one must see
that it was almost permanent bar against the
negotiation of the bonds upon their merits.
To have done so, the company would have been
forced to adopt species of sharp practice, BY
selling tho bonds at par and compensatlng the
purchaser by acommission, for the difference be-
tween their market and par value, which inevl-
tably placed the company at disadvantage In
with correct business men. :.
When these roads have been consolidated,
there will be one great road running from the
capital Of tho State, completing the western
connection and promising certainty of rev.
enue which can hardly be exaggerated. At
present both of these roads are obstructed in
their efforts, by the fact that the one Is incom-
plete, and the other not in condition to trans.
act its largo and increasing business with yigor
and dispatch Consolidated, they will go into
the credit market of the world with compile
ted road of more than two hundred miles, and
with line of about one hundred and forty ad-
dtional miles to be constructed, passing through
country unsurpassed in all that makes mate
rial prosperity, and by friendly combination
with the South Carolina Railroad Company, by
which its moral support will be secured, com,
pleting connection between the Atlantic ana
great West at n cost contrasting most favorabiy
with lines leading from the interior to the sea-
board, thus fulfilling the hope and effort Of the
State for more than one-third of a century.
would feel myself criminally Indifferent to the
interest of both the Blue Ridge Railroad and
the people of the State, were to fail in sup
porting any measure that would complete this
great enterprise, and thus leave the public with,
out the advantage of this important road, and
to entail upon them the certainty of having to
meet eventually the interest and principal ofat
least a portion of the bonds endorsed for that
purpose. @ Whatever the opinion of individuals
NAV n be as to the policy of consolidation, the
advantage to be derived from giving to the Blue
Ridge road hundred and sixty-four miles of
completed road, am satisfied that all practical
business men will concede the fact, that this
acquisition will give more strength and value to
be used for the purpose of raising the necessary
funds, than even the endorsement of the State
itself would even, were it possible this time,
be willing to see the bonds endorsed by the
State cancelled and withdrawn from the mar
ket, and have them replaced by q first mortgage
bond on the Blue Ridge and Greenvil!e road
being encountered by a first mortgage, securing
~ SSl..aal La,,d L.r tho State and vested