The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-03-01
l;>)EUMBIA, AZ, IS 81 r c..
Wednesday = .Mornine 4 ,s1Earch i 1871.
The Blus Ridge f.a,lroai.

yoStoIuhys WSof pAaoVolAsy VIZ EoJccsioh
OF Mr.. Whittemore'a bill. cancelling the
State endorsements On tho Blue Ridge
Railroad bonds. This 10 gratifying. be-
cause: first, the Blue Ridge Railroad is
an enterprise in which nearly every citi-
zen of the State. from the mountains to
the sea-board, is deeply Interested; and,
second, because-if the enterprise was
not one of such general interest the
faith. of the State was pledged, and the
passage of the bill would have been re-
pudiation, pure and simple-a measure
which we wonld dislike to sec inaugu.
rated. Mr.. Tresoott, in his able letter to
Senator Wilson-whioh we append
brings forward many important points
touching the legality of this proceeding:
BLUE RIDGE RAILROAD,
SoIuUroR's OEF1oE, Feb. IS, 1871.
To Hon. John Wilson, State Senate.
Dean S1a: 7 have received copies OF
the bills which you sent me, and regret
very much that the President of the
road was not allowed, before their intro
duotion, an opportunity to correct the
misapprehension under which they have
evidently been introduced. For, allow
ing that the motives which suggested
them were the purest and most patriotic,
feel sure that q knowledge of the con-
dition, both Of the road and the COM
pany. would satisfy those most anxious
to adopt them, that such legislation is
both unnecessary and impossible.
AS 1 understand, the enacting clause
OF one of the bills was stricken out, and
the other amended, SO that the following
section comprises the whole legislation
proposed:
'.That the endorsement heretofore
made by the Comptroller General upon
the contracts or bonds of the Blue Ridge
Railroad, under the Act of September
Is, 1868, be, and the same is hereby,
ordered to be retired and cancelled.
'sThat. to recover the bonds Of said
company, now pledged in the city of
New York, the sum of $4OO. 900. if so
much be necessary, be, and the same is
hereby. appropriated, and the Treasurer
isauthorized and required to redeem and
cancel the same"
And, as the justification of this legisla.
ton, the preamble of the bill reoites the
following facts: "Whereas the faith and
funds of the State were pledged, upon
express conditions, which have not been
complied with; and whereas it has been
found impossible to negotiate q sale or
hypothecation of said loan, either to the
United States Government or private
capitalists; and whereas only 81, 100, QUO
of said bonds have thusfar been pledged
as collateral security; therefore, be it
enacted" &C.. SO.
Allow me to examine each of these
facts in it's order.
pany with the conditions of the endorse
ment.. On the 18th September. 1868.
the Act was passed authorizing the
endorsement of $4, 600, 900 of the bonds
of the company, by the Comptroller
General. But, by reference to the ACT,
you will perceive that O distinction is
made between the fret $1,000, 900 of
these bonds and the remaining So, 3,OOO,-
900. The issue and endorsement of the
first 81 % 1000 had been authorized by
previous Act, that of 1854, upon GER
tain conditions. The Act Of 1868 simply
recites that whereas the Comptroller
General of the State has not endorsed
any Of the bonds issued by the said Blue
Ridge Railroad Company, in South
Carolina, under authority of said Act
(l854;) and whereas the conditions i'm
posed upon said endorsement by said
section have become impossible and in
judicious, while the completion of said
road has become more urgent in the in
terest of the State; therefore, be it
enacted, &C., "witlom reference to the
said prouisos and conditions, whenever
any contract or contracts may be made
by the President of the said company
under its seal, and as provided by said
Act, and not exceeding $1,000. 900, it
shall be the duty of the Comptroller
General to endorse thereon that The faith
md funds of the State are pledged" &c.
Section L, Act 1868.
The Act then proceeds to authorize a
like endorsement OF ''an additional
amount, not exceeding $4,000, ,OCO," and
to this additional endorsement itannexes
tho condition that "the said bonds, or
any part thereof, shall not be used unless
upon the express condition that upon
application to Congress of the United
States, or to private capitalists, the
amount Of So, ,O0O,O00 in currency, or SO
much OF the same as may bc necessary,
shall be furnished in exchange, or upon
security of said bonds" Now, think.