The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-08-12

shos illegally "used.'' The ACT OF 1854
fdsclases that ! in ouch case the engage
mont Of the StatH shalli be void. The
Act OF 1868 contains this proviso;7in
different words. But with the: sameSin-
tent. and under Abe rules governing the
constitution Of statutes ein pdri naalsria,
we think that the penalty affixed to a
violation of the proviso of the Act OF
1854 equally applies to violation OF the
Aot .of 1868.
By the resolution OF tho Tax payers
Convention, We are requested, ''if it be
practicable, to take such steps as are no
cessnry to prevent, by due process Of
law, the contamination of this fraud
upon tue property y'holders of the State"
We do not regard resort to legal pro-
cesH as now practicable. The greater
portion Of the bonds have been already
pledged, and the residue have been de-
sgnediy placed by the President. ns he
himself states, where process of injnnc-
ton cannot affect them. Nor is process
0: lag available TO recover the bonds
from the parties to whom they are
pledged. The liability OF the State on
these bonds is question to be decided
when payment Of the bonds Is demanded
from the State. But while we regard
legal proceedings as impracticable, some
action is, we think. necessary to protect
the State against tho evils already exist
ing, and to arrest others of even grenter
magnitude. A scheme is now projrc,ud
which we regard as more. dangerous 10
the interests Of the State than any which
has yet been under consideration.
Articles OF agreement have been exc
cuted, or are under consideration, by.
which the stock hold by the Stnta aud
city'in the Blue Ridge Con,pap is to be-
transferred to an association which is to
take charge cf the work aud complete it.
ln the event OF the successful compile
ton Of the road, Sac, 900 is to be pnil
to'the State In five annual instalments.
# unsuccessful, nothing il to be pnid,
and the stock returned. The stock held
by the State and city amounts, par value,
to about 81, 800. 600. The $4,000, 600 Of
bonds are also to be placed in the con-
troll Of the association. and with the re-
striction removed by tho Act of 1871, as
they maintain, the bonds can be nego-
tiated at any price they please. Who
compose the association is unknown. It
is Rt present represented by Mr.. G.. s.
Cameron, the trustee Ito protect the
bond-holders, and Mr.. Steers, the con-
tractor to build the road. This is in it.
self anomalous and Objectionable, for it
ls the union. in the: same association, OF
interests which are antagonistio, and
should be kept separate. When the
trustee to protect the bonds becomes the
party to receive tho benefit Of the bonds,
the position is. to suy the least. not con
duoive to rigid impartiality. If this ar.
rangement Is consummated, the city ard
State will havo parted with oil control
over the enterprise; they can exercise
no discretion as to who shall receive or
disburse the funds, or how they shall be
expended; they cannot elect director,
or be present at a meeting, or Investigate
the affairs Of the company, or even ask
for information. They will have turned
over the road and its property aud
81. 600, 900 of bonds to IN unknown as
sociation. Who can tell whether the
money will be spent on the road at all
and If it is not, where is the remedy
Supposeit is not; then the State is liable
on the bonds. and has as security IN un-
finished road. But suppose that the
money is honestly and judiciously ex-
pended and tho road built. The con
troll of the road is in the hands of IN
association who have built it with State
money. How will they control it2 In
Iho lutcTcSt pI Tue Olat6 Or against IL
Who can tell? On oil these POINTS, 30
important, the agreement is silent-no
guarantee Of any kind is given. If con
trolled against the State. we are power
less to prevent it. The utter loss of
"a, 900, 900 would be hard to bear; but
the active employment Of $4,000 OF
State money to divert trnde and com
merco from tho Stnto would, bo still
harder to bo borne. It is certain that
the association is to get the stock aud
$4,000, 900; everything else is uncertain. /.
The proposal Of the association to the
State in fact, is: Give liz your road and
$4,000, 900 of bonds. II we succeed,
the profit shall be ours; il we fail, the
loss shall be yours. Such plan seems
to Us fraught with ruin. The true rene
dy for this aud tho other evils is, we re-
spectfully submit, for the executive COM
mittee and the citizens to memorialize
the State and city authorities not to part
with the stock and assets OF the road,
but to retain them in their own hands
exercise tue power which they possess,
reform the present administration, and
place the road in charge Of those whose
integrity and ability will insure Judi