Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1871-03-17
The Governors NeNsOns for Sign
~ ing the consolidation Esjli.
STATE OF SoUTu CAROLINA, J
EXEcUTIvE DEPARTMENT., )
COLUMBIA, March 7, 1871.

~ hsNAAhnt CIV AAaFIuS ~ ull ettAeS pCISlS-
tently and earnestly opposed any measures
iof the State, deem it not inappropriate to
, communicate my reasons to the General AS,
sembly for approving an sAot to promote the
,andk Blue Ridge Railroad Company, as the
public 10 regard to it, which in my opinion
will complete, without the addition Of sin.
glo dollar to the public debt, an enterprise so
importantto the interest of the whole State,
as the perfection Of our railroad connection
with tho West. 1t has been long evident to
all thoughtful and practical men, that the
.Greenyile and Colunbis Railroad, and the
Blue Ridge Railroad, being identical in iu-
tercst, should be under one efficient aud eco
nomical ADMINISTRATION. While they are
both in their present condition embarrassed
IN 6udipg the means to prosecute vigorously
the work necessary to their success, it is, |
think equally clear that their combined means
eau achieve tho completion of their common
purposes
The act before me proposes simply to allow
them, upon fair aud equal terms, to combine
their resources.
Ip postponing tho statutory lien of the
State, for the endorsed bonds of the Green.
villo Railroad, cannot feel that | am consent.
ing to abandon any real security on the part
Of the State, as this road has only paid the
interest on debt, almost equal to the com
.bined liability of the States endorsement
end the second mortgage bonds At the
same time it has been compelled to cxpend
an ( extraordinary amount Of i,s income for
repairs, which for the want of iron, had to
be almost daily renewed, coupled with the
destruction of rolling stock, aud damages for
tho loss Of life and property. II is rendered
absolutely certain that when the road is put
in proper condition, with the necessary means
to- do tho business Of the country through
which it passes, it will not only be ahlc to pay
the interest on both classes Of bonds, the az.
gregate of which is less than $4,000 to the
mile but will have surplus, that may be
applied to tho payment Of the interest on the
Blue Ridge bonds, while the road is in pro.
cess oficOnstructiOn.
l5In reference to the Blue Ridge Railroad,
by an examination of the several acts, it will
bo seen that the only change which has been
made is to give the bondholder the first lien,
and the statutory lien Of the State tho SEQ
ond, by which it is secured as etFoctually as
1t was in its original status. The necessity
for this legislation will be recognized when
it is known that one of the principal dilIcul
ties in the way of the negotiating for the sale
Of these bonds, the mortgage executed
aud placed on record in the States
through which tho road passes, viz: South
Carolina, North Carolina, Georgia and Ten
ness6e, to Messrs. Gourdin, Cameron g. Ccws,
as trustees, by its priority of date, was made
to be first mortgage on the property of the
road, while the act authorizing the endorse
wentg gave the State first lien. This was
made cause of objection of those who were
disposed to accept the negotiation of the
bonds the purchaser was dcsirous that his
security should be a first lien on the property,
so that, on failure Of the company to meet
their obligations, the holder of the bonds
could make claim against the road and not
against. the State, as they could do nothing
in, the courts up against the State, while they
could enforce their claim against the ncor-
poration. Thus it will be seen that it be
eap1e absolutely necessary that this difficulty
should be. corrected, AS to the other CHANGE
Of tho laRsofs 1858, whereby it gives the priv.
ilege Of negotiating the bonds at tho market
value, instead Of being restricted to selling at
Har;g pvery,o must SEQ That it was almost
;pbrmanent bar against the negotiation of tho
bonds upon their. merits 10 havc}done 30,
she company would have been forced to adopt
q species,of sharp practice, by selling the
bonds at par, and comp pensatng the purchaser
by commission, for the difference between
their market and par value, which, inevitably
placed theFcompanyata disadvantage in any
negotiation they might attempt to make with
coFseot business men.
when these roads have been consolidated, !,
there will be one great road running from the
oapi@ Lof stho State, completing the western
eonngStiVn and promising a. certainty of
rogepue which can hardly be exaggerated. At
present, both of these roads arc obstructed in
their efforts, BY the fact that tho one is in,
complete and the other not in condition to
transact its large and increasing business with
yigor and dispatch. Consolidated, they will
90 into the credit market of the world with a
completed road of moro than, two hundred
miles, pnda with d line OF about one bundled
aud forty additional miles to be constructed
passing. through al country unsurpassed in all
that make material prosperity, and by a
ffienaly combination with the South Carolina
Railroad Oompauysgby which its moral sup!
port will be secured, completing connection
between, the Atlantic and great West at a
cost cphtfasting most favorably with other
lines leading from the interior to the sea.
board, titus; alfliing the hope and effort
OF the State for more than one third Of con-
tufyl b Il Wonld feel myself oriminally indif;
forSns TO tho interest of, both tho Blde Ridge
,Railrpad and the peopleof the State, were I