The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-08-10

( a fraud upon the Legislature. 1t could be as
well commended that the grant to. railway
company OF q right to condemn land with q
view of constructing railway, would author.
ize them to take the land and refuse to build
the road.
One of two interpretations must prevail
either the powers and privileges are absolute
grants to the respective companies, or they
are grants on condition that the companies
consolidate.
It is only by considering them as grants on
condition, that the act can be maintained as.
valid.
The title of the act is, san act to promote
the consolidation of the Greenvlle and Co.
lumbia Railroad Company and the Blue Ridge
Railroad Company"
The constitution provides that every act
"shall relate to but one subject, and that shall
be expressed In the title" (Art. 2. Sec 2O.)
:. If this act Is grant of powers and priVi.
Company, and OF powers and privileges to the
Blue Ridge Railroad Company, it relates to
two subjects, and neither Is expressed In the
title, and the act has not the force Of law.
But If the grants are on condition that the
companies consolidate, then the whole act re.
lates to the consolidation, and to the regula-
ton of the two companies after consolidation.
1t Is all one subject matter, and that expressed
In the title, and the aci Is valid.
In like manner the sixth section, repeating
the proviso that the bonds shall not be nego-
tiated at less than par, takes effect only on the
consolidation of the companies.
We have thus briefly reviewed the leglsla-
tive history Of the Blue Ridge Railroad Com
pany. 1t. is marked by many changes, and
some peculiarities, but whatever the nature of
the legislation. one unvarying Characteristic
painfully pervades it all.
Each successive act has diminished the &C.
curity which the State held, until finally the
act of ls71 repealed or attempted to repeal the
last security which the State held against the
misuse OF its bonds.
If we are correct in the views we have ex.
pressed, the proylso prohibiting the use of the
bonds at less than par is still OF force. 1t has
not, however, been regarded by the Blue Ridge
Company.
cure to Thomas Steers, the contractor, COM
pensation under his contract for the construc-
tton of IS miles Of the heaviest part OF the
road.
$500, 900 are held by q. q. Nmpton. as col
lateral for about 100000, as above stated.
$3.50, 900 are held by H. .Clews as collateral
for advances made and to be made.
$3.50, 900 are in the hands of Barring Brothers
& Co., of London, subject to an arrangement
with Mr.. G. S. Cameron and others.
So 900 ore thus lodged as collateral in
one shape or another.
President Harrison says that the residue are
III safekeeping, but declines to say where, as
injunctlons may be laid upon them.
According to the views we entertain the ac-
tlon of the Blue Ridge Company In pledeing
q very serious question whether the State is
liable for the bonds thus illegally 'useG." The
act OF 1854 declares that In such case the en-
dorsement OF the State shall be void. The act
of 1868 continues this previso, In different
words, but with the same intent, and under
the rules governing the constitution OF statutes
in pars raateria, we think that the penalty
affixed to violation of the proviso o. the act
of 1854 equally applies to violation OIL the act
of 1868.
By the resolution of the Taxpayers Couven-
tion'we are requested, "if it be practicable, to
take such steps as are necessary TO p; event,
By due process of law, the consummation of
this fraud upon the property-holders OF the
State.n
We do not regard resort to legal process
as now practicable. The greater portion OF
the bonds have been already pledged, aud the
residue have been designedly placed by the
president, as he himself states, where process
of injunction cannot affect them. Nor Is pro-
cess of law available to recover the bonds from
liability of the State on these bonds is ques-
ton to be decided when payment of the bonds
is demanded from the State.
But while we regard legal proceedings as
mpractiCable, some action ,ia, we think, ne
cessary to protect the State against the evils
already existing, and to arrest Others of even
greater magnitude.
A scheme is now projected which we regard
as mere dangerous to the Interests Ct the
State than any which has yet been under con-
sideration.
Articles of agreement have been executed,
or areunder consideration, by which the stock
held by the State and city In the Blue Ridge
t. &>.l.
which Is to take charge of the work and com
plete 1t. In the event Of the successful COM
pletion of the road $4,000 Is to be paid to the
State In five annual instruments. If unsuccess-
ful, nothing is to be paid, and the stock re-
turned.
The stock held by the State and city amounts,
par value, to about 81, 10000
The four million of bonds are also to be
placed In the control of the association, and
with the restriction removed by the act OF
1871, as they maintaia, the bonds can be nego-
tiated at any price they please.
Who compose the association Is unknown.
It Is at present represented by Mr. G. S. Cam
eron, the trustee to protect the bondnolders,
and Mr.. Steers, the contractor to build the
tionable, for 1t is the union, in the same asso-
citation, OF interests which are antagonistic
and should be kept separate When the trus-
tee to protect the bonds becomes the party TO
receive the benefit of the bonds, the position
Is, to say the least, not conducive TO rigid i'm
partaity.
If.this arrangement is consumnated the city
and State will have parted with all control
over the enterprise: they can exercise no dis
cretion as to who shall receive or disburse the
funds, or how they. shall be expended they
cannot elect director or be present at q
meeting, or investigate the affairs OF the CON-
pany, or even ask for information. They will
have turned over the road and its property
and four millions of bonds to an unknown as
sociatlon.
Who can tell whether the money will be
spent on the road at all, and if it Is not, where
Is the remedy? Suppose 1t Is not; then the
State Is liable on the bonds, and has as secu.
rity an unfinished road.
But suppose that the money is honestly and
judiciously expended and the road built The
control of the road is In the hands of an as
ISOLATION who'have built 1t with State money.
How will they control 1t? In the interest Of
the State or against 1t? Who can tell !? On
all these points, soimportant, the agreement
Is sient-no guarantee Of any kind is given.
If controlled agaips- the State, we are pow
erless to prevent 1t.
The utter loss OF four million OF dollars
would be hard to bear; but the active employ
ment OF four millions OF State money to divert
trade and commerce from the State, would be
still harder to be- borne.
It is certain that the association is to get the
stock and four millions of dollars; everything
else Is uncertain.
The proposal of the association to the State
| In tact, Is: Give us your road and four mil
n annNonn