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

GnsrEnmEs: sundef the instructions!
of the Taxpayers Convention, we have;
examined the legislation in relation to
the Blue Ridge Railroad Company, and
the action OF the company under those
Acts, and beg leave to report:
That in 1854. (12 Stat, 373, the State
subscribed $1,000. 900 to the company,
and authorized tho Governor to issue
State bonds to pay such subscription.
The. State also authorized the Comptrol-
ler- General, by the Same Act, to endorse
bonds Of the Blue Ridge Railroad Com
pany to the amount Of 9l.0O0,OOO. Tue
endorsement to be void if the bonds
were sold>or issued below the par value.
Other conditions were nlso attached to
the endorsement by the State. These
endorsed bonds were to be secured by
mortgage Of the property Of the com
pany in South Carolina. Georgia, North
Carolina and Tennessee. It appears
that the State never did endorse any
bonds under the Act of 1864, but the
company issued its bonds to about $780,
900, and secured them, by mortgage,
to Henry qourdin. James Rose and
Mitchell King, of all Of its property in
the several States. In 1868, the State,
Actor 1854 Ind .recitinfR terroneously,
however, thht;the BLUE Ki6ke Company
had e4eoptedf tug mot ftg4Rel rgdpfTed by
the ACT lQf 1854, and that no bonds had
4 been endorsed .hy the State, and that
the conditions ',imposed upon the en-
.doFse enaAnt by TUG Act 6f 1854. "ha7e' be-
COME imposdihleo and ,inindicieus,, while
the necessity Of the completion of the
foa9 has bGe0phe imore .ufgehs. ":passed
ST. sAet a9!tHo5iKlp,lg ths GpnPtFpfler:G Gen
eral, 4hhiwithoat kefarenc ce to the said pro
visions Hahd conditions, III to endorse
bonds to Che Hmodnt Of 81 900. 600. No
gssasy " .P .Rfexided g,d ssfsss ahoTfo .,
q TSsss}aba TSss . a. ssS!;$a S ID AssausAor
lied the Comptroller General to endorse
bonds Of the Blue Ridge Company .'to
an additional amount not exceeding
5000, ,00O," aud What as soon as the
Comptroller General shall have made
any suoh endorsement on any such con-
tract, the, whole estate, property and
funds In the States of South Carolina,
Georgia, North Carolina and Tennessee,
which tho said company may then pos
sess or, shalt afterwards acquire, shall
henoeforth stand pledged and mort
gagged to the State without any further
aot or deed on the part OF the company" :"
The section authorizing the endorse
ment OF the $3, 600, QUO, provided that
the bonds .'shall not be used unless upon
the express condition that upon applica-
ton to Congress, or to private capital
lists, the amount Of So. 100000 in our
rency, or so much of that sum as may
be necessary, shall be furnished in ex-
change or upon the security of said
bonds" The object, Of the proviso was
to% Prevent! the sale or pledge OF the
bonds at less than par. It was, in fact,
a continuation OF the proviso in the Act
OF 1854, that the endorsement was TO be
void if the bonds were sold or Issued
below their par value. Before the en-
dorsament OF the bonds by the State, (as
we are informed, the Blue Ridge Com
pany executed to Messrs. Henry Gour-
din,,, 81. Clews and G.. 8. Cameron q
mortgage of all Of its property in the
States OF South Carolina, Georgia, North
Carolina and Tennessee, to secure the
$4,000, 900, Of bonds authorized by the
Act of 1868. This mortgage wasi exc
outed and recorded before tho bonds
were signed by the company or endorsed
by the State From this review of the
legislation. and OF the action of the
company, it appears that; the bonds au-
thorized and liens created were as fol-
lows:
l. The mortgage to Gourdin, Rose
and King, to secure about S260,000 Of
bonds of the company nnendorsed.
2. 100000 of endorsed bonds au-
thorized by the Act of 1868, which were
unsecured by any legislation-S3OJ,O j, 900
OF these bonds were to be applied s'to
tho redemption of the present bonded
debt OF tho company" designated above
as frat lien.
8. 100000 OF endorsed bonds oil.
thorized by the Act Of 1868, secured by
statutory lien on the property OF the
company in South Carolina, Georgia,
North Carolina and Tennessee.
4. The mortgage by the company to
h1essrs Gourdin, OleWs and Cameron,
to secure tho entire 1000, 900 issued un-
der the Act of 1868.
Whether the statutory lien or the
mortgage by the company is 10 be re-
garded as the prior lien, has been made
q question, but does not appear to us
material. The object of both is to &C.
cure the application OF the property of
the company. to the payment of the