The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-03-09

President that the credit of thu Gtats vss H.
yoiyed in pressing thess bonds; sftk tho Stats
endorsement, Upon this market, and, IN de1aal
enee TO his suggestions, and cohtrnlfsd hy IL
earnest. desire NOT TO embe,raaa the fa1nd@
condition Of Che State, ths Hiasidhnt rnn8A
every effort TO postpone the ma az shese bor45
Go the latest moment But In the spsinr 8
1870, Memn Kimpton and Glew, notified Elm
that they had negotiated the honas, and he wtS
on the point of forwarding the bonds 70 them,
when he WAS stopped by an injunction, moved
at the instance Of several Taxpayers Of thd
| city of Columbia. The Injunction was dis1
solved by the Court, but the, bonds were freed
too late, for, during the pendency of these legal
proceedings, the war in Europe broke out and
put an end to d negotiation which had been, I
may fairly say, completed. Since thst tinsthe
company has been harassed by suits in NeW
York, which have terminated in their favor.
embarrass their proceedings in the sale of their
bonds. And now when, after constant, mali.
cious and most annoying interference, they
have succeeded in vindicating their rights, tho
present proposed legislation is even more cali
culated than all their preceding difficulties to
prevent that sale which they have hoped at
various times to effect, and which this preatns
BILE blames the company for not aecompl plishihg.
3. That only Si,1O0,0Oo of the said bonds
have thus far been pledged as collaterals. =.
This is literally true, but it is very far fr6f
conveying the whole truth as to the extent 10
which these bonds have become legitimatelY
liable for the responsibilities of the company,
In the first place, you know that the Blus
Ridge Road is composed of three companies
besides the company in South Carolina As
soon as the Act Of 1868, authorizing thissens
dorsementt, became a law, the President, whe
was also President of the other roads, called
the companies in Georgia, North Carolina and
Tennessee, and, upon the State enforcement Of
these bonds, they consented to the mortgage Of
mortgages, therefore, are concerned, they hays
been made on the faith of this endorsement.
Next, in Georgia and North Carolina, satis-
fed that this endorsement, this pledge of the
faith of the State, secured the completion Of
the road, the people along the line OF the road
have subscribed and are subscribing lands,
amounting to several hundred thousands uf
acres, all of which has been subscribed upon
their confidence in the honor of tho State and
the perfect faith of its obligations.
Again, arrangements have been made With
several of the largest holders of the first morts
gage bonds Of the company TO exchange thws :
bonds for the bonds endorsed by the State, and
this arrangement is only waiting for its cotn-
pletion, the full execution of the bonds by the
signature of the trustee in New York.
And, finally, not only are these bonds
pledged by their issue for all the outstanding
debts and contracts of the company, but there
is special contract signed and sealed with Mr..
Steers, the chief contractor, by which he is en-
titled to have 100000 of these bonds depos-
staJ J,,sf1 OF bo ynoS
gotiates them and receives payment for his ess
Inmates of work done in the bonds 80 negotia-
ted. MI. Steers has not so far demanded this
deposit because he believed the company could
themselves negotiate their bonds but if the
company be restrained by legislation from
dealing with their own securities, he will
doubtless, and most properly, insist upon the
Immediate execution of his contract and you
will observe that this bill is an explicit reeog.
nition Of the obligation of the State to mees
just such liabilities. ,,s
Upon this misconception Of these facts the
bill directs that the endorsement of September
Is, 1868, "be and the same is hereby with
drawn, and the bonds. or contracts 80 endorsed
ordered to be retired and cancelled" By
whom? The bonds not hypothecated in New
York, viz: 1872 are deposited with the FARM.
ers Loan and Trust Company, subject to tbs
Joint order of the President and Mesra. eClewsi
& Co. Now, if the President is not 10 directed
by the stockholders, he cannot deliver up tho
bonds, and without his order no legislation Of
the State can get possession Of them. Theme
they will stand with theendonemens0 theb STATS
upon them, and the Legislature can nd ifssh
of that responsibility only BY Q direcs repadis.
only say il isaa leason as easily leaned -
taught and. in the present hnanciai condition.
of the State, does not seem exactly eAleuaabed
10 strengthen It's credit
1 Az to the bonds that are hyposhecated, J
think it Is 8 very doubtful question whether
the holders of these collaterals can surrendefa
them. for the purpose of having the endorse
ment cancelled, and there is No question that
they cannot sell or deliver these bonds without
compliance with the conditions upon which
they were pledged, Wis such notes to the,
company of desired repayment Of their adj
vances as has been provided for. s5 :
This legislation, therefore, before it becomes
practical or practicable, requires the consent OF
the company and the liquidation OF all the hseti
biIties of the company for which these bonds
are liable. 100000 will not begin to relieve
this responsibility. That meets the liability In
New York for which the bonds are HYPOTHESIS
ted But by reference to the Act OF 1868 you
will see that these bonds are also pledged to
the holders Of first mortgage bonds, the amount
of this Indebtedness being about ss7O0O6,
with past due interest OF about $f00,0y,
which, Of ITSELF would consume the appropri-
alton of the Act. Then, Mr. Steers has not
the remotest idea of giving up his right to hold
and negotiate $2OOO,000 Of these bonds, unless
the company consents to the rescision Of his,
present contract, and the State is willing to pay
him the damages sustained BY its untimely ter,
mination Messrs. Creswell & Co. received
$4,000 as damages for the abandonment OF n
contract which had never been put in execu-.
ton. Mr.. Steers has been at work for more
abandon this work, and compensate him for
loss of time, would require another appropria-
tion. say nothing of minor claims, which
would, however, IN the aggregate, make no In.