The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-03-04
The Consolidation Juggle.

The last state of the Greenville swindling
Bill is worse than its first. This will be
seen by brief statement of the relations OF
the State to the Blue Ridge and the Green
vile and Columbia Railroads, and OF the
changes in those relations sought to be ef-
fected by the Consolidation Bill.
l. The State of South Carolina has en-
dorsed bonds of the Greenville and Colun-
bia Railroad Company amounting to 81, 1885,
545 80. To secure the State against loss,
the whole of the property Of the company is
mortgaged to the State. Taking into con-
sideration the cost of the Greenville road,
and it's present earnings, it is unquestiona-
BILE that the State is amply secured by its
mortgage upon the property and franchises
of the company
2. The State of South Carolina has guar
anteed the bonds OF the Blue Ridge Railroad
Company to the amount OF $4,000, 900, and
holds, as security, first mortgage upon the
whole estate, property and funds OF the COM
.pany, now possessed or hereafter to be ac-
ouired This was the best security that an
incomplete railroad could give There was
the further condition that three million Of
the Blue Ridge Bonds should not be disposed
of for less than '.three millions in currency" :"
This is, in few words, the present condi-
ton OF affairs. TheState having guaranteed
81, 500, 900 aud $4,000 900, respectively, to
the Greenvile aud Blue Ridge roads, holds a
first mortgage upon all the property OF the
companies to the extent of the respective
guarantees.
The Consolidation bill proposes to unite
the two companies upon condition that the
State (l) ratiGes it's endorsement of the Blue
Ridge bonds, e. repeals the section OF the
act of 1868, which requires the $4,000, 900 OF
bonds to be sold at par, and 81 postpones
it's first lien so thai the State claim shall
come in subsequent to all the mortgages
and encumbrances row existing. The effect
of this arrangement would be-
1. Upon the Greenville road the State
would give up a complete security, in the
shape Of mortgage, and take subsequent
mortgage of no real value.
2. Upon the Blue Ridge road the State
would give up all the security it has, and get
nothing in return.
AS soon as the Consolidation Bill passed.
the. Greenville Ring, who are the Consolida-
tors, under another name, would have at
their command S4,OOO,OOO of guaranteed
bonus, which they might sell at any time
and at any price. With the proceeds OF
these bonds they could get the Greenville
Ring out of their financial troubles, and put
the present GreeDville road in order. In
other words, the s4,OO0,O0O would be laid
out for tie benefit of the GrecnoMe Road
and the Greenoale Ring, and not in CONF
l,leting the Rue Ridge Road. This is too
clear to need any demonstration. The Ring
failed to get s2,0OO,OOO on their own ac-
count. They now turn round and ask for
the $4,000 900 which belong to the Blue
Ridge Road.
We believe that Governor Scott is sincere
ly anxious to complete the Blue Ridge road,
and we warn him that the road will never be
built if all its means-these four million
dollars-go into the possession, as threaten.
ed, OF the unscrupulous Greenville Ring.
Governor Scott can pocket tie Bil, if it
should pass both Houses. The people ex-
pect him to do his duty.