The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-03-01
first s., ,00O. 900. IL 10 aimply. because the
bonds have not been aligned by the

first 81, ,00O. 900. IL 10 aimpIy because the
bonds have not been signed by the
trustee, 2aMr. -Clewss inS ttheifp regular
orders aid the spbsAtqfipn will bio 4ade!
as sooEas the asig1atSire is Sol9pleled,
which 8 atelegrain veftTecentIS wecetaedS
from MFR. Clews: :snfoIsAs us 10 very nesrly
effected. / haye referfedsto this first!
81. 100000 by its nun bers, as il the
numbering determined its priority, only
to show how careful the President has
been; but you will remember that no
law requires this Enumeration, and that
the first $1,000. .O0Ut issued. with any
numbers, or without numbers, would be
the $1,000. 900 with which the company,
is authorized to deal without any condi.
ton.
think, therefore, may safely assert
that in the hypotheoation referred to.
the company has not violated any ex.
press condition Of the endorsement re-
quired by the Act Of 1868. would also
suggest that these bonds are not proper
~ hypothecated. They bave been placed
in the hands of Messrs. kimpton and
Olews, who undertook their negotiation,
and who, pending that negotiation. have
made such advances as the interests of
the company required. and portion Of
these bonds (about $3.50, ,O00 are now in
Europe, for the purposes Of this negoti-
alton.
2. The impossibility of the sale or hy-
pothecation of the bonds.
You can readily understand that, in
reference to this, it is impossible to
speak fully with due regard to the inter-
ests concerned. can only say that tel
egrams, both from New York and Eu-
rope, received in the last few days, do
not indicate the impossibility which the
preamble of the bill assumes. But I can
say this that if these bonds have not
been negotiated, the blame does not rest
with the President or the company. TIE
Financial Agent of the State, who was
also one of the joint negotiators Of these
bonds, had always impressed upon the
President that the credit of the State
was involved in pressing these bonds,
with the State endorsement, upon the
market; and, in Difference to his sugges-
tions, and controlled by an earnest de-
sire not to embarrass the financial con-
dition of tho State, the President made
every effort to postpone the use of these
bonds to the latest moment. But iu the
spring of 1870. Messre. Kimpton and
Clnws notified him that they had negoti-
ated the bonds, and he was on the point
of forwarding the bonds to them, when
he was stopped by an injunction, moved
at the instance of several tax pnyers of
the city of Columbia. The Injunction
was dissolved by the Court, but the
bonds we're freed too late, for, during
the pendency of these legal proceedings,
the wor in Europe broke out and put an
end to negotiation which had been. I
may fairly say, completed. Since that
time tho company has been harassed by
suits in New York, which have termi-
mated in their favor. but which, you will
see, must be calculated to embarrass
their proceedings in the sale of their
bonds. And now when, after constant,
malicious and most annoying interfer-
ence, they have succeeded in vindicating
their rights, the present proposed legis-
lation is even more calculated than all
their preceding difficulties to prevent
that sale which they have hoped at va
rious times to effect. and which this pre-
amble blames the company for not ao-
complishing.
8. That only 100000 of the said
bonds have thus far been pledged as col
laterals.
This is literally true. but it is very far
from conveying the whole truth as to The
eACeuL 10 WHICH LneSe DOnOS nave become
legitimately liable for the responsible
ties Of the company.
In the first place, you know that the
Blue Ridge Road il composed of three
companies besides the com pany in Sonth
Carolina. AS soon as the Act of 1868,
authorizing this endorsement, became a
law, the President, who was also Presi-
dent of the other roads, called the COM
panies in Georgia, North Carolina and
Tennessee. and, upon the State endorse
ment of these bonds. they consented to
the mortgage of their respective proper
ties. As far as their mortgages, there
fore, arc concerned, they have been
made on the faith of this endorsement.
Next, in Georgia and North Carolina,
satisfied 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 havo sub
scrlbed md are subscribing lands,
to several hundred thousands
of acres. all of which has been subscribed
upon their confidence in the honor of
the State and the perfect faith of it's Oh
legations.
Again ARRANGEMENTS have been rnoda