The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-03-09
Mr. Treseovs Letter In Reference to the
Blne Ridge RallroaA.. -:

Il
Nv. II. Haeot, Solicitor Of the Blue HdgN
! R4ilroad, 10 Senator WILSON, fa refrascs %
the iegialafion proposed IN regard TO the stass
endorsement Of that Company's bonds. Al.
though this letter has probably effected ita OBJ
fject, and prevented unwise and hasty legisla-
ton, NE know that our readers will find it
interesting; since the facts stated are Important
and valuable to this community, ST deeply in-
terested in the early completion of the Road
and its ultimate success. Here is the letter,
BLUE RIDGE RAILROAD, > :.
SOLICITORS OFFICE; Feb. %, 1871.
| To- Hon. John Wilson, State Senate.
| DEAR SIR: have received copies Of the
bills which you sent me, and regret very much
that the President of the road was not allowed,
before their introduction, an opportunity to
correct the misapprehension under which they
have evidently been introduced. Fot, allowing
that the motives which such suggested them
were the purest and most patriotic, / feel sure
that knowledge of the condition, both of the
road and the company, would satisfy those
most anxious to. adopt them, that such legisla-
| ton is both unnecessary and impossible
AS understand, the enacting clause of one
of the bills was stricken out, and the other
amended, so that the following section compri-
ses the whole legislation proposed:
"That the endorsement heretofore made by
the Comptroller General upon the contracts or
bonds of the Blue Ridge Railroad, under the
Act of September Is, 1868, be, and the same is
hereby ordered to be retired and cancelled.
''That, to recover the bonds of said company,
now pledged in the city Of New York, the
sum Of $500, 900, if so much be necessary, be,
and the same is hereby, appropriated, and the
Treasurer is authorized and required to redeem
and cancel the same"
And, as the justification of this legislation,
the preamble of the bill recites the following
facts: whereas, the faith and funds of the
State were pledged, upon express conditions,
which have not been complied with; and
whereas it has been found impossible to nego-
tiate sale or rhypothecation Of said loan, either
to the United States Government or private
capitalists; and whereas only 81 1000 of
said bonds have thus far been pledged as col
lateral security; therefore, be it enacted" &C.,
&c.
Allow me to examine each of these facts In
its order.
l. The noncompliance of the company with
the conditions of the endorsement. On the 10Th
September, 1868, the Act was passed authori-
zine the endorsement of S4,000000 of the
bonds of the company, by the Comptroller
General. But, by reference to the Act, you
will perceive that distinction is made between
the first s1,O00,000 of these bonds and the re-
naming S3,0000OO. The issue and endorse
ment Of the first 81 100000 had been author
lied by a previous Act that of 1854, upon
certain conditions. The Act of 1868 simply
recites that whereas the Comptroller General
of the State has not endorsed any of the bonds
issued by the said Blue Ridge Railroad Com
pany, in South Carolina, under authority OF
said Act 1854 J and whereas the conditions
imposed upon said endorsement by. said section
have become impossible and injudicious, while
the completion of said road has become more
urgent in the interest of the State; therefore,
be it enacted" &C., "without reference to the said
provisos and conditions, whenever any contract
or contracts may be made by the President OF
the said company under its seal, and as proyl-
ded by said Act, and not exceeding 81 900 900,
It sbsIl be the duty of the Comptroller Gener2i
al to endorse thereon that the faith and funds
of the State are pledged" &c. Section l, Act
1868. -. -,
The Act then proceeds to authorize o like
endorsement of "an additional amount, not ex-
ceeding $4,000 ,00O," and to this additional en-
dorsement it annexes the condition that "the
said bonds, or any psrt thereof, shall not be
used unless upon the express condition that
upon application to Congress of the United
States or to private capitalists, the amount OF
S. O00, 900 in currency, or 80 much OF the same
as may be necessary, shall DO furnished in ex-
change. or upon security of said bonds" Now,
think, it would be difficult to show how the
language of this proviso prohibits the hypothe-
cation Of even these additional $3000,000 for o
less amount than s., ,0O0, 900 in currency should
the company deem it necessary to raise the less
amount. But waving this, it is clear, from the
explicit, language of the Act, that the use OF
the first 81, 100000 is bound by no such hmita-
ton. With that, the company have power to
deal at any rates of sale or hypothecatlon their
with this first 81 900, 900 that the company has
dealt in its hypothecation. For, if you will
turn to the receipts annexed to the report of
the Investigating committee, you will find that
the bonds in the hands of Henry Clews q 90. !.
rnn from No. I to $50, and from $50 to 600,
that those, not in any sense hypothecated, but
held for Mr.. Steers, to protect him against con-
tingent and improbable damage, run from 25l
to $50. while the numbers held as collateral by
Mr. Kimpton are not given, and if they do not
fall within the first 81 100000 it is simply be-
cause the bonds have not been signed by the
trustee. Mr.. Clews, in their regular order, and
the substitution will be made as soon as the
signature is completed, which telegram very
recently received from Mr. Clews informs US is
yerv nearly effected. have referred to this
first 81 ,OOO,0OO by its numbers, as if the num-
bering determined its priority, only to show
how careful the President has been; but you
will remember that no law requires this numer-
alton, and that the first 81, ,OOO,0 600 issued with
anv numbers, or without numbers, would be
the 81 600, 900 with which the company is au-
thorized to deal without any condition.
I think, therefore, may safely assert that in
the hypothecation referred to, the company has
not violated any express condition to the en-
dorsement required by the Act of 1868. !
would also suggest that these bonds are not
properly hypothecated. They have been placed
in the hands of Messrs. Kimpton and Ciews,
..=la~loal- thasr ranntiatiQn and who.