The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-03-01

a, t0d, are Q6pOStIeO SWl6H, tue y Hofui9fa'
Loan and Trust CompanyS snbieetto the
j i'm order M the President. and Messrs.
''Ule9s g CP3 Now,if the President is
InotGso direS4ed by the atoo khold ders, Sfe
ca1aot deliEsr up the bonus, and dSwithtint
disorder nsgegislation Of the State can
get possession OF them. There they will
stand with the endorsement OF the State
upon them, and the Legislature can rid
itself of that responsibility only by di-
rect reputation. If this is what tho bill
means can only say it is lesson as
easily learned as taught. and, in the pre-
sent flnancia condition of tho State,
does not seem exactly calculated to
strengthen its credit.
As to the bonds that are hypothecated,
I think it is very doubtful question
whether the holders of these collaterale
can surrender them for the purpose OF
having the endorsement cancelled, and
there is no question that they cannot
sell or deliver these bonds without com
pliance with the conditions upon which
they were pledged, viz: such notice to
the company of q desired repayment
OF their advances as has been provided
for.
This legislation, therefore, before it
becomes practical or practicable, requires
the consent of the company and the
liquidation of oil the Liabilities of the
company for which these bonds are
liable. 100000 will not begin to re-.
lieve this responsibility. That meets the
liability in New York for which the
bonds are hypothecated. But by refer
ence to tho 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
$270, 900. with past due interest of
about 500, 900, which, of itself. would
consume the appropriation of the Act.
Then, Mr.. Steers has not the remotest
idea Of giving up his right to hold and
negotiate $2,0O0,000 Of these bonds,
unless the company consents to the re-
session of his present contract, md the
State is willing to pay him the damages
sustained by its untimely termination.
Messrs. Creswell &c Co. received 5000
as damages for the abandonment of a
contract which had never been pnt in
execution. Mr.. Steers hns been at work
for more than year, and is still steadily
at work. To abandon this work, and
compensate him for loss of time, would
require another appropriation. / shy
nothing OF minor cluIms, which would,
however, in the aggregate, make no in
considerable sum.
do not propose to make an argument
upon the validity of such legislation; nor
will 1 say anything as to its policy. But
[ think it ought to be taken into con-
sideration that the State does not own
this road; that the city of Charleston has
paid in more than ST. 100000 of stock
and that there are private stockholders
who have some rights.
If it is desired that the State should
be rid of its responsibility, 1 am not
sure that the company would interpose
any obstacle. The connection has not
been of very great advantage to the
company. and l think it wonld not be
difficult to mature an arrangement that
would satisfy all parties; but it cannot
be done by such hasty and inconsideratc
Legislation. Yours, truly,
WM. HENRY TRESCOTT,
Solicitor Blne Ridge Railrond.