The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1871-03-10

aDlT Win OlHeF lineS lcauilS iiOul lHC
interior to the seabord, thus fulfilling
the hope and effort Of tho State for
more than one-third of a century. l
would feel myself criminally indiffer-
ent to the interest of both the Blue
Ridge Railroad and tho people Of the
State, were to fail in supporting any
measure that would complete this
great enterprise, aud thus leave this
important road, and to entail upon
them the certainty of having to meet
eventually the interest and principal
of at least portion Of the bonds en-
dorsed for that purpose.
i[o says further: In postponing
the statutory lien Of the State, for the
endorsed bonds of the Grecnvillc
Railroad, I canDot feel that l am con-
scntine to abandon any real security
on tic part of the State, as this road
has not only paid tho interest On a
debt, almost equal to the combined
liability Of the States endorsement
and the second mortgage bonds. AT
the samo time it has been compelled
to cxpend an extraordinary amount
Of its income for repairs, which for
repairs, which for the want Of iron,
had to be almost daily renewed, cou.
pied with the destruction Of rolling
stock, and damages for tho loss Of
life and property. 1t is rendered alb
solutcly certain that when the road is
put in proper condition, with the nc
ccssary means to do the business OF
the country through which it passes,
| it will not only be able to pay tho in
tsrcst OH both classes Of bonds, the
aggregate Of which is less than $780,
600 to the mile, but will have sur
plus, that may he applied to the pay
mcnt Of the interest on the Bluo
Ridge bonds, while the road is in pro,
cess Of construction"
ain reference 10 the Blue Ridge
Railroad, by an examination of the
several acts, it will be seen that the
!
only change which has been made is
to give the bondholder the first lien
and the statutory lien of tho State
the second, by which it is secured as
efcctually as it was in its original
status. The necessity for this leg.
islation will be recognized when il
is known that one Of tho principa
difficulties in the way of the negotia
ting for the sale of these bonds, the
mortgage executed and placed or
record in the States through which
the road passes, viz: South Carolina
North Carolina, Georgia and Ten
nessce, to Messrs. Gourdin, Cameron
i & Clews, as Trustees, by its priority
of date, was made to bo q first mort
gage on the property of the road
while the act authorizing the endorse
mcnt gave the State first lien. Thi:
was made cause of objection BY
those who were disposed to acccp
the negotiation of the bonds; thu
! purchaser was desirous that bis secu
rity should be first lien on th'
property, so that, on failure of th'
company to meet their obligations
the holder of the bonds could MAKE
u claim against the road, and no
against the State, as they coult
do nothing in the courts as agains
the State, while they could enforce
their claim against the incorporation
Thus it will be seen that it became
absolutely necessary that this diff
Guilty should be corrected. As to th'
other change Of tho law Of 1865
whereby it gives tho privilege o
negotiating tho bonds at tho markc
value, instead Of being restricted t
selling at par, every one must SCI
that it was almost a permanent ba
agsinsttho negotiation Of the bonds
upon their merits. TO have done so
the company woald have been forcet
to adopt = species Of sharp practice
by selling the bonds at par, and com
pensating the purchaser by com
mission, for tho difference between
their market and par value, whicl
inevitably placed the company at
disadvantage in any negotiation they
might attempt to make with corrcc
business men. '...
The bill has been passed by a large
majority in both. Houses, and seems Il
be free from the objections urged t.
the bill for which it is q substitute.
The De La Howe Free School.