The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-03-09
The Bill to Promote tho Consolidation of
the Greenville and Columbia and the
Blue Ridge Railroad,

huOWiiiS tue5ucep lutelsS1 WHICH, tuo NoU<ioo,
and more especially the upper portions of the
State, feel in the condition and prospects of
these Roads, We have Watched with the most
anxious solicitude the course of recent legisla.
ton.
That legislation has eliminated in an Act.
which has now become law by the approval
of the Governor, and We propose to explain its
character and provisions, from the lights now
before us. To do this satisfactorily twill be
necessary to give its history, and to show what
itseenactmsns has prevented as well as what it
has accomplished. s;s,.7y =
The Greenvilleland Columbia Road, as is too
we'll known, has become very obnoxious to the
moral ssensa of OUR people. The manner in
which it passed into the hands of its present
administration and the elamentable misman-i
Eagement which. has characterized its transac-
actions for the last year. had destroyed the con-
fidence Of the people in its business capacity,
and had induced q general belief that it was
being uaed simply as speculation by men who
felt no interest either in the character or for
I tunes OF the State. How far this impression
was just, it is unnecessary here to consider
and we hope that in the future no decision OF
this question will be necessary, and that sound,
enlightened policy-looking to the welfare OF
the State and all its varied interests be
permitted to govern the corporation it is pro-
posed to form By this measure of consolidation.
The Blue Ridge Railroad, which really en-
listed the warmest sympathy of our people, was
in condition which excited their liveiest ap-
prehensions The war in Europe the depress-
ed condition of the State finances depreciatlng
| the value of the State endorsement, and the
| fact that the Road was not a completed one,
| were all circumstances which, forbidding the
use of its only assets-its four million guaran-
teed bonds-seemed to threaten the Road with
an indefinite suspension of its work:
AS soon as the Legislature met it was evi-
dent that shrewd and unscrupulous men had
devised policy which would seriously affect
both Roads. That policy was simply this, to
take advantage of the embarrassed condition of
the Blue Ridge Road, and propose to the State
the complete abandonment of thisgreat enter
prise by the repeal of the State endorsement
and then claim that this withdrawal Of the
State endorsement of the four million Blue
Ridge bonds had SO diminished the debt of the
State as to justify the Legislature in putting an
endorsement for large amount, say two mil
lions, upon 8 new issue of bonds to the Green
vile Road Two bills were accordingly intro
duced, the one providing for a repeal of the
Blue Ridge endorsement, and the other for the
guarantee of the new bonds of the Greenville
company. We refer those who desire thorough
" to comprehend the iniquity and absurdity OF
the aforementioned bill to the able letter of Mr..
Trescot, the Solicitor of the Blue Ridge Road,
which we publish to-day. And no further con-
demnation of the second is needed than state
ment of its provisions, by which every hard
working farmer and mechanic in the State was
to be specially taxed for the purpose of placing
two millions of dollars into the hands of Pri-
| vate corporation. Thanks to the energy and
perseverance, of Gen. Harrison, the President,of
the Blue Ridge Railroad supported by the firm
ness and integrity of the Governor, this bill
was defeated after hard fight. With its loss,
the whole scheme fell through, and the Green
vile bill was withdrawn.
But during these discussions, those who felt
an honest interest in both Roads, and realized
how Important it was to our prosperity that the
Greenville Road should be placed in thorough
repair and that the Blue Ridge Road should
be completed as promptly as possible, consult
ed and agreed upon the Act which has now
passed. Such is our understanding OF the ORR
gin of this recent legislation, obtained from
parties in whom we have confidence. Accept
ing it as practical solution of the difficulties
proceed to examine its provisions.
This Act does not consolidate the Road, but
by its legislation promotes the consolidation by
placing each Road in better position, as we
are advised. Its three leading features are
stated as follows:
/. That the State lien upon the Greenville
Road shall be postponed, SO that new mort
gage issued by the Company to retro their
present mortgage bonds will be first lien, =. :
2. That the State statutory lien upon the
Blue Ridge Road shall also be postponed to its
existing mortgage to Trustees in protection Of
its bonds, and that it shall be at liberty to sell
its bonds at their market value.
8. That the Roads, when consolidated, shall;
endorse the four millions of Blue Ridge bonds,
apply these bonds to the Tepair of the Green-
vile Railroad and the completion of the Blue,
Ridge Road, as far as it will 90, and then, by q
the, whole consolidated Road, raise enough TO
complete the line to Knoxville. a a.
! Now, we think it apparent that the postpone
ment Of the State lien. upon, the Greenyliie
Road does not necessarily endanger its securi,
ty, because the property Of that Road is amply
sufficient, under proper and judicious manage
| ment not only to pay its present debt, but to
meet any liability it may legtimately assume
under the provisions of this Act TOR the pur-
poses of consolidation. -,
AS to the Blue Ridge Road, as it stands to-,
day, we are informed that the mortgage to the
Trustees is a prior lien to the statutory one,
and the provision by which its bonds can be
sold at their market value is only what common
sense would dictate, If the bonds are to be used
at all, for bond to build Road not compile
ted cannot be expected to sell at par.
Thus, when these Roads are consolidated,
IL. e II 80,
asked or received from the State, without one
additional cent of taxation being imposed upon
the people, these two Roads will form one great
Road of more than four hundred miles, making
in its present unfinished state gross income of
$500 600, and promising revenue Of $4,000,