The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-12-18

helped the bonds, and differences which
Resulted in litigation between the con-
tractor and the company 80 affected the
character Of the bonds, that it WAS found
almost impossible to deal with them;
while Mr.. Clews, who had them all in his
possession, as trustee, and who had sup.
piled the wants of the company to about
SI65, 900, was unwilling to advance far
ther or to give up the bonds without the
payment Of that advance. But, during
this condition of things, the proposition
was suggested in the State to consolidate
the Blue Ridge with the Greenville and
Columbia Railroad, to relieve the debts
of both companies, and issue new joint
security, Which should cover an amount
large enough to complete the Blue Ridge
and make the two roads really ono great
trunk road to Knoxville. This consoli-
dation, as every business man with any
knowledge of either road was aware, was
q work of time, and required the arrange
ment of many very complicated interests.
But to facilitate, or, as the Act expressed
it, ITO promote the consolidation, the
State released the priority Of certain Of
its liens on the Greenville and CDlumb bin
Road, and repealed the condition rs to
the railroad bonds, which required them
to DO sold at par. Why the roads were
not consolidated then, Why they have
not been consolidated since, We cannot
say. It seems to an outsider very cieurly
the interest of both. but whether the
consolidation was effected or not, it is
very certain that the innocent holder Of
Blue Ridge bonds oonld not have his se-
curities vitiatsl because tho stock old. :.
ers OF these roads could not agree. But
hnfh a nd pl,O III
purchase, or who then held them, had
gained this advantage: that the condition
of sale at par being removed. tho bonds
were the more easily negotiable. With
this improvement, accordingly. Mr.
George Cameron, an eminent banker OF
t1Aar!eston, undertook, with the aid Of
his fuuncial friends, to pay the debt of
the company, negotiate tho bonds and
build the road, changing the gauge from
broad to narrow one. Mr. Cameron,
upon this undertaking. having been
made financial agent Of the company
therefore received 50, 400. 900 of bonds
5000. 600 having been deposited with AIr.
Kimpton, the State Financial Agent, to
| secure loan already made of $3.50, ,0O0.
AIR. Cameron paid the advance of Mr..
Clews and made further advances,
| amounting to something over $500, 600,
when his financial capacity was cx.
haustcd.
\ this date, then. the case stool thus:
Mr.. Cameron had raised 5000, 600 upon
the hypothccation Of 50, 400,O 900 Of the
| bonds guaranteed by tho State. He
could carry the loan no longer; he could
not negotiate the bonds, and whenever
he went to protest. the bonds would be
put Oh the market ct any price. Anal AS
all the real estate, ROAD property md
franchises were mortgagal to the iirst
mortgage bond-holders, tho State, and
the State alone, would have to meet
them and satisfy them in the hands OF
innocent holders. Every one at all fami-
liar with recent events will see what an
operation this promised. $780, 600 of
bonds, endorsed by the State, bought at
ten cents on the dollar, and held uutil a
proper ring was formed to bully or bribe
~ Legislature into compromise, WAS q
speculation OF no ordinary safety or
profit. At this juucture, Mr.. Patterson
appeared. He proposed to associate
himself and others with Mr. Cameron,
and to undertake tho completion Of the
road and the payment of its debts on
| two conditions:
l. That tho road should be entirely
severed from the State; that its stock
and its stock representation should not
be in the hnnds of politicians. This was
effected by the sale to Patterson, Came
ron and others Of the State stock, by the
Sinking Fund Committee. This has
been represented rs fraudulent. We
cannot see how. The stock was worth.
less, except as it gave control to men
who were willing to expcnl money on
the roa.l. Eyen when sold, it did no:
give IN absolute majority; for the com.
bned stock of the city OF Charleston
and private individuals could have over
ruled it, if those who held the latter took
any interest at all in the matter. It hus
been said that the Sinking Fund Com.
mittee were bought. Of this, wo know
nothing; but granting it, it cannot pos
sibly affect the validity or tho wisdom OF
tho action, and still less can tho Joi...
fde creditor of tho Bluo Ridge Road be
made responsible for it..
2. The second condition was, that thr
State endorsement should be got rid OF
the 81, 10000 of bonds which had been
hawked about and discreditcd should be
destroyed, end the company start with q
new credit.
Afr Pattaraou'a propooi};or NO, th;,