The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1872-03-14
Coy. Scott,s Veto Message.

To the Speaker of the House Of Representatives:
SIR: respectfully return herewith, without
my approval, San act to relieve the State of
South Carolina of all liability for its guarantee
of the bonds of the Blue Ridge Railroad Com
pany, by providing for the securing and de-
struction of the same"
1t is well known to the General Assembly
that have, at all times, been ready to give my
approval to any measure looking to the COM
pletion of this great enterprise, of so much
value to the interests of the entire State, and
still feel the deepest soicitude for its success.
1t was believed, at the time when the author
ity was given by the Legislature to endorse four
millions of its bonds, that the Company could
command sufficient sum of money, by their
sale, in addition to other means at their dis
posal, to complete the road, but the deprecia-
tion of State securities, resulting partly from
this endorsement, has rendered the bonds al
most valueless to the Company. Although l
have never regarded the endorsement OF the
State on bonds as fixing legal obligation on
the State to meet the accruing interest, yet 1t
has persistently been claimed by the opponents
of the present administration that this four
millions of bonds was part of the actual debt
of the State, and not merely contingent la
bility; while the facts are, that the State could
only be held responsible for the remainder, af-
ter the assets of the road had been exhausted
and it is fair to presume that, before the twen-
ty wears had expired, the work would have been
a first mortgage upon the entire property, and
hence good security, Independent of the State
endorsement.
The present embarrassed condition of the
finances of the State does not appear to me to
warrant us in incurring so large an obligation,
to be paid in SO short period of time as that
named in the act, even if, under any circum-
stances, it was justifable.
might, however, very reasonably doubt the
correctness of my own judgment in this respect,
when reflect that the measure passed both
Houses by more than O three 'fourths vote,
thereby showing that the General Assembly
differ very widely from me on this subject
Also, from the fact that, although this bill has
been on the calendar for more than a month,
the entire press of the State has been silent on
its merits, leading me to infer that it meets the
approval of all parties interested in the inan-
cfal welfare of the State; therefore, might
not feel it my duty to do more than express my
disapproval of the measure on the ground of
public expediency.
But there are reasons, in my judgment, deep
er and more substantial than expediency.-
There are grave doubts as to the constitution
ality of the act, both Federal and State. The
Constitution of the United States clearly pro-
hibits State from issuing bills of credit, while
the State Constitution provides that debt can
only be created by an issue of bonds, running
twenty years. But whether these objections
are valid or not, there is still another objection,
which, in my judgment, is paramount to any
other reason that can be urged against the act
becoming law.
During the past four years the Legislature
has appropriated money, for Legislative and
other expenses, amounting in the aggregate to
about two millions of dollars, without leyying
single mill of taxes to raise the money. These
several appropriations for Legislative expenses
authorize the Treasurer to pay them out of any
moneys not otherwise appropriated, when 1t
must have been clear to the mind OF every
member of the General Assembly, that there
was not q dollar collected from the levy of taxes
which had not been appropriated, in the Cen
eral Appropriation Bill, to meet the current ex-
penses of each fiscal year. And, even on the
collection of the general tax levy, there has
been deficit of from twenty-five to thirty per
cent per annum from delinquent taxes.
This deficit, have previously stated to the
General Assembly, was about one million Two
hundred thousand dollars; hence the moneys
expended, for which no levy of tax was made,
added to this amount, makes an aggregate OF
over three millions of dollars In this state
ment l have not taken into account the nun1er-
Gus claims, including the Land Commission,
which have been paid out of moneys borrowed.
Up'to this moment no disposition appears to
prevail, on the part of the General Assembly,
to even recognize the obligation that is due to
the State to those who came forward, in the
hour of our danger, or failure, for the want of
money to sustain the government, but, with an
indifference which is beyond the conprehen-
sion of any mind. the General Assembly seems
determined to tax the resources Of the State to
meet mere contingent obligation, not due for
many years, and which, to very limited ex-
tent, has become liability to the Blue Ridge
Railroad, or the State as its endorser, from
which the legitimate creditors are led to infer
that they are to be left victims of misplaced
confidence. On this subject there is something
more due to our creditors, which l will lay be-
fore you previous to your adjournment.
Very respectfully,