The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-12-31
The CITY Council and the Blue Ridge
Million.

The CITY Council and tho Blue Ridge
The Mayor and Aldermen Of Charleston
we're elected last year, after sharp and BE-
we're contest, as the intelligent and trust
worthy representatives Of the financial and
commercial interests Of the city. They
were expected to exhibit, in the discharge
of their official duty, the sagacious foresight
which characterized their management OF
tbeir priyste affairs, and to subordinate, on
all occasions, personal profit to the pubic
good. The general history Of the Wagener
administration remains to be written; but it
ia not too early to ask how far the Mayor
and Aldermen have come up to the public
expectation In one important particular
their management of the municipal invest
ments, and their policy In dealing with the
railroads, upon which, nearly or remotely,
the prosperity Of the city depends. tits not
desired, at this time, to discuss whether the
obstinate endeavor to tax corporations which
are exempt from taxation would not, II sue
csssful, prove as disastrous as the killing OF
the legendary goose which laid the golden
eggs. This, and variety OF other matters,
must lie Ia reserve. What We now have to
deal with Is, the million dollars invested,
years ago, in the Blue Ridge Railroad Com
papy. OF which investment the Mayor and
Council are the natural and responsible
guardians.
The end Of the war found the B!ae Ridge
Railroad with forty miles OF completed line,
representing, with unfinished tunnels and
other like work, cost OF between two aud
three million dollars. There was small
floating debt, and it was estimated that it
would take seven or eight million dollars to
complete the road. In 1868 the Legislature
agreed that the State should endorse the
bonds OF the road to the amount OF four mil.
lion dollars, upon condition that three mil
lions OF the four should not be sold at less
than par. The bonds were Issued, some
show OF work was made, and at the legis
latiye session OF 1s71-'72 1t was asked that
the State pay the debts OF the company, re-
tire and cancel the endorsed bonds, and re-
linauish the lien which vas the States only
security for the endorsement it had given,
and for the money which 1t was requested
to furnish. No schedule OF liabilities was
submitted; no exhibit was made OF the con-
dition Of the company. The bill was passed,
and eighteen hundred thousand dollars OF
Revenue Bond scrip, receivable in payment
OF taxes, were authorized to be issued to
the company upon surrender OF the endors-
ed bonds. It was clearly an outrage upon
the people to require them to pay debts
which they had not contracted. 1t was not
BY ary means certain that the original
endorsement was binding; still less was 1t
certain that the State could be held liable
until the property Of the company had been
exhausted by It's creditors, or until the prin-
cipal OF the endorsed bonds fell due. Again,
it was monstrous outrage to pay
the debts and surrender the security.
The forty miles Of road are worth at
least half million, 30 that, in Issuing
eighteen hundred thousand dollars In scrip,
and surrendering the lien upon the road, the
State practically gave away more than two
and quarter millions OF money. The scrip
being issued, citizen OF Columbia filed a
bill to epjoin the company from disposing
Of any money, and praying the appointment
of receiver. Later on, suit was insti.
tinted to prevent the receipt of the scrip In
payment OF taxes. An associate justice OF
the Supreme Court, and circuit judge, de-
cided that the issue OF the scrip was In vlo-
lation OF the Constitution. This cause is
pending in the Supreme Court, but the scrip
has been emitted, and the Blue Ridge Rail-
road Company has had the spending Of 1t.
This, In brief, is the history OF the Blue
Ridge Railroad Company since the war. A
few words more will make tho situation per-
fsctly clear. The capital stock OF the COM
psny is So, 500, 900, OF which the State held
81, 300, 900, and the City Of Charleston holds
81, 100000 The State stock was bought for
sls, 500 by Mr.. J. J. Patterson and others,
who thus obtained, as holders Of the majority
OF the stock, entire control OF the road. 1t
was they who manipulated the endorsed
bonds, who secured the passage OF the bond
scrip law, who have fngured the scrip and
the bonds, and now, at cost OF sl3,50O,
have possession OF piece OF property cost
ing the people over four million dollars.
The interest OF the City OF Charleston In
these matters was broad and distinct.
First, there vas million Of dollars, in hard
money, at stake. Second, there was the
danger, now greater than ever, OF the road
passing into the hands Of q combination
who would work 1t probably to the injury OF
the whole State, and certainly to the injury
OF this city. The Mayor refused to bulge,
declaring that it would all come right, and
that the Blue Ridge business was just as he
wanted 1t. The Council dosed for. weeks
and months, but at last instructed the city
attorney to take the steps necessary for pro-