The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1872-05-30

NrOTICE-A Meeting of the Guaranteed Second Mort
VILE and Columbia Railroad Company South Carolina
will be held at Columbia on WEDNESDAY, June 49, Adj
u's'' y" D. ''-1-''> ''-''''''' 1''N BoND-HoLDERs
MR.. EDITOR We clip the above from the
Columbia Pl9ni9 of Saturday last, and if it is
intended to be an effort to protect the legiti-
unfortunate Company, we most heartily en-
dorse it. The people of Anderson have done
much to construct this road, and have suffered
much, pecuniarly. About $4,000 of the
original stock of the company was taken and
paid in by the citizens of Anderson, and a
subsequent assessment of 20 per cent on this
cheerfully submitted to. In 1856 and 1858,
when the company was again in trouble,
large amount of non-mortgage bonds were
taken here from so to 60 cents in the dollar, so
that at the beginning of the war at least $780,
900 of the bonds of this company were held
in this county. Again, alter the war, the
holders of these bonds, to aid the company
and save its existence, under the then legisla--
tion obtained by the company, surrendered
generally two-thirds of this class of bonds, re-
ceiving one-third In guaranteed bonds; so
that Of all the stock and bonds once held by
our citizens, how little now remains, and that
little, under the management of the affairs of
the company, rendered unavailable and almost
yalueless Of the sale of majority OF the
stock of the company for o trifle to company
of Northern developers, who promised much
and did nothing to preserve the property en-
trusted to their management and control, we
have nothing to say. That is past and gone.
But we have heard, and have reason to know,
that there has been another sale and purchase
of a majority of the stock, and that the man
agement of the affairs of the company is now
in other hands, whether of 6 corporation or
private individuals, we do not know. In Tor
mer times, it was considered that the President
and Directors of corporation were mere
trustees for the stockholders and creditors OF
such corporation, and bound to manage and
conduct its business in their interests. 1t was
never believed that the change of ownership
| of a majority of shares of stock carried along
with it the property, and blotted out the cred
itors and remaining minority stockholders
But we are learning fast, and it Is high time
that the bondholders should meet and concert
measures for protection. This property cost
over three millions of dollars and much
abused and injured in value as it has been by
bad. iniudicious and reckless management, and
as much as it is now cried down by parties,
will bring in market, if offered for sale, over
50. 100000. Surely the property must be
worth at least its bona fde Indebtedness, or
corporations nor individuals would pay $780,
600 for the sole privilege of its management:
The entire bonded debt of the company should
not exceed S2,750,000. But if we assume that
the whole amount of second mortgage bonds
have been issued and have become fixed
liability, then the debt would be $4,000 600:
But we are of the opinion that the bonded
debt will not exceed S2,750,000, and that the
property is worth S2,5O000O, if properly man,
aged. Now, the bondholders, having special
liens, either by mortgage or upon the state,
have nothing to do with the floating debt OF
the company and if, in default OF the pay
ment of interest, the property should be
forced to sale, have legal preference over
such floating debt.
Again. Why should not there be division
of income as between the officers, employees.
&C., and bondholders, even now? We hear OF
no suffering, or designations in that direction,
but all seems fat and sleek and happy, whilst
widows and orphans and others are paying one
and two per cent. per month for money to
keep them from starving. Now, should this
freezing process be continued, the poor bond
holders will be compelled to sell, even at the
ptiful price now offered by brokers and sharp
ers of forty cents on the dollars. This can be
prevented by concert among the bondholders ;
and if the property cannot be preserved, let it
be sold and the bona fde bondholders buy it,
and get the pleasure and prospective profits of
| its future managementl
We hope and urge the bondho!ders and re-
naming stockholders of Anderson to be rep
resented at this meeting in Columbia; and if
further sacrifices are to be made, let it be done
in the interests of our own people.