The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1876-07-27
eaEENv1LrE 9 COLUMBIA RAILROAD.

dhEENVlLLE CULuMblA hAkLhUAu.
The non.payment of interest upon the
bonded debt of the Greenville and Columbia
Railroad was commented upon by the Intel
ligencer two weeks ago, and has elected state
ment of the financial operations of this cor
poration from a source entirely worthy of
credit, which we are gratifed to place before
our readers, in justice to the present man.
agement. The statement given below will
tend to satisfy the bondholders, who are en-
titled to know the causes which prevent the
prompt payment of interest upon the COM
pany's obligations:
GENTLEMEN: I notice in your paper of last
week an article in reference to the Green
vile and Columbia Railroad Company not
being able to make immediate payment of
interest due LIST July, 1876 on their bonded
debt, which, to parties uninformed, might
be construed into reflection upon those
having the financial management of the
Company's affairs in their hands. You, to-
gether with Others residing on the line Of
the road, and accustomed to travelling upon
it, are well aware of its physical condition
in the month of January, 1872, at which
time the controlling interest passed into the
hands of the South Carolina Railroad; but
at the same time, few are probably aware OF
the amount of pecuniary responsibility
which had to be assumed, in the shape OF
obligations entered into by the previous
holders of a controlling interest in the stock
of the road.
In the first place, those outside of the
management are not probably aware of the
fact that the money used for the payment OF
the last two dividends paid by "Bush &
Co.," las you term them,) was borrowed in
New York at extraordinary high rates OF
interest, and notes given for the same, Sc
cured by hypothecation of the Company's
bonds to the amount of six hundred thou
sand dollars, and which notes, with the ac-
emulation of interest, were not paid by
them, but had to be assumed by the new
management; and the principal and inter
est, before the Company could arrange to
pay them and get their bonds returned
amounted in round numbers to some three
hundred thousand dollars in addition to
which were various floating obligations to
the extent of some one hundred and fifty
thousand dollars; notes due and unpaid for
rails, locomotives, &C., to the extent of some
fifty thousand dollars more, making an ag-
'gregate in round numbers of five hundred
thousand, or ahalf million of dollars, which
had to be assumed and paid by the new
management.
In addition to which, since January, 1872,
twenty-seven hundred tons. of new rails
have been purchased and laid down; six
locomotives purchased and paid for, in ad-
dition to three which, although purchased
by the previous management, were paid for
by the present one; eighty new box and
platform cars added to the rolling stock
new bridges over Broad and Rocky Rivers,
the sum total for which aggregates some
three hundred thousand dollars, which,
with extensive extraordinary general re-
pairs of road, machinery, &C., &C., rendered
necessary by long previous embarrassment
incident to The war, and neglect in conse-
quence thereof, make tots aggregate OF
extraordinary expenditures OF nearly mil.
lion of dollars to be provided for, in addi-
ton to the interest ON the Companys
bonded debt, since the parties now controll-
ing the road took it in charge.
Had the extraordinary and unpr cedented
falling off in the revenue of the road, in
cident to the general stagnation of business
throughout the country for the past twelve
months been anticipated, the Company
would not have entered into obligations for
new rails, &C., &C., to the extent they have
done, and which must be met, and would
have been thus enabled to meet their inter-
est, which they have heretofore paid prompt
ly. The falling off in earnings from the 1st
day of January, 1876, to the 1st of July, has
been sixty thousand dollars, as compared
with 1875. Had they been anything near a
general average of the four years preceding,
for the same period, the Company would
have had no difficulty in meeting their in
tcrest. The Board of Directors did not deem
it tjudicious to borrow money for the purpose
of paying the interest," as is too frequently
the case, and thus add to future burthens,
financially, but hope as soon as the fall bus
iness furnishes sufficient amount of in
come, to meet the July coupons.
A CARD.
MEssRs. EDITORS: Will you allow ME o
small space in the columns of your valua-
BILE journal to thank those friends who so