The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-01-23
RAILROAD BONDS.
Some Queer Doings Connected With the
Grcenyille s. Columbia Railroad.

Some Queer Doings Connected With the
Grccnyille s. Columbia Railroad.
The following report, which was sub
mitted to the last session of the Legisla-
ture, shows how the States liability on
the bonds of the Greenville and Colum-
bia Railroad were abused when the Rad
icals were in power:
The special joint committee Of the two
Houses appointed under a concurrent
resolution to investigate the liability OF
the State on its endorsements of the
bonds of the Greenrille and Columbia
Railroad Company, submitted the follow
ing report, which was adopted:
That owing to the limited time at the
disposal of the committee from their
other duties as members of the General
Assembly, they have not been able to
give the matter the thorough investiga
ton which its Importance demands, and
which a complete examination of the
whole subject would require.
We find in the comptroller generals
report for the fiscal year ending October
81, 1878, that the outstanding liability of
the State on its endorsement of the bonds
of the Greenville and Columbia Railroad
Company and certificates of Indebtedness
amounts to 81 ,436, ,545.S0. We also find
by the report of the treasurer of the
Greenville and Columbia Railroad Com
pany, December 81, 1877, that there are
outstanding rs liabilities of the company
original first mortgage or "blue bonds"
past due, to the amount of 1926, 900. On
examination of the various acts Of the
General Assembly authorizing the guar
antee of the State to be endorsed upon
the bonds and certificates of Indebtedness
of the Greenville and Columbia Railroad
Company, we find that the original Act
of June 2S, 1861, entitled "An act 10
lend the name and credit of the State to
the G. and G. Railroad Company in the
readjustment of their debt" provides
that the endorsement of the State should
be placed upon the bonds of the company
to the amount of 5000, 900 for the express
purpose of exchanging them for the
100000 of original first mortgage or blue
bonds of the company and funding its
floating Indebtedness to the amount of
$100,0O0. 1t also contains the following
proviso: Provided that the bonds en-
dorsed as aforesaid shall not be used by
said company for any other purpose than
for funding the debt of Sl00, 900 now due
by the company on notes and accounts,
and of taking up the bonds of the COM
pany already issued and now secured by
mortgage"
The guarantee of the State to the
whole amount authorized by the above
act, namely, 5000, 900, having been placed
upon the bonds of the company under
the provisions of the said act, it is i'm
possible for it to have been done in ac-
cordance with law, and that 1926, 900 Of
the first mortgage or Blue Bonds should
still remain outstanding.
The act of December 20, 1866, to alter
and amend the act of June %, 1861,
shows plainly the condition and status of
the funding and exchanges of that date.
1t provides "that to meet the objections
that the bonds which have been hereto
fore issued and endorsed under the au-
thority of the said act bear date after the
late war, and are entitled Confederate
States of America,' the said company is
hereby authorized and empowered to
issue new bonds to be substituted for
those already issued and endorsed to the
amount of 100000, and it shall be the
duty Of the comptroller general from
time to time as. the bonds heretofore is.
sued and entitled as aforesaid shall be
delivered to him for exchange either by
the company or by the holders thereof,
to endorse the guaranty of the State upon
new bonds upon the same terms and con-
ditions in every respect rs is authorized
by the said act, and to exchange the new
bonds thus endorsed for those heretofore
issued, until the whole, if required, shall
have been substituted by new issue"
By this act it is evident that but $780,
600 of bonds with the guarantee of the
State upon them had been issued on the
2Oth day of December, 1866. This is
still further shown by Section 2 Of the
same act, us is also the fact that they
were Issued for the purpose of funding
the 100000 of floating Indebtedness
and in exchange for 100000 of first
mortgage or Blue bonds. Said section
contains the following: "And whenever
evidence shall be furnished the comp
troller general that the said company has
taken up and deposited with the treasurer
100000 of the bonds, now secured by
mortgage, in addition to those heretofore
deposited with the president Of the Bank
of the State, he shall endorse the bonds
1 of tie company to the amount OF $780,
600 more, which will complete the en-
dorsement of 5000, 900 as provided by the
said act"
Your committee would also call the at
tention of the General Assembly to the
fact that there are $4,000 of the bonds
of the Greenviie and Columbia Rail-
road Company, upon which the guaranty
of the State was endorsed by Comptroller
General NeagIe, which are missing from
the comptroller generals office, and in
no wise accounted for by the records Of
said office. An examination of the books
of the Greenville and Columbia Rail.
road Company shows receipts from j. L..
Neagle, comptroller general, under date
of February 9th, 1872, for bonds Of said
company to the amount of sol 900 which
were put in his possession tor the pur-
pose of having the endorsement OF the
State placed thereon, and being ex-
changed under the terms of the acts au-
thorzing the same. Of this amount bu;
$Sl 900 has been accounted for by Comp
troller General Neagle. The records of
the office showing that his successor, Il.
c. Dunn, reccipted to him but for $751;
900 Of said bonds, Mr.. Ncagle was invi-
ted by the committee to appear before
them, or submit written statement to
explain this discrepancy, but up to this
time, has failed to do either.
Your committee, therefore, recon-
mend that the facts set forth in this re-
port be referred to the encouragement,
and that he be instructed to take such
action as the interests of the State may
require.
Respectfully submitted,
S. S. CRITTENDEN,