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

The following report, which was sub.
mitted to the last session of the Il gisla-
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 Grcenville and Columbia
Railroad Company, submitted the follow.
ing report, which was adopted
That owing TO the limited time Mt the
disposal of the committee from their
other duties as members Of the General
Assembly, they have not been ablc to
give the matter the thorough investiga.
tion which its Importance demands, and
which complete examination of the
whole subject would require.
We find in the comptroller generals
report for the fiscal year ending October
81, 1873, that the outstanding liability of
the State on it's endorsement Of the bonds
OF the Grecnvillc and Columbia Railroad
Company and certificates of Indebtedness
amounts to ST ,i36. $3.50. We also find
by the report of the treasurer of the
Greenville and Columbia Railroad Com
pany, December 81, 1877, that there are
outstanding as liabilities of the company
original first mortgage or "blue bonds"
past due. to the amount Of 1885, 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 to
lend the name and credit Of the State to
the G. and c. 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
$500, 900 of original first mortgage or blue
bonds Of the company and funding its
tloating Indebtedness to the amount of
100000. 1t also contains the following
proviso: Provided that the bonds en-.
dorsed rs aforesaid shall not be used by
said company for any other purpose than
For funding the debt of 100000 now due
b.. the company on notes and accounts.
ana 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, S90O, 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 i'm ac-
cordance with law, and that $236,0OO of
the first mortgage G.. Blue Bonds should
st.!! remain ontsts = ing.
, The act of Deem Der 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 10 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 rs 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 S7OO-
600 of bonds with the guarantee of the
State upon them had been issued on the
10th day of December, 1866. This is
still further shown by Section 3 of the
same act, as is also the fact that they
were issued for the purpose Of funding
the 100000 of floating indebtedness
and il 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
iof the State, he shall endorse the bonds
of the company to the amount of 5000
600 more, which will complete the en-
dorsement Of 100000 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 Greenvilie and Columbia Rail.
road Company, upon which the guaranty
OF the State was endorsed by Comptroller
General Neagle, which are missing from
the comptroller generals office, and in
no .sise accounted for by the records ol
said office. An examination of the books
OF the Greenville and Columbia Rail
road Company shows receipts from j. L.
Heagle, comptroller general. uuder 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.
thorizing the same. OF this amount bu,
SSl 900 has been accounted for by Comp,
troller General Neaglc. The records o.
the office showing that his successor, Il
q. Dunn, receipted to him but for $Sl :,
600 of said bonds, Mr.. Neagle was invi
ted by the committee tn npnear before
them, or submit writi-n statement tc
explain this discrepancy, but up to thi.
time, has failed to do either.
Your committee, therefore, recon-
mend that the facts set forth in this re
port be referred to the attorney general
and that he be instructed to take sucl
action as the interests of the State ma,
require.
Respectfully submitted,
s. s. CRITrENDEN,
JNc. =. WyI!E,
Senate Committee.
RoBT. w. SHAND,
House Committee.
Since the above report was written tn,
accompanying statement from J. l.. Nea