The weekly Floridian. [volume] (Tallahassee, Fla.) 1867-19??, 1882-09-05

per cent, however little, was to be applied
by the Trustees to the interest on the
bonds, and the Fund was to make up and
pay the balance of the interest. But this
was not the full extent of the liberality of
the system as TO interest, but even after
the completion by company of that part
of the line is had undertaken. if its net
earnings should, after deducting there
from, to create q sinking fund to pay
the principal of &heE bonds at maturity,
an amount eqnal TO the amount of
one per cent. per anntm on the amount of
the bonds outstanding be less than six per
cent. per annum on the aggregate of the
capital stock paid in and the bonded debt
of the company, then such net earnings
(ess said amount of one per cent on the
bond debit was to be divided pro rata be-
tween the stockholders and the bonded
debt 4; or, in other words, part thereof
applied to the interest on the bonds, and
the other part to go to the stockholders,
and the balance of the interest was to be
paid out of the Fund, from time to time,
as interest might fall due. For any pay
ments of interest by the Trustees out of
the Fund the only return to the Fund was
Lu6b JuC 1IuSJcCS bnOulu ItCGIf6 3S SUCH,
equal amounts of capital stock of the COM
pany, and the Fund thereby became en-
titled to the privileges and advantages of
private stockholders Whenever the net
earnings of a com mpleted road were over
six per cent. on the capital stock of the
company actually paid in and the bonded
debt, and the said one per cent. for the
sinking fund, the company was then re-
quired to payin not only the one per cent
sinking fund but also the entire interest
on the bonds This was payable to the
Trustees, and they paid the coupon
holder, whose right to rely upon the
guaranty of the trust fund was not
affected by the earnings of the road.
1t was simply saying to the companies,
while you are constructing your road all
you have to do is to pay us one-half of
your net earnings, however small, and
after you have completed your road we
will require you to pay the one per cent.
annually for sinking fund (one-half every
six months), and if after so paying, the
amount Of net earnings left is not equal
to six per cent. on the amount of the
bonded indebtedness, and the bona fcle
stock, you can divide them between the
Trustees and the stockholders upon pro
rata of the amount of the bonds and stock,
and the Trustees will pay the interest, in
stead of requiring you to pay all of your
net earnings towards such interest.
RAILROAD BONDS ENDORSED.
The railroad companies which issued
bonds, and the amount to which they
were issued and endorsed by the Trus-
tees as above stated, were:
Pensacola and Georgia Railroad Company 81, ,22Oo0o
Tallahassee Railroad Company ny......--....- 100000
Florida Atlantic and Gulf Central K R. Co.. 555.0O0
Total 50 507 900
The first named railroad company built
the railroad from Lake City to Quincy
the second, reconstructed that from ST.
Marks to Tallahassee; the third, built
that from Fernandina to Cedar Kay, and
the fourth built that from Jacksonville to
Lake City.
The annual interest on this amount
guaranteed by the Fund, was 1851, 10000,
payable half every six months. Without
going into figures, it may be stated as a
fact that prior to the war the Trustees
had to pay large amounts of interest for
the companies.
SALES OF RAILROADS BY TRUSTEES.
However successful the railroad com
panies and the Fund might have been in
paying, as it matnred, the above amount of
interest, and the vastly increased amount
there would have been to pay as the re-
suit of the construction of the roads from
Quincy to Pensacola, and from Waldo to
Tampa Bay, if the country had remained
in a state of peace and prosperity, the
war with its almost utter annihilation of
the business Of the roads, coupled with
the prOstration which afterwards marked
our history, was fatal blow to the
scheme.
Very large amounts of interest re-
mained unpaid, and in 1857 and 1868, aud
after, interest coupons were sold as low
as twenty-five and thirty cents for the
dollar, and even lower, although they
were receivable in payment for land.
There is a provision in the Internal I'M
provement Act that no bonds should be
endorsed by the Trustees for any road
constructed after eight years from the ap-
proval of the act. This period of eight
years expired in January, 1858, and there
was never any extension of the time,
although great part of the proposed
system of roads remained unconstructed.
If there was any practical ability upon
the part of anyone to undertake building
the remaining parts of the lines, with the
bond endorsement period extended, such
extension was not made, nor are we aware
that it was considered till 1879, when the
Legislature gave the matter mature in
vestigation, and concluded it would not be
we'll to extend it.
The lines, or parts of lines, which had
been constructed were after the war re-
garded as completed roads within the
meaning of the Internal Improvement
Law, and the companies operating them
having failed to pay the sinking fund of
half of one per cent semi i-annually, the
Trustees, under the power given to them
by the statute, seized and sold the several
roads, as follows: The Florida Railroad,
In the fall of A d. 1857; the Florida,
Atlantic and Gulf Central, in the spring
of 1868, aud the Pensacola and Georgia
and Tallahassee Railroads, March goth,
1859. The effect of such sales was to
relieve the railroads from all lien of
the bonds or coupons, except the half of
one per cent. payable semi-annually to
meet the principal of the bonds. 1t left
the Fund alone responsible for interest.
The companies were left bankrupt by the