Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-03
THE SUPPLY LIEN BILL.
Extracts from Mr.. A. T. barclays speech
Before the Senate Committee.

sure the industrial movement IN 'iigius,
Iappear before you to urge the amend
ment of section 2fs5 OF the Code OK VIZ
glnia in its relation to supply liens. some
in nv opinion, would best advance the
material and industrial development OF
the State. replied -,
4. The settlement of the State debt.
D The repeal of all laws which menaced
canitaI invested in industrial enterprises.
3 A liberal appropriation 20 give VIZ
gina a creditable representation at tue
Worlds Fair, in Chicago.
The first two lead naturally and logicaiy
TO the last. IL,
which the enactment of wise and Just laws
would give, il would be an idle waste OF
money 10 make any exhibition at Chicago.
Ho vever fair and fertile your belds may
be. however rich and abundant your mine.
raj interests. whatever the advantages OF
your geographical position among the
States and however inviting the opportu,
mites to build lines of railway or extend
and strengthen those already existing.
laws menacing capital would forever par
YOU from the money markets OF the world
II has been stated that, Notwithstanding
these laws. capital has come into virginia
and the State has been largely developed.
IL this has been done, il has been In lgno-
rance of this law. What more might
have been done If these unwise and hurtr
full laws had not been upon the statute
books? What has been done has
been in the face of great obstacles Those
who have been in the fCrsfront know how
severe the fight has beer and how they
have been handicapped h. the tad repu-
tation which We undoubtedly nave with
moneyed men. There has been a great
deal done. thanks to the untiring and
persistent effort of lew determined
and hopefui men who have had the cour-
age of their conyiclons-men IKE MIN
hall and ingalls,, who have realized the
possibilities Cor Virginia and have I'M
pressed others with their convictions.
But il has been uphill work. and the
success obtained has been, IN spite OF
these obstacles, by an inspiration In the
hearts of progressive men. that great
futnre was in store for this State, and an
abiding hope that the day would come
when ell Virginians would stand shoulder
to shoulder IN one common enort to reai-
ize what beneficent Providence has
made possible for u.s. 1t remains TO be
bo seen what we shall do with IT,:
We should never forget that Virginia is
n borrowing State She needs money and
that money must be gotten beyond her
borders, How important, then, That our
laws should be such in their character as
TO invite rather than repel capital
The blackest cloud which has Tor so
long a time overhung our skies IS vanish
inc and soon the stigma of attempted re-
nudiation will have been removed. This
is grand step, but great deal remains 10
be done. There are many hostile laws
menacing capital upon our statutes. In
deed. the scope of legislation, no DOUBT
induced by the lamentable condition OF
the State after the war, seems TO have
been for the protection of the debtor, and
the remedy sought was how to stay debts,
not how to have them paid. The condl-
tions ere changed and as the times change
we should change with them. Ienpord
,alis1nfnn e. nos IN Ills Diutdnur" IS good
marim. We must keep up with the pro-
cession is liberal translation or this
maxim.
n grand step, but we must prove that we
nor ONLY intend to settle our past obliga-
tIons. but give assurance that this repent
enee means honest living in the future.
A first mortgage bond in Virginia is mis-
nomer, delusion. and snare when II
rests upon the property and franchises of
an industrial enterprise. 1t has not even
the dignity of good floating DEBT
Yon ask capitalists to loan you money 10
establish and carry on industrial enter
prises and then allow statutes to remain
which make IL possible TO destroy every
dollar they have invested, -,
Does this not impair the obligations OF
the contract? / see in the DISPATCH TINS
morning that Mr.. Tazewell Kllett, one, OF
Richmonds distinguished lawyers, has
been looking into this question on pehaii
M his clients. Mr.. Elicit is too shrewd a
lawyer TO put himself on record as to the
LEGALITY of this law. He says the question
was considered by him for his clients rather
from practical than from legal stand
point. .,:
b,t am here TO view this question from a
practical standpoint. Why should the
manufacturing industries stand upon
plane different from any ordinary business
| Transaction? Why should the supply men
AJAX that the State should act as guardian
for them IN their business transactions! /!
| II n farmer in Virginia goes North and Sc
cures a mortgage on his farm IL IS mort
| page i'm deed and in truth. He cannot go
| 10 his nelghboring town and run up Dill
With his merchant or his coal man or
secure his laborers and make it prior lien
unon his estate. This demand of the sup
| piy man is selfish one in the extreme lie
knows of the mortgage upon the property
! of the enterprise, and II Is matter OF
option with him whether he should sell
manufacturers A market has been ere
ated. and customers are brought to his
doors and then be demands that he shall
| he protected alone and beyond the man
who has made his sales possible. II such
a poiicy is persevered in the supply man
NAV wake up some fine morning and find
| that he has killed the goose that laid his
| golden eggs. He is careless as his claim
| and il can Just run on to suit the conVe-
| L. 60 Than 4 a
great danger here which IS not often con-
sIdered. Take furnace property, for IN
| stance. Under the present laws of Vlr-
| pinia il is possible for the supply men TO
absorb it's entire property and franchises
| AZ one fourth or possible one tcnth OF Its
value without notice TO the bondholder.
| All they have to do is to await their op-
| portunity. Iron Is dull. the times are un-
| propitious. The furnace must be kept gong
| The supply men blandly tells the manager
\ to 90 shead, they will carry him through the
| dnlI season. A big clam piles up, and,
presto change" his money Is wanted.
and he wants it bad and quick. The man
ager looks around for some means OF
raising enough to pay the pressing de-
mand. He finds that the State OF Virginia
| has already put mortgage on his plant
| and all its product. The supply man Is
not concerned he blandly catches the ap-
| nle 10 fAllS. Lie 5lOCh 10 Wlpto Out, ahh
| the money-shark. as he is called, who holds
| the frst-nlortgage bonds, finds himself In
the vocative. This is no fancy picture. |
| know whereof speak, and IL is possible
| of realization in Virginia.
Most of the industrial enterprises Of the
| State have been started on too low capt.
| talization.
W. need money in Virginia to carry for
ward the work so happily begun. 1t Is i'm
possible to place stock for o crippled in
| dustry. New capital must be gotten by
new methods. mortgage is the only So
| luton, and a mortgage in fact and not III
name. / have now negotiated tor one ill.,
dustry IN Virginia q 100000 mortgage
| the money has been promised upon only
one condition, and that is that this supply
lien law shall be repealed or so modified
! that it shall not be perpetual menace to
such Investments. l repeat, Virginia is a
borrowing State. We must show capital
ists that investments in Virginia may be
extra profitable and at the same time abso-
| Iutely secure. There is plethora OF
money. Whv does il not come into Vir-
gInia? Is the field not an inviting ore 2
| Are the opportunities for making money
not equal to that offered elsewhere Z
| Yes. all this is true. Ii is a question of
security. Profitable Investments Is not