Year: 1871

COLUMBIA, March I, 1871.


To the Honorable, the House Of


Representatives.:


GENTLEMEN Having at all times
persistently and earnestly opposed
any measures tending to increase
the debts and liabilities of the
State, l deem it not inappropriate
to communicate my reasons to the
General Assembly for approving
an "Act to promote the consolida-
ton of the Greenville, Columbia
and Blue Ridge Railroad Compa-
ny" as the criticisms on that bill
tend to mislead the public in re-
gard to it, which in my opinion
will complete, without the addi-
ton of a single dollar to the pub
lie debt, an enterprise so impor-
tant to the interest Of the whole
State, as the perfection of our
railroad connection with the " est.
1t has been long evident to a.!
thoughtful and practical men, that
the Greenville and Columbia Rail
road, and the Blue Ridge Railroad,
being Identical in interest, should
be under one efficient and econom-
ical administration. While they
are both in their present condition
embarrassed in finding the means
to prosecute vigorously the work
necessary to their success, it is, |
think, equally clear that their
combined means can achieve the
completion Of their common Pur-
poses.


The act before me proposes sim
plv to allow them, upon fair and
equal terms, to combine their re-
sources.


In postponing the statutory lien
of the State, for the endorsed
bonds Of the Grecnvillc Railroad,
I cannot feel that | am consent
ing to abandon any real security
on the part of the State, as this
road has not only paid the inter
est on a debt, almost equal to the
combined liability of the States
endorsement and the second mort
gage bonds. At the same time 1t
has been compelled to expcnd an
extraordinary amount of its in
come for repairs, which for the
want of iron, had to be almost
daily renewed, coupled with the
destruction of rolling stock, and
damages for the loss Of life and
property. 1t is rendered abSo-
lutely certain that when the road
is put in proper condition, with
the necessary means to DO the
business Of the country through
which it passes, it will not only
be able to pay the interest on both
classes of bonds, the aggregate OF
which is less than $4,000 to the
mile, bat will have a surplus, that
may be applied to the payment OF
the interest on the Blue Ridge
bonds, while :he road is in process
of construction.


In reference to the Blue Ridge
Railroad, by an examination OF
the several acts, it will be seen
that the only change which has
been made is to give the bond
holder the first lien, and the statu-
tory lien Of the State the second,
by which it is secured as efcctual-
ly as it was in its original status.
The necessity for this Legislation
will be recognized when it is known
that one Of the principal Difficult
ties in the way Of the negotiating
for the sale of these bonds, the
mortgage executed and placed on
record in the States through which
the road passes, viz: South Caro-
lima, North Carolina, Georgia and
Tennessee, to Messrs. Gourdln.
Cameron & Clews, as trustees, by
its priority of date, was made to
be a first mortgage on the proper
tv of the road, while the act au-
thorizing. the endorsement gave
tho State q first lien. This was
made a cause Of objection by those
who were disposed to accept the
negotiation Of the bonds; the pur-
chaser was desirous that his Sc
curity should be a frs. lien on the
property, so that, on failure of the
company to meet their obligations,
the holder of the bonds could
make q claim against the road'
and not against the State, as
they could do nothing IN the
courts as against the State, while
they could enforce their claim
against the incorporation. Thus
it will be seen that it became ab-
solutely necessary that this dlfh-
entity should be corrected. AS to
the other change of the law Of
1868, whereby it gives the privl-
lege of negotiating the bonds at
the market value, instead OF beng
restricted to selling at par: every
one must SEQ that it WAS almost a