Year: 1872

A BILL to relieve the State of South Carroll


ma from all Liability for its Guarantee Of


The Bonds of the Blue Ridge Railroad


Company, by providing for the securing


and obstruction of the same.


SECTION 1. Be it enacted by the Senate
and House of Representatives of the State
of South Carolina now met and sitting in
General Assembly, and by the authority Of
the same:


Whereas, the State of South Carolina has
by and in pursuance of the provisions OF
an act, approved the 18th day of September
A. D. 1868, entitled "An act to authorize
additional aid to the Blue Ridge Railroad
Company in South Carolina" endorsed a
guarantee of the faith and credit of the
State on four millions of dollars of bonds,
issued by the said Blue Ridge Railroad
Company, in South Carolina; the Blue Ridge
Railroad Company, in Georgia; the Tennes-
see River Railroad Company, in North Car
olina; the Knoxville and Charleston Railroad
Company, in Tennessee, and the Pendleton
Railroad Company. in South Carolina, for
the purpose of aiding the speedy completion
of the said railroad which bonds are liable
for the debts of the said railroad companies;
and whereas the present condition OF the
finances of the State, and of said companies
is such as to make the further continuance
of said bonds on the market inexpcdient.and
unadvisable, and a serious injury and prejv-
dice to the credit of the State; and whereas
the existence of the said four millions Of
dollars of bonds so guaranteed, creates
liability upon the part Of the State, which
the treasury may be required to meet at un-
foreseen and inopportune times; and whereas
the liability of the State, on account of such
guarantee, should be faithfully met and dis
charged; therefore, in order to secure the
recovery and destruction of the bonds and
coupons of the said company, issued under
and in pursuance of the provisions of the
aforesaid act, now pledged in the city of
New York and elsewhere, and to relieve the
State of all liabilities whatsoever, by reason
of its, endorsement and guarantee Of said
bonds,


BE it enacted by the Senate and House Of
Representatives of the State Of South Caro-
lima, now met and sitting in General Assem-
bly,, and by the authority of the same:


SECTION l. That the State treasurer is
hereby directed, with the consent, in writing,
of the president of the Blue Ridge Railroad
Company, in South Carolina, to require the
agent of the State of South Carolina, to re-
auire the financial agent Of the State, in the
city of New York, immed lately to deliver to
the State treasury all the bonds of the Blue
Ridge Railroad Company, endorsed and
guaranteed by the State Of South Carolina,
which are now in his possession, and held by
him as collateral security for advances made
by the said financial agent, by the order of
financial board, to the Blue Ridge Railroad
Company; and upon the delivery of said
bonds, the treasurer is hereby required to
cancel the same, in the manner hereinafter
directed; and the said Blue Ridge Railroad
Company shall thereupon be discharged from
all liability to the State on account Of such
advances.


SEC. 2. That upon the surrender by the
said company to the State treasury Of the
balance of the said four millions of dollars
or bonds, issued by the said Blue Ridge
Railroad Company, and guaranteed by the
State, the State treasurer is hereby author
lied and required to deliver to the president
of the Blue Ridge Railroad Company, in
South Carolina, treasury certificates of in
debtedness (styled revenue bond scrip to
the amount Of one million eight hundred
thousand dollars, the said certificates to be
executed in the manner hereinafter directed;
and if the said company shall not be able to
deliver all of said bonds at one time, the
treasurer is authorized and required to de-
liver to the said presldentsuch amount OF
such treasury certificates as shall be proper
tional to the amount of bonds delivered.


SEC. 3. That to carry out thSpurposes Of
this act, the State treasurer is hereby author
lied and required to have printed or en-
grayed on steel, as soon as practicable,
treasury certificates of Indebtedness, to be
known and designated as revenue bond strip
of the State of South Caralina, in such form
and of such denomination as may be deter
mined on by the State treasurer, and the
president of the Blue Ridge Railroad Com
pany, in South Carolina, to the amount of
oae million eight hundred thousand dollars,
which revenue bond script shall be signed
by the State treasurer, and shall express that
sum mentioned therein is due by the State
of South Carolina to the bearer thereof, and
that the same will be received in payment of
taxes and other dues to the State, except
special trx levied to pay interest on the pub
lie debt.


SEC. 4. That the faith and funds Of the
State are hereby pledged for the ultimate re,
demption of said revenue bond scrip, aud
the county treasurers are hereby required to
receive the same in payment Of all taxes
levied by the State, except in payment OF
special tax levied to pay interest on the pub
lie debt; and the State treasurer and all other
public officers are hereby required to receive
the same in payment of all dues to the State,
and, still further to provide for the redemp-
ton of said~evenue bond scrip, an annual
tax of three mills on the dollar, in addition
t, all other taxes, on the assessed value of all
tlxable property in the State, is hereby
levied, to be collected in the same manner