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0ltciiltubviXQ “ The powers granted under the Conaiitution, being derived frtom the People of the Vnitfi^tates, may be resumed by them whenever perverted to their injury or oppression?'—Madison. VOL.UHIE 5.1 CARLOTTE, ]VC«TH-CARCLIXA, JULY 25, 1845. I UMBER 319. SPKKCH OF MR. J]LL.1S, OF Rowan, In the Elouse ol Commons, on 26ih Dec. 1844, cn the bill to authorize the foreclosure of the Mort gage of the Raleigh and Gaston Rail Road, and in reply lo Mr. IVloore, of Halifax. Mr. Speaker; It has been well remarked by all who preceded me that the present is one of the most important measures of the Session. It is one to which public attention is turned with a mixed feel ing of anxiety and interest, ami «>ne that in its final result, whatver may be our action here, is destined to effect mote or less all sections, all classes, all con- duiotis of people in the State of North Carolina. Its mngniiude and importance, justly entitle the public to the expectation that their representatives will enlist an active exertion of all their faculties in the ex’iication of the State from the almost over whelming^ embarrassment ia which she has been in volved by unguarded l*-gisl;ition. 'i'hese reasonable expectations of the public I for one have labored not to disappoint; and whatevei’may be ihe peculiaiities of my views upon this subject, hey have been adoptid ami are entertained with a sincere desire to subserve the interests of the State. Union of sentiment (oo, Mr. Speaker, that is indis pensable at all times to tffective action, is highly desirable in the present instance, but notwithstand* ing the advantages rcsul'ing from such harniony, 1 r.m forced to differ—to differ materially. Sir, with your Committee who have had this subject under :t)V‘ siigation, in many of their recommendations. Tliere is one conviction however, that the report f iho Oommiuee by i‘s clear exhibit of facts and lorc^ble reasotiitig, has driven home to the mind of every m.u. — il is the conviction that the flaleigh and ■ lasion Iviil Read Company is totally and irretrieva- t.!y insolvent-''.nsolvcnl far beyond the most sanguine hjpe r-'demption. Nay. ipore, that it was insol* ' e:;: cn ^he 12th January, 1811, insolvent on the 9'.h J r/jary, 1S39, the very day and very hour when .iC Slate bv au'.hoiity of her Legislature endorsed ' s bo:)ds for the sum of ei^ht hundred thousand iollais; nij.J further, that the Company never hasj additional ‘Mail pay,’ from the G» nerul Governmeni, but in reality their clear receipts from that source will rather be diminished than otherwise. To sujs lain thi^ I need but refer members to the irregti larities falling under their own knowledge of the Nothern Mails transported over this road And il is at once conclusive, that if the Wilmington Com pany cai no longer afford to transport the greiil Southern Mail, for the price paid by Government, the Raltigh and Gaston Rail Road with far lei-s punctuality and exp» di:ion, will not be benefuttd k y the transfer. But, Mr. Speaker, there ia no necessity for niy resorting to isolated facts in the report before us to deduce arguments against a purchase of the road by the State, upon the terms proposed by this bill— for by reference to page 4 of the report, will be foiund an argument fashioned and ready shaped to my pur pose, proceeding from the Committee itself, ’who have recommended a purchase of (he road by the Slate. The following clause will be thera found. “ Yout Vommittee report further that the receipts oj the said Raleigh and Gaston Rail Road have not been sufficient, after paying current expenses^ repairs »f road, c^c., to pay any part of the princi pal, and but a small portion oj the interest on said bo?ids'^—that is the bonds for ^300,000 endorsed by the State. Here sir, we have a most rernarkable paradox In one sentence we are told that tue road has faiUd and is now totally unable to pay but a small portion of six per cent, per annum on $300, 000, and in the next sentence, that the State ougfit to purchase the same road at !$*100.00Q as a matter ol pecuniary advantage. Strange vuconsistency betvvetm the reasoning of the Commiltee and their deductionc betwetn the report and the bill- Ihe load has been actually tried and found to be n bad invtstmeni at S300,0U0 ; yet in the face of these in- controvtrlible facts, we are told that the S'ate would do well to puichasi' the same at S400.000 '.i.aoie .iv'c r.\r- s n tr.e t'.ate who are to bear the burden ol taxation, one farthing • without being deprived of the actual neces- !.ro. 'I'his latter feeling denies the le-i'urc uf eiiieitaining any thing in the r.auire of •-:rs !■ This much Sir, your Committee have recominen- l:d, and with a view to carry into effect this recom- ;nrr;dation have submitted the bill now under con- -ideration. Thus far I cordially agree wiih the ♦ '’omniiitee; but to that portion of the Htll that au- honzes the Governor to bid four hundred thousand ')ollars for the Rileigh and Gaiton Rail Hoad in t^ehalf cf the State I u'.tt rly dissent. By what pro-, , ^ ^ , r •ess of reason,ng. your Commmee have arrived at j st'f at 8400,000, or any other sum, forlbe __ ; jsioii that the Slate shoiilj purchase the | anioum o! money that wouli! be derived from )f con; tjui at the sum above named they do not inform upon what calculation, upon what principle of the entei prize of indiyidua? might cause the road to yield a profit upon a small i vrstment, it would be an absolute incumbrance to th State, even though she could purchase it at one dolar. It needs but ordi nary experience to teach us the history of a con nexion between this and th* State To see it entire, let usimagiof^ ourselves foia moment propelled into the future. Suppose that tie Legis ature of 1846 is in session, and that this ro«i has been sold and pur* chas^^d by the State. A reiort comes in from the officers of the road ivho are constituted by this bill, stating the profits of the :oad, and containing a clause to this effect—“ all o\ which has been expen ded m repairs upon the road rxcept a small balance of soTTxa ihice inousand dollars, which it is thought to keep on hand to pay officers &c. This Legis lature adjourns, and that of 1848 is in session. An other report comes from the pfiicers the State’s rail road as follows ; receipts of road so much—all of which has been expend in repairs upon the road, payment of officers, &c., and t tre is a small debt still due by the State on accouniof certain services done upon the road or in comexion therewith.’’ This Lepislnture too adjourns a»d that of 1850 is in session—in comes the report asjsual from the offi cers of the road slating that the rceipts have all been expended and that there i« siili » considerable debt due by the State; and this samt report goes on to repr(Sent ifiat the road need re-laying with new iron and to impoitune the Legiiature by every ar gument the wit of man can de^se to make an ap propriation of some hundred or wo thousand dollars for that purpose The road is ‘epresented as near the peijod when iis operations vill cease—and for sooth the salaries of the officrs loo, unless the State makes such appropriation Such, Mr Speaker, will be ihe history of any conru xion between the State ofNorth Carolina and the Rileigh and Gaston Ra Road. Establish such connection and you at Mce create bountiful annuities for a few additional i Bee holders and at tach a diain upon your publicTreasury. I must confess, that U is with some eootion, that-1 look upon this contemplated alliancp, and there is one portion of this House at least to whom I would respectfully suggest the propruy of being cautious in clasping to their embrace th> wreck of a corpo ration It is an unnatural bridifor democracy, and one that will prove unworthy, lithless, false. But gentlemen tell us thcreis no danger in a purchase of this Road by theStatcj that we will have no money to pay out forsuch purchase, and that inasmuch as we are surety or the Road, to the amount of the proposed bid, ve will stand in the same position thfit a creditor wrjld at the sale of an insolvt nt But, Mr. Speakf r, lj)iopose to show that here is danger, and immmtntdanger in making he bid pioposed by the bill b»fire us. 1 he report of the committee shows that th^t- are two mortga ges upon th« RaUigh Ga?'.*:^ Rail Road Ihe fiist one giv» n to the State to i^cure the payment of t?500.000. a d»bt contracted >y the company lor which the State is responsible falling due in I860, and for which sum indemnif'ing bonds have bten ^iven by iridividuals to the Svte recoverable when the proceeds arising from sae of the Road have been exhaust* dj and the olhe for a similar debt of 8300,000 given at a stbsequeil day. Your Com mittee State that it is ccnt«ndfJ by the siockholdeis that the first debt of §500.000,must be satisfitd first, from sale of the Road under mortgage. Suppose that this is the case as manj able lawyers think, and that we purchase the roal at $400,000; what then will be our situation? The obligors in the bond alluded to file their bill n equity, piaying that the purchase money may b« paid into Court, and set aside to discharge the S»00 000 debt when it lalls due in 1860. If the Coin makes such a con siiuction of the two moitgafes, it wili order the purchase monev to be paid ou’r and put at inteiest. to discharge said debt of 8503,000 m 1860. And although the interest will be ordered by the Court to be paid in liquidation of tie interest on the loan of $300,000 as the proceeds ct the Road itself were applied, yel w’e will be conpelled to pay the pur chase money in the same manner as a private pur chascr. In this event, Mr Speaker, the public 'I'reasury will be in a state if literal bankruptcy. This bill makes no provision for such ari emergen the road u be sold to other hands for S:J7y,UUU. j cy, while at the same time itdoes not seek to avoid ' ; and lose .he remainder of her debt as lo own it her I ,t. Should the Governor or Treasurer be called I upon to pay the sum of $400,000, as purchase nao roin bonds I ney for the Road, during ihe recess of the Legisla- would be } mre—as it would be—it wouU be utterly out of his Where then, Mr. Speaker, are the arguments to sustain the recommendations of the Committee, il '.hey exist neither m the present nor conjectured profits of the road ? Ii is urged however that the _ ^ ^ State ought lo purchase ihe road at the sum named, Jav sincG its operations began when it vva?| in order to save herself harmless from the last bond , r.v.se than insolvent. 'contracted by the Company for the payment oi i'hi.-disastrous condition of the Company, w’e are j whfch the State is responsible—that sum bejing by thegcnilenian from Bertie, (Mr.Che'ry) will equal to the principle and interest of the loan, ring rum upcLi many of the Stockholders who why slop at $400,000? Why not give .ciVt: embaiked tnoir all in the entei prise, amount for which the St .’.’or such persons, Mr. Speaker, I hope I am not Slate could be saved harrnl' ss from this or other V,;n ^ynipaihy. Butatthesime time theie dtbts by the simple operation ol bidding, then I ' i and more ge neral sympathy that takes ^ would go with gentlemen in authorizing the Gov ; ’!i of my breast. It is the sympithy for the ,ernor to bid on until his lo^g ‘ > !'i:;jri,!s cl human bti:igs in the But the mil Sir, if the lor no evidence existed that they would be large enough to pay the heavy interest on the deb» coc traded. Nor w’as even this a permanent security, insufficient as it was, for so soon as ihe mortgage should be closed and the Road sold, these receipts would be cut of!—as will inevitably be the case ue- der the provisions of the Bill before U3. The act of 12ih Jan., 1841, authorized the Rail Road Conr)pany to contract an additional loan of in by Ihe Stockholders, *• leaving a debt (to use the language of the Committee) of S950.000, hanging over the Company;” and this too at the very lima they began operations. Th is debt it is reasonable to infer, has been draw* ing since that lime an interest of six per. cent per annum, which would amount to an aggregate a- mount of interest of $57,000, annually. By reference to the report of the Company it wiJ $300000. at b per ceni. per annum, payable in ter, . I / i .. .v* , ^ I- . I , A 11 1 u r be Seen, that their clear profits ne/er have exceed* armual uistalmenip, Ihe first falling due on the first | nnn. ,Q«r 4 I ^ .u o. . ' i .u U'd S32.000 for any one year. Deduct this sum 1845, and pledged the Stale as surety for the L ^ T • . . ^ a u . r. ^ ^ from ihe interest on iheir debt, and we have !e.t should become wea ried in the employment. But bidding here is like bidding elrewhere. the creditor cani»ot save his debts by this means ( ntirely, bul if he goes beymd he actual value of the property, he involves hirnstll the deener. ympii’hy ai this time foi the Siockhol- j Gentlemen in ihei: zeal to save the whole of th» ii! *igh and G ision Riii Road. last loan contracted by the Rail Road and endorsed pTi sent in'Olvtncy of th- Company bu'j by the State, seem to have overlooked an ordmaij CQJ.^e ol ccniuct su:3i^est5 itself lo my mind, i principle of economy that is universally recured to r.e can nruJenily ad'opt. Il is to apply the in like circumstances by every man in ihecommu- .'a.n'i rule that is usuaily applied under similar cir : nity It is ifae instinctive S( If teaching principle lo . T!s anc!S to individuals. In the ordinary atTairsj use a common but meaning phrase, of making the ->'■ lire wl.ea a man becomcs insolvent, his creditors, | best he can of a bad bargain, and m case his dtblor is : r those wUo are bound for the payment of his debts, not able to pay the whole of his debt, then to take '!;spose of his assets and apply the proceeds arising ! such part as he is able to p^y- 1 his sir, is a prm- .herefrom as far as they will go lo the payment of icipU- I would have operate in the present instance, such debts. Here we have the case of a Il iil Road and if its the nature of things it so happens that we Company d‘.’clared by your Committee and by reso cannot save the entire $400,000, then I would wil- lut’.on of the present General Assembly to be insol lingly agree to take $300,000, or such other sums a‘ v*.nt, and for which Company the Stale is bound as ifie property of the creditor will produce. Butyoui fecurity in the paymt nl of a large amount ol money, cornmiuee totally disregard smaller sums lhai othei Sow in order lo apply the common rule as alludtd j persona may give for the property of the Company, io, it is incumbent upon the present Legislature to ! and are for authorizing ihe Governor at once to bid .'ause to b'i sold, the Rail Road itself and all other j ibe entire amount of our claim. In doing ihis they properly both real and personal belonging to the say the State can lose nothing, that she w ill have no *v-!rTipany, and 'he procct ds of the same to be ap money Id pay out .'or the properly. Without con j lied to the liquidation o! ihtir dcbls for which the j ceding e.ther of these positions, I would simply rep } Slate of Norih Carolina is ultimately bound. j that our object should be lo gam something. We have bein loosing long enough on account of ih Rail Roids, and il is now high time to change oui policy. , If,'Mr. Speaker, we assume the data contained in the repo t before us, there is lo clearer proposition than tha'.ihe State svould do just as well lo permit hands for $79,000. Jan paymt nt of principal and interest. This was done, however, upor. condition precedent that the Stock holders should give a second mortgage upon the Road for the payment of the principal monei/, and that individuals, Stockholders and others, should give their personal indemnifying bonds for $500,- 000, to secure the State against any loss on the prin cipal money of the first loan, recoverable upon in I860, after the proceeds of the Road have been found insufficient for that purpose. No hen was taken by the Stale, upon any property to secure the payment of the interest on this latter loan, falling duo every six months, other than a pledge of the receipts of the Road already insufficient lo discharge the interest of the first loan. The effect ol this act was to create a new obligation amountin'? principal and interest together to the sum of $400,000, or more, while the only additional security taken were the indemnifying bonds alluded (o, which no gentle man will contend are worth now more than $400,- 000, and which in 1860, when a recovery can be had uporj t^em, will not at an extravagant estimate be worth more than $300,000. And yet w'e are told by the title of the bill, that this act wa? passtd to sccure the Slate against any and every liubility incurrtd on account of the Raleigh and Gaston Rail Road Company. By making a calculation of interest, Mr. Speak- t r, and by reference to the Treasurer’s R' pori be- fore us. it will be sein for what sum of money the Slate of North Carolina is responsible on account of the Ral^^igh and Gaston Rail Road Company at the present time. The result of that calculation is as follows: Item 1st, Principal money of the first loan, $500,000. “ 2nd, Interest on the same up to the time of failing due in 1860, “ 3rd, Principaf money of 2d loan, “ 4th, Interest on the same up to the respective times of each instalment falling due, commcncing Jan. 1st, 1845, and ending Jan. 1st, 1855, “ 5ih, Amount already paid (SeeTrea- surer’s Report.) Total Sum, $1,460,374. This is the entire sum due to creditors fiom iht RaUigh and Gaston Rail Road Company, for \b^ payment of which the Slate is surety—One million four hundred and sixty thousand three hundred and seven'y four doUaiS. The assets of the Co.mpany for the payment of this debt eonsisis in the Road itself, with ihe Ln f»in(S, Cars and waggons belonging to the same From all ihe evidences before us it would be an t xirava^’anl calculation to tsiima*e ihe value of this property at $400,000. No gentleman io ihe House can go beyond, and although I w’lll pul it down at ihis sum, yet I do nol look upon il as worth more than $100,000. The remainder of ihe Company’s assets consists m the indemnvfying bonds of individ uals amounting lo §500,000. I have unquestiona ble evidence, that at least §100,000 of these bonds aie now worthless; the obligors being insolvent, and fiom information contained in a certain document deficit of §25 000. Here then is a Company with all its propeity in as full, active and successful operation as could ever be expected, falling short by one ha'/, of pay ing the interest on its debt. Is nol this, sir, a case of insolvency ? In no event, and at no timo could that property, ihai failed to pay the interest on their debt, be converted into a sum cf money equal to the debt. If therefore, il had been poss;^ hie at any time for the Sheriff to have sold the Road, and other property of the Company under execu^ lion, the Company would have been found to be i;»- solvent. This, sir, was not the condition cf the Company ?it one particular time or upon a single occasion ; hut from the first day that a locomotive passed over he track of the present. At no lime have its asset3 been equal to its debts. What great emergency—w’hr»t overruling ne* cfssity. Mr. Speaker, impelled the Legislatures of ’39 and ’40, to endorse the bonds of a Company to tally insolvent for the enormous sum already nanud? Did the general interest of the State require li?— Did this enterprise appeal to our patriotism as a great work of internal improvement calculated H txtenJ con vrniencit s to large portions of the people of Noiih Carolina? No, Sir, ii :s far otherwise. The work is almost exclosively local. The people of the Mountains, and East of ihe Mountains, have never fell US influence. The energies of trade have never bet n awakf ned there by the starthrjg noise of Its locomotive. The people of tht* Ersi and lht» Seaports have never experienced ihe advantages cf : this channel of trade. On the contrary, it has prcv- ed a tributary by means of which produce is haslet'! • jed in a few hours to a bordering State. 480.000 Why then this enormous gratuity? For it may 300.000 be termed a gift, since the Company was insolveii^ ’ and could never repay. There is no jusuce, equality in squandering millions in one small corncr of ihe State, without ever manifesting the slightest disposition to confer similar bentfits upon th“ rrti." munity at large. But, Mr. Speaker, afier taking a v;ew' cf the n.v lure and extent of our public involvement it^ ccnso* quence of the acts extending aid to the Raleigh ar d Gaston Rail ^Roid Company, vLe quest:cr. nvi- 90,000 90,374. If-i'ally suggests itself, and ihe .-juestirr. tha? .v te I asked'by the public, is w’lth whom rest, the respuos;- bility of this legislation? I mean net S’-r, v,i*h w.^.ut particular individual, bul what party. For ;n theie days we approach the people as parties; they e!c'-i us as parlies; we legislate as parties; a'od as part,. 3 will they hold us responsible for such legislaticn.-•• And-although genilemen may deprecate any allj- sions lo the political partits of the country ;a the present discussion, as iheg«nlleman fro.a Halifax (Mr, B. F. Moore) has done, yet such allusions are natural and cannot be rtS’SteJ, And, Sir, I hold them lo be entirely proper at th:s time, for jf the^e is one subject touching our goveinment in whicti the people have a deeper iiiterest than any other, '.t \s the subject of publi'' cconnmy. All parties whci asking for power profess to be the particular chari.- pions of a strict economy m administering the af« I fairs of government, and it is but ri"ht,that the pec- ccn.™un,cated to the House by .be PubUc Treasu to d. terr.,ir„ rer, Iapprehe>,dtbat lh.sfacus pla^ |P ^ carries its professions tnore tSlctual'y pule. And il is bul fair lo infer that at least »100, \ 000 more of the same bonds, will be worthless mi P ‘ of purchasers for $79,000 at 6 per cent, precisely the same as would be derived from the iiiveslment of $400,000. If this j avoid repudialinn. the power lo do so even though nothing else could •-nan-e this recommendation is based, 1 "/f, “J,ortVs‘u'rediy "u Ts .t 7h'e’swtemints of T ’ rn^iVl be'seen then, M-. Speaker, .bat something ainuiiL .e^osi-e, ertdin j it no go j (i,,, then il follows as an unavoidable j may be lost by a ihe report of the Committee; for nothing cou more at vari.iace and inconsistent with that report consequence that the Siate would do -.ve!l to perui:t I proposed in the bill, and that the Slate does not ■I'here wo find it slated that the receipts of the Road | the road to be sold at 8100,000. or any sum o.e. ] stand precisely i- ^ »>u ij,wLi r. ciuiru uiciv iii^ va i / i_ i « 4 for the past eighteen months, only amount to seven j $79,000, as that wou»d yieJd more ^han l le- ro ihousand dollars vvhicti sum isfquivaleni lo six per i could at a:^y price. But gellemen w: i m ’ *'■ “ cent per annum on seventy -nine thousand dollars — j blushing soj^islry w'hen I argue t al i e a ei„ per annum on seventy , .. ,■ r . i ^ If th» n the State is to gain by any ic vestment in I and Gaston Rail Road is of so liule value. 1- -s _ this Road ihe should nol pay more for it than seven- j all hero that 1 am in earnest, and if they ditler wi.n ly nine thousand dollars, for if she goes beyond that ! me, nothing would give me more pleasure ^han sum then, according lo the statistics containtd in the | hear their arguments. They may pomt to the opin report of your Committee, the dividend upon the- lo investmcni will be less than six per cent, and conse i.^uently the investment an injudicious one. Bul m case this Bill is adopted and the Governor purchases the road at four hundred thousand dollars, what per cent, upon this sum will the Stale be ena bled tojdraw from the clear profi'S of ihe Road ? A liule less than one and a half per cent per annum ion of the public, the general estimate lhal is placed upon the road ; but general estimates are loo vague lo serve the purposes of an argument. Tw'oor three years ago ihe genera! estimate valued this road at 1 500,000 doiiars, and w'ithin thai short lime one rnillion at least has been deducted from its value. If the road is worth more, where are the facts that lead lo lhal result? Here again some of the earlier This result is deducible from ihe fads reported to i reports ol the Gom| any may this house by the Committee, for if the profits of the mg a netl annual profit of from $20,000 to road for eighteen months be seven ihousand dollars. | To this I reply, what allmust admit, a e ^ the proportional profits for twelve months will be a reports should have weil gone on an sai . ^ ^ ^ • hich sould with great propriety have been expen in the situation of a creditor bidding w ded in repairs upon the road, The facts contained in the report of the CommUtee sum equal lo one and a half per cent per annum, on four hundred thousand dollars. It w'ould be a strange principle of finance, Mr. Speaker,Ithat couki - induce us to make an investment that would only I are the proper dato to be used by us i . money of this road, for the Commiitee was raised wiih the express view of furnishing facts pay one and a half per cer»l, at a lime when money :s well worth lo us six per cent per annum. Nor does your Committee give any probable as surance that the profiis of the road in future wMl be iacreased beyond the profits for the past eighteen months. On the contrary the annual report of the Company exhibits a gradual decrease in the receipts since its operations first began. It is urged how- ^iver in debate, that the recent iransfer of the South: »^ra Mail lo this line wili augment the receipts of the^ road. The facts of the case are, the conductors of upon which the proceedings of the House might be based. While Mr Speaker, I would regret lo see this road sold at a sacrifice, yet I would not have the State to own it under any circumstances. And al though I have illustrated that il would be worth something to the Stale should she purchase yet id that argument I regarded the State as an mdividual and attached to it the enterprize and mdustrv of m- dividuals in the management of iheir private affairs. '^:8 read wtllnotpinally receive ten ihs jsand dollars. But in reality the faci i3 far otherwise, fur aliho g al the sale of an insolvent debtor. Bul Mr. Speak t‘t all other arguments lhal I could offer m opposi tion to any further connexion between ihis Road and the Stale, were weak when compared with the great argument \hat may be deduced from the pa?l history of the “financial connexion of the Raleigh and Gaston Rail Road Company, with the State of North Carolina-” This history, sir. should nol be an unregard|:d lessen lo us in all similar legislation. And in glancing at the history of lhal connexion, I, will lake occasion to answer ihe question propound ed by the gentleman from Halifax,(Mr. B. F. Moore) in the forenoon, as to whether any genlleniitn has ciphered out the precise responsibility of the State on account of this Road? The act of Assembly of 9lh Jan., 1839, author ized the Raleigh and Gaston Rail Road Company, lo borrow the sum of $500,000, to fall due in 1860, at 6 per cent, interest, payable semi annually, and pledged the State as securiiy for ihis loan. The hen lhal the Stale took upon properly to secure her self in case she shoultl have this debt lo pay was a mortgage upon the Road, a«d a final pledge oi the nrivaie property of the siocliholders. Ihis was to secure the principal money rt $500,000, but for the payment of the interest whch was then the largei sum, being more than $600.1)00, up lo 1860, no se curiiy was taken. And this perhaps is ‘be rnosi remarkable feature of that remarkable law. While the Legislature took, or attempted lo take security for the smaller sum, it refus;d or neglected to lake security for the larger sum. It is true, thai it pro vided for the payment of the interest out of the re ceipts of the Road, but that body bad no authority fir drav7ing so heavy a drift upon ibcso reieip’-5> 1860, when a recovery can be had upon them. It must be admitted, sir, by all, after the exhibits lhal have been made lo the House, that il w’ould bt a liberal calculation, to say that the State will tveni- ually realize §300,000, Irom these bonds of ludem nity. The sum total of the asseits of the company ac cording to Ihe foregoing estimate is as follows Item 1st, Purchase money of the Road $400,000 “ 2nd, Interest on the same al six per cent, up lo the time of the payment o the first loan in 1860, 300,000 “ 3rd, Recovery on the indemnifying bonds of §500,000, 300.000 Total, §1,060.000 This sum deducted from the entire debt owed by the Company, will leave the certaiii loss of the Stale, and is as follows : 1st, Entire debt, §l,460,«i/4 2nd, Amount of asset?, 1,060,000 Certain loss, 400,o74. Thus, Mr. Speaker, jt will be seen that the un doubted ioss of the Slate of North Carolina, in con st quence of endorsing the bonds of the Raleigh and Gaston Rail Road Company, will be more than four hundred thousand doiiars. But in reality the highest degree cf probability exists, that it will be Il has already been stated in debate, by the gen- ileman from Wake (Mr Wilder) that the Whi^' party had the ascendency in both branches oi th*j Legislature, when the acts authorising the Pub.i.: Treasurer to endorse the bonds of the Raleigh ai^J Gaston Rail Road Company were passed, and that the Journals w’ill show the fact, that the higs as a party, voted for, and the Democrats 2S a part'./ voted againsl their passage. There being ludivi- dual exceptions among both parties, this position has nd nor cannot be controverted. Bul it has been replied to by the gentleman from Halifax (Mr, Mocre.) who (although he deprecated any allusion? to party by the gentleman from Wake (Mr. Wilder,) nevertheless took occasion to make an out and out political speech himself.) by calling the attention r.f the House to certain proceedings of Internal In'*- provement Conventions, held in the years 1633, ’T O ’38. in which prominent men of boih parties took part. The gentleman fixed the names of d:stiT7guish- ed democrats to addresses to the people in favour of works of Internal improven*' v;t, and to memorials to the Legishture, recoTnmending certain projected works to their f'worablc consideration. I’he gentle man by his ancient learning and antiquated docu ments, has most certa^Tiy clablishtd one lacf, v:2 that both parlies were or.ce :n fa\^r cf a system of Internal Improvements; ar;i this, Sir, :s wl;at every democal will without hesi'at’.on admit, anu ’.vo-lJ have done so before the genthman s argument Le- Aye, Mr. Speaker, and if I understand tho much larger. . For if our Courts decide lhal the first rncrtgage , North Carolina, they are rofv and must be first satisfied, as many distmgutsbe continue lobe in favor r.f a systrni of Itnprove* ! vers think will be the case, then are ,hrouehou; the w!lo!e extent of the StatP, by the report o( the Committee btsore us ..^at ibe, Slate will be without any security for iho last *oan ol §300,000, and the interest. And in addition ic , ihiSi if the Road sells for less than §400,000, the sum al which I have rated it, as I have not the slightest doubt will be the case, then the losses of the State will be swelled to near one million ot dollars. All this responsibility has been incurred by the two acts referred to, passed by the Legislatures of 1839, and 1840. 1 have characterised those acts, Mr. Speaker, as unguardedl egislation, and I thmk 1 will be justified in the expression, when it is re collected that the Raleigh and Gaston Rail Road Company was totally insolvent at the very, time cf theu passage. This fact I have promised to show from the report cf tbe Committee, upon which we are now acting That report slates the original cost of the Raleigh and Gaston Rail Road, to be fifteen hundred ihousand dollars, and that six hun dred and fifty thousand dollars cf this was paid ly by our wants and our trfans. i na gentleman established nothing more, thtn, by reftr* ence to these old documen's than every person \3 perfectly willing to admit. But how this fact justifies the Wh;g party iii making extravagant donatiriis to an almoit tAC*u- sively local work, and to the entire regltCl of tlio rest of the Slate, he has not thought prop* r lo :t;:oi ni the House. If these docuixients be r^gauird ss i; j* ihority. coming as they do from great aiid pati:iQ.ic. men, ihfn with his own mouth does the gtml* HiUiJ from* llHlifa* condemri those acts of the whig party in the Legislatures ol 1^39 and 184Q:hat he would defend. No harsher strictures upon ihi.se acts could have been offered to the House, thun tbe paptrs which the genileman has r»al to dchnd them. sir, I refo*lect arigtH. ht^ read frorii tl>se addr^s-'es and memorials of Interral ImpTov*iitro; Co«v»o* liana, recoa>nRfndaiicns for the coniUuciioc of t Bail
Mecklenburg Jeffersonian (Charlotte, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
July 25, 1845, edition 1
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