Gov. GRAHAM'S MESSAGE
To the BnclteGenl f
the people, aith a kn0wlcJgC of the
tare, bringing. of ttcir constituents,
eenWnts, wishes f.WJ f .
as well as
of tbe naoatrecvni v" -"-
of the Government, in every ri-g.
or-; .TJST-j -m. Trra more important, than hare
l2ma Section, than td that department of our
VTS cT with themioiration of
XicVairs, ith g orer. the public
inteiintheTacaUonoftheLegialatnrc.
Before presenting to your consideration, the mat
ters of ccneral concern demanding our joint counsel
and mntdal endeavors, for the well being of the
State, I deem it meet to remind you, of our obli
vions of gratitude to the Supreme Ruler of the
Universe, for the preservation of oar Institutions,
and thecountless blessings of his Providence, which
have been continued to us through another two years
of our political existence. Though wo have been
afflicted by disease, to a greater and more fatal ex
tent than has usually fallen to our lot, have suffered
v rfwmThfc and consequent failure of crop,
And from casualties by flood and fire, yety have we
..Knn.i-int rison to rejoice, in what has been vouch
safed to us, rather than to repine, at what has been
tiifFewvl nr denied.
The Revenue and Finances of the State, always
A subject of moment to the people, and to the Legis
lature, will derive additional Importance at your pre
sent Session from the circumstances which now sur
round us: The Reports of the Public Treasurer,
r.uJ Comptroller of Public Accounts, will make you
acquainted with the transactions at that department
since the last adjournment of the Legislature, and
the demands which will fall npon it before the next
biennial meeting. Our present political arrangement
comprising biennial Sessions of the Legislature, and
seven judges of the Superior Courts, besides the J n
.i,v;oi F.Tutive establishments formerly exist-
),.. nw ftmtinucd for ten years. During this
.J;.Ll tbe averacfc expenditure for the ordinary
sarport of the Government (exclusive of Disburse
ments for re-building the CapitoL and the interest
on a loan effected to pay the State's subscription lor
Stock in the present Bank of the State, in former
years, and of payments Iota flWount of suretyships
for Rail Road Companies more recently.) may be
stated with sufficient accuracy at about $67 ,r,oo per
annum: or S90.W0 for the odd, and $45 000 for the
even year of the series the difference being bvi
nM.nfAnAd1iT theScsstan of the Legislature in
.nan1,iii rir. In the same time the income
from ordinary sources or Revenue na Bttcvu
i.u J , .1 CC-)
000. the excess or wmcn
' t,.o Kwm devoted to the account of re
building the Capitol, interest on the States debt as
before mentioned, until it was discharged, and of her
i vm:-,. nil Road Companies. These ex
Inordinary demands on the Treasury, by reason of
the Rail Road liabilities have so accumulated from
r.n T.prUlature, at either of the two
last Sesions, to make timely provision to meet them,
! as to increase. the difficulty of your task. But, it
rsbelievcd,.that this may be readily .overcome by
proper and energetic action now, without imposing
onerous or unjust burthens upon i our t
' For the WUmiPZtoa & Raleigh Rail Road Com
oany, the State became surety by the act of 1840.
Tor the sum of 8300,000, payable ui six anaual in
raiments of $50,000 each-beginning f on the 1st of
January 1842, and ending the 1st or January 1847,
The first of these instalment was paid by the Com
pany: The eecond falliug due the lt of January
i J843 while the General Assembly was in esion,
and beine ppriwd that the Company was unable to
discharge it. they directed Ibe Literary Board to in.
1 f est S50.000 of Us funds, by purchasing the bond,
which constituted the evidence of thia debt. Tbeae
bonds are still held a a part of the funds of that
Board. But. for the instalment, payable the 1st of
January 1844. no provision was made iu the event of
its falluifc on. the Stale; which contingency hap
peaio. it we taken np by the Treasurer, with the
public fund, and that set f bouds . now held at the
: v..,- B lha Act of' the ' Wialature, t the
iartSeaeion, other bond indorwsd by the State were
allowed to be issued, in lieu of those becoming due in
1 845 &.IS46 on which credit were extended to 1848
&.1849, the interest whereof ha been kept down by
tha ComDanv. a it ha been, alao on those held by.
the Literary. .Beard, and the Public Treasurer. A
fcew mortgage en all the property of the Company,
was taken to secure the State against thi new in
i4M..nt 1 m not informed whether this Com-
uxotuku. . . ... .
ia nnMl IA IMT Oil LIIU rDIiiaiUlU? 1IIMU10UV
- on the 1st of January' next, but their , income U on
doubtedly sufficient for the payment of all their in
terest on loan, and the gradual reduction of their
i principal debt While thi continoe to be the case,
! there can be no objection tb continuing the State'
' credit to them, to the extent of her present liabilities.
It i not therefore anticipated, that any demand on
the Treasury will, in future, arise from the affair of
the Company. 1 " 1
By an act of the Generaf Assembly in 1839 the
State became, in like manner, surety to the Raleigh
iud Gaston Rail Road Company, for the sum of
8500,000, of which the interest was to be paid mi
" annually as it accrued, and the principal to be re
tieemed at the pleasure of the Legislature, at any
time after tha 1st of January 1860. A like aurety
ship for $300,000 was undertaken for thi Compa
ny by an Act, passed ia 1841, the interest whereof
was to be paid a on the former loan, and the one
nik vrth nnarinal to ba re-oaid en the 1st of Jan-
..h mm 1R45 ia 1854 in elusive. Of
utlT IU cavil J v s m
lh cia of bond, it i understood that Sl3.00Owa
never used by the Company, and therefore, that the
.. . r..B.niodation indoraer, i not liable on
fthem. Thia latter Company, having paid no part of
iU principal debt, and but a oie msiaimeni oi mie
rest, it whole liability has, for the present, fallen on
the. State, which ha, thu far, kept down the inte
rest on both description of bonds, and discharged two
iestalmenl of principal, being $30,000 each, and be
coming payable In the year 1845 and 1846 respec
tively. To accomplish this, however, ome portion
r the Literary Fund has been psed and 850,000 ha
been borrowed from the Bank of Cape Fear. ' The
: State, is, therefore, still bound for the interest semi
: annually,' on the whole uni remaining, viz: 727,
; 000. until paid, as also for $30,000 per annum of
, principal, lor me nexi eigni year, wi iue rrauuc oi
i .a a a i -i r
: $500,000 at sucn Umefter the lit or January leou,
! as the Legislature fhall hereafter appoint. For her
indemnity against these responsibilities, she has 1st,
the proceed of the aale of the Raleigh and Gas
ton Rail Road, if it 'shall be deemed expedient to
Make a re sale, or U income, over and above expen
ses, if .retained. 2nd, the obligations of individual
Stockholders, under the 14th section of the Act of
1839-,ahd of the Stockholder and subscribers, who
rave Bond under tire Act of 1841. Whether these
resources cau be relied on, to indemnify the State ul
timately, against her whore liability for thia Coropa
. toy, admits of question ; but that they will afford the
; ineans of indamnity to a very Considerable extent, is
sot doubted. - These means, however, will not be in
Jiand. ia season to meet the more immediate calls on
; the Treasury, a before, stated, and the scrupulous
' fidelity aud honor, with which North Carolina has
ever maintained her public engagements, require that
: ample means shall be provided in advance, to save the
: public faith in any contingency. While, therefore,
; your efTarta will be directed to the most eligible mod
t( making thia iudemnity effectual, it i indispensable
I . that measures shall be adopted for an increase of the
j. Revenue. How this can be realized with the least
hardship to the people, ha employed my anxious re
I; flection, and the result i offered with the deference
;. due to the superior wisdom of the Legislature.
: Our income, at present, k derWed chiefly from
levirt on land and person. These should not be a og-
:. mented, until other sources, or Kereuae have been
I tried t but the rales now laid should be failhfull v naid.
j end punctually and folly exacted. And judependenU
i ly of the pressing wants of the Treasury I should
j lave tf commanded a new assessment of Lands, with
view u greater accuracy in the fixation of value on
i eh rct, and aome proTision for a more correct en
i iwtment of Poll, a a measure of justice to the State
Ad fat AiialmiK Tl.e, 1 ?
T T - v,,..,. - tuwi, nionr tivr caucus, uar
Iftf Tor r, .,. 1 . i . .
:i " cenU Pr auuum on the one hundred dol
lars value. Tlfe habitoal negligence, which ha pre
vailed in returning lands for taxatioa, aud acextam.
in-their valde will ba manifest fry m a few. fact in
the history of the Re?eilo the; year 1815the
agrregate value of tie lands1 of the State, eei
lor taxation nailer ine- wr m vngrw, w
521,513. But, in the year 1836, the whole quantity
of laud liated for taxatioa we valued at only $39,-
136,108. To correct thia criminal delinquency ui en
listment and valuation, the. Act. of J836,.dirctfdsa,
new ansenment of Land and improvements, by mean;
of which, the same sobject of taxation .id the .next
year was raised in value to 651.0117, and 6.000
more waa added -to tb Roveanr.--Thia valuation.
however. Is obviously defective, since it fall two and
a half millions of dollars below that of 1815, although
more than a million and a half of acre had bean pa
tented in the mean time. It is reasonably estimated,
that with an area of 50,000 square mile within our
boundaries, there are 45,000 square mile, or near
twenty-nine . million of acre of territory inhabited.
Making the utmost allowance for land not yet gran
ted, it eao hardly be possible that leas than twenty-
five millions of acre are chargeable with taxes. But
from a statement ' appended to the Report of the
Comptroller, it seems that 23,267,472 acre comprise
all, of which any return have been received, and
that of this, the averaee value for taxation is but
$2,281 per acre, against a like average of $2 69 iq
1815. . The act of 1836 contains no direction for a
new assessment at any subsequent time, and the val
uation under it. loose! v made ten vears atro. is the
criterion of our Land Revenue at preseut. Besides,
very considerable quantities, since entered and pa
tented, ten years have greatly enhanced the price of
much of the Land in the State, in consequence of
improvements aud discoveries made within that pe
riod. The erection of Manufacturine Establishment,
the Discovery of miues, the construction of 250 mile
of Rail Road, the improvement on Keal rotate in
many of our Towns, and the rise in value of Forest
lands, yielding Turpentine, will at ouce occur as il
lustrations of this truth, to say nothing of those devo
ted to ordinary culture. There may be occasional
instances of a decline in value, but with the data be
fore us, it can hardly admit of question, that upon
fair assessment of Land aud improvements, the aggre
srate value will exceed sixty millions of dollars : aud
that from failure in dulv exacting the present rate of
Land tax, the State is annually deprived of seven or
eight thousand dollars, at the least calculation. Sur
prising as this may appear, there seems to be a deficit
of nearly an eanal amount, in the payment of the
Poll tax. The tabular Statement of the Comptroller,
before referred to exhibits for taxation the next year
62,795 black, and 54,226 while Polls, includiug all
of whom there is any account, both listed and unlist
ed. The Slave population of th State, according to
tha Census of 1940. numbered 245.817. All of
these, between the o?es of I2aad 50, are subject to
taxation : and by estimate frem reliable sources, thi
regulation renders taxable rather more than one-half
on eech Plantation. A lull enumeration, tnereiore,
of taxable Blacks, ought to embrace about 125,000,
Of Whites, all males are taxable between the ages
of 2l and 45 yaars. There are found on our Muster
Rolls, the names of 76,568 men, compreheuding theme
between the age of 18 and 45 generally, but
not including numerous exempts under various Stat
utes. Making liberal deductions for those between
18 and 21, and adding exempt from military duty,
who are liable to taxatioa, end there, must still re
main more than 70,000 taxable white Polls, and con
sequently a total of l95,0t)0 taxable Polls in the
State. Our Poll tax has been gradually increasing
(or the last few years, and. for the past year, appears
to have been collected on 164,464 persons. That it
ha been negligently attended to, is manifest from
variance ef Jrom four to five hundred dollars per
annum, sometime on one side and sometimes on the
other of the account, in the amounts collected during
the last four years. "It Is, therefore, an imperative
doty of tha Legislature, as well, in justice to those
citizens whose Lands and Poll are fairly assessed aud
enlisted, and who are contributing accordingly into
the Public Treasary, as to the State itself, to require
a new assessment of Lands' and improvements
to be justly made, on inspection of the premises if
necessary, and to provide for an accurate and full
Census of all taxable persons. No valuation of Lands
can continue to be a just criterion of worth for any
considerable period, and a re-assemeat should ba
provided for, once at least ia five years if it be not
annual. . By adapting these measures of fairness and
justice, t collect what is now imposed, without any
increase ef taxes, it may. be reasonably expected that
the Public Revenue from present sources, now equal
to about 86,000, may be raised te $100,000, per
aanum. , These regulation 'should . be made to take
effect immediately, that the Treasury may experi
ence their benefit in the course of the next year.
Further to augment the Revenue, it ia proposed
that a tax be imposed on Pleasure Carriages, and
Gold Watches kept for use, and, if deemed expedient
en any other article of luxury," to go into operation
at once, and continue in force until the expiration of
the next Session of the General Assembly.
It is submitted to your inquiry, in connection with
the Revenue, whether the Bank of Cape Fear has
paid te the Stale, andNthe Literary Fund, the fell
amount semi-annually doe for Dividends their cus
tom, being to pay the tax on the Shares of Stock
owned by individuals, out of the whole profits of the
Bank, instead of the Dividend of profits allotted te
individuals. This course is supposed by ,them to be
sanctioned by a decision of the Supreme Court, on
the taxing clause of their old Charter; but the re
newed Charter ef 1833 is in different language, and
it could hardly have been the design of the Legisla
ture to exact a less tax on the Stock of individuals in
thia Bank,' than on that in similar institution in the
Stale.
To aid the Treasury, until other means can be re
alized, I suggest that the Bonds, NoUs and Judg
ments, held by the Literary Board, consisting chiefly
of the ; unexpended balance appropriated to drain
Swamp Lands, be turned over to the Public Treasu
rer, to be collected and applied according to our ne
cessities ; but, that the State be charged with the
amount thereof, as a loan, the interest of which shall
be faithfully paid a an annual part of the distribution
for the support of Common Schools. The effectual
security of the Principal, and the punctual payment
of the interest, is all that is now desired from the Li
terary Fund. The proposed disposition of this part of
it, while it supplies the present wants of the State,
will relieve the School. Fund from the expense inci
dent to the present Loan Office in the Literary
Board ; and the increased Revenue, in the mode al
ready set forth, will afford ample means for the pay
ment of the interest. It will simplify the Public Ac
counts, to direct the Bonds of the Wilmington and
Raleigh Rail Road Company, now lying in the Trea
sury, and amounting to $50,000 as before stated, to
be transferred to the Literary Fund, and as an equi
valent, that the Tavern aud Auction Taxes.be here
after paid into the Public Treasury.
To liquidate the Slate's responsibility for the Ra
leigh and Gaston Rail Read Company, as early as
practicable, I recommend the creation of a siuking
fund, to be applied in buying and in cancelling both
kinds of Bonds, whea they can be purchased at, or
below per, to consist, 1st, of any Surplus which may
be in the Treasury, after defraying customary expen
ses and specific appropriations. 2nd. Any income
derived from said Rail Road if retained or its proceed
if sold. 3rd. Any recoveries effected against the
Stockholders in said Company, under the 14th sec
tion of the Act or 1839, or against the Stockholder
and Subscribers under the Act of 1841. Suits are
now pending against sundry obligors on the Bonds,
given for the State's indemnity under the Act of
1841, who failed to renew their bonds biennially, as
required by Law, and I regret that, no decision has,
as vet, been rendered in the premises. It w conten
ded on behalf of the State, that a failure to renew,
is a breach of the condition of the Bond, inducing a
forfeiture of the whole penalty. Since - the foreclo
sure of the Mortgages, and the insufficiency of the
real and personal estate ef the Company, to indem.
in j i nm oiBis iu nrr Kcumjiaip, it nas Decome an
interesting question to what extent can she claim to
be indemnified by the Individual- Stockholders and
Bondsmen, and at what time is her right thereto to
be asserted 1 - By the I4tb section of th Act of 1839,
in tb caae which haa.happened, te wit, of the in
nfficieaey ef the property of the Company, te pay
off and satisfy the full amount of Bonds, then direct
ed to be indorsed, iucluding the prUcipal 04 inter
fit thereon" each and everv Stark tint it r a n
bound, to pay towards making op such deficiency, an
I "". coirvpouO!r . wjuvtw Stock held therein,
. m lime' wueu sucrt (dekeiejnfcy t-uOnld be . aseer-
tained. The Att of 1841, deftiened from 1t title.
farther to secure thi State arainst to, as well as to
great further aidlo tbe'Conipany, provided amongst
otner unsgs, lor me execution and delivery oi omuos,
in the aggregate penal sum of $500,000, by Stock
holders and.- Subscribers, covenanting to indemnify
the State against any loss or damage, ia conse
quence ef her suretyship in the premises, and, in
sufficiency of . the real and personal estate and pro
perty of said Company to discharge the same." J
ai.wouki seem, inereiore, to nave oeeu uie inienuon
of the Act of 1839, to hold the Stockholders iudiTid
ually reeponaibl for,.4 any losa to the Stale' ia the
payment of principal or interest! atec applyiag the
mortgaged property, to an equal amount with their
subscriptions of stocky Nothing thai J. perceive ia
the Act of 1841, changes lhatlntentieii Th Bond
directed to be taken, appear to have been purposed,
at the least, as cumulative security for the former
liability, and to provide a more easy remcdy'tit Case
of non-compliaue. Whether the 'Bonds actually
taken conform to this construction of the Statute, or
whether it may be necessary to resort to a Court of
Equity to assert the State remedy in its full extent,
on the ground of mistake or inadvertence in frarnlng
the Bond, m a matter for your mature deliberation
That the Act of 1839, section 14, obliged the Stock
holders to save the State harmle8,.both a to princi
pal and interest, cannot be doubted. Nor, will it be
readily admitted, that the Act of 1841, in pari Ma
teria, was designed to abridge or surrender any se
curity. Those Stockholders, who did not give Bduds,
seem to be responsible to the amount of their stock,
under the Act of 1839, for both interest and principal.
And it would be an anomaly in the subsequent pro
ceeding, if tbey are under heavier obligations than
their associates, who entered into bonds besides being
Stockholders.
But whatever may be the extent of the liability of
these Stockholders and bondsmen, or wliatevcr may
be the forum to enforce it, I apprehend that Ihe event
has happened on which it may be at once asserted.
An opinion has prevailed, that the State; althongh
obliged to pay interest in the meanXuaie. ana ?suu
UOO.of principal in 1860, or thereafter, could have
no rcdi-ens on these obligations until after that dis
tant period. The law, it is true, renders the ucDt
irredeemable until that time, to give the capitalist
assurance of a long loan and thereby to enhance the
value of the stock. But after exhausting the reme
dy by mortgage, and it being demonstratively cer
tain "that a large balance even of principal, must be
paid by the State, I see nothing which requires de-
f . ' . . i 3 I; ,.J
my in exacting any pari oi ine inacmniiy supuiaicu
Should these suggestions meet your concurrence, you
will of course give the corresponding directions to
the Law officers of the State. How much may be
realized, cither from the income or re-sale of the
Rail Road, or from the liabilities just referred to, is
as yet uncertain. In advising, therefore, but a tern
porary provision for extra taxation, I am influenced
by the consideration, that possibly it may not longer
be required, rather than by the fear of any aversion
of our constituents, to contribute whatever may be
needed to redeem the public obligations, however in
cautiously or unfortunately entered into. The odi
ous doctrine that a State may refuse or postpone the
fulfilment of contracts guaranteed by her public
faith and sovereign honor, has no resting place in all
our borders, and I run yet to hear of a single excep
tion to the unanimity of our people upon this subject.
Legal proceedings were instituted for the foreclo
sure of the Mortgages, on all the property of the Ra
leigh and Gastou Rail Rood Company, at Spring
term, 1840, or tne court ortquity or wake County.
as directed by the Act of the last Session. But ow
ing to the resistance made by the Company and the
decision of the Superior Court In their favor, an ap
peal was renaereu necessary to the supreme fJourt,
and the decree of foreclosure was postponed until
the Antumn term of that year. A sale under this
decree was made on the 29th of December following
and the Kail ltond, ami all other property of the
Company, wasfgvurchased by the State, on the bid of
the Governor, at the sum of $363,000, the amount
authorised by the act aforesaid. Possession was ta
ken on the first of January, 1S-16, by the Board of
Commissioners constituted by the Act in the event
of such a purchase, and officers and agents were ap
pointed to manage and conduct the operations on the
rood, as the property of the State. - A report of their
action thus far, will be laid before you by the Board
ia a few. days, embracing the statements of the
President and the, Treasurer ; and ' the . jour
nal of the Commissioners, as well as all the vouchers
and books of account of these officers will be at any
time open to your inspectfon. . Upon the construc
tion given to the Law by the Executive no part of
the former earnings of the Rail Road secured to the
State, by a decree of sequestration against the Cdm
pany, could go into the hands of the Commissioners;
and the sum of $2,600 accruing from that source has
been therefore paid into the Public Treasury.. It
will thus be perceived, that to support the operations
of the Road in all its deportments, there .was to be
no other ' reliance .'than on its own receipts, from
and after the first of January last - 4 -
' The experiment to this time, removes all doubt
of the ability of the. Road to sustain itself, if well
conducted, so that its advantages will still be contin
ued to the people of the State, and encourage the
belief, that after all necessary outlays for repairs and
expenses, even at the present rate of income, it will
afford some returns to the Treasury as profits on its
cost. The current year has not been regarded as
quite so favorable to the business of the road, as may
be expected in general, by reason of diminished
freights, from the shortness of the crop of .Tobacco,
less accommodation in Stage travelling in connexion
with the Rail Rood, and other : causes. Notwith
standing these disadvantages, however, the amount
of earnings of the establishment for ten months, has
been near $51,678 00, and the disbursements in the
some time, for expenses, including the purchase in
October of an additional Locomotive, about $36,000.
The Officers of the Road have been instructed, that
while they observed all prudence and economy in
expenditure, no needful repairs were to be neglect
ed ; and its condition is believed to be now equal to,
if not better than, at the time of sale. On the 1st of
July last, the sum of $7,200 was paid out of its pro
fits into the Public Treasury, to defray the interest
on $240,000 of Roil Roads Bonds, then falling due,
for which the State was bound, as already shown ;
and on the. 31st of October, there liad accumulated
a balance of about $8,300 more. . -
The importance of thia public work to the Agri
culture and Merchandize of the country, will be ap
parent from the exhibit of 25,500 00 dollars of the
abeve earnings, for freight on transportation of prop
erty. What disposition shall now be made of the
Rail Road, is an enquiry of much consequence. It
was not thought expedient to offer it for sale, under
the powers conferred on me by the Act of Assembly ;
and no tenders have been made for purchase. I re
commend that it be placed under the control of the
Board of Internal Improvement, or other Commis
sioners specially appointed for that purpose, with
ample powers to make sale in whole or in part, and
to agree in their discretion upon terms and price lim
ited only by the amount at which it was purchased
by the State as a minimum. But in the meantime,
that a Committee of your body shall make a thorough
examination of the entire concern, receive any offers
of purchase that may he made, and give instructions
to such Commissioners in so far as may be deemed
advisable. Such works ore more likely to be advan
tageously carried on under the keen eye of individ
ual interest, than with the supervision of public a
genta only. ' And it is therefore desirable, that at
least half of t he property in this Road be sold, that
it may pass tinder the control of a directory having
an interest in the adventure. This course is also
made acceptable from the consideration, that any sums
falling into the Treasury, from the sale of the Rood,
will, by so much, relieve .it from the involvements
contracted. cm its account !
The yearly Report of the Wilmington and Raleigh
Rail Read Company has not yet been received, but
will be submitted to you along with the Report ef
the Board of Internal Improvement. In November
last they exhibited a redaction of 50,000 dollars in
principal of their debt, besides the payment of inter
est on all loans In the preceding twelve months ; and
it is supposed that the present has been a year of still
greater prosperity to that Rail Road. -
The Act of your last Session for the re-organization,
of the Portsmouth and Roanoke Rail Road Com
pany, by a sale of it property, under the authority of
both States, was not acceded to by the Legislature
of Virginia. That body, however, has made a sepa
rate enactment upon the same subject rhatter, d novel
ia feme ef it previsions as to call for .a moment's no-
V - .. .. - . . m If
any time thereafter the State of North Carolina or any
UompaBy incorporateo; oy ner lor purpose joi,iair
naj Improvement, ahoutd iaanyway becdtrf the
owner of said Rail Road. " the General Asaembfy of
Virginia- reserve the right to revoke all the power,
privileges and immunities conveyed by such sale, and
te declare the same, null and void. Now, all thi so
fi a relates to JNorth Carolina, ;prf Ur the k nown
purposes of any of her citizens la the mere effusten
of a jealous and hostile piriVwithout object ot ineaa-
ing, ,Sb bad neither manifested nor entertained
any wian to become tue proprietor or tni uau noaa.
Ier Board of Internal Improvement, it b true, stood
it the situation of, a creditor of the Company for mo
nies lent.but were amply secured by a Mortgage, on
a part of th Rail Road property, prior in, lieu to any
other.' There 1 another provision in this act of more
significance. It declares iu a subsequent section,
that in case the authorities of th State of North
Carolina, shall at any time, by legal process or oth
erwiset deprive the Petersburg Rail Road Company
of any of the privileges and advantages of It cHatter,
obtained from that State, for any act done, or omit
ted to be done, by the said Company, or by any
means whatsoever, prevent the said Company from
conducting their operations, on so iriuch of their Rail
Road as lie within the State of North Carolina,' or
any port thereof, by reason of any act heretofore
done, or omitted to be doue by Mid Company, then
all the right Conferred7 by that act, on the purchasers
of the Portsmouth and Roanoke Rail Road shall cease
and be determined. Until the State of North Carolina
shall reinstate the Petersburg Rail R6ad Company in
all the privileges granted them, in the several acts
passed for their benefit by the said State, or uutil the
Legislature of Virginia shall, otherwise direct." To
apprehend the full cleaning of this clause, it most not
be. overlooked, that both the Petersburg and Ports
mouth Rail Roads lie partly in North Carolina, and
their respective Companies exercise and enjoy all
their rights and privilege on thia side of the line, un
der charters from her Legislature that the last nam
ed Company were sued by a creditor, in an action at
Law, and after judgment, an Execution was levied
on that section of its Road, running through the coun
ty of Northampton, a sale and purchase took place
by virtue thereof, and the Supreme Court affirmed
the same, to the extent of conferring on the purcha
ser the legal title in the land and fixtures of the road,
but net the franchise of transporting thereon. In thi
condition, the acquisition wa of so little value or u
tility, that the advantages of the Road would, in all
probability have been continued to- the public by the
re-union of the estate and franchise, but for the ac
tion of the Petersburg Company. That Company
entered into a covenant with the purchaser of the es
tate, te pay in instalments $60,000, for preventing
transportation, over the section, of which the title
was in him, with a stipulation that the later pay
ments should cease, whenever that part of the Road
should again be brought iuto use. In other words,
the Petersburg Company, iu effect, bought from him
the disuse of the Portsmouth Road, and paid hiin a
consideration for withholding from the public the con
veniences for which the Legislature had authorized
its construction. The right of the individual party to
this agreement, thu to dispose of hi interest, under
decision of the Court, is not denied ; and had the oth
er contracting party been a natural person, it would
never nave been questioned, however great might be
the incourenieuce of the loss of the Road. But, in
my view, a corporation, the mere creature of the
Law, must look to it charter,' for privilege not for
restriction: what i uot authorized to it, i darned :
and by consequence, the Petersburg Rait Road Com
pany, permitted by its charter only, to construct a
Road from that Town to its Southern terminus, and
to transport on the same, had to right either to parti
cipate in the profit of transportation on the Ports
mouth if oad, or te suppress transportation there
on. Regarding this contract as designed for the
destruction of the Portsmouth Road, to- the end
that the other might have a monopoly of the bu
siness done by both, and as such a public injury and
transgression of its own corporate right by the Pe
tersburg Company, and perceiving that that Compa
ny had made no reports to the Legislator of this
State,of its operations within our limits was expreas-
ly.requirea 10 do periodically aoae, oy uie Act oi lis
creation, 1 directed the Attorney General to file an
Information against them in the Supreme Court, and
require them to show cause why their charter should
not be declared forfeited. At the last Term of that
Court, judgment was rendered in thi case for jthf
defendant. The opinion announcing this decision is
accessible to; yen, and to it, yon are referred, to de
termine whether any new process shall be instituted
in the premises, or whether any new Legislation be
needed.to prevent mischief in like cases for the future.
tl was while this Information was pending, that
the General Assembly of Virginia, made their M en
actment,' ia which it -is plainly intimated that if a
contrary decision from that arrived at by the Court
should be made, and this corporation should be de
prived bf any of it privilege's, now enjoyed under our
law, by reason of . any neglect of duty, or by any
transgression whatever, St should be retaliated with
the loss of the PbrUmduth Road Also. Thi State
had made herself rib party in the rivalries of these
Companies, but authorized the construction of both
Roads, to procure -the advantage 6f .tw6 highway
for market and travel, expecting td fter beople, of
course, me trail oi a lair emulation, between .them.
Bat in the dispensation of her justice, whether among
corporation or individual, and in the exaction of the
homage due to her law, in her own Territory, no in
fluence from abroad can be permitted to interfere.
Not to remark on the departure frem comity, implied
in gratuitously assuming, that North Carolina desired
to possess one of their Roads, and proclaiming by
public advertisement, that she should be excluded
from the biddings, though part of it was in her limits
and existed by her leave, while the same Statute ap
points agents to attend and bid for Virginia ; and on
the denunciation, that if, for violations of our law,
ascertained and adjudged by our highest Judicial
Tribune, in a proceeding then before it, the Compa
ny owning the other Road should be deprived of any
of the privileges and advantages granted to it by this
State, then the use ef both should be lost : This Act
of the General Assembly of Virginia indicates a pre
sumption on her part, of dependence by us, upon her,
for market and the means of reaching them, which
requires an examination of the relations between us.
In that point of view, it calls for a minute revision
of the charters heretofore so liberally granted for the
promotion of trade to her own town from this State,
an investigation of the fulfilment of them by those to
whom they have been granted, and, if necessary, the
provision of new guard for the security of the ad
vantage to us, which they were designed to procure.
It also suggest the necessity of Improvement of our
own, which shall break any such dependence, (where
it may exist,) as far as possible, and place the State in
a posture, at all times, to vindicate the public justice,
(as must need be done at any sacrifice,) without any
1. l ; . ...
(iirrucuuou vi iuh or inconvenience irom privilege
granted, being withdrawn by a neighboring Slate.
A Rail Road from Raleigh to Fayettcville would
be an important work in uch a system of Improve
ment. It would at once render available the exist
ing 87 miles of road in concentrating the trade of
the country between Raleigh and the Roanoke, on
the navigable waters of Cape Fear river, if an equal
ly good market should be found there, and render us
independent of that less liberal. spirit and policy on
the port of Virginia, which pervades' the Statute on
which I have been commenting. It is therefore re
commended that this Road be encouraged) by the
grant of a liberal charter, and by any other aid that
the Legislature may deem expedient.
There has been much discussion recently in re
gard to an extension of both of the existing Rail
Roods of this State, to a junction with those of South
Carolina. I would greatly prefer a Road from Fay
ette ville to Salisbury or Charlotte, and thence pene
trating South Carolina towards Camden, to either of
the connexions proposed. But since the State is not
in possession of means for the construction of such a
work, and the individuals , who may be disposed to
patronize it prefer the more direct Hues, so as rather
to compete for travel, than to afford facilities for
commerce and agriculture, I perceive no objection to
granting charters- to the patrons of the projected
works, both from Wilmington and Fayetteville to
South Carolihaj leaving t& individual fentcrprlte to
determine the success of either oi of both. IT either
would extend far enough through our territory to
afford any greatly increased facility to our cttisens
in going to market; or add much to the business of
tic. It direct a sale oreii Che property and rraacpova
ofth Company -ia both States, ty the Board of public
works ef Vlririnla: not provide that if at the of at
our tr4ir toims, . irhila .either woaM contribute,
largely to swell t he stream of travcT'on the present
Road,1rith which it may be jomedTt?;
' Front' the action df Congress th'last session,
there seems to be no nrobubilirv at iwesent, 'ct tha
reopening 6t the Inlet between Albemarle Sound .1
ana tne Atlantic, unaer ineir auspice. .aui
gretted to learn from the debates in that body, that
the project had suffered prejudice from the last re
port in, regard to it, by some member of the Engineer
Corps ofHhe United States, 'This' report has not
been seen by me, but will claim your examination,
with a yiew to further action on the subject.
: In conformity to the Resolution of. the last Session
the Mortgages held by the State, on the Clubfoot
and Harlow's Creek Canal, connecting Neuse River
with Beaufort Harbor, were foreclosed ; and a sale
being decreed, the Public Treasurer, at my request, ,
attended and bid in the Canal for the State. It will
now devolve on you to give directions for the future
disposal of it. Boats of light draught yet pass through
it, and although the locks are kiecay ed, I presume,
for a reasonable expenditure, It may be made passa
ble for sea-going vessels, sufficient in eUe for the
coasting trade. Uniting as it does the best Harbor
on the American coas between the Capes of Vir-
F'nia and those of Florida, with our interior waters,
deem it preferable that it shall be kept and im
proved by the State; :- But ' if no appropriation be
mode for its improvement let it be disposed of to a
Company, or individual, with some stipulation on
the part of the purchaser, to keep it in' order for
Navigation, and to allow its use to the public for fair
compensation.
A Canal from Lumber River to Cape Fear River,
has long been in contemplation by the people in that
quarter, and its obvious advantages, from an inspec
tion of the map, ought to ensure or it at least a
liberal Act of Incorporation. . ' :
More than thirty years ago, Companies were in
corporated for the improvement of the Navigation of
all the larger Rivers of the State, and an Engineer
was employed, for a considerable time, in making
Surveys, preparatory to a general system of Internal
Improvement Owing to causes not necessary to be
now reviewed, scarcely any of the works then con
templated were completed, and all these chartered
Companies, except iu the instances of. Roanoke and
Cape Fear, have lost their privileges by non-user.-Of
late! a disposition has been manifested by the peo
ple of those sections, to re-attempt the Navigation Of
xm euse ana x aucu uivers. i entertain no uuuui,
that by merely removing the timbers which are im
bedded in the channel of Neuse River, and the
branches of trees which overhang it, that it may be
rendered navizable for Steamboats of the lighter
kind, as high as Waynesborough, for two-thirda of
the year, and that by the addition or locks ana aoms.
this Navigation may be extended to a point within a
, - t- i - . . .1' TkT i l! 1
aozen macs or itaicign. a gooa lxavigauyu ua
been effected, by this means, in the Kentucky River,
and other streams discharging a less volume of wa
ter, and more subiecf to the annual influence of
drought, than the Neuse. "Were this accomplished
iu connexion with the passage of coasting vessels
from Beaufort to Newborn, by "enlarging the Canal
before referred to it could not fail to add much to
the accommodation of the people, and to the wealth
and commercial importance 'of the State. It. is well
ascertained, that there is no great impediment to the
Navigation of the Yadkin River within our limits,
above the narrows. The opening of, that River,
therefore, from Wilkesborough to its intersection
witn ine proposed x urnpiKe irom xtaieign ana r y
etteville, westward, and the completion of 6aidRoad,
are works of great public importance, in which, if the
State will not embark on her own account solely, she
should not hesitate to second the patriotic efforts of
the citizen.- The survey of the routes for this I urn
pike Road,' according to .the direction, of the last
General Assembly, has been completed,aud the report
of the' Engineer may, be expected at an early day.
The bod condition of our Public Roads, has long
been the subject of general, and I apprehend, just re
proach to the State. In the schemes of Improvement
which have been pnt forth -heretofore, top little space
has been allotted to these daily haunts of trade and
travel.; A distinguished authority,, in, speaking of
our roads, recommends that they.be classed in three
description vizi 1st, the principal and leading roods
to be denominated State roads, in the construction
of which, the State will bear one moiety ef the (ex
pense, and the Counties through which they pass
the other moiety ; 2d, County roads to be made and
kept op by the Counties, and 3d, private: roads by
the. individuals benefitted by theiai . .Without adopt
ing this plan -hi all its details, I am thoroughly , per
suaded that no moderate amount of the public treas
ure could be more beneficially expended, than in em
ploying an Engineer for one, or at most, two years,
whose duty it should be to examine, routes for: the
chief market and mail rood? of the State, under the
direction of the Board -ef internal Improvement, and
lay them off on the most favorable . ground, with
written estimates and directions for their construc
tion and improvement. . The County Courts might
be authorized to make levies, in aid of the Statute
labor within their limits, and at the most difficult
points, assistance might be afforded from the fund
for Internal Improvement. Whatever other, im
provements we may in time procure, good roads for
ordinary, transportation, and travel can never.cease
to be ttsefol to the great mass of the community.
Whether or not you shall esteem it wise to adopt
any of these recommendations I trust no considera
tion will induce a longer delay in directing ariAgri
culturaljGeological and Mlneralogical Survey of the
State. --Three-fourths of our sister States have now
in progress. vojr have finished , like examinations of
their, terf itttry AiKtjn .every instance, it is believed
that they have hot only added-to .the treasures of
Science, but have been attended with important and
useful discoveries. Joid, Silver, Iron, Copper, Coal,
Plumbago. Marble and other Limestones, the finest
varieties of S tone for building; of Marl and other ma
terials for manuring, are already known to exist in
various sections of the State; and a further eriplora
tion cannot fail to brings other, resources to light, and
greatly favor the pursuits of Mining and Manufac
turing pursuits of infinite' advantage to a people
having so few ' facilities of transportation as our
selves.. While a minute examination of our soils,
by persons uniting science and practical skill in Ag
riculture,' will be productive of improvement in that
useful branch of industry, and must dignify and ele
vate it in the general esteem . - r; -
Agreeably to the Act of the last -Sessibnj entitled
" An act more effectually to secure the debts due for
Cherokee lands, and to facilitate the collection of the
same," a Board of Commissioners was constituted to
make enquiry as to the solvency of the obligors, who
were principals. in the bonds held by the State for
purchases ef Cherokee lands. The said Board re
ported to me. as the result of along and laborious in
vestigation, separate lists of those found solvent and
insolvent accordingly. And those principal debtors,
who were reported insolvent, having surrendered,
the lands, for the purchase of which said bonds were
executed, into the possession of the agent of the
State, and having severally executed and1 delivered
to me deeds of surrender and release, disclaiming
all right under such purchases, and to the re-im-bursement
of any monies paid on account thereof, by
virtue of the power vested id me by said act, I made
an order on the Public Treasurer, directing the 1
bonds m ail sucn cases, to be delivered up to the a
gentofthe State, residing in Macon County,-for
cancellation. This order dated the 3d of April last,
embraces a list of bonds amounting in the aggregate
to the sum of $152,312 3S. In consideration of
which, the State became re-invested with title and
possession of the lands surrendered as before' sta
ted.' As a full year was to elapse between the time
when the State's agent was put in possession of these
land and the rise of the Legislature, it was consid
ered best for the public interest, as - well as for the
persons surrendering that they should -be restored
to possession of the lands as tenants of the State.
The agent of Cherokee Lands was. therefore in
structed te class the several tracts ana their improve
ments for twelve months,' taking care to give a pref
erence te the late owners, and requiring only mode
rate amounts for the rent, but with stipulation for
returning the premises in' as good repair as they
were in that time. ' This was atttended te by the a
gent and the bonds for rent are in his hands. ; v -
It -rill be ait important part of your present dn
tiei to direct a- further disposition of these lands,
Which ha.Vfl inu'll lwmni ITia nmmrtr nf thtk fttta.
They were sold in 1836 and 1838, on credit (as to
the greatest part of the purchase money) and at high 1
prices. The purchaser? being unable to pay off their J
T
T
Wduj i0ty became aae, petitioned the Loi
mwwiag a remission or tne Bargain, by ft mtTpni"
of the bMid and Mmquishment f all ckim to Jr
chase money theretofore paid on tie one side
canccllati&ii of the hnnAm nn v.. i . U m a
' - va wmv VUIU i
in all
cases:
could not discharge the debt himself without km?
" aumnA-w oBocnainea. max tne r.v -
on his sureties as provided in said net.
an
After thia experience on our part, as wp11
of the Federaltjovernment, in relation to its kin
many years aso. it does not seem to to ti. .
that
to order another sale on credit fncUtt-- Vi
to order another sale on credit.1. Considerihz on ii r
- " mc i m i w.
otner nana, tnat ine purchasers at the ibrmer rJ
were required to pay down in cash oneeiriitl, J.
the prices then bidhMhat they have since niadetja
ment into the Treamrv at nnl.laMKl& rT
their bonds-Uiatthey are settled oh these h?
and have assciateditltithent 4he. ' todeameiv-
home, it seems iardly just to expose them at aaau
tion sale, for cas . I therefore advise thah as t0
the surrendered Iand,'some mode be adopted; of off hT
ing a fair valuation on each tract, by persons of com"
petence and probity, : and that the surrenderers 1
permitted to take them, on paying such valuation u
cash by a given day thereafter; otherwise, tlmr
land shall be sold at public sale, - lh(
, --It may not be remembered by you, that only sucii
of these lands, as were estimated at and above i twen
tytcents per acre in ,1836 were surveyed and brouHt
into market 'The residue was directed w to remain
subject to the disposition of a future Legislature and
shall not be liable tobeentered in the Entry Taker's
office, Ate." Ten years have passed awav, since tLe
passage of that Act, .and no further disposition h-'
been directed of these lands, except that, thebouutr
in land for building Iron Works, has been extended
to that country, and two tracts of three thousand
acres each have been granted under that Law
reason is perceived for longer delay : in the sale of
these unsuryeyed lands, and it is therefore sns
ed, that they be either sold at! auction for cask Ur
subjected to entry and grant at some fixed rate per.
acre. The County of Cherokee now pays a land tax
of but a few dollars, there being but a small quanti
tylof patented land, exclusive! of the Iron W0rt
grants withm it ' The increase, therefore, of the re
venue, the necessity of having free holders for Jr
rors, and other services under the Government the
policy of fixing the popnlaticn. and inducbg them
to improve the country, all unite in favor of placing
those remaining lands in the possession of citizen?
who shall be proprietors in fee, at a fair rateotrmrl
chase. . ... . .
Such information, in respect to the Penitentiary
system, as it was in my power to procure,- was puUl
lished in the Newspapers of the State, previous to
the late election, in accordance with the Act oh thatV
subject, of the last Legislature. As the decision (if
the popular vote is understood to have been againt
the establishment of such an Institution here, it is
deemed unnecessary to lay before you, the plans of
buildings for such prisohsthat have been obtained
from other States. i J i ; ,
The present requirement of Law . that the Au
tumn Terms of the Superior Courts in the lover
section of the State, hall be held at a season, when
sickness generally prevail in that region) is agriet.
ance which has been longacknowledged; but hitherto
no remedy has been provided, e It Is hoped, that
your present session, may number among -ether acts
of public beneficence, a change so obviously just and
needful. ; Not only are the lives, health, and com
fort of the Judges, deeply concerned in the measure,
but the suitors, witnesses, and jurors, being also sub
ject to the diseases of the climate ana season, the ad
ministration of justice is impeded and Relayed, lor
want of this salutary alteration. . . , "1 - '.,
- In . conjunction with this, it is commended to
jrour enquiry .whether all jurisdiction of Pleas in the
County Courts may not be with, advantage abolish,
ed, and those. Conrte be. permitted ito remain only
for purposes of Probate and County'" Polite, with a
session of but a single day in each month: ; By sub
stituting for the present system of Cetntf and .Su
perior Courts, withsix termsln tnecarj three terms
onry of the Superior Court neld by JodVe'3 r learned
in thek lawt an arrangement would be introduced far
less 'expensive to the public, and jlhV parties in legal
controversies; Vhilegreater desjteLr and correct
ness would be atfabaea in. the adminisiration of the
law J;Sich a Chang? wquld require some addition to
the present number ef Judges; to whom salaries must
needs be paid, but this jfould ie incpnsiderabie, com
pared to the payments now made to J urors and Jh
tices .attending, four. Courts a, year In the vaiious
Countieto sdyothingbf the tme spared to all con
cerhedjand the ess accumulation Cf costs on the losing
partiea from greater expedition in the termlnatioh of
causes. ; If aU Lav suits could be ended in one-, or at
most, two years from their commencment,ifagtead of
being, as they often are, transmitted from father to
son, loaded with costs far exceeding the value bf the
original subject of contest, it would be a reform of
the greatest . importance; The small number of
causes on most of the dockets, -niaks the present a
favorable period for the introduction bf this system,
which has been adopted and highly -approved after
trial, In other States of the Union.
By a resolution of the General Assembly in 1S40,
all persons holding the office tf Justice of tile Peace
at the close of that Session, who. had not been be
fore supplied, were directed td be' furnished with a
copy of the 1st volume bf the Revised Stathtes. I
regrettede learnj that Iry the occnrrenwbf an ex
tensive fire in the town of Fayetteville, in June 184
eighty-one copies of that wcr which had been sent
there for sale as the property, of the Statt were con
sumed. And no others remaining at the disposal of
the Executive. I have been unable to furnish copies
to sundry applicants .under the Resolution.. ; As the
only edition of his book that has ever been pub
lished, is now exhausted, and the County officers in
several new, Counties have not been supplied, be
sides the demand, fbr. Justices oftlie Peace, a new
edition seems tobe iwuireit There .having now
been added to this code the enactments of ten more
years, and defects t having been"" discovered in the
original it is suggested that al Commissioner be ap
pointed to arrange tfiq addenda under the appropri
ate heads in the body of the work,"or to re-cast the
chapters to whkh amendments have been made; ani
propose to the n'ext L?3latUrB,'ahy correction of ia
accuracies or defeci'to end that - bur; Statute
Law may be rendered as "brief 'simple and intelligi
ble aa posslbl& i v ir
' The Commissioners nf the" Literary' Fund will
submit their report of operatibnr for the last two
year It rill be " perceived ' that ' the amount of
monies on loan to individuals; under the control of
this Board', has been somewhat reduced, in conse
quence of collections of principal which have been
lent to the: Public Treasurer as directed by the Gen
eral Assembly. A School for the education of poor
persons, -who may be Deaf and Dumb, has been es
tablished by the Board in the City of Raleigh the
advantages of which are also open to pupils who may
be abte to pay at reasonable charges, j Twenty State
beneficiaries and two paying Scholars are now in
structed in this institution; : And it will doubtles
be an agreeable part of your duty, to examine the
progress .made by these " children of misfortune in
their course of mental .education, as well as in some
of the useful arts. ; A like school for,the BUnd has
been in contemplation by the Board, and was at one
time resolved upon. But for want of informatioti &
to the number, residence Itlrl situation In life of this
class or asucted persons the rewness er taose w
ing themselves fts pupils an4 the difficulties en
countered in employing a teacher, having all the
and conduct ty to a successful issue, have occasioned
a postponement of that, work of benevolence ior
presentJV::. ,
Fot the support of Common Schools, there a
been distributed from tus fund for the year, ending
September 1st 1S45, the sum of $97,852 44, and lou
the like day in 1846, the sum of 9S.(Wr 65. Official
information has been received of the adoption of Jje
Common 8chooI wystem by the popnlar vote at p
late electron in the Counties ef Edgecomh rajj
Rowam ;. Its adtahtages are therefore now w
extended ta every County in the State. J
be gratifying to mf to be able'to announce to JJ
that these advantages were now commensurate w
the munificence of, the Legislature,, in Tr0a
U19 1 IUIU, EUiU l lie MUCVUU1V1U Vfi .-v. , If
vancing eaucation among ine rising k"" r
is apprehended however, that mnch less P?'.
fected at present, front the actnal operation of"
School system, than ought to result from the amouB
of fund raised and distributed for its support.
yetffrom the nature of the defect, it is diffic"