| From the Charleston Mercury |
| January 1, 1862 |
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| Acts of the Legislature |
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| An Act to Aid in the Construction of the
Barnwell Railroad |
| 1. Be it enacted by the
Senate and House of Representatives, now met and sitting in General
Assembly, and by the authority of the same, That whenever the
Barnwell Railroad Company shall have graded, bridged and shall have
ready to put down the necessary timbers for the reception of the
rails, and fully prepared the said road in a good and substantial
manner, with good materials for putting on the iron rails, and the
Governor shall be notified of the fact, and the said road is not
subject to any lien whatsoever other than that created in favor of the
State by this Act by the written affidavit of the President and Chief
Engineer of said Company, then the Governor shall cause to be endorsed
by the Comptroller-General, upon the bonds of the said Company, to an
amount not exceeding five thousand dollars per mile of the said road,
the guarantee of the State of South Carolina, pledging therefor their
faith and funds of the State, which bonds shall be payable at such
place in the Confederate States as the President of the Company may
designate, bearing an interest of seven per centum per annum, payable
semi-annually, and not having more than twenty years to mature. |
| 2. That the bonds endorsed as
aforesaid shall not be used by said Company for any other purpose than
for procuring the iron rails, chairs, spikes and other equipment for
said road, and for putting down said rails, and the Governor shall not
cause the same to be endorsed unless upon the affidavit of said
President, and a resolution of a majority of the Board of Directors
for the time being, that said bonds shall not be used for any other
purpose than for procuring the said iron rails, chairs, spikes and
other equipments for said road, and for putting down said iron rails. |
| 3. That as soon as any such
bonds shall have been endorsed for the said road as aforesaid, they
shall constitute a lien upon said road, including the road bed, right
of way, grading, bridges and masonry, upon all the stock subscribed
for in said company, and upon said iron rails, chairs, spikes and
equipments, when purchased and delivered; and the State of South
Carolina, upon the endorsing of the said bonds, and by virtue of the
same, shall be invested with said lien or mortgage, without a deed
from the company for the payment of said company of said bonds, with
the interest. |
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4. That when the whole of said Road shall
be completed, the State of South Carolina shall be invested with a
lien, without a deed from the Company, upon the entire Road, including
the stock, right of way, grading, bridges, masonry, iron rails,
chairs, spikes, and the whole superstruction and equipments, and all
the property owned by the Company, as incident to, or necessary for
its business, for the payment of all of said bonds, endorsed as
aforesaid, as provided in this Act, and for the interest accruing on
said bonds. And after the Governor shall have caused bonds to be
endorsed, as provided in the first section of this Act, for the said
Road, it shall not be lawful for said Company to give, create, or
convey to any person or persons, or body corporate, whatever, any
lien, incumbrance or mortgage of any kind, which shall have priority
over, or come in conflict with, the lien of the State herein secured;
and any such lien, incumbrance or mortgage shall be null and void, as
against said lien or mortgage of the State; and the said lien or
mortgage of the State shall have priority over all other claims
existing, or to exist, against said Company. |
| 5. That the State expressly
reserves the right to enact, hereafter, all such laws as may be deemed
necessary to protect the interest of the State, and to secure it
against any loss, in consequence of the endorsing of bonds under the
provisions of this Act, but in such manner as not to impair the vested
rights of the stockholders of the Company. |
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