| From the Fayetteville (N. C.) Observer |
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| February 25, 1861 |
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| An Act |
| To enable the Western Railroad Company to extend their
Road from the Coal Fields to the N. Carolina Railroad |
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| Whereas, The loan of four hundred thousand
dollars made to the Western Railroad Company by an act of the last
Legislature entitled "An act to aid in the construction and
equipment of the Western Railroad from Fayetteville to the Coal
Fields," was insufficient to enable said Company to procure the
rolling stock and equipment, build work shops and construct the
necessary wharves at Cape Fear River, for the shipment of coal and
other produce, and for the erection of a permanent bridge across Deep
River: therefore to enable said Company to complete said works and to
carry into effect the provisions of this act, |
| Sec. 1. Be it enacted &c. That there
shall be two divisions of the Western Railroad, viz: the Eastern
division shall extend from the Cape Fear to the west bank of Deep
River, near Egypt, in the county of Chatham, and the Western division
shall extend from the west bank of Deep River to a point on the North
Carolina Railroad, to be hereafter determined by the President and
Directors of the Western Railroad Company, or the stockholders of the
same in general meeting assembled. |
| Sec. 2. That for the purpose of completing
the eastern division, procuring the rolling stock and equipment,
building shops wharves, and constructing a permanent bridge over Deep
River, the Public Treasurer is hereby authorized and directed to sell
two hundred thousand dollars of the coupon bonds of the State of North
Carolina, made in the same manner and form as those heretofore sold
for said Company, and the proceeds thereof to loan to said railroad
Company, the said Company making and delivering to the Public
Treasurer at the same time its coupon bonds for the same amount, and
payable at the same time and place as those of the State sold for its
benefit; and to secure the principal and interest of said bonds,
issued by the Western Railroad Company, the State of North Carolina
shall by this act have a lien upon the Eastern division of said road,
together with all the rights and franchises thereto belonging or in
any wise appertaining, and upon all the estate of said Company, both
real and personal, which they may now have or may hereafter acquire;
which lien shall have preference over all other claims whatsoever. |
| Sec. 3. That for the purpose of completing
the Western division of said road, the Public Treasurer is hereby
authorized and directed to issue and sell the coupon bonds of the
State of North Carolina, signed by the Governor, and countersigned by
the Public Treasurer and sealed with the great seal of the State,
bearing six per cent interest, the principal payable at the end of
thirty years from the date thereof, and the coupons of interest
payable semi-annually in such form and at such time and place as the
Public Treasurer may direct, for the purpose of raising the money
herein directed to be loaned to the Western Railroad Company. |
| Sec. 4. That before the Public Treasurer
shall make any loan to said Company of any of the moneys received from
the sale of the bonds hereby authorized to be issued and disposed of,
the Western Railroad Company shall deliver to the Public Treasurer the
coupon bonds of said Company, bearing the same interest and date, the
principal and coupons payable at the same time and place as those of
the State heretobefore directed to be issued and disposed of and to
secure the principal and interest of said bonds issued by the Western
Railroad Company, the State of North Carolina shall by this act have a
lien upon the Western division of said road, together with all the
rights, franchises, and powers thereto belonging, or in any wise
appertaining, or which may hereafter belong or appertain, together
with all the real and personal estate of said Company which they may
now have or hereafter acquire, and which lien shall have preference
over all other claims whatsoever; and in case of failure of said
Company to pay the semi-annual interest on said bonds for twenty-four
months after such interest shall become due, or to pay the principal
of said bonds for twelve months after their maturity, the Board of
Internal Improvement, for and on behalf of the State, may enter upon
and take possession of all the property hereinbefore specified, and
dispose of the same so as to protect the State. |
| Sec. 5. That the Public Treasurer shall
issue and dispose of the bonds heretobefore directed, from time to
time as may be necessary to make the loans to said Company, as
required by the provisions of this act, and said loans shall be made
in the sums and on the conditions following, viz: that whenever the
President of said Company shall certify to the Governor that a section
of ten miles of said road has been graded continuously at either end
of the western division that said Company has purchased the iron
rails, chairs and spikes, and will forthwith in good faith proceed to
lay down and complete said sections of ten miles, said company shall
be entitled to receive the sum of one hundred thousand dollars; and
upon like certificate, as each successive ten miles has been graded
and prepared to receive the superstructure, said Company shall be
entitled to receive the sum of one hundred thousand dollars, until
said division shall be completed. Provided, That if the last
section shall be less than ten miles, a deduction shall be made in the
proportion of one hundred thousand dollars to tem miles of road it
being the purpose of this act to loan said Company ten thousand
dollars per mile for each mile of road constructed between the eastern
division and the final terminus of said road on the North Carolina
Railroad. Provided, further, that none of the Boards [Bonds]
authorized to be issued for the Western division of said road, shall
be sold by the Public Treasurer until it shall have been certified to
him by the President of said Company, that the iron rail purchased for
the said Western division, is of the product and manufacture of the
State of North Carolina; Provided further, That the bonds so
issued for said Western division shall not exceed $500,000. |
| Sec. 6. That whereas the provisions of the
seventh, eight and tenth sections of the act of the last Legislature,
entitled "an act to aid in the construction and equipment of the
Western Railroad from Fayetteville to the Coal Fields," are
unusual and have not been imposed upon any other company in this
State, therefore the said seventh, eighth and tenth sections of said
act be and the same are hereby repealed. |
| Sec. 7. That the bonds herein provided to
be sold by the Public Treasurer shall not be disposed of by him for
less than their par value. |
| Ratified Feb. 16, 1861 |
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