Historical Newspapers of South Carolina

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Columbia and Augusta Railroad. REPLY OF COL. WM. JOHNSTON, President of the Columbia and Augusta Railroad, to- the ].s*Qj*ntn?s oh COL. MCH.tiL& YE?DO&;. at.the meeting.ob1 stockholders 0? the": south. carolina railroad. C?l. Richard Teajdob?Sir: At the recent Convention of the Stockholders of the South Carolina Railroad Company,, held in Charleston, some statement* are reported to have beon mado in reply. tQi certain inquiries propounded by you, which are calculated to produce erroneous impressions in regard to my action and to the course and policy of the Columbia and Augusta Railroad Company. Al? though much, aiverse to appearing in this manner before the public, official duty requires that I should place in a proper light the course and action of the compa? ny I represent. I trust you will excuse the liberty I take in addressing this com? munication to you. The following is the report, taken from the Charleston News, of tho inquiries made by you: "Col. Richard Yeadon then arose and said that he wished to be informed in re? gard to an important point in tho affairs of the company, upon which the report of the President and Directors of the Railroad was entirely silent. Without intending to find an}' fault with the di? rectors he felt compelled to inquire what was the condition of things between tho South Carolina Kailroad Company and the Columbia and Augusta Railroad Com? pany, between which companies there Las been much litigation. "There wero many rumors afloat, and he would like to know the facts ot the caso. The South Carolina Railroad Com? pany had beon defeated, he believed, in most of the steps which had been taken in the courts. He heard from one of the wuroel of the Columbia and Augusta Railroad* Company that two offers had been made to the South Carolina Railroad Company by the Columbia and Augusta Railroad Company for the use of the track of the South Carolina Railroad be? Uveen Graniteville and Augusta. One aroposal was to givo the South Carolina Railroad a pro rata share of the receipts of tho Columbia and Augusta Railroad between Columbia and Augusta. The other was to give the South Carolina Railroad Company 8100,000 for the use of the track to Augusta. Both proposi? tions, he understood, had been rejected. If it was a settled matter that the Colum? bia, and Augusta Railroad wero to be per? mit tod* to build1 a separate track, it was certainly to the advantage of" tho South Carolina Railroad to accept oae of these propositions. If there were-good reasons why both these propositions should have been refused, he would like to know them." Mr. Magrath, in reply, referred the Convention to the company's Solicitor for information in regard to the litigation, but it does not appear that any such in? formation was furnished. As to the other part of your inquiry he is reported to have said:. ?fc * * * * *. "As to the propositions which were said to have been made, he wished to speak pointedly and plainly. He denied emphatically that either one or the other had been made." In connection with this statement of Mr. Magrath I ask your attention to the following correspondence between him and myself on this subject: (copy a.) C h arlott k. & S. C R R. Co., \ ; Columbia, 29th Scpt.,.1868. j WL J?. Magratii. Esq., President?Dear Sfir r The Columbia and Augusta Road wilf bo finished from Columbia to Gran? iteville on or before the 6rst of Novem? ber next. To facilitate tho transporta? tion of both trade and travel over your road as well as this, it wauld be desirablo to run tho trains of the latter to Augusta over our track from Graniteville and back to that point. As an inducement to such an arrange? ment, the Columbia and Augusta Rail? road Company offer to your Company three-fifths of all the receipts of freight and passengers over your road?your Company supplying tho wood and water necessary. It is also further proposed that the Co? lumbia and Augusta Railroad will make UP competition with your road between tthese points,and that its tariff of rates shall be-the same as yours, while using your track-- An early reply is invited. Very Respectfully, (Signed) Wm. Johnston, President. (copy b.) Charleston, 2d October, 1868. Wm. Johnston -Dear Sir: I am in re? ceipt to-day of your letter of the 29th. I will lay it bolero the Executive Com? mittee at its first session, but I hardly think it will bo favorably considered if I may judge from their unanimous dissent on the 3dth tilt., to the communication of Mr. Dorscy, proposing rates, etc. Very respectfully, (fSigned) W. J. Maorath, President. (copy c.) Columbia, S. C, Ontobor 21. 1868. IV. J. J\Ltgrath, President of the South Carolina Iiailro(^i Company; Charleston, South Carolina?1>ear Sir: I wrote to you more than a fortnight since propo? sing terms for the use of the track of the South Carolina Kailroad from Graniteville to Augusta. In your acknowledgement of this letter j*ou state that you do nol, believe the Executive Committee will ac aede'to tho torma proposed. The Colum? bia and Augusta Railroad Company will so/>n bo running its trains to Graniteville, an 1 in its behalf I now offer to pay to tho South Carolina Railroad Company all tho ncceipts of its trains between Graniteville and" AttgUrfta, ami vice versa, from freight and passengers for the use- of its track between those pn+n-tst TUe- Soutb Caro? lina Railroad Company (furnishing tho necessary wood and water. Very respectfully, (Signed) Wm. Johnston, President. Ju reference to these propositions Mr. Magrath is reported to have sard; * * * * *? "The President of the Colombia- and1 Augusta Railroad has offered to* give the Sooth Carolina Railroad Company for the use-of their trirek between Grunitcville and Augusta, whatever the trains of the Columbia and Augusta Railroad Compa? ny, might earn between Granitcvillo and Augusta. To this proposition it had been replied that the offer amounted to- noth? ing, and that the Columbia and Augusta Railroad had never even, offered a pro rata of the amount of earnings between Columbia and Augusta." What Mr. Magrath meant b}* this statement it is difficult to conceive. That he should have misunderstood the import of the proposition is not to be supposed, for language cannot be more explicit than that in which it is expressed. For the use of the track of the South Carolina Railroad Company between Granrlcville and Augusta, the Columbia nnd Augusta Railroad Company proposed to pay over '?'?all tho receipts of its trains between Uraniteville and Augusta, and vice versa from freights and passengers." Tho proposition, in its very terms, included necessarily a pro rata on the through freights, and travel pissing over the eleven miles of the South Carolina Rail? road between Granitcvi'le and Augusta, whether the freights or passengers came from Columbia or Augusta, from New York or New Orleans. In truth the proposition involved more than what is ordinarily known as a pro rata. It in? volved a proposition to pay over not alone a proportion of the earnings represented by eleven miles of the entire line, but a proportion represented by that section of the line on which the freights and travel will be the heaviest. Augusta is the largest commercial city wilh which the Columbia and Augusta Railroad is con? nected, and for 3-ears past, more than three-fourths of the traffic and travel of that portion of the State, through which it passes, has sought th.U market. With the increased facilities of access it maybe assamed that that city will continue to be the commercial mart of tliat section of the State, and that the eleven miles of tho line next to Augusta will contribute by far the most profitable section of equal extent betwen Columbia and Augusta. Under my offer, therefore, not only would South Carolina Railroad Company have received their pro rata on all through bu? siness, but the}' would have received a pro rata on all local traffic and travel from and to Miles' Mill, Pine House, Johnson and Ridge Spring Depots?a distance of more than one half 01 tho en? tire line. The offer was not in terms ex? pressed as a^>ro iata; it was in fact from i 30 to 40 per cent, more than a pro rata; and if the axiom in mathematics be true that uthe greater includes the less," the; proposition cannot be construed other-' wise than an offer to pay 'npro rata of the amount of earnings between Colum? bia nnd Auirusta." To say otherwise is to say that one is not offered 875, because the offer is $100! And yet this offer to pay over the entire earnings from freights and passengers over eleven miles of the line?equal, at the lowest estimate, to one fifth- of the entire earnings of thcCom ipany?this offer, Mr. Magrath says, ["amounted to nothing?"* As to the reasonableness and sufficien? cy of this offer, you will allow me a fur? ther word: The usual terms where two Railroad Companies use the same track in the South?one furnishing and keeping up the engines, cars and coaches?have been to divide the receipts or earnings, the .track taking one-half and the trains the 'other half. The proposition of the Co? lumbia and Augusta Railroad Com pa 113 was to furnish the engines, coaches and cars, and do the transportation, giving to the South Carolina Railroad Company for tho uso of their track all tho receipts and earnings on tho 11 miles of their track thus used, and yet the reply was, that tho proposition was too insignificant to bo entertained! I cannot better illus? trate the import of this reply than to i suppose the ease, that one shonid offer to worts for you for nothing, furnishing his own rations, clothing, shelter and tools, and j'ou should repry: '"Your terms are unreasonable?you must do better than that!" But it is said by the Hon. G. A. Tren holm that these are not "liberal terms at all." Ho further says, "I told him (Mr. Johnston) that his offer was equivalent to taking away half our business, and give us in return one-tenth of what he took away!" The objection to such a state? ment as this is, that it is mere sophistry; and that it should have been made is somewhat remarkable, when one reflects that it came from a gentleman of high business character and intelligence, that it was addressed to a Convention of in? telligent stockholders, who were asking information on tho subject, and that, too, by one whose participation in tho actual administration of the affairs of the Com? pany would have well warranted him in saying "quorum magna pars fui!" When 1 tho proposition, to which he refers, was made, the Columbia and Augusta Rail? road was nearly completed to Granite ville; and tho right of the Company to continue the construction to Augusta had been established in law, and was no lon? ger denied. The proposition made on this state of facts, was to procure on terms tho use of tho track of tho South Carolina Railroad, between Graniteville and Augusta, for the trains of the Colum? bia sind Augusta Railroad, instead of con structing a separate track. Tho question for the South Carolina Railroad Coinpan} to> consider?and, as it seems to me, tho only question?was "whether is it bettor to farm out tho particular use of the track to tho Columbfa nnd Augusta Railroad Company, or by r.ur refusal, compel them to construct a separato ant] fruktpendent j competing truck." It w?*8 a plain busi i ness pro|MXH>troir, ftno which has been ! solved b3* hundreds of other Kailrouif I Companies similarly situated; arid solved 1 to tlto common interest of both Compa j nie?. But instead of so treating rtr tho reply is made: "Your Railroad from Co? lumbia to Augirsta will divert a large, part ! of*'our business,' nnd we cannot there? fore entertain your proposition nnl'ess , vow pay us something equivalent to what wo lose!" There might be reason in this, ' if tho- ??ofnsnl would defeat wholly the J completion of the- Columbia and Au-gnsta I Railroad to Augusta, But did these gen 1 tlcmen for a moment suppose tl*at their refn3al to treat would cause an abandon? ment or the enterprise? That tho Co? lumbia and Augusta Railroad Company would not or could not, in the face of such refusal, complete a separate track to Augusta? Did they suppose that "our business" could be retained by such refu? sal?that the community and the busi? ness world would reocgnize &uch claim to "our business" and rsluse to employ the agency of the Colombia and Augusta Railroad when completed? I apprehend that the people of South Carolina and Georgia, to say nothing of the world be? yond, are net aware that the South Caro? lina Railroad Company has an absolute properlj* in the transportation of passen? gers and freights. They do not recognize that any railroad has a lien upon their persons and propcrt}* as against all other roads; and, unfortunately for such pre? tensions efaim on the part of the South Carolina Railroad Company, the Courts of the State had decided that, however exclusive may bo their right to conduct the transportation between Augusta and Charleston and between Columbia and Charleston, no such right exists or has ever existed as to the transportation be? tween Columbia and Augusta. In addition to the two propositions contained in the communications of the 29th September and of the 2lst October, the Columbia and Augusta Railroad Compan}* have, within tho last three years, submitted as many as five or six other propositions through the President, their Chief Engineer and Directors, invi? ting negotiations. Some of these over? tures were in no manner noticed; others were simply rejected; and only in reply to the proposition of the 21st October was any reason assigned for its rejection, and that reason was simply that the offer was not sufficient. Besides these several propositions, the Direction of the Colum? bia and Augusta Railroad Company ap? pointed a special committee of Directors, consisting of Colonels Childs and Gibbs, and Foster Blodgett. Esq., then the May? or of Augusta, to confer wiih a similar committee from the Directors of the South Carolina Railroad Com pan)*, and negotiate terms of adjustment between tho two companies. This committee went to Charleston and in an interview with a committee of the Direction of the South Carolina Railroad Company were told "that all these questions had been referred to tho Courts and they would have to be there decided!'' After the decision by the Court of Er? rors, determining every question of right at issue between the two Companies, the Columbia and Augusta Railroad Compa? ny had reason to suppose that all merely factious opposition would be yielded, and that the dceiaion of the Court would be acquiesced in. In July, 1868, however, when the Road was about to reach Gran? iteville, where its location required an en? trance upon the lands of the Sonih Caro? lina Railroad Company, a communication was addr. s-sed to Mr. Magrath by one of the Directors of the Columbia and Au? gusta Railroad Company unking him to unite in the selection of commissioners to assess the damages for the land icquired. In reply thereto the following letter Wft* received from Mr. Magrath; f Charleston, S. C, 25th July, 1868? Dear Sir: In reply to your communica? tion requesting that this Company should unite with the Columbia and Augusta Company in an application to a Judge for the appointment of a Commission, etc., I beg to say, after a conference with mem? bers of the Board, that we decline to take any steps which, directly or indirectly, would invoice an admission of the- right of the Columbia and Avtgiesfa Company to build a \ Railroad from Graniteville to Augusta; and that further, in any event, wc regard our "Right.of Wav" as a peculiar posses? sion, and not the subject of condemnation and assessment, Vety respectfully, (Signed) W. J. Maoratji, President. To J. G. GtBBEs. Esq., Columbia, S. C. When it is borne in mind that "the right of the Columbia and Augusta Com? pany to build a railroad from Granilo ville to Augusta," was one of the points expressly made anil expressly decided by the Court of Errors, tho significance of ! this reply may be readily seen. This should have sufficed to dispel all hopes of negotiation, but the Columbia and An gttsta Company wero not in a condition to invite or foster antagonism. They were not a rich corporation, but, on the contrary were struggling with pecuniary difficulties and embarrassments. Their credit abroad had been impaired by the litigation, and their interest was deeply involved in tho adjustment of all matters of controversy in the most pleasant and 1 mutually advantageous manner. They, therefore, persisted in their efforts to treat; they were anxious to avoid the ex? pense of a separate track to Augusta; their interest impelled them to desire the use of the South Carolina Railroad track; they were interested in the economy of joint depots, of a common bridgo across I the Savannah; their location from Gran? iteville to Hamburg was necessarily upon the "right of way" of the South Carolina Railroad Company, for, according to the sworn statement of Mr. Magrath himself, that location was "the only practicable location between those points"?all the** mattcrs impelled by tho Columbia antl Augusta Kailroad Company to desire an amicable arrangement; and to this end, they spared no effort. At no time, how? ever, were they ablo to draw from the President of that Company any single proposition in reply to the many over? tures made, or to ascertain from him that any proposition whatever would bo en? tertained! This lefusal to treat, or to invite or suggest any proposition which might lead to a treaty, the Columbia and Augusta Railroad Company well knew resulted from tho singular views entertained by Mr. Magrath in regard to what hepfecmed tho "cxclusivo rights and franchises" of his company; and not to tho further idea that their "right of-way was a peculiar possession and not the subject of condem? nation and assessment." Thcso viows. singularly opposed' as they woro to tho opinion of the highest judicial tribunal of the State, and to the opinions of eminent jurists in this country and in KnglandV led to a den fa 1 of the right of the Cefan* bia and Augusta Railroad Company to construct their road; to a denial of ihonu thority of the charter granted in 1858 and amended in 1863 and 1866; to tho controverting of the validity of the Act of 1868 prescribing the mode of assessing damages for appropriations of "right-of way; and to the many and seemingly in? terminable issues which have boon thrown into* the case. Some allusion to the history and course of the litigation will be excused. The construction of the Columbia and Augus? ta Railroad was commenced in I860, and was continued until interrnptcd by the advance of the Federal army in Februa? ry, 1865. Soon thereafter the work was resumed, and was continued without in? terruption nniil the Spring of 1867. In April, 1867, the South Carolina Railroad Company, after having slept for near four ycarrxovcr what they assumed to be their rights; after having quietly watched the irrevocable expenditure by the Columbia and Augusta Railroad Company of near? ly a million of dollars, filed a bill to en? join tho construction of the Railroad,, on the ground that such a railroad was in in derogation nf their chartered rights. Thin btii was twice argued before Chan? cellor Carroll, on two distinct motions, tho one for perpetual injunction, the oth? er for injunction pendente' lite. Both ap? plications were decided adversely to the prayer of the bill after able and thorough argument. Tin- cause was then heard in December, 1867, before the Court of Er? rors, and the decree of the Chancellor on Circuit was sustained. In this bill ihe right of the Columbia and Augusta Rail? road Company to connect Columbia and Augusta by Railroad was denied; their right to connect Graniteville and Ham? burg was denied; and their right to con? struct their railroad between Gmoitev>He and Hamburg, upon the right of way of the South Carolina Railroad, was denied. In reference to the last named point, the fact was distinctly brought to the view of the Court, upon the affidavit of Mr. Magrath (and was not denied by the Co? lumbia and Augusta Railroad Company) that the location of the Road from Gran? iteville to Augusta was upon the right of the South Carolina Railroad, and within fifty feet of their main track, and that was the only practicable location. These points, thus raised in the bill, were all adjudged adversely to the claim of the South Carolina Railroad Company, and with them were adjudged every principle which is now involved in the pending lit- j igation. Only one new feature was presented by the bill filed in October, 1866, and that was as to the right of entry upon the lands of the South Carolina Railroad Company without tho previous compensation re? quired by the constitution and act of 1868. The difficulties which met the Co? lumbia and Augusta Railroad Company in reference lo the payment of this com? pensation, was that every effort to that end was resisted by the South Carolina Railroad Company. Not only did they refuse to unite in the selection of Com? missioners For that purpose, but resisted every effort which was made to procure them to be appointod by tho Court; first, before Judgo Aldrich in October, 1868, and again before Judge Platt in October, 1868. The application to Judge Platt has been, in the first instance,granted and an order issued for the cmpanneling of a Compensation Jury under the Act of 1868. But this order was afterward set aside on motion of the South Carolina Railroad Companv, based upon the oath of Mr. Magrath that he had not refused permission to enter since the passing of the Act 0/I868! Notwithstanding the fact that his action had been a persistent re? fusal from beginning to end; notwith? standing his communication of the 25th of July; notwithstanding the fact that his motion to defeat the execution of tho order was, in itself, a refusal, yet he made oath that ho had not refused since the Act of '68 was passed; and as proof of such refusal was necessary in order to give the Judge jurisdiction, the motion to set aside the order was granted. Pending the renewal of the motion, be? fore Judge Platt, the second Bill for In? junction wa^fl^cd nnd a motion made be? fore Mr. Justieo Wifliard, to enjoin the prosecution of the work until tho cause shonid bo heard. This Bill, as I have al? ready said, presented no now feature, ex cept as to the mattcrof previous compen? sation. And it is somewhat remarkable that, notwithstanding the persistent ef? forts of the South Carolina Railroad Company to prevent the ascertaining and payment of compensation, the fact that compensation had not been ascertained and paid was urged as an equity entitling them to a tempor?r}' injunction; and on this ground and on this alone, a tcmpora ry injunction was granted against entry upon their lands until such compensation should bo first made. Every further effort to procure a jury was resisted, and successfully resisted for nearly two months; and not nr.til January, of the present year, when tho compensation verdict was rendered and the amount de? posited, were the Columbia and Augusta Railroad Company enabled to move a dissolution of the injunction. Since then have followed motions in prohibition, mo? tion to set aside the verdict, motions lor ! a new jury, and every other sort of rno ; tion which the ingenuity of counsel could ;suggest?all of which hnvo so far been determined adversely to tho movers. In this wanton and vexatious litigation can be found nothing less than a persist? ent attempt, by every means which pow? er, influence and money could'cnmmund, to break down a feeble adversary, and ru? in him by the mere process of exhaustion. It has not borne the features of an order? ly appeal to the Courts for tho vnidication of rights. Tho friends of it havo scrupled to resort to newspaper appeals, pending tho litigation. They have not hesitated to parade tho litigation for other purposes of mi-sehief. to scatter abroad copfes ef tn-e ex parte arguments of their counsel, in order to cloud the prospects of tho enterprise; to destroy public confidence in ftsultimato completion, and thus impair, if not wholly destroy those resources of credit upon which I had to rely. Perhaps I would not exceod tho mark, wore I to say that 8100,000 would not to day repair the damages thus wantonly caused to thcCo firrobia and Augusta Railroad Company. 1 Sm-h an admission may, perhaps, yield a peculiar pleasure to the movers of this lit? igation. It ma}' gratify them to know that oven to that extent their effort has been succctsfnl. The public may not, however, be equally well content to know that the power and influence of a power? ful and wealthy corporation have been thus used to defeat a struggling public enterprise, and to prevent the develop? ment and promotion of public interests in other directions, where so much of pros? tration remains; The public may not be j equally content Co know that powers and privileges conferred for the public wel? fare, have been thus perverted to the sus? taining of a monopoly of that class, against which the framors of many of our earlier Constitutions thought it prop? er to guard by the declaration that "ex? clusive rights and monopolies were anti republican, contrary to public policy and not to be tolerated"?a principle, the wisdom of which is, to day, more thor? oughly impressed upon the public mind than at any former period of our coun? try's history. Nor can this plea avail that this litigation has been thus urged for the vindication of rights. With one who earnestly and in good forth*asserts and seeks to vindicate his rights, there is a sympathy which will always sustain him. Hub Eins differs much from the as? sertion of a merely pretentious claim of right, for purposes of wanton vexation, and to annoy, embarrass and cripple a a new and useful enterprise. Such- has been the character of their claims. The Courts of the State warrant me in say? ing that it rested upon the assumption of exclusive rights and privileges which were not granted by their charter. And' from the first inception of the litigation, the movers of it should have known that such was the groundless character of this pretence of right. I have authority for saying that in1 the year 1857 or i 1858, after the project of a railroad from Columbia to Hamburg had assumed form and shape, tho then President of the South Carolina Railroad Company, after consultation with his Board, referred I the subject of the rights of h'rtr company to able counsel, and after a deliberate examination' of the HObfect, the President was advised that hi's company had riot the legal right to resist the construction of the projected Railroad. This advice the Court of Errors has since unanimous ly sustained. Mr. Trenholm was then a member of the Board, and must have for? gotten this part of tho history of the South Carolina Railroad which comes to me from its former President. Doubtless he remembered it when ho subscribed to one-fourth of the capital stock of the Co? lumbia and Augusta Kailroad to make a good investment of ins Confederate mon cy' . , , ?. . , In reply to the remarks of Col. Siebcls in the Convention, Mr. Trenholm earnest? ly denounces "popular clamor," and con? tends that the public have no right to complain of the policy and-management of the South Carolina Railroad, in view of tho fact that "stockholders had not re? ceived one dollar of dividends since the close of the war.' A stockholder, as well as the public, may fail to und in this fact an argument to sustain tho administra? tion of the road. But this is a family quarrel in which I may not properly par? ticipate, nor need I to make a defence ol '?popular clamor," the denunciations of which furnished so much of the matter of his speech and that of Mr. Coiirtnny. Public opinion is generally right and is able to defend itself, and I need only to add, that, in this instance, has been vin? dicated in the courts of law and equity, in every form and variety of suits and motions, injunctions and prohibitions. But Mr. Trenholm more parliaulariy <eeke to arraign me for my illiberal spirit in negotiation. "I have always hew will? ing to meet him," says he, "on fitrr and , liberal terms. But he never came." He ; thereupon undertakes to repeat a proposi? tion as coming from mcT and giving it in quotation marks, as though in my very words. I certainly made no such propo? sition, and used no such language. My friend is authorized to publish any and all my letters I ever wroto to him in re? lation to railroads. And in that connec? tion, ho can also publish his letter to me, wherein he proposed to break connection with the Wilmington and Manchester Railroad at KiagviJle, and give that through business to Bhv Charlotte and South Carolina Railroad, provided the latter would direct its f reights to Charles? ton instead of to Portsmouth, with my reply thereto. To this correspondence ho has thought it proper to refer in or? der to reflect upon mj' illiberal spirit. Further saya Mr. Trenholm: "Wo wore willing to make money out of Mr. Johnston, but could not mako a bargain with him. Wc had paid tho city of Augusta 8250,000 for the privilege of building our bridge across tho Savannah River. We had built that bridge at a great expense, and it was incumbent upon Mr. Johnston to pay us something corres? ponding to the expense wo had incurred." It is difficult to determine how to re? ply to such specious reasoning. It is dif? ficult to bclievo that it fails from one whoso judgment on business matters is ordinarily so accurate. Let us look at it. Tito estimated cost of the Columbia and Augusta Railroad from Graniteville to Atigus'la, including the bndge over the Savannah riverr is short of $200,000. At any time the Columbia and Augusta Railroad Company would! have been will? ing to save one half of this expenditure by paying to the South Carolina Railroad Company 8100,000, or even 8120,000 for the use of their track. It was ample for the use of both Companies, and in all probability would continue so for twenty years to come. Readily, too, would the j Columbia and Augusta Railroad Company have consented to pay for the use of the South Carolina Railroad track an annual sum equal to 7 per cent, on the estimated cost of constructing n separate track; and would havo consented to refer the esti mato to^my competent engincor. Such torms as these would havo boon much moro advantageous to the Columbia and Augusta Railroad than the proposition to pay the entire receipts upon the eleve* miles. Bub no proposition of this o? any othor cHiaracter would bo cntertainod, for tho reason that this same idea pre? sented by Mr. Tronholm has pervaded tho minds of Mr. Magrath and some oth? ers associated in interest with him, to wit: That because it has cost tho S*>ulh Carolina Railroad Company a half million of dollars to construct their road from Graniteville to Augusta, it was, therefore, "incumbent upon Mr. Johnston to pay something corresponding to the expense'' thus incurred for the privilege of using their track! That is to say, for the par? tial and restricted ose of eleven miles ol the South Carolina Railroad track, inclu? ding their bridge, the Columbia and Au> gusta Railroad Company shall pay "some? thing corresponding" to a half million of doFiars, when they can construct a sepa? rate track and enjoy its exclusive use, for* less than half that amount! and these were the "fair and liberal terms" to which Mr/ Johnston -'never came!" Admit that it has> cost the South Carolina Railroad Compa* ny; as alleged, ?500,000 to connect Wit!* Augusta?admit that the privilege is* worth to that Company wfcat they have paid for it?'docs it follow that it is worth) the same amount lo the Columbia and Augusta Railroad Company? In whaf respect would the partial use of this trael* be worth to them something correspond ding to 8500,000, when thev can build a separate track for $200,000? [ Whether or not tho South Carolina Railroad Company have purchased and ' now own the exclusive right toeross the7 Savannah river into Augusta, is a matter* which rests between that Company and the city. Tho Columbia and August? Railroad Company is bound by the city of Augusta to cross the river, and to coik I duct their road into the city; and more" than six to one of her voters in 1866 voted for a subscription of 8100,000 to the Co? lumbia and Augusta Railroad on this very condition. Mr. Courtnny, in his speech to the Con-' veniion, is reported to have said: "A road is chartered from Columbia' tcf Hamburg, the route ie a practicable one; for tho records of the courts will- prove that by competent witnesses, but for some' ulterior reasons it diverges and cornea He1 Graniteville, and when it gets there, the President of that Company makes a pro? position lo the South Carolina Road to enter upon the free use of our roady bridges and privileges to Augusta for a) consideration which really amounts to no consideration at all." I suppose he meant to refer to the route? from tho Pine House to Hamburg. If so, in reference thereto I beg to say, that "the records of the Courts will show, by competent witnesses" thut, m the opinion* ot two scientific engineers of high char?e> ter, who surveyed the route referred to, it was found impracticable at any reasona? ble cost, and that without any "ulterior de.-ign" those engineers reco'ntnended the route via Graniteville. That point was not only on an air line from Columbia to Augusta, but was "on the most practica? ble route," within the strict and literal meaning ot the charter of the Columbia and Augusta Railroad Company.-ftlfefead, therefore, of casting about fur the "ulte? rior design," which directed the location! by Graniteville, would it not be well to im quire what earthly reason could exist for7 the avoiding of Graniteville. If a dozen* other "practicable"' routes could hare* been found, was there nnj* one more praC' ticable? To reach Hamburg through the same valley of Horse Creek in which Graniteville is situated, the South Caro? lina Railroad Company, iu tho location of their road, diverged widely from their di? rect line, making their track at least fip teen miles longer between Charleston and Augusta than the old wagon road and twenty niiies longer from Charleston to Columbia. The divergence of the Colum? bia and Augusta Railroad from the road usually travelled adds less than six miles lo the distance between Columbia and Augusta, and it is now the straightcsc road in the Slate of equal or greater length, except the North eastern and the Wilmington and Manchester Railroad*. One word more as to the "insignificant thousand or two" which I offered for the use of the truck of the South Carolina Railroad from Graniteville to Augusta, The length of the South Carolina Rail? road, wilh all its branches, is about 243 miles. Before the war its income was over $1,500.000 per annum. Since then it has averaged for the last three years over $1.300,000 annually. This is over 85,300 tor every mile of track, including tho Cam den Branch of 38 miles, which is safrf to have been a charge upon the balance of ihc road?not paying its expenses. As to? the Columbia ami Augusta Railroad, it itf fair lo assume that, after it shall have de? veloped the country along its line and have attracted, by reason ot its shortened distance, much new freight and travel that never would have passed over tho South Carolina Railroad because of its* most circuitous route?it is fair to as? sume that their per milz receipts will apcroximate the per mile receipts of the South Carolina Railroads If- so,, and es> timating these receipts at, say, $5,000 pc*r* mile, the proposition made by me to Mr* Magralh for the use of eleven mileey would, if accepted, have yielded to tbo South Carolina Railroad an annual in? come of 855.000, or putting tho per mile receipt at only 84,000, the offer was still better even then than the one roferred to by Mr. Courtenay, as having been mad? by Col Childs, (to-wit: 835,000) and whic? he refused to accept, unless upon tho fur? ther condition that tho Columbia and Au? gusta Railroad would agree not to com i pete at Augusta for freights, but would : leave them wholly to the South Carolina Railroad Company. That such propositions as those made by the Columbia and Augusta Hailroad Company should have been rejected by any corporation under sau*? Ltr circumstances, can only be explained 5y at? tributing il lo die delusive infatuation that the Co? lumbia and Augusta Railroad could not be built or could be slopped at pleasure, and herein lies the truih of (he explanation. The President of thet South Carolina Itailroad Company never realized! until recently that the Columbia and Augusta. Railroad would be completed even to Graniteville, much less did he entertain the idea that it would or could in any short period reach Hamburg or Augusta. From the repeated offers made by me? to treat for the use of his track frem Granite*ill* to Augusta, he supposed that I could not make the connectHin otherwise; and that he needed buk U> shut his eyes and close his ears to ev-any. proposi? tion I should make and, as a mat be* of course, the whole scheme must necessarily collapse! Hence his refusal to treat or "to take any step which would directly or indirectly involve an admission, ot the right of Che Columbia and Augusta Gompa?. ny to build a railroad from Graniteville to Augut-. ta " In the meantime, whilst he thus slept, in, fancied security, the work of construction ha*, gone on; and now having become awakened,, he finds a separate track to Augusta nearly completed, and his opportunity for a good bar^m irrevocably lost. In (his extremity he again raises* the clamor of "olwrler rights! privileges 11 fjfcs I o'.usivc franohlsps ! !" forgetting that tfce- etaftges* I had been already rung before the courts on all of" j these words and phrases, and that they werej, I found but as '?sounding brass!" This much. Sir. I have felt, compelled. tQ.alal?v from a sense of official duty, in vindication of the, course, policy and interests of the Company I rep-s resent. W-m- Johnston, I lVcsidcjik,