NP, FO 2/25/1861

From the Fayetteville (N. C.) Observer
 
February 25, 1861
 
An Act
To enable the Western Railroad Company to extend their Road from the Coal Fields to the N. Carolina Railroad
 
   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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