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STATE eS HaDtfitY upon lis endorsement, due regard
should be had to this stock that it may be protec
ted as far as possible, without involving the State
in further difficulties. And further, the State be-
ing the principal stockholder in the coporaon her
honor requires that its debts should be paid with
out any reference whatever to her mere legal liza
bilties. She holds large portion of the siock-
she holds the rood, steamboats, and all its effects oil
value, under mortgage to indemnify her-and
creditors must rely mainly the liberality of the
State to permit them 10 get their money from the
corporation


1t is believed, from the success attending the
operations of this road, notwithstanding its heavy
losses by fire and at sea- that if induged for few
years, 1t will be able 10 meet all its liabilities, and
exricate itself from debt, and appreciate the value
! of its stock


This indulgence it is believed, may be easily
given without any further risk to the State.
| Already the Literary Board holds of the bonds
stated, 50,000 the State Treasurer holds $50 600
more, paid for by him out ofthe funds ofthe same
Board lying in The Treasury; and the Literary
Board, by collecting in its debts, will be enabled to
take up the other bonds, or least the larger part
Of them, as fast as they fall due. And l doubt
not the corporation would promptly pay the nte-
rest to procure indulgence on the principal where
by il will be enabled to meet other liabilities which
press, and sometimes embatr rass, its operations.


IIS AIitidIy una D6 III SUJe dUu CCT-
tain investments What safer or more certain in
vcstmcnts could this fund have, than in these
bonds2 Saf", because the State is security, and
has morgag" upon properly, costing over two
millions of dollars, 10 secure their payment; ccr-
! tain, because they yield scmi-annually three per
cent. interest (which does not lluctuatc Ike the d.
videndS of Bank Stock.


Should this course be adopted, tho Board will be
aided and relieved the Literary Fund will have
| n ia inve md ihn will
be no further involved


| Whtthcr you will adopt this or some wiser
course, is submitted to your consideration. But
whatever course is p"rsu.d, ample provision should
be made 10 sustain the credit Of the State in every
possible contingency.
! In regard to the Raleigh and CASTOR Rail Road
this work too was constructed, as before stated
mostly upon credit-the balance due for its con-
structon, after exhausting the whole of the stock
subscribed, amounting 10 Il sum much larger than
the whole stock.


This corporation having failed in january.


S43 to pay the interest due OH its bonds endorsed
| by the State, the Public Treasurer promptly paid
it, and preserved the faith Of the State, and has
continued 10 do SO ever since. The amount thus
paid will appear from his report


A bill in Equity has been filed according to the
requirements of tho acts authorising the endorse
mcnt, to scqucster the profits of the r. I'd to indcm
Nifty the S,atr-and a receiver has been appointed.
Ii is believed that the receipts oe this Road for
years 10 come will be insufficient to keep it in re-
pair and pay the interest upon its debt qucnt-


y its debt must continue 10 increase. 1t is, there
fore, respectfully submitted whether it would mol
be better for the Stockholders, the Stat" and the
pnblic that the road aud lis effects should be dis
posed OF under The mortgages; so that whether it
falls into the hands ofthe State into the hands Of
new SRI OF stockholders, incorporated for the pur
pose-itmay be discmbarrasscd for little doubt is
entertained, that with even ts present prospects, it
will not only keep itself in repair, but will yield
bcsid, considerable income


Should You determine to take this course, sncfl
steps should be adopted rs will be best calculated
10 enhance the value of the property. This course
is due 10 theStae to protect her against her liabil
iii Sit is due 10 those individuals who vounari
ly entered into bonds TO the amount of S500,000,
to indemnify the State against her cndorsrm' nj
and it is due 10 The stockholders to make tho prop
eny, ifpossible bring more than the amount Of the
debts due from the corporation: so that tic stock
may not be an entire !oss.


And, in connection with this subject, will re-
spectfully refer you to the message submitted by
myself to the last Legislature, relative to effrctng
a communication by rail road between this road
and the several roads which terminate at Weldon,
and to constructing turnpike from Raleigh west
ward. These two Improvements would greatly
enhance the utility and value Of the Raleigh and
Gaston Rail Road, and doubt not, would cause it
to bring much higher price.


Since the adjournment of the last Legislature,
n portion of the Portsmouth and Roanoke Rail
Road, within the limits Of this State, was torn up
and rendered impossible, b. an individual claim
ing it purchaser, at sale made on execution
against the corporation, whereby the travel and
the road were for time obstruc-
ted. The legality of the course pursued by the
purchaser has undergone judicial Investigation,
and the matter is now pending before the Supreme
Court


1t is not my design to express or intimate an
opinion as to the propricty or legality OF the
course pursued BY the purchaser.


The interest which stockholders have in cor
poration created for the public use and conVcn-
ience should be subject to their debs; and the
held by such corporation should be liza
able to its debts; but this interest and property
should be reached by the creditor in such way as
not to put the public to Inconvenience, destroy the
franchise ani defeat the object had in view by the
Legislature in lis creation. IF there be no law
10 enable creditors to reach the interests of stock
holders and the property of corporations. without
letrimcnt to the public, such law should be
passed as will enable creditors to secure their
iebs, and at the same time, secure to the public
he benefit and convenience, intended by creating
he corporation


INTERNAL IMPROVEMENTS.


Upon the subject Of Internal Improveme ents,
respectfully invite you; attention to the sngges-
ions made in nv messa0e to the last Legislature.