Port Royal and Augusta Railway
Encyclopedia
The Port Royal and Augusta Railway was a South Carolina railroad that existed in the latter half of the 19th century.

The Port Royal Railroad
Port Royal Railroad
The Port Royal Railroad was a South Carolina railroad that was constructed following the American Civil War.The line was chartered in 1856 but wasn't built until 1870. By 1871 it ran from Port Royal, South Carolina, to Yemassee, South Carolina, extended to Augusta, Georgia, in 1873...

 Company was chartered in 1856 and the line was completed in 1870. In 1873, the Georgia Railroad provided financial assistance to the Port Royal Railroad Company, but Port Royal Railroad Company defaulted in November 1873 and the railroad was sold to the Georgia Railroad under foreclosure
Foreclosure
Foreclosure is the legal process by which a mortgage lender , or other lien holder, obtains a termination of a mortgage borrower 's equitable right of redemption, either by court order or by operation of law...

 in June 1878, with the Union Trust Company of New York as Trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...

s. The Georgia Railroad reorganized it under the name Port Royal and Augusta Railway, and the company expanded.

In 1881 Georgia Railroad leased its rail lines for 99 years to Colonel William M. Wadley, who assigned half of the interest to Louisville and Nashville Railroad
Louisville and Nashville Railroad
The Louisville and Nashville Railroad was a Class I railroad that operated freight and passenger services in the southeast United States.Chartered by the state of Kentucky in 1850, the L&N, as it was generally known, grew into one of the great success stories of American business...

 and the other half to Central Rail Road and Banking Company of Georgia. That same year, Central Rail Road and Banking Company of Georgia acquired controlling stock in Port Royal and Augusta Railway.

In 1893, the State of South Carolina filed suit in State of South Carolina v. Port Royal and Augustra Railway Company, alleging that Central Rail Road and Banking Company of Georgia was intentionally diverting trade from Port Royal to its own lines by misuse of its voting power. Under the directors they appointed, the State alleged, the facilities of Port Royal Railroad Company had been allowed to deteriorate. Central Rail Road and Banking Company of Georgia was forced into receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...

 and sold, reorganized as Central of Georgia Railway. Central's purchasers, Ryan and Thomas, claimed to have purchased the company's interest in the lease, a claim denied by one of the receivers. Lousiville and Nashville Railroad had continued to pay their lease and receive their profits, while Central of Georgia had not. In light of this, the Port Royal and Augusta Railway Company filed suited against Central of Georgia for unpaid leases. However, in 1894, before resolution of any suit, the State of Georgia repealed the charter of the Port Royal and Augusta Railway and liquidated its assets, rendering legal action moot.

By 1898, The Port Royal and Augusta Railway and the Port Royal and Western Carolina Railway
Port Royal and Western Carolina Railway
The Port Royal and Western Carolina Railway was a Southestern railroad company formed in 1886 by the merger of the Augusta and Knoxville Railroad, the Greenwood, Laurens and Spartanburg Railroad, the Savannah Valley Railroad and the Greenville and Laurens Railroad, which then joined with Port Royal...

 had been combined into the new Charleston and Western Carolina Railway.
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