Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-10


ors in relation 10 these matters aad Of the rcasons
| By which they were governed.
| In the fall OF the year 1889. Tor urgent reasons
whchwere afterwards fully approved by the Stock
holders. contracts were catered into for CON
tinuing the work above Lynchbur.. and these con
tracts were expressly made payable Al the election
OF the Company, either in current notes. or in their
own post notes. which they should be- ii liberty 10
redeem by the bonds OF the Company guaranteed
by the State, or primarily in those bonds themselves
me measures taken upon This subject. together
with the reasons Tor them, will be found under lhr
filth general head OF the Presidents report com
mcncing at page SOL. In This manner Il part OF the
permanent loan has been made available: and ano-
| thcr part Of il has been also made available By eN
changing the guaranteed bonds Tor the post notes
issued by the Company in paymento Of their current
debt.
In the Spring Of the year 1870 the prospects Tor
negotiating The loan in Europe having improved,
aud an opportunity having occurred Of employing
IN agent 10 negotiate il Of very high character anl
IN every way deemed adequatc-Gen. James IIg-
milton OF South Carolina, who on his way 10
Europe upon financial negotiation for another
State-who was employed by the company to un-
dertake the negotiation Of the loan 10 the extent oi
about S5oOOO0 and Tor this purpose sterling bonds
OF the Company 10 the amount o! tl23S00 eQuya-
lent TO S550222 -, bearing interest AT The rate OF
) per cent per annum and redeemahle according
TO the provisions Of the act OF Assembly, were placed
in his hands on the Sth o., MAY. 1870 To this cx-
tent he was charged with negotiating the perma-
neat loan, and WAS most vigorously enloned not 10
dispose OF the bonds al less than iS3 6s. 81. in the
hundrcd-a sum which, being given for FIVE per
cent stock. was deemed equivalent 10 par for SIX Per
cent. stocks. In order however. TO raise small
sums indispensable 10 meet the cash engagements
oil the Company, especially the interest upon their
debt he was authorised TO dispose of a small ror.
/ 10 nj a , min ,,t'r ,Lc
dred or instead Of that, he was authorised 10 raise
three small sums upon temporary loans. and 10
pledge sterling bonds security Tor their redenlp-
ton
| Alter Gen. Hamilton's arrival in Europe he gave
10 The Company the most encouraging hopes from
lime to time, that he would be able 10 succeed in
making the permanent loan to the full extent OF his
authority, and upon favorable terms; and he ap-
peared TO be actively. Zcalously and indeed gene
rously engaged in different parts OF Europe in the
service otthe Company. He did not succeed how
ever, in negotiating any part Of the permanent loan;
but obtained temporary loans from time 10 time, 10
answcrihc indispensable cash demands OF the Com
pany, so hatat the end Of the year ISL, the Com
pany stood debtor TO the house OF Morrison & CO..
4 banking house Of London. on account OF those
loans, in 4 sum which il is stated in the account
rendered at t22.SS6 3S.; whereof IL, lS6 IS. was
due on 30th November. IL; t. 600 on the 18th Feb
ruary, ~ C., 500 on the Sth Feb ~ IA 900 on the
23d FEB, ~ tI;Ulu on The ltA March, II; i0.5UU
on the Sth March. AZ.
There is no reason 10 doubt the accuracy of TN.
account, unless it may be that six per cent, the
Virginia interest has been charged BY mistake IN
stead Of the English interest oil five per cent Per
annum. For the security OF the loan thus nego
tiated, Morrison, Sons 4 Co., hold in pledge bonds
olthe Company 10 the amount il is believed. Of one
hundred and eight thousand pounds sterling, Of
which bonds they were authorised by The contract
entered into with them BY Gen. Hamilton 10 take in
payment or to sell enough to discharge their debts
al 4 price not less than eighty pounds i'll the hun
dred But they have neither sold. nor consented 10
take any OF them in payment OF the loan, but de
sirous 10 have the whole oan with lawful interest,
refunded 10 them with all practicable DESPATCH
This the Company are most anxious 10 do without
any loss oitime and this until very few days past
they had expected 10 be able 10 do through the
aid of the Banks; but in that expectation they have
been disappointed The stock ITSELF 10 the amount
OF 100000 is i'll this country, actually deposited
in the Bank OF Virginia. but under The charge OF
Mr.. Alfred Morrison OF \. v. member Of the firm
of Morrison. Sons 4 Co. The balance Of that stock
which was in the hands OF The London house. is
daily expected TO arrive in this country, TO the care
of the same gentleman. Mr. Alfred Morrison. 10
whom is entrusted the whole negotiation Tor re
deeming the loan. and surrcndering the Companys
stock The President and Directors are exceed
ngly anxious TO effect this object in time for remit
ance TO London BY thepacket Of the first Of March,
50 that their credit may be protected and the pos
session Of their bonds restored 10 them.
With respect 10 the balance OF the Company
bonds placed III the hands OF Gen. Hamilton, they
have not been returned nor has any satisfactory
account been given Of them. and they have reason
to believe that this whole balance. 10 the amount OF
fl5SO0 sterling has been hypothetical with 4
mercantile hoISc in Holland, 10 secure some loan
negotiated with them in which the Company have
no interest and no agency. Certain ii *, that the
letters of Gen. Hamilton 10 the President OF this
Company, received Oh the 22nd and 25h of the last
month"; have announced Tie fact that such hypoihe
cation has been made, but 10 what extent. or for
what amount borrowed he does not explain. This
however, was accompanied with as
xurances that the pledge would certainly be redeem
cd that ctfcctua measures had been taken TO have
renittances made from New York for that purpose
BY the packet of the LIST February: that IN ndemn.
ty to the Company had been already provided, and
that further and more ample indemnity would be
forwarded from Cuba, on his way to America, and
that in short the Company was in no possible dan
ger of loss from this hypolhccation. But though
Gen. Halniltons arrival at New Orleans has been
some days since publicly announced, and though
the gentleman from New York 10 whom the Prcsi
dent OF the Company referred has been written
TO more than week since. Yet nothing has been
heard Of either the indcmnitics or Of the remittance
nor has any Thing further been heard from Gen,
Hamilton himself. of laerdate than the 9Th dav Of
jan, 1912. when he wrote from ST. Thomas, on his
way 10 America.
This unexpected diversion OF a part of the funds
of the Company from The purpo IS for which they
were entrusted 10 Gen. Hamilton. has filled Your
petitioners with surprise and modification and re-
greet which add 10 their financial embarrassments
and may expose them ultimate loss There
is not however. sufficient knowledge Of the facts
attending the transaction TO enable them to obtain
legal advice upon the question OF their liability. or
10 enable them TO form any reasonable conjecture
of the probable extent Of the loss. For further IN
formation on the subject. the letters Of Attorney IN
der which General H. acted will be laid before you,
together with such Of the correspondence with him
as the Legislature may desire 10 inspect Thcy
will only further remark upon the subject that willis
they will do nothing 10 sanction any invasion oftho
any measure which would impair its credit