Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1845-03-12

violate tire provisions OF the If 23d March, 1889 an,
II legal the small sacrifice in the s,lc of the bonds woule
at the company, nothing OF the effect which
10 meet their engagements In Europe would probably ndvs
had only on the credit OF the company, but also hs
OF the State which large n sockholder that the
question in truth practical one, in point of fac
single bond sol and finally tina, this whole sub
cct laid before the Legislature in special IMPORT short
y after the transactions occurred add that body does
to have regarded the facts and circumstances thus sub
United TO their consideration furnishing ct ground
ugsinsI the administration " the company Your
committee will therefore dismiss tbs topic without, further
remark.
BREAKING GROUND ABOVE LYNCHBURG.
There is perhaps part OF the administration OF toe
company which has strongly excited the pabc stten
ton than the commencement o, the works above Lynch
burg prior the completion Of the canal from Richmond
t. Lynchours. Your committee have therefore felt their
DUTY to Investigate as thoroughly the circumstances
der which they have acted would permit this branch
suhlsc; with which they have been charged and will now
proceed briefly their and conclusions upon il,
by the charter Of the company the tolls therein granted
were not demanda5o below Lynehharg until the was
completed from Richmond Lynchburg. above Lynch
burg until 1t wac completed at least far the mouth
the North river. Apar; then from the higher
lions OF state policy and public and private faith towards
the people ct the west, would have been the in
'eTesi oi the company IN merely fiscal point Of vew that
tho western section should be completed with all proper
dispatch. and the improvement proceed with rapid side
towards ats western terminus This subject accordingly
appears al ea'y period have engaged the
the stocshode, and preparatory surveys and locations
were made, and eight miles of the canal imme.
dntey above the o Lynchburg were placed under
conirac; cary September 1888. The entire lne
however, from LynchbuTg 10 the North rive. pa-
eed under contract m the winter .: 1889 and 10. In the
meantime, upon memorial presented by the company ask
inS among other Things increase OF the capital stock
aud subscription the part vt the Tor three lhs
OF such increase the general assembly the 23d March,
1882 passed the act, entitled ian provide additional
capital Tor the James river and Kanawha company and
for other purposes By this the CON ANY was au
ihofzed to borrow upon and in manner there
Prescribed, the credit o the company
by the state, the OF 100000 BY another section
Of The act II provided the e5,ount sutho.
zsd 10 be borrowed by said company should &c expended
IN the completion of continuous the water line
OF communication between the city OF Richmond aud the
town OF Cosingioh" In addition TO the thus ru
noHZ'd 10 be raised upon the state guarantee appears by
reierenee 10 toe fiscal statements the COMPANY of
the old capital OF the company there remained on the
let OF December 1898. unexrended balance applicable
TO the new Improvements of Slli3106 06. The amount
mat might be ais expected be realized from this source
added % the loan Vt 8 $4,000 referred TO- consti
tued capital on which the President and Directors OF
the company seem To have relied with confidence enable
them to complete the works between Richmond and
Lynchbnrg and TO the the heart Of
the valley thereby bringing the line only the trade
OF that lefle district but also that OF the southwestern
region OF the State us well portion om the State of
Tennessee and in their anxiety effect this object ard
seeing that by the terms OF the OF i March 1889 the
loan thereby authorised required be expended on
the Inc OF communication be tween Richmond and
they Proceeded in the of 1889 uca,e
and prepare Tor contract the residue OF the line from
{
9i5 miles, and in the tall of that year they entered
conditional contracts for that work. which
y ratified aud approved by the board.
In pursuing thls course does appear TO the COM
mittee that the president aud directors considering the no.
sitoni IN which tey placed. ani ne
under which they acted, justly liabl. censure
IL Is Impossible for the committee in tho time which
'hsy were uha'Vlab!y limited In the drafting OF this
port 70 present all the considerations which have operated
upon their minds in bringing them this concusion-
hey must content themselves with briefly stating the most
sfTNN-PF u. =
hing in the of a3i March 1853 in IL terms or
according to its fair construction. which required that the
works above Lynchburg should proceed until those
below that point should he completed but ha; set accord
ing 10 'heir view lett the subject entirely la with tie
company, merely restricting the application ne avas
oil the guaranteed loan 20 the water line oil communication
bei~eea Richmond and Covingion.
In deciding upon the policy Of extending the works your
comniiiee sensible that much wei Justly 10 the
fact, that N consequence iaanca! distress o; The
county, the company h,d been unable render the loan
available by the negotiation Of the guaranteed bonds of The
Stsc, and had tccn driven in the summer o 1889 TO the
issue al past notes which had much deprecated in the
market But wncu she other hand il cunsdeted that
the same nnnncla! embellishments had operated very
great reduction in the of aholr, and especially Of
all kinds OF canal work. esutn. from the abandonmen in
other portions u the country OF various works of internal
improvement and the dseaSe Of the abourcrs upon tn SO
works aid the consequent increased supply Of and very
limited demand for, GbouT Of this description and that the
posiponcmeni OF the works above Lynchburr CON-
peon OF those below that point would probably have been
offended with the dispersion II nearly ths whole body of
contractors and the necessary discharge the whole corps
OF engineers engaged in the eompany service thereby sub
jech5 the companyto al te and Of
ne" organization o an efficient corps OF contractors and
engineers, nothing the Injurious telien Of such
course IN producing the impression on the public mad
that as the old canal did get beyond Mailsns Adven
iIe, this Improvement destnId be arrested nj
Lyne5nfg. ard that this great and emncnty enter
Prise OF connecting toe eastern and western waters
had been totally Abandoned; it seems 10 your
c lmmiteo that the board Of directors were fully
in max tlf iitiN,
acs Tor the extension of the works which were
entered into by them Ly nchburs tile 25h and Goth
November le59 by these contracts, according the
evidence before your committee, responsible
gagged TO 90 the work above LynchbuTg ayosogo re.
ducion IN the excavation OF 10 per CENT and in the me
chanci work reasonable allowances being made for the
changes IN the specifications Of 81 per below the
average rate Of prices paid by company 10: tho two pre
ctdns years. 1t rso stipulated that the work should
De paid for at the option OF the company either in current
nofs or IN post notes convertible into guaranteed bo1d or
in those bonds and that the contracts should be subject
ratification by the board OF directors subsequent meet
ing II will be observed therefore that these contracts
were merely CONDITIONAL be affirmed or disalfinucd at
the pleasure Of the board. Until they were ratified they
imposed no obligation either the eunpasy or the state
In his state OF things the subject brought 10 the no
nee q tue legislature tie 9th December l539 10y rcso-
luton moved By M Toier of Lynchburg, IN the following
words:
"Rr'oired Lg The general assengiy That the interests
Of ihis commonwealth IS sockhodcr the james river
abd hanaWha company, require that farther contracts
Tor TIE prosecution Of that work above g. yyn Of
burg s1, under present circumstance be- made b7 the
president and doetoo said company cad tbs; the proxy
o tie state be Instructed 10 in the general meeting. Of
the stockholders against entering into aay new contract 10
be pad IN the scrip Of the company, the current price
Of such scrip shell be par"
On the 9th December 1889 this resolution was isken o.
earnestly discussed and rejected by vote Of 81 70 80 or
nearly hroo TO one and the llh December the board
Of directors ratified the cOnacs and placed the contfac.
tors on the works, under Arrangement however viii,
them which provided for the continuance ~ the latest pe,od
Of the use OF the old canal Il may be proper here TO
that s canal, according ~ the evidence before your com
nltiee. at that time decoying and dinpdated
condition thai would have required considerable outlay
T. have made TT Tor for any length Of tne and ts
dimensions were such, compared with the new works
hat the money thus expended would IN great measure
have been thrown away.
In the face OF such vote upon such proposition by the
Immediate representatives, Of the people, the president and
directors could scarcely have acted Otherwise and your
committee cannot perceive IN their conduct Just ground Of
consuTe.
Your committee cannot leave this branch Of the subject
with ut referring for moment TO hch
was probably not without it, influence In determining the
seton both othe directory and the legislature. They oude
to the oams oi the western people o. have this central i'm
proyemen extended least the heart Of the valley