The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1854-03-11

has been paid, for Interest," the sum 2, 4NsoAvsooS
So In this long period, whilst her works we're un.
finished. and there was necessarily great sxpeR-
diture before there could be any returns nr u the
/ company has occasionally asked the aid of the
State In the payment OF the interestupon her debt
debt contrscted ansst , Us y - MI ~, Iwn
islature on the state. The sum Of $326204 o. thus
advanced By the state, for the payment Of the in.
| terrst due from the company, has been secured by
mortgages on the property Of the company, and
the tsv it Was advanced up to the present time
with the exception of the semi.annral interest due
ON the LIST January 1853.
The acts OF the general assembly. authorizing
| the guarantees Of the company's bonds, and the
loans to the company, for which the mortgages
| were executed, provide that the revenues of the
| company shall constitute fund-frst, for keeping
| the improvements in repair and paying the ordi-
| nary expenses OF administration; and secondly,
for paying the semi-annual interest on the loans
guaranteed by the state, and loans made by the
State, including the annuity to the stockholders of
the old james river company. The mortgages were
executed in pursuanceof these acts Of the general
| assembly.
The revenues of the company were always taken
care Of and disbursed according to the provisions
of the acts under which the mortgages were exc,
euted, until the year 1852. And for many years
past they have been sufficient, with such temporary
aid the president and directors were always able to
obtain the credit of the company in an emergen.
cy, to defray the expenses of repair and admipis
tratlon, and pay the semi annual interest on the
company debt as it accrued.
In the progress Of the company's operations in
1851, in completing the second division of the canal,
anu advancing towards completion the south side
and Rivnna connections, it was ascertained that
the loans made and guaranteed by the State for
these objects would not be adequate and that the
company could not supply the deficiencies from its
| Own resources and also pay the semiannual intes
| rest accruiug on its debt.
In this state of things, the stockholders assem-
ho& ,har1 sI,J
to them his annual report. In this {page 2O0,) re.
ferring to the deficiencies then existing and anccis
pated to exist, the president says
| "Anothor mode of relief for the company, is to
| ask of the legislature 20 loan the company three
hundred thousand dollars Of State bonds, or to pay
| the semi~annual interest accruing on the CONS
panys bond debts, until the LIST of July 1853; and
with its prospects of revenue, when all its works
how in process of construction shall have been
pleted, accompany will bejustifed in undertaking
repay into the treasury the amounts to be paid
within five years. recommend that application be
| made for aid in this form. The State is already
bound for the payment of this interest, and it
not be the policy of the legislature by refusal of
aid to compel the company to make default to its
| creditors"
The Presidents report t, with this and other sub.
jects embraced in it, requiring action on the part
OF the stockholders, was referred to a committee
OF thirteen, in which number were included the
three proxies who represented the State. The com
mittee in their report set forth the fact of the de,
hciencies in appropriations, as well as small de
hciency past and prospective, OF revenue to meet
| disbursements and state that the sum of $780,.
coo, will, in their Judgment, be sufficient to supply
| al these deficiencies and conclude as follows:
"In relation to this subject the committee re-
commend that the stockholders adopt the following
resolutions -.
80. Resolved, that the president and directors,
on behalf OF the company, apply to the legislature
for aid in relation to the existing and anticipated
deficiencies in their revenue, as to enable the
cOmDaQy DuQCtuaily to their semi-nnnual in
terest.'
Two other resolutions were reported under this
| head-one appointing committee of stockholders
| to aid, by their efforts, in giving effect to that
application to the legislature and the other ask
ing the legislature to convert the bond debts of the
| company into stock.
These resolutions were adopted by the stockhol
ders.
1t will be observed that the committee in their
| report treat the revenues OF the company
| source from which the company is to pay, or make
up, the deficiencies of appropriation, as well as pay
interest looking to the application of it-frst, to
supplying the deficiencies of appropriation confne
their resolution quoted above to the single object
of obtaining aid from the legislature for the pune
| tual payment of the sem-annual interest. 1t is
manifest, therefore, that the committee, although
they did not so express themselves in terms, ap.
proved, and intended the adoption by the stockhol
ders of the report and resolutions to be approval
by them, of the alternative recommendation of the
PRESIDENT to supply the deficiencies of appropriation
from the revenue and obtain loan from the legs-
ature for the payment of interest.
The president. for himself and the board, in be-
| half OF the company, prepared and had presented
to the legislature petition in pursuance of the re-
solution of the stockholders; and the printed pro,
ceedings of the stockholders at their annual meet
ing with the presidents report, were placed upon
the tables of the members according to custom, as
| well as referred to in the petition. .-
On the goth of May 1852 bill was reported from
| the committee of finance, by unanimous vote of
the committee after full explanations from the pre-.
sident, authorizing loan of 100000, in pursuance
| OF the prayer of the petition. 1t provided that
$l500O to be paid in time to meet the interest
due on the list of July 1852 and $4,000 in time to
meet the interest due on the 1st of January 1858.
After the bill was reported, the chairman of the
committee OF hnance had aconference with the pre-
sident of the company; and learning from him that
$4,000 would be sufficient for the immediate pur.
poses OF the company proposed, for connect
ed with the new tax bill, then untried, to reduce
the amount reported in the bill to $120, O00-but
with the understanding that as the legislature
would adjourn to meet again in November or De.
celnber, the balance of the sum reported, to wit
Slo000O, would be appropriated in time to pay the
interest falling due on the LIST of January 1862
motion was accordingly made by the committee
of finance, in the house, reduce the appropriation
to 100000 and, believe, explanations of the
character above stated were made by him to the
house at the time
The bill was then passed, by vote of 81 to g.
was sent to the senate, and there, after reference
to special committee, was unanimously passed on
the same day.
After the legislature met in November 1862,
bill for 10000 was reported. 1t is believed there
was majority of the legislature in favor of pas
sing it, but opposition delayed action, and that,
combined with the absence of members during the
Christmas holidays defeated its passage before the
LIST ofJanuary. The company then having expen-
ded its revenues to supply the deficiencies of appro-
priatlous, had no alternative but to make default
Had it not been for the well grounded belief that
the legislature would grant the means to pay the
semi annual interest, the president and directors
would not have permitted the revenues of the COM
pany to be diverted from that object in the early
part OF the year. This belief was based upon the
proceedings of the stockholders in which the three
state proxies eoncurred-the fact that the legsla-
ture never refused to supply deficit of means to
complete unfinished work on any improvement in
which the State was largely interested, and on
which large amount had already been expended
and the consideration that the loan of the money
for the payment Of the interest," instead of an imme
date loan and sale of the bonds to supply the de.
cit would be tn the advantage of the State as well
as to the advantage of the company; and upon the
further fact, that far as the sentiments of the
members of the legislature could be ascertained
during the session of 1852 it did not appear proba.
Bile that there would be- any serious opposition to
the loan for the purposes indicated: as was after.
wards abupdantlY manifested nv their vota ,,n,,,