Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1854-03-21


lions OF lis line near two hundred miles apart, asked for
sstancc TO prosecute them andit granted; but guard
usnnst all msapprehenson two bills wcre pissed for the
purpose: one granting loan 10 the company OF S7OO0 10
be applied 10 The Underwater connection exclusively another
authorizing loan OF $3.50 000 be applied tbs
petion OF The tide water connection and the
the conpanys waller line from Buchanan westward and /,
distinctly provided that Of this las 500 900 shall
be applied 10 the works between the basin and tide water
and the remainder 10 be advanced TO the company not in
RToss but IN monthly insta!mens OF fifty thousand dollars
for the extension of its line Wes. of Buchanan The whole
sum gtaaed by both bis TO ho placed at ihe companys
osPosa oulr when II should have executed mortgages on
popsrty and devoted the whole Of its met revenues
ator deayng tho Of repairs of the oompanys Cenal
and other works. and Of administration" the annual pay
nent OF SUN sufficient pay siS per cent nares on and
TO ex'ingnsh the whole debt In ihyonr years from tie
date at which II contracted The recital Of these
acts negatives the idea that the Legislature ever Intended TO
nrest tho company with the 1t claims and has
exercised and Tho committee Is fully warranted by the
port Ut these and other acs in asserting that these bull.
never would have received the assent OF tho Legislature,
had been supposed that the un could have been used b
The company Tor general and nut for specific And
Il believed that rbs determination Of last General As
sGmby was wsc and demanded by the great interests Of the
Cummun wealth. and that any departure om by Its cue
will produce evils OF the most serious and extensive
| character.
The corporations numerous which havo received loans
from The State and their acknowledged and legitimate pow
larce Under the most stringent and rigorous enforce
Tent Of legal authority by The State they s hIvo powe
greatly 10 enbarass their and The finances u The Cum
mon wealth. They hivc with the assent Of tho State
proxies and directors full authority make contracts
point all officers and agents. Increase their number fix und
enlarge Ee salaries, and e1pend all moneys necessary in
the administration of their affairs and rail road compa
nes have power construct lateral roads build depots
purchase lots and equip their rUatsa limited only BY the
discretion of those whom they select 10 guard and os
their peculiar interests With such power TO make
wasefu expenditures, and largo inducements embark In
schemes contemplated by the Legislature which made
the loan. should they be invested with The dan
gerous power disregard the provisions of laws under
which they receive theIr und wisdom virtue In the
Legislature could guard the interests or maintain the credi,
of the State Ii would doubtless be Of great advantage
fhp
improvement In the State could be speedily advanced 10
their compleon bat the public credit ia heavily taxed u
supply the required for their gradual and slow prose
cuon The public finances certainly In no condition 10
allow these corporations eIpend funds supplied for tho
s'uclon Of their works pay creditors less nduseot than
the State or In vain efforts sustain their Impaired credit
Should they entrusted with discretion wde requires
sagacy !oreel that The cost of the works will be
abaudauy enlarged aud the period OF their completion
postponed very distant day. lu this case, the lands
thus misapped have been honesy and scupuousy devo
ted purposes OF essential Importance 10 the interests o
the eompany but 1t be far different when the exgencY
which pnars this assumption OF authority shall have pass
ed away and The naked and unguaded sanctioned oy
so dangerous precedent shall remain. This corporation
has, By the execution of several mortgages In addition 10
those referred Ia this report conveyed away ell lis sht
control the produced by any property or
privileges il possesses Under these contracts the Snte
hnd acquired utes In the company creditor and &C.
curity, the 30h Of September 1853, OF So O 6oo Inc
receipts of the cOmpaay from all sources appcaoe 10
the payment OF It's Interest and annuty dco ior Se
ending the 30h OF September 1885, amounted 10 S2Z3oo9
insufficient 10 pay six cent Interest On the primer
pal sums Tor which the State held her liens by noou
sS3O OOO 1t but just however, 10 ada hat Inc gross 70
ceps had been subjected heavy charge for extraordna
~ repairs and that large Increase oil revenue may DC an
cpaed for the year. from the opening o The canal oc
cen the basin at Richmond and tide water, aud from Inc
general incrcase Of trade along the main ue ana a. u
extremity and the cost OF administration VIII o.
considerably diminished when the force employed on The
ship lock and dock @ sa Of & per cen; upon
s39O.O00, In addition the foregoing appropriated oy
the Legislature it's last session. and whaieso sums
be advanced al m oos.on for tho OF me
line westward It will not BIZ unreasonable ee,imno Its
expenditures with it's present deficit as equiVa
augmented from the SOURCES above men
toned; ut least Tor Two three leaving the cor
pora.on during that time. abls to all the embarrassment
aud difficulty 1t has heretofore experienced IN keeping M
works in repair and dschaTgns the annual ntceaI Oh lis
debt
With what Justice then the people OF The State car
the Legislature allow this company divert s revenues
from tho purpose, 10 which they are pledged 10 loans &c
sections and divisions Of its works which Will not yirt
revenue when completed and 10 which II viii not difec'l
appropriate money and force it to abandon It's poll
cy and pected drafts the Slate treasury
Yet this has been done .ecnny and 10 defended because
haa been long practiced With what result this policy mas
been heretofore pursued the condition OF the company iur
nshcs The evidence An enterprise OF vast Importance
the public private OF the State placed unde
the control OF Of deserved reputation Tor integrity ane
ability and enjoying the privilege OF transporting passenge
and great of Tonnage long water line, II ha
hceu involved in and difficulties from it5 or
ganz4lion tha day and has unappy provoked he nos
ty Incurred the dstrust OF large nunoers-pohap'
majority of the people and public OF the State
farther prosecution OF this practice OF exercising pow
ers not granted by law. and dvertng funds from IN
purpo:cs 10 which the Legislature have directed lbcl
application must produce still greater embarrassment
In Its disordcred finances heavier drafts upon It's re-
Sources and, finally, consaln the Legislature 10 enforce
i,s liens only Of securing the payment OF I'M
interest un debs and indemnyng The public Tor the hea
w burdens borne advance the fortunes OF Inc cor
poraon Regard for the interests OF the company as wei
IA usce to the tax of the State reqnres that prac
lice honestly resored for temporary PURPOSES but go LA
Bile to abuse and certain to result In injury TO ooih par
ties should be abandoued and the committee recommend
,ha Of n la WHICH
loan appropriation shall be granted TO any Corporation
for specific purposes imposing fine other penalty on 10
company II II shall apply the money loaned 10 any olher %
ecs those prescribed In tho bill Authorizing 'he loan
approximation ohio, b. o,,,., condition of III
Common would induce the committee 10 return nc
ca,ive the enquiries with regard 10 Inc ioecosuf
of the mortgages held The effects OF the company an
purchasing private STOCK The Views presented oy ~
reeden, Of the Company require some nocs from lhe com
mcc His answers 10 these interogatoe arc couraSoo
and elaborate Efforts 10 vndcae the past policy Oh o Go
pany and present, In clear and tangible to Inc we"
entertained by lhi: corporaon OF It's own gns anu s
rests and relations to the State The lanH an'
explicit declarations made by It's organ are 10 exact aceou
auce with the fac,s presented In Its past history sna
no room doubt that It holds Itself but little lnneoeo
Tho State for past legislation in Its behulf and VIII consae
any effort 10 enforce the legal rights required by the Sta
through the violation Of lis laws and the breach OF con
tracts made BY tho corporation harsh ahu unJus
exercise Of authority II Is necessary 'hss suSn
should be and removed, If the Sta'e eve
e intends TO relieve her embarrassed nnances, N y,
recalling the princpll sums c1ucling Inc interest," Gh h
large advances II hus made 10 the various cofpou.e
yhin her limits The pas; legislation OF the Stae n oe
( half Of this Company entities her 10 all the rights esa
equitable Of generous and ndugcnt CREDITOR an" certain
y II is difficult what sacrifices or services the pital
subscribers advance deba her from Inc exercise
those rights by special contracts and purchased Al
orice dea cursory view Of the history oil the iesis
Ye old afforded The company, will suffice to emo" nov
little It has complain OF neglect or inuslco rs
csived from the State Legislature, and how mucn sIaluu
owes for large pecunary aid granted and great o1oea
ance exhibited under circumstances well calculated 10 pre-
vent any farther legislative action In lis iavor s u,sc
ha The State, in lis original subscription oil lhTee, nns
tho capital of this corporation put In The sock OIL inc OF
James River Company sl000OO0 and taxed Inc pes
company with annuity of s2lO00 as compsneaoh 10
The OF S349 709 g. which the old works Dau cost ..
a yond the thu, put In capital by Inc coInmon"tai"
It's further stated by The President In his answer nut
was found necessary alter and reconstruct Inc Old
thus conveyed nearly IL no, quito as arge as Ina
incurred In their original constructions and the suoscfpo
= of this of oneffth Of capital STOCK beyond ne pr
vale subscription, II considered az wrong conc " WI
y, new company, Is certainly estimated as ght o l
/. value. These works yeied during the Six }eafs' no'
: 1896 10 ls4l before they were thoroughly lheo
q poa!ed with company. annual income o iol
q hnn S58 000 after dstucng all disbursements mace on me
a account and since their reconstruction and incepofso
win the company, have doubtless ye'a:d fefsnu
r:uch exceeding this 1hs property thus conFeyeh Va
\ Inc old Canal from Richmond 10 MaIdGns AtVenuie' ~
II road Blue Ridge Canal aod that hen oY I.