Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1856-02-14
REPORT OF THE COMMITTEE OF rlnAncr
Reiars 10 the R,nWss, Liabiis, ElPsases. Sc, Of
Commemorate


ln regard 10 our prcsent liabilities, large class,
have consists of subscriptions authorized 10 internal
improvement companies, OF whose Organization no inor-
nation las been received These are all under our con.
troll for Of course there no obligation to compa.
NY which dos exist. The aggregate stated in the
'ccoai auditors report /, ssSs55l0. Of this Sss 900
subscriptions complnies which have not orsani-
zcd within the Time limited by their charters We there.
lore consider this cancelled The OF Sl90.
npn for subscriptions "a companies whose charters allow
limited time Tor orgiuzaon which has Vet expired.
Companies whose charters contin sich limit of time
may yet organize aud call the further amount OF SSl3
Ohn. Another OF $500 900 il subscription "a an
authorized increase OF the capital stock OF the Virginia
and Tennessee railroad to branch down New
river But the act oil March 18th 1888 requires this
branch De- commenced within three YEAR. is almost
certain that lew weeks will cancel the liability Finally
the remainder o this class consists of like subscription
5000 tn an authorized Increase of the capital stock
ol the company construct the Cumberland gap
branch, which is required to begin before March Sd
lsaS.
IL results that the aggregate of these liabilities will by
the 18th OF March be reduced 10 SliO37IO Your
mtce recommends that company which is organ.
lied Within certain period and has commenced opera.
lions within gwen time thereafter shall be- entitled
subscription from the State bv virtue Gifts ncorpora-
ton unless different time for organization commence.
mcuj> fixed 10y that Such Law would probably reduce
these liabilities nearly the whole amount ct the $3.50
10 which 1t would apply For all these charters arc at
least two years old aud the chances that If the work
were worth Undertaking at ALL company would have
been organized before At all events hardship
could result from the limit proposed and it woui
licvc the credit from this nominal liability. lorr
committee also recommends the passage of general law
requiring all companies hereafter ucoipoatcd 10, internal
Improvements. TO organize and commence construction
within fixed timc the charters otherwise be void
The class o liabilities consists OF balances OF appro.
priaous and subscriptions TO internal improvement
pauies already organized, aud am account Of state works
IL has been that this class 81 1851
of which the second auditor estimates that - 0VOuO will
be required for this year. and 81 100000 the
siderable part OF the first sum has actually becu called
for since The first OF July last. Immediately after the
failure of Selien Wthers Co. the Board OF public wo IL
found itself without funds Bonds could he sold
par and there means to meet the estimates due
contractors and officers works the acquisitions
ut Joint stock companies for the proportion of the states
subscription due in consequence of the payment of ind
vdual subscriptions. The board first certified these
various drafts of officers contractors and companies 20 the
second auditor for payment, who endorse them
der the treasury to he paid when in funds. In this
FORM considerable into the market va
rou OF depreciation In order TO give them greater
currency the board. Nv order dated February 9Th
1889 allowed interest all these drafts an those sub
'equcutly issued endorsed payable with interest
when M FUNDS The whole amount issued before the
st of July 81 30, 5S3 81 All OF these paid OF
by that date with funds which the board succeeded in ra,
ing i'm a wav. presently n be- noticed.
Since the 1T of July, aud before the lst Of January
traits o the amount of SS39.627 81 Issued OF
these SIS SI have been paid oil leaving S2l9.u77 10
uc of state works aud SjSl. 5ia for joint
stock companies At their January meeting. the board
allowed Sta..5, % IN drafts FOR state works and SIlS
3Yg gS u drafts tor JOINT stock companies. On the for
inrr they tnurd allow interest the latter by
ORDER thcv refused interest.
In reviewing these transactions your committee J.
forced the conclusion that the board has acted with
authority oi law aud in regard 20 joint stock cnmpA-
les, in express violation OF positive law Nothing
be palmer than the 3nd section of the 6Sth chapter
the Code which declares that interest shall not bc charge
able in consequence OF suspension OF the payment OF
uy iu>talmeut Of the states subscription. This law h,s
stood on the statute book for - wears, and every compa
incorporated within that time, has had iu notice
the fact Yet the board undertook TO charge the
with interest. which she had declared she would he
liable for. Its proper say that the responsibility tor
hi with ;h board constituted before the last
July In reference 90 the drafts account OF state works
the case &, doubtul The law just quoted apple.
only 'o subscriptions due to Joint q K companies aud it
fairly urged that ia the absence uf any such law
interest Justly due the contractor the principal
II hi But is it also that when these
contracts were made. the contractor knew that ic
% look 20 sale Of state bonds, mot under pa, for pay
mHut. tuI tHt bee entered into the contract subject
the hazards attending this fund from which hc to
pr pais Your committee readily agree that this ar.u-
m.ut does not affect h- equitable claim interest but
10 i equity for the legislature determine and not
' the board who bound 10 keep strictly within the
limits % it, legal authority. In fact il very doubtful
whether tr board should have i,Su. any drafts either
N without interest. Tor II j. bound know Nheth.-
thr funds tyr Internal improvements which unlcr IT,,
charge, sufficient is drafts And II they a. e.
4 .
virtually Ia pay ia state bonds which the law prohibits
The consequences the in removing al the pric
neal limitations imposed by the difficulty of borrowing at
par upon cNtrivaslnt expenditures aud they
in the effects credit For these uncertain
securities impair the value Of stock No unr knows
'eu Or how they to be paid, and like all other dcpe-
t't paper thew coniouuied with aud affect 80 the
other securities issued 10y the same party
These drafts must be Withdrawn ion the market before
ctu expect bond. TO rise par. Whatever NAV
ave been the leey attending their origin, vet they
they represent debt that woull be due whenever our
bonds could be- sold par and they in the hands
Of innocent parties. High considerations of equity aud
iulcy require their redemption and il would now work
very uncqn,l, Ia distinguish between them, AVID allow in.
t-le~t aud not other Your committee there
tore recommend that the holders 10, allowed exchange
chem at par AMI interest for per registered stock
OF the state Tncy advised that this will be
satisfactory 10 the parties Interested and will doubtless
tend materially 90 enhance the credit of the At the
same time, the Board OF public works ought be- forbid
den % issue hereafter any drafts which there
funds 10 hand sufficient pay. An exception nav be
made 300 favor Ut such existing the work.
cannot bee suspended consistently with their tpulaton-
But your committee l. Informed that not III ofese
contracts the right the board suspend al
pleasure In ul such cases, Suspension shOIi be made
until funds cau bee raised by sale Of bonds al par.
Your committee can well appreciate thc difficult pos
ton OF the board and their natural desire to sustain th,
companies, and relieve tc embarrassment they wOui suf
fer from ry iI the payment of fc states subscription
But such feelings however pri,ewurty, do not excus,
public officer from violations OF Law, and they
mce which D.. best tor the interest othc companies Fu
their highest interest j. rgise credit aud this ammo
be- done while We continue - pay IN paper ObsatonS
BASED upon taxation, but upon the hope oi selling
bonds az par uncertain future time. II il ALSO
inely essential To oil this supply of deprecated sccl
rites continually pressing the market. AMI iucricrL.
with all our financial operations 10 they be- con
tinucl they will Se "a the whole Of the bildu
PAYABLE iu state subscriptions aud appropriations
go shall have dcgcncritcd into the wrctchcl policy %
1nli'ug public works by state paper discredi,ed t
ind 100 takers. except contractors who have then
compensation in eXtravlgut prices for their work.
10 noticed before, that the board OF last year had
i. h funds Co take upal the drafts issued dungit. owl
administration 90 July 1T. This money was raised 10
part by actual sal. Of bonds to John Thompson OF Nev
| York. but in 5lri also by hypothcottous On
ui these hyppticcitipus was OF 25pUUu %
federal ri, per bond. for au advance Of an e,lua
sum. aud he other of slup,0JO Of sterling five pc
cent bond. for 100000 Here again the board tam.
rculcI be- lrs powers III. true. that when bonds nr
nle PAYABLE ei.-wierr that the treasury the sccOu,
auditor g. authorized tD deliver them before the money
pai Tor tber blt the Obvuus intention of this provision
We tD enable tr board to transmit them without the .tat
tp p, point ahrrc tlr negotiation o. b. cJ- aud
confer. authority the board 20 deliver ti,n there
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