Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1858-02-16
, -gvrrp vp0M JAMESLYONs, ESQ

James Rirer and kdadNHa C"mP""y' ~ -'i'
p Diane, D. B. Lay,e. r. H. Mays, aud Others
~smLs,. tie General Assembly, IN relation to 70"
-crf;up he deb, Of The Company into stOck
RICHMOND, FEBRUARY o. 1888.
10 M.ssrs. +. II. Desne, d B. Layne, F. III. Mays'S.
Carpenter and o'hera.
GryrLrMEy have had tho honor to receive your |
very kind letter. requesting TO give YOU III wiring
nv yews of the bill now before the Legislature. pro-
posing convert the dabt due by the James isi'er
and Kanswha Company to the State OF Virginia. mo
e,ock of that Company and proceed TO comply with |
il az far ss the limits OF letter will permit tor III iu
possible TO treat the subject fully in this ior'n. 80
The two questions which are made upon the NIL !!
are: let. Is TIE measure expe0l nj ~ - u e""'
s.itutonal 7 III, III
Unon the frat uuestion cannot perceive with all
Difference TO those who differ from me, how there can
be any doubt.
The citizens of Virginia and some OF her roFpora-
tiops have inyt s.ed in the James River aud haha"h"
Company of principal money, two miiono OF collars
amounting now with interest to twice thot amount OF
Whereabouts. The State has invested IN IKE manner
the sum of S3OO0,OOD and has loaned TO 90 anu oecoe
hound for the Company for So SI9 9o 81 making an
eggreoate of stock and liabilities of SSS1392o o' e1'
elusive OF interest upon the STOCK - nan mn, $3.50
The whole oftbis money. and about Sooooooo more
making nearly $l6,OOOOUO, have been expended III
,h work. The construction Of the Water line which
has been completed to Buchanan. leaving a large
amount of unfinished work, viz: S6lo1OO which 10
daily decaying between that point and Craigs Creek,
and leaving untouched except by survey. thrity Two
miles. between The latter point and Covington yer 10
be commenced and completed, III order TO get the Va
nal 10 Covington. In this condition Inc WORK mas
bean brought to dead hault by want OF means 10
continue il. and without aid IN some iori from 'ne
lepislature, will never move another step. upon
th;s state of facts in order to determine the geeraI
question of the expedency of the BILL It ID necessary
to consider and resolve two other questions 10 WIZ
lat Shall the work be abandoned where II 49, or shaii
II he completed at least to the town OF Covngton =
ID If NOT abandoned, how shall il be completed l
proceed then to consider s., shall the work be aoan'
doned7 .,..
Pardon me, gentlemen, il do not discuss this ques
| ton in detail because am restrained from ooing 30
by INV respect for the PATRIOTISM the fidelity the good
sense of the people Of Virginia what! ABANDON lhis
great work now and leave it forever gaping wound
in the heart Of the Commonweanh Wasting !ne our,
rent which should give her life health and wealth and
through all time testfyDg TO her want OF providence,
of patriotism and wisdom exposing her soIs not only
IN the and dersons other wiser and more thrifty
neiehbors but to their utter scorn and contempt, Tor
tbe want of those qualities which made Sparta
and Rome great and enabled our ancestors 10 achieve
The great work Of our Independence courage fidelity
and love of country. Abandon me work after
sI5 0UU U0U of money have been expended upon and
fortyseyep miles only remain to be done, at cost OF
| s9 500 600 10 make it fruitful if not competel The
bare thought stuiee our people. and would make
their MOTTO "Perseverando, reproach and bye.word
Abandon the work that Ia TO bring the treasures OF
the ereat West into the lap of Virginia and make her
Atlantic shore the great mar: Of hose treasures bring
| ing to us the direct trade which will make Jus
nation, and that at the very moment when tue CLOUDS
lower more portentousy over the political horizon than
thay ever did and the death struggle, possibly oil the
Union ia at hand while the South is every where
looking around for the harhor in which her commerce,
like her liberty, may be safe as well as tree and when
all admit that all her energles and all her wisdom,
and all her resources Will be necessary TO preserve
her equality even if the Union be eaved7 The
thought is an insult which will not offer to Virginia,
God bless her No Virginian can think of abandon
ing such work at such time
Iassurne then that the work II MOTTO be abandoned,
and proceed to consider-2nd If not abandoned, how
ia the work 10 be completed There are but three
nodes The fret lie to forecose the mortgages OF tbs
State and thug contscate the work to her use by a
nominal purchase, and then vote money enough out
the treasury 10 complete IT, The second IT, 10 lend
the company money enough 10 enable il TO complete
the work and the third is, to pass the bill converting
the debt into stock
or the frat mode have little to say, end ahal
dismiss il briefly. do not believe there twenty
sober.iuinded, intelligent men in the State whose
sense Of justice would irt revolt at such an act OF
public pluEder, the conhscaon OF over S4,OOUOOU
of private property because the generous and patriotic
owners of il had devoted il to the of the public
without profit, or prospect Of gam to themselves
whatever it might be to their children and will be II
the entire line completed IN The hope oil adding
greatly TO the wealth, and power, and prosperity oil
the State. IL such crime is punished by Nir
gina il will not be- by an act OF aainGer which shall
fill her pockets with the cunscsted property of her
|
the second mode because there is not the smallest
probability that the Legislature will q. the present
session appropriate money eueugh to complete the
work and the present condition of the tnancee anG
taxes i, ought not to do H. If there be- any other mode
of accomplishing The work less onercus 10 the people
and am brought, therefore, To consider the third
proposition, which lie, that the capital stock o.
the company be enlarged by the number OF SO,0O'
making Ss sgh bs sse n satisfaction
lis debt and liabilities. II this be done, the Canal will
in hres years be completed to Covingon, aud The
rst decisive development OF IT'D capacity, and OF the
correctness of the antcipaons of its friends, made
for at Covngion it will be accessible Immediately Il
large and productive portion OF Virginia, ano by
portage of about 100 miles over turnpike at present
aud by Railraod trust, 1t will be accessible
10 the valley of the kaDawha, and over its waters Il
the great country West and Southwest Of the Ohio
and part Of the Northwest.
The gross OF the company Is no@ $40. OUl
per annum and ia expenses $l25 900 leaving nett
income of $3.50 600 per annuIn which, after funding
AZ it its floating debt, will pay the interest upor
the FUN OF 5OO,CO0 which will complete the
Canal to Covington, when, az is irieuda be
lieve, It's income will be so much enlarged
as to enable it to snk The debt and declare dividend
Tor its stockholders il the debt OF the State be con
verted into stock, Hnd thus the work will be so taI
completed, not only without adding dollar to the
present burhen OF the State, but, the other hand
by The operation converting that which is now profit
less stock and fixed debt, uto profitable capital
This plan, therefore. Is the only one by which ihe
|
State another dosr, and without requiring at present
the imposition of any additional tax upon the people
for the liability Of the State will -enan as il is with
out any new debt requiring new tag.
But, cay the opponents Of this plan 1t ID not jus
that the State should take stock at par when she
can purchase it in the market $40, or IS per share
or even lees. A moments consideration will show
tbst this argument, which is at first view plausible
falncy. Let il be recOccted that the State can gel
nothing for lis debt and liabilities but the property
Of the Company. ofeady conveyed for ita indemnify
The Company has nothing e:s TO pay with, and there
is therefore nothing 10 fall back Iron when that re
curiy ia exhausted II then the State ~sre to FORE
cose ita mortgage and sell the property OF ths LON
pany it must pay its whole debt and liability tor II
although not purchased nom;nally for sbiillng-and
when ii had made the purchase The property would
be unproductve To IT, uuese Il appropriated from the
Treasury S2,5OOO0U TO complete and make 1t prohta
BILE, in which event it must impose new taxes TO meet
tbs debt. This as have said no one believes 1t vii
do for the reasons already assigned. If therefore, il
went into the market and purchased up the private
stock at any price, no matter how low, would only
add thereby much 10 lts present debt, Without IN
crsssnp it's security and for that debt thus Gre
ated, II must impose new tsxee and still create
the further debt of g., 500,ODO to complete the
work and impose new taxes TO meet H. Inc
aea therefore, thet the State would make any
thing 10y purchasing up tho private STOCK d.
any price however low is failacJ, and the value OF
that stock in the market 10 therefore no standard by
which determine the propriety and expectancy OF
the convention Of the debt into stock For The
question is not simply question OF apecniatlng 1T
stock; not whether the State az mere purchaser OF
stock ahoud give pnr for it when she can purchase
il at discount of ninety per cent; but whether It
is not more udcious to convert her debt INTO STOCK
and hereoy have her great work completed, than 10
purchase the pryate stock at any price, no matter
what thereby adding Z: her expenditure without al
vsncing the work step, and still remaining under
the necessity TO abandon the work or provide from
her Treasury the means to carry it on to completion
Nor is this all. The question is really not yhethtr
the State shall purchase certain amount OF eoGk
simply, at any price, but whether che shall purchase
il with guarantee that tie work will be completed
10 CoviDgton. IL the State purchases the private
stock che gets nothing for her money, but the stock
dead and unproduciive; but il abs invests hsr debt IN
stock she gets an effective guarantee that the work