Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1860-02-06

hundred and forty.two
This act before the Company could have the benefit
oil the increased tolls therein granted required
DC accepted ana was accepted by them amendment
OF their charter And the same enactment was substan-
uay repeated In the second section Of act passed
February 2lst, lS45
-FOUR petitioners need scarcely add that since the date
oil these proceedings everything like public credit the
part oil the Company has been destroyed. The policy
hrs herein referred to- of prosecuting the improvement
on borrowed capital having been determined upon in
the manner stated and reluctantly adopted by the Stock
holders, there remained but one from which it
was possible 10 borrowyour own honorable body. The
consequence has been that the officers of the Company
IN thelr representative character have been obliged Of
ten with modification 10 themselves mportune the Lee
gislature with applications which they would gladly have
avoided; and an Improvement pronounced by the late
distinguished Chief Magistrate ofthe State in his late vale
dicory message to you the most important line Of the
State, has dragged heavily of profit to but
few, OF satisfaction to none" without funds, without
credit bound by mortgage and resting its whole weight
upon the arm of the State" Yet your petitioners
persuaded, and they humbly submit that while there is
no other undertaking which for long period has fill
ed the mind of Virginia with hope there is which
to-day, upon every constellation of policy, justice and
PATRIOTISM better deserves the fostering care and sup
port of the Legislature.
A crisis has arrived in the affairs of the Company
which renders the distinct declaration unavoidable that
some relief must be afforded or the improvement must
fall into such decay and ruin will speedily render
it unfit for use.
office at the close Of the fiscal year 1853 rather about
the LIST of November 1858. On the Slst of October,
1883 there was of disbursements receipts
on account of the improvements then in operation,
amounting TO Si25,464 ~. This sum debt char
geable upon the Of the Company-that is saw
it having been taken from funds appropriated by the Leg
isaure for the construction of work of Buchanan
aud applied to construction of work east of Buchan
an, and to the payment of interest due the State and
upon the bonds Of the Company guaranteed by the State
and the annuity to the old James River Company the
company was under obligation TO refund the same out OF
its receipts whenever able do So and in fact
has refunded Sl42 27O 30 part thereof the
the Soth September, 1859, being only s2SS,l94 50.
The practice of dvertng funds from one head of APP
preparation to another it well known has been disap
proved by the Legislature is losger pursued by the
Company and is mentioned only as the starting
point in OF events which have led the existing
state of affairs. For the views which influenced the d.
rectory that time reference is respectfully made to
communication addressed by the then President of the
Company to the chairman Of select committee Of
the House of Delegates, dated 18th January 1858 pub
Shed with the House documents, session S52-5S See
also 18th annual report page Cpl.
Ia justice to all parties and for the Information of
those not familiar with the history of the company the
following extract from the report Of the select commit
tee just referred to, and to which the communication of
Jhu5t MdSOu was auuftSsel, i HcTt gwen
The acts Of the Legislature oaning funds to the
pany guaranteeing IFS bonds, have specified the por
tons Of the works be constructed the objects of
penditure 1t appears that converting the bonds into
money the proceeds have been deposited in bank to the
credit of the company and checked out without refer
cnce to the specific object for which they were intended
by the Company and appropriated by the law and the
application made on the books of the Company.
The reports OF the Company annually communicated
to the Legislature show that this power has been exert
ed in every wear since lS5gthe for it stated
with ankness and argued with much ability in the writ
ten communication of the President already referred TO
"A brief synopsis of which may be proper in justice to
the Company lie contends that the acts authorizing
tho loans OF State bonds the guarantee OF the COmpa-
uy's bonds which necessarily converted into money
did not constitute trust which would protect the pro-
coedS from the claims of creditors of the Company no,
founded on the specific work for which the loan WAS
madethat tie Company bound by law to deposit
It's funds in the Bank OF Virginia, creditors proceed
ing attaching the funds OF the Company in the hands OF
the bank could be resisted that the facts relating to
each instance Of borrowing rom one fund TO another
made known, and were never objected to by the
Legislature by either OF lis joint committees OF inye,-
tglOu or by the stockholders that the present officers
OF the company had right to presume that this
Of management had the approval of the legislature that
the Deficiencies OF means for any given work to which
loans were made unforeseen and the funds trans
rrred b5aa fs applied to complete the line of the com
plnys Improvement continually which the declared
policy OF the company affirmed by the Legislature; that
by applying funds intended for the third division com
pee the second division the canal they acted in strict
conformity with this policy that it was judcous and
promoye of the best interests OF both the company and
the State because at the time the largest transfers
made nearly millions OF dollars had been expended
the second division, without completing to be
used aud Tor this sum The company bound TO pay
interest and the State bound its surety and final
IT, that the application for means for the third division
predcIed the advantages OF going with that
work in continuation OF the second division when
p,eed aud il this completed, besides the ruin
GUS loss on account of interest without receiving any
revenue, the small section Of the third division which the
appropriation adequate to construct utterly
useless aud that in the course TAKEN the President and
directors carried out the main and controlling intent OF
the Legislature"
The sum Of $l25 AGA u before mentioned does not
however fairly represent the entire arrearage the 3ls
October 1888 since there had accrued four months in
tcrest which subsequently paid nearly the entire
debt Of the company, funded aud floating amounting
that day to a, jG7 ,522 y,
The successive annual reports of the company having
been regularly laid before the Legislature containing
they do full Disclosure and account, which has
been given in good faith of the state condition and pro-
grcss of the cOmpanys works aud OF their financial
Germs it would seem unnecessary here to ecapuate the
reasons causes and necessities Of each particular em
constituting the aggregate burden of floating debt which
at this time il seriously felt embarrassment in
every department OF the comPanys affairs
Nevertheless to bring the subject Gle sry may be
your view statement is herewith submitted, no ~
OF the entire receipts and disbursements OF the company
for the period of six wears from the st of Oct 1858
the Goth Of Sept, 1859
This statement shows, that for the construction Of
works the third division, including tue balance
hand applicable to that fund the lst October 1853 the
company has received during the period mentioned the
sum OF s393,2C1 IA
And has expended on that account, the
sum of 1926 az
Excess of disbursements over receipts on
account of the third division SlO3,9S9 ca
For the construction Of the ,idcTatcr con-
nection, including the balance o. hand appli-
cable to that fund on the LIST Oct, 1883 it
has received the sum of slS7,27o %
And has expended on that account tho
sum of $50 AZ
Excess Of disbursements over receipts on
account Of the tidewater connection 1887 IA
For the payment of interest it has receiv-
ed by appropriation from tho State the sum
of S4722O6 80
And has expended on that acccrnt the
sun of l,O522T 10
account of interest S5so,O7l As
The State having herself received the of Sl5O67
2S interest paid; the amount appropriated by her. dur
ing the period OF six years for the ayment OF interest on
the guaranteed bonds, has been S32l, 533 o.
From dockage, tolls, rents, penalties and
fees it has received the sum OF {l,65l,2l 0S
From insurance 10000 90
From debts collected 4,24S 64
Making on account of revenue the aggrc-
gate of 81, G65 4s9 u
And has expended on that account the
sum of 1896 1859 Is
Resulting in a net income of SOY o.