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

Deduct amount in agents
hands, &c, being balance
on the LIST October, 1889,
but not all available, e

Utuutt dulOuut III aH'utH
hands &c, being balance
on the LIST October, 1889,
but not all available, 2O,2S6 %
-s5, 9S9S95 IS
II was never supposed that capital of i've millions OF
dollars would be sufficient to complete either of the three
plans of improvement from which the Company was au-
thorzcd to elect for the purpose of connecting the tide
water of James river with the naygabe waters OF the
Ohio-and accordingly the wentyeighth section OF the
charter provided that If the capital Of five millions of
dollars shall be found insufficient to complete the works
required Of the Company they shall be at liberty 10 en-
irys their capita! to any amount wfich may be to'tnd
ne-es,arg 10 tlt epd The Commonwealth shall be at
liberty to take twOlths OF the additional capital any
portion thereof and the other Stockholders TO take the
residue
The company was organized in the month Of May,
1888 The work OF construction commenced in the
month of January $50. A. the work progressed, the
whole line to Lynchburg being under contract It became
evident after the lapse OF two or three ycass that an IN
crease of capital would be required for It's continuous
prosecution Application therefore made ia behalf
of the company the session OF lsaA-"J, praying the
legislature TO subscribe on the part Of the State three
fhs OF the sum OF six millions Of dollars proposed TO
bee added the company capital stock, and 20 gave ac-
horiy TO the company subscribe It's own plr the
other two Ghs Of this additional capal, and TO borrow
the amount Of the subscription upon the credit OF the
corporate funds with the condition annexed that as soon
as tL, selling price o the stock should haye,reachod is
sell number Of shares equivalent to the number sub
cfbcd and 10 apply the proceeds OF the sale TO the re-
endorsement Of the loan
The conviction of the stockholders he interest of the
Commonwealth being represented by Chapman johnson,
ESQ and the intert-- OF the Banks of Virginia and Of
CORPORATION of Lyuchhurg by Dr. John Brockeubrough
seems 10 have been very decided that this lcau If
TONED bv the Legislature could be negotiated ia Europe
at an interest not exceeding five per cent and that the
plan would be successful and highly advantageous in
other respects
The Legislature not cOucurrng in these views or not
approving the PLAN passed tue Act OF the 2Sd March,
1899, by which the company authorized to borrow
on the credit of the corporate fluid the Of mil
lion five hundred thousand dollars provided tue loan
could be negotiated interest not exceeding six per
ceutum per aauum, payable az some place either IN the
United States in Europe the faith OF the State being
pledged as guarantee for the puncual payment OF the
interest aud the redemption OF tho principal according
10 the terms Of the loan. The President in laying this
ac before the Stockholders expressed his sincere rgret
AZ the future OF the proposition submitted by the compa
nv because as he stated it introducing the policy
of rating exclusively borrowed funds earlier
period than was desirable by the company. Neyerthe
less in view as well Of the evils which its rejection wouli
produce as of the benefits which It's adoption would
fer he recommended the Stockholders TO give their
sanction to IT, and IL accordingly accepted ard adop
ted as an amendment of their charter No mortgage or
other specific lien required OF the company to secure
the loan thus authorized.
About a year thereafter, gentleman Of South Carroll
ma OF well known abilities and of high character being
about 10 proceed Europe to negotiate loan for the
Repubc of Texas the Company entrusted te him under
suitable instructions amount OF five per cent sterling
bonds equivalent 20 Sj5O0OO. This gentleman visited
various cities in Europe earnestly endcaYOring TO effect
a sale of the bonds he pledged part OF them with
house in London for small advance which was duly re-
United and finally effected a credit with house in Am
staulam on an hypOthecaton Of the remainder OF the
bonds but applied the money chiefly TO the uses Of the
Texan government under the expectation as he ever
afterwards declared that the mis- appropriation would be
of very short duration and that would be rectfed
from the proceeds Of the Texan negotiations.
immediately upon the receipt OF these embarrassing
tidmgs in Richmond they were communicated by the
President and Directors to the General Assembly then
in session accompanied by memorial praying such re-
lief as would preserve and maintain the credit of tue
company aud of the State member OF the company
and the eudorser Of its bonds The memorial together
with all the important documents and correspondence
relating 20 the case was referred to the committee Of
roads and Internal navigation and the committee, alter
full careful and deliberate investigation by an almost
unanimous vote reported bill in conformity to the
PRAYER of the company.
The two houses of Assembly did not approve this BILL
and the 25h OF March, 1872 passed an act author-
zug "a loan the company Of S25OooJ, OF registered
State stock for the purpose chiefly OF redeeming the
guaranteed bonds which had been hypOthecated in Lon
don aud Amsterdam. This act among other things, re-
Quircd:
Frgsr-That the Company should execute to the Board
OF Public Works, mortgage or other specific lien on all
their property real aud personal and upon tue net In
come of all their tolls and receipts.
/. To secure the payment OF the annuity to the old
James River Company
. To secure the State from loss by reason of her re-
sponsbijy for the guaranteed loan under the act Of
March, 1889
5. To secure the payment semiannualy of the inter
est and repayment of the principal of the certificates
then authorized to be issued
SECoSn-That whom redeemed, tho Company should
return TO the Treasurer Of the Commonwealth one hun
dred thousand dollars of the guaranteed bonds to be by
him cancelled.
THED.-That the Company, until authorized by the
Legislature, should into contract en-
gagement for work be done the line of its improve
men;.
FOURrH.-That the certificates of stock then auhOri-
zed to be issued should not be any time disposed of
less than their par value without the Of the
Board OF Public Works; that the company should be pro-
hbited from making any Issues reissues OF script
Or pOstuOeS and that Instead OF one proxy TO repre-
the stock OF the Commonwealth in the annual or
other meetings of the Stockholders, there should be
three proxies who instructed to prepare and vote
for reduction of at least per cent. in the salaries
and compensation of all the officers of the company,
cept those whose salary did not exceed $500.
This followed by act, passed March 24th lS4S,
entitled act authorizing the company to Increase their
Is in these words:
60. Be Il further enacted That if the said Company
shall make default in the payment OF any money al
vauced or hereafter advanced for the payment of the
interest the guaranteed debt Gr the company by the
Commonwealth any instament OF the annuity the old
James River Company nov in arrear, or which may
hereafter become in arrear when payment thereof shall
be required by the General Assembly, the Board of
Public Works il shall be lawful for the Board of Public
Works TO recover the sum or sums OF money so due,
with lawful interest thereon by motion in the of
the Commonwealth, ten days notice in any court hay
ing jurisdiction of motions in behalf Of the Common
wealth against public delaulters. And TO enforce the
execution any judgement recovered such motion the
in which such Judgment shalhave been recovered
may on application of the Commonwealth, direct writ
of sequesraon to issue against tue goods chaes, lands
aud of the said company the execution Of which
writ shall be under the control Of the Court On the
levy o. the said writ the of the said Company
thus scquesraed shall be applied first to support and
preserve the works of the Company second to the pay
Of the interest Oh the guaranteed debt Of the Com
pany n-aments of the annuity to the old James River
COmDAuy which ha in durnO The DeudeucV