The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-04-01

JAMES RIVER AND kANAwHA CANAL
OBSERVATION-DISCLOSURES MEETING.-ln pur-
>uance of adjournment from Thursday
evening, the stockholders of the James
River and Kanawha Canal Company met
A, the office of the Liverpool, London and
Globe Insurance Company, General Joseph
K. Anderson presiding. The meeting
being called to order, Major Isaac ii. Car
riugton read the report of the committee
appointed at the previous meeting toinves-
ijgate the conduct and administration of
the Board of Directors removed by the
Board OF Public Works.
The Committees Report.
The following is the report of the CON-
mittee
At a meeting of the special committee
of five appointed by the general meeting
of stockholders of the James River and
hanawha Company held at the Office of the
company on Friday, March 29, 1867, DIR. A.
Graham requested 10 be excused from act
ing rs chairman of the committee, and
thereupon 4. X. Holiday was appointed
by the committee as its chairman.
DR.. A. Graham thereupon stated to the
committee that for reasons which he con-
Sidered controlling he would decline to
vote on the questions submitted TO the COM
mittee.
The committee then proceeded to make
the investigation, and on Saturday, March
80, 1867, made and completed the following
report:
On motion of F. B. Dcanc, Jr.,
ReS0lrsi, That i committee Of five, of
which the State proxies shall be members,
be appointed, with instructions to make a
thorough investigation into the admins
tration of the late Board of Directors of
the James River and Kanawha Company of
the affairs Of said company, and make re-
port thereof to this meeting.
The committee 10 whom the resolution
which is copied above was referred make
the following report:
The Board OF Directors referred to in
the resolution consisted Of the following
memberS-the dates affixed to each name
indicates the time of original appointment
as Director:
Thomas II. Ellis, president; John T..
Anderson, director, October, 1860; W. H..
Perkins, October, 1862 Alfred Leyburn,
August, 1865; I. 3. Deane, Jr., October,
1865; IL. c. Cabcll, October, 1866; Robert
A. Lancaster, November, 1866.
The committee has been in doubt as to
tion. Bv its terms it directs inquiry into
the transactions of the late Board Of Di-
rectors. 4 strict construction of the words
would restrict the inquiry to the period
elapsirr since October, 1866, for at that
date this Board commenced its existence,
taking the place of the old Board, which
then went out of office. Messrs. John I.
Anderson and +. b. Deane, Jr., appeared
before the committee, and strenuously
urged that the inquiry should be extended
10 all connection of any director of this
Board with the company. They contended
that the object Of the mover of the resolu-
tion was to court an investigation, which
would show whether there was, in the con-
duet of the Board or of its members, any
thing warranting the censure implied by
the removal of four Of its members from
office. and that this object was avowed be-
fore the passage of the resolution. They
insisted that this object would not be at
tanned without an investigation of the Off
cial conduct OF each member from the
commencement of his connection with the
company, and requested such investiga-
tiOn.
Colonel Thomas III. Ellis also appeared
before the committee and signified his will
lingness for like investigation in his case.
Under these circumstances the committee
determined to give to the investigation the
scope which was thus requested.
The first cause of complaint against Co
lionel Thomas II. Ellis, in his official posi-
tion as president Of the company, Is set
forth in the following extract from the
minutes of the Board Of Directors OF the
10th September, 1861:
Alta meeting of the President and Di-
rectors of the James River and Kanawha
Company held September 20, 1861,
william 2. Munford, secretary of the
comnany. made a communication in wri-
ting which was read and ordered to be
filed. The said communication being read
in the presence Of the president of the
company, he made a reply TO it in writing,
which was also read and ordered to be
filed. The Board then requested the pre-
sident TO procure the attendance OF as
many of the persons referred to in the
communication Of tine secretary as may be
in town before the Board; and MeSsrs.
Joseph Ii. Shultz, Robert b. Snead, and
John Currie, Jr., being all the persons re-
ferred TO in town, were introduced and eX-
amined by the Board, and they severally
and fully sustained the statement of the
president as far as it related TO transac-
tions with them. Whereupon
ResolUed, atnarimoLSly That while the
Board deeply regrets that the President
should have INDUCED in the practice of
borrowing money from the employees of the
company, il finds nothing in his conduct
tending TO impeach his integrity in any
magner, or TO show that he has ever used
for nfA private purposes the funds Of the
conffS&ay by loan from its employees or
otherwise. The Board, however, earnestly
recommends to the president not TO en-
cage in the future in private pecuniary
transactions with the employees OF the COM
pany, or any OF them.
ReSolUed, unanimously, That the conduct
of the secretary meets with the inii ap-
probation of the Board, and only tends to
increase its confidence in him.
The communication from the secretary
of the company which is referred TO IN TINS
extract was destroyed by fire In Aprii,
1865. The answer Of Colonel Ellis, which
is also referred to, was also destroyed, put
the rough draft Of said answer was read 10
the committee by Colonel Ellis. III ap-
pears that the matter Of the complaint was
that Colonel Ellis had, on his indivi-
dual account, and not in his official capa-
city, pecuniary transactions, in some cases
10 large amounts, with the employees ana
contractors of the company. The trans
actions consisted generally Of loans to Col
onel Ellis. Such transactions, had with
persons who were under the official con-
troll of the president, or with persons
S.hnoa ir,araets ,Ua ra .nh;ant IN his influ-