Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1870-06-14
The Consolidation Bill,


readers that this bill has passed both houses OF
the General Assembly. Ugly rumors are In
circulation in regard to the means employed to
effect its passage. For the first time In the his
tory of Virginia, charges are made OF bribery
and corruption being used to influence the votes
of members. We do not know whether these
rumors are we'll or ill-founded, but we deeply
regret that any pretext should have been af
forded by the friends of the bill, for even
whisper of suspicion. Our Legislators should
be like Caesars wife-not only void of corrup-
ton, but above suspicion.
We regard this bill, independently of the
means alleged to have been used to pass 1t, as
presenting no claims to Executive approval
We believe it will prove disastrous to every
great interest of Observation-Disclosures to Lynch
burg and Petersburg, and ruinous to Norfolk.
We believe it will prove profitable only to the
New York and Norfolk steamship line, whose
decks and holds will be the Eastern depots of
the consolidated line. We believe that the
people of Norfolk will find, when too late, that
it is measure intended to bring trade not to,
but through Norfolk We believe that all the
| merchandise transported from the West, will
be consigned to New York and not to Norfolk
and the favored steamship line, (which we
strongly suspect is owned by the hackers of con-
solidation) will receive it all, direct from the
Railroad. And so of the freight going West
ward; it will be consigned, not to the commits
| sion houses of Norfolk, but to the agent of the
consolidated line, and will be whisked away
without any profit to Norfolk. Consolidation
will make some people rich, no doubt. Who
these favored parties are, we do not know. We
would like, however, to see list of the stock
holders-not the nominal, but the real owners
of that steamship line. We could then give a
pretty shrewd guess, as to who will be made
rich at the expense of the State, and who
probably footed the bills of cost incurred in
pushing consolidation through the Legislature.
AS for consolidation, in the proper sense OF
the term, viz: the uniting the three roads un-
der one management, we have nothing to say
against it, farther than to express our distrust
and fear of all gigantic monopolies. But there
are features in the BILL which has just passed,
against which we must enter our most earnest
protest. We protest against the spoliation
which is about to be practised on the State
We protest against the States being robbed oil
six millions of dollars for the benefit of few
greedy spectators. On behalf of our impov.
erished tax payers, we object to their being
despoiled of six millions of Assets, which
Gov. Walker, in his patriotic and statesman
like message, has shown, could be made avail
able to pay off six millions of debt, and thus
relieve the people of $36O,OOO Of taxes per an
num- This would be no small matter in these
days of restitution. We know that the con-
solidationists say that the market value of the
stocks is now greatly below par. Granted. Bu
SO are the stocks of all our Railroads, and Of
our cities, and of our State, under par. Bu
it is a conclusive answer to this, to show, thai
parties are willing to trade deprecated State
bonds, for these deprecated stocks, dollar to-
dollar. That is certainly so now, in regard t.
the stocks of the Lynchburg and Tennessee X
R., and we have reason to believe it will sool
be so, in regard to the stocks Of other roads,
IF they have the capacity to extinguish GU
State debt, pro tanto, and relieve our peopl
from taxation, it matters not what their marke
value may be- their debt-payin capacity make
them equal to par for that purpose.
We also foresee great difficulties in settling
with West Virginia her share of the old debt
if we NEEDLE with and squander the assets ap
picabe to the discharge of that debt.
What answer can our commissioners make
to those of West Virginia, when the latter re
quire that we shall assume the six millions
which, without her consent, we have under
taken to give away? Will not our commission
ers be stopped from requiring West Virginia t
assume any part Of the debt incurred in sub
, scriptions or loans to these roads?
If our commissioners undertake to say, tn
stocks were worth only SIG or 500 in the mar
ket, the answer is ready-''we are not enqui
ring about market value-We are enquiring Q
the value they would have been to us, in pay
ing off the debt. If you had handed over t
US, So, 100000 of Lynchburg and Tennessee
stock, we could, with it, have paid So, 800, O0
of the debt. Now as you thought proper t
give away this stock, you must take the conse
quences, and assume all that debt. And s.
with the stocks of the other roads. No an
swer can be given to this view, because it is alb
solutely correct. The Legislature, therefore
by this consolidation bill, not only gives ava
six millions of stocks, but 1t virtually assume
sac millions of the old debt, which will have t.
be thrown out of the account, between the tw
States of Virginia and West Virginia.
But the consolidationists say they have Sc
cured four millions of the debt How secured
it? By putting it in second mortgage, be
hind q prior mortgage of fifteen millions of dol
lars. Is any body stupid enough to regart
this as any thing but delusion and snare
Would any body give cents in the dollar, TO
a debt SO secured? This is the boldest impo
sltlon that any one ever attempted to practic'
Oh the credulity Of any people. Suppose, a
any time, the company wish to get rid of tn.
States posterior mortgage, is it not plain, they
can readily do so? They have only to expose
the whole work for sale, and buy it in, for the
amount OF the first mortgage, and where would
Virginia then stand? The purchasers under
the first mortgage, would acquire perfect ii
tie, free OF all subsequent mortgages The on
ly way for the State to protect herself, would
be, to buy In the road for the amount of the
first mortgage, and thus become the proprietor.
Would any one recommend this course p
Looking at this second mortgage, in the light
OF commop sense-behind prior mortgage of
hfteen millions, we are constrained to say that
We regard If as an unmitiuatad hnmhur-o