The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-03-09


,ffairs, and experience teaches that when
it goes beyond that, and enters the domain
IF private business, misfortune and disaster
usually follow. But do not at this time
intend to argue these questions atlength. Ny
'bject is simply estate some Of my objec-
ons to the internal Improvement policy
which has heretofore prevailed in the State,
md, if possible, find some mode of mitiga-
ing the evils resulting therefrom. These
objections are not urged in spirit of cen
sure, or of unfriendly and disrespectful
criticism of our past legislation for it is
possible that in the light of that period |
might have concurred in this same policy
which now believe to be erroneous. In the
language of one of Virginia's greatest SONS,
y have but one lamp by which my feet
,re guided, and that ia the lamp of expe-
ricnce." Ii experience has taught that our
system is wrong, it is our duty to right it
but in doing this great care must be used,
lest the remedy prove to be worse than the
evil. The system has become so intimately
interviewer with our State affairs, so rami-
fed through every vein and artery of the
body polite, that any attempt at this time to
suddenly change it would result inevitably
in very great disaster, both to the State
and to the companies. The change, if any
is now possible, should be brought about
sradully, ana in such manner az to fully
protect the interests of the State, of the
private stockholders, and OF the public.
Can it not be inaugurated and eventually
accompl shed by permitting each company
70 redeem the interest of the State therein
within reasonable time hereafter, at its
option, by surrcndering to the State, to be
cancelled, the bonds Of the State 10 an
amount equal to such interest. If this
permission be given, is it not more than
probable that nearly or quite all the stocks
above enumerated rs rapidly increasing in
value, and amounting to 9l0,O4S, 267.9l,
will, within the next few years, be re-
deemed ana the State debt reduced that
amount, and the people proportionally re-
lieved from taxation and the com
nanies themselves be managed, owned,
and controlled by our own people! The
State is already committed to this policy IN
the case of the Chesapeake and Ohio Rail
road Company, above referred to, and
again byan act passed April Is, 1867, autho-
rizing the formation of the Atlantic, Mis-
sissippia and Ohio Railroad Company, by the
consolidation of the Norfolk and Peters
burg, Southside, Virginia and Tennessee,
and Virginia and Kentucky Railroad Com
panics. BY the last act the company was
Compelled to purchase the stock held by the
State in the four companies named before
purchasing the bonds held by the State as
security for loans, while no such wise pro-
vision was incorporated in the charter OF
the Chesapeak and Ohio Railroad Company
As the law now stands, the Chesapeake and
Ohio Company may any day redeem, or
pay of in State bonds, it's bonded in
dclteduess to the State, on which,
so long as outstanding, it is compelled to
pay annual interest to the State. and may
decline TO purchase the stock, which draws
no interest. and from which no revenue Is
derived 10 the State. Whether this wac an
oversight Oh the part Of the Legislature Of
not it was wrong, and ought not to be fol
lowed az precedent in the future. AS be.
fore stated, the first mortgage bonds OF al
the companies held by the State are amply
secured, and at the present time are OF
higkcr market value than State bonds, anC
tr0m them the State derives sure and GER
tain annual revenue, while the stocks Of
none Of them, save one, approximate to the
value Of State bonds, and from none OF
them docs the State derive any benefit what
ever The principle of the Atlantic, Miss
issip,y;, and Ohio bill is the correct
one. Lcy these companies redeem the in
tercst i'll them held by the State al the
earliest moment practicable with al equaI
amount e State bonds. but compel them, IT
such redemption, to commence with that in
tcrcst which is the lowest and close will
tia; which is the highest in value. By the
adoption Of this system we shall gradually
and without any violent changes, III Il fe"
wears accomplish two very desirable re-
sults-viz., the dissolution Of the unna
tural, unequal, and unfortunate, co-part
nerslips between the State and her clti
zens, and at the same time the reduction o
the State debt 10 the extent of these int
rests. In tie mean time, and until thes'
companies are able TO redeem the state
interest in them, that interest may be made
available in I'D of the liquidation of GU
annual liabilities bya tax either upon Their
incomes or capital stock, or by a capitatio,
or tonnage tax; but in doing thi
cripple or embarrass their action, no
impede their growth and prosperi
ty. With the redemption, purchase
or payment of these loans and stocks
aud the application to the paymcn
yi tho State debt of the other solvent asset
of the Stltc, together with the amount t
be received in the settlement with the Stat
Of West Virginia, our public debt ought
and am quite confident will be reduces
from one-third 10 one-half its prcscn
amount. And am further confident tina
this can and ought to be accomplishc
within the next four or six yeats. Gu
State debt On the lst of January, 1870, il
round numbers, amounted to SIC, 900, 600
and TO pay the annual interest upon thi
sum will require the sum of s2,7G0,OOO
From the auditors report for the tisca
year ending September 80, 1869, itpppeal
that the total receipts and expenses were u
| follows:
[The Governor here inserts lengthy re
port from the Auditor OF Public Accounts
from which it appears that the total receipt
! into the treasury from all sources from I'll
Isl Of October, 1868 to the 30th Of Septenl
Der, 1869, amounted to sl,752, 3sS.67 ; an
the total OF disbursements for the sam
period was $l,Sl9,634.S7. The messag
continues j
From these exhibits ii appears that the eS
penses exceeded the receipts by the sum
SOL, 236.2O. OF tue disbursement, howevel
aside from extraordinary expenses and III
interest paid upon the public debt, til
regular and ordinary exp enses of the &c
miDistrat;on Of the State Governme1
amounted TO the sum of 100000. Tn
sum / am satisfied is larger by $4,000
! than will be necessary in the future sue
cecding the present fiscal year for the ord
nary expenses of the Government. TIL
estimate, of course, does not include legisla
J