Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1872-01-30
Staunto1t Spettator.
Tuesday, january %, 1872.
A Wheel within a Wheel.

weeks, In the Richmond papers,
1.-The Board of Public Works hereby give
notice that on MONDAY, the 5th day Of Feb
ruary, 1872, at IL clock NJ, at the stock auc-
tion rooms of Messrs. Davenport & Co., over
the First National Bank, in the city of Rich
mond, the following stocks In, and claims
against, the various internal Improvement COM
panies in the Commonwealth, held by the State
of Virginia, will be offered for sale to the high
est bidder, payable on delivery in State bonds
at par, in conformity with, and subject to, the
provisions of the said act of Assembly, viz:
RAILROAD COMPANIES.
1852 shares of common stock in the Rich
mond, Fredericksburg and Potomac Railroad
Company.
20,l40 shares of common stock in the Ches-
apeake and Ohio Railroad Company.
4,9l0 shares of common stock In the Rich
m0nd aud York River Railroad Company.
One bond for $4,000,000, executed by the
Atlantic, Mississippi and Ohio Railroad Com
papy, and secured by second mortgage on said
railroad.
A balance due by the Richmond and Dan
vile Railroad Company, amounting to about
$427,000 on account of loan to said compaa-
ny and secured by mortgage on said railroad.
Three bonds Of the Alexandria, Loudoun,
and Hampshire Railroad Company, for &c.,
854 each, payable respectively in 1872, 1874,
and 1877, and secured by deed of trust on said
railroad.
CANAL COMPANIES.
$4,000 shares of preferred stock in the James
River and KanaWha Canal Company, and S0,-
600 shares Of common stock in the same.
-shares of common stock par value $751;
I1lll) in the Chesapeake and Ohio Canal
Company
- shares of common stock par value $l3,-
65O) ia the Kempsville Canal Company.
- shares Of common stock (par value
$269, 1873. I4) in the Rivanna Navigation Com
pany.
- shares Of common stock (par value $780,
OOO) in the Roanoke Navigation Company.
- shares of common stock (par value $685.
500 in the upper Appomattox Navigation
Company"
1t has been strongly intimated that there is
some connection between this advertisement
and the recent action Of the Legislature, on
financial matters Indeed some persons sup
pose that the relation of cause and effect ex-
lists between them. Whether this be true or
not, we are unable to say.
But we can very well understand, that in
view of the proposed sale Of stocks, and evil
dences of debt, persons disposed to speculate
in them, might be tempted to form Rings"
and combinations, for the purpose Of depres-
sing the market value Of State bonds.
1t will be observed that many millions of dol
lars worth Of stocks and evidences of debt
tcounting them at par-value) are to be offered
for sale, and those who buy them are to be al
lowed to pay for them in State Bonds, at par.
Parties who wished to purchase, would,
therefore, have very strong motive, in adj
vance of the day of sale, to run down the value
OF State bonds, to the lowest point, So that
they might be enabled to buy them for nom
inal price. and use them, at their par value, in
paying for such stocks or evidences Of debt, as
they might purchase at the sale.
When the Legislature met, we believe Viz
ginia coupon bonds we're selling at over sixty
cents on the dollar, and registered bonds al
over Fifty cents. Since the recent action of the
Legislature, in regard to the finances, these
bonds have declined in price, probably twenty
per cent.
It is plain, therefore, that whatever may have
been the purpose of the Legislature, the ten
dency of their action has been to depress the
market value Of State bonds, and thereby tC
promote the interests of spectators, at the ex-
pense Of State credit.
It is quite natural that the several Railroad
and Canal Companies should desire to buy up
The stock which the State owns in, or the evi-
dences Of debt, which she holds against them,
respectively, for the smallest possible price,
It is quite natural that the Chesapeake d
Ohio Railroad should desire to buy. at heavy
discount, the tsoo millions Of stock which thf
Stale still owns in that Company.
1t is equally natural that the Atlantic Miss
issippi & Ohio r. r. Co. should feel anxiou!
to buy up, at very low figure, the bond fol
four millions of dollars, which the State holds
on that Company.
Nor would it surprise anybody if it should
tnrn cut that the Pennsylvania Central Rail
road 90, or Baltimore & Ohio Railroad Co.
would ike to be the owner lat less than fifty
cents in the dollar) Of the States interest il
the Richmond & Fredericksburg r. R., anc
also in the Danville Road, and the York Rivel
R. B., and possibly in the Loudoun & Hamp
shire e. Z.
Other parties might feel a similar desire tt
acquire, On similar terms, interests In Other
improve me1ts.
It would, therefore, obviously be to the in
terest of all these wealthy and powerful corpo
raticne, or their agents, to combine in depre
ciating State bonds as much as possible, so tina
they might buy them, at from thirty to fff,
cents in the dollar, and use them, dollar 70
dollar, in paying for such stocks, or mortgag
debts, as they might purchase.
Seeing the advantages of such bargain
the next move On the part of these cor
porations, or those acting in their inter
ests, would be to bring about the required
depreciation in State bonds. They woult
be shrewd enough to know that if they wen
into the market, under ordinary circumstances
to buy SO large an amount Of State bonds a
would be required to make the proposed pur
cbases, the demand thereby created would
greatly enhance their price Some expedien
then became necessary, not only to counterac
this tendency, but to create a decided fall II
their market value The readieSt mode Of ef
fecting this object, would evidently be, to IN
spire d,strust, or induce such panic among
bond- holders as would lead them to rush them
on the market, and sell them for what they
would bringl
Through the agency of the Legislature this