Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1873-04-04
REMARKABLE DEVELQPMENTSN
IN VIRGINIA. RAILROAD MAN.
AGEMENT.- THE STAT TRY
ING TO HUNT UP $l,20O,00o or
HEP MONEY

HEX MONEY.
The report of the special committee Of the
House Of Delegates appointed to investigate
the facts concerning the transfer OF the stock
Of the State in the Richmond and Danville
Railroad Company to the purchasers thereof
was submitted by its Chairman, Mr.. Hill, on
Friday last, to the House. The committee
declare that the tranfer of more than $4,000
shares of stock on that occasion was unlaw
full. The Dispatch gives very lenient
but fair statement of the case, from which we
copy the following:
The act under which the transfer was made
provided for the sale and transfer of $4,000
shares of railroad stock at their par value OF
500 per share for ST 100000 in State bonds
at par; but the purchasers claim to have
come into possession Of "a 900 shares OF rail
road stock, and are represented in meetings
of the company to that amount On the
18th of December, 1866, the Richmond and
Danville Railroad Company, in annual meet
ing, declared dividend in stock to twice
the amount Of the aggregate then held by
stockholders but this act was not certified to
the State, and there was no official lntorma
ton in ITS archives showing that this dlvl-
dend had been declared. The law providing
for the sale of her shares in the company on
ly contemplated the sale of her original num-
Der of shares, emitting altogether the add
tional shares to which she was entitled as a
tockholder by this declared dividend. And
now the sale and transfer of this additional
stock, under the law. is declared void. he
committee recommend legal steps for the re-
r. 1o, ct,o To- Two,
the purchasers of her stock $lOl, 5Sl of inter-
est improperly withheld from her in the
transfer. The committee is most egregiously
mistaken, or a very grave lrregularty has
been committed. The facts should be thor
oughly sifted before competent tribunal.
The dividend of stock declared by the
Danville Railroad Company in 66 was the
first essay at watering railroad stock that
was was ever, we believe, made in Virginia. The
ground on which it was done was that the
road was built largely ON borrowed capital
and the stock subscribed represented only a
part OF its real capital. 1t was assumed that
it was but just that the number Of shares Of
stock should be made to approximate more
nearly the capital invested in the work, But
still the precedent was not good, and the ad
vantage to the stockholders, if any, must
have been exceedingly trivial The intrinsic
value of the shares fell to even less than
one-half of their previous value in the mar
ket. Indeed, it may be a defence of the
transfer that the $4,000 shares were intrinsi-
cally worth no more than the, 10000. But
the fact of the existence OF the additional
$4,000 was not made known-was not incor-
porated in the bill. The whole might and
probably would, have been sold for the ST.,
100000 But this was not done, and the
omission was unfortunate,
But the principal point in the transaction
is that the Danville Railroad Company is the
nominal purchaser Of the State stock in the
road, and that that company failed to inform
che State that it was entitled to double the
amount of its original shares Of stock Nor
was information conveyed to the Legislature
when the bill authorizing the sale OF theState's
shares was pending. This was at least a
most unfortunate delinquency on the part Of
the company 1t not only subjects the COM
pany to suspicion of endeavoring for an ad-
vantage to hide from the State the knowl
edge Of it's title to double the number of
shares which were to be sold under the bill,
but embarrases it now with the claim Of the
State to the additional 10000 shares which
the committee assert she is entitled to. and
upon which they urge the State to appoint
proxies and directors " the company. The
transaction has been, therefore, badly man
aged. There are loose ends to it, and open
ings for damaging suspicion and charges,
which, nevertheless, we hope may be salts
tactorily cleared up.
Of the reception of the report the 'sWhig'
says;
As soon as the House met the printed re-
port and evidence were placed on the desks Of
members. The clerk had scarcely commenced
reading it before it was apparent that the at
tention Of the whole House was fixed. 1t
created greater sensation than anything
that has been done during the session. AS
the reading progressed, each member fol-
lowingit up with printed copy before him,
there were manifestations Of interest in it
rarely exhibited in legislative body. The
impression made was a profound one
amounting to an almost universal conviction
that case had been conclusively made out
against the Danyille company, which required
prompt and vigorous action on the part of
the Legislature. The speech of the chair
man Of the committee Mr. Hilll in explana-
ton Of the report clinched the nail.
FEARFUL DISASTER AT SEA-50O
PERSONS DROWNED.
The Steamship A lantc, from Liverpool,
With 900 stserage and SO cabin passengers,
for Boston, went ashore Tuesday, % miles
west Of Halifax, N. S J., and 500 persons
were drowned Not a woman or child was
saved. The ship was only 40 yards from
the rocks and 100 from the shore. The
following is tbs statement of Capt Viii.
liams:
1.-THE third officer, Mr.. Brady, aud Quar-
termaster Owens, by this time, having er.
tatlished communication with the outlying
rocks about forty yards distant, by means
of line, got four other lines to the rocks
Over one Of these about 200 people passed.
Between the rocks and the shore was pas.
sage 100 yards wide A rope was success
flu ly passed across this, by which about ff-
ty got to land, though many were drowned
in the attempt.
At 5 A. M. the Fl s. boat appeared from
the island, but she was too small to be If
any assistance Through the e1ertion OF
Mr.. Brady the Islanders were aroused, and
by 6 A M. three larger boats came to our
assistance By their efforts, all that re.
manned OIL the side OF the ship and on the.rock
we're landed in safety aod cared for by
poor fisherman named CLANCY and his
daughter. During tn, day the survivors
to the number of four hundred and twenty.
nine, we're drafted off to various houses.
The chief oficerS having gotten into the
mizzen rigging. the ca cut off his retreat
He stood tor six hours by a woman who
lad been placed in the rigging The sea
was too high to attenot his rescue. A
P. NJ a clergyman, Rev Mr.. Ancient,
succeeded in getting in, line and getting