The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-02-06

quircd controlling interest in the Whining
ton and Weldon railroad The terms of that
law would certainly authorize the Sea
board road to buy Blr. Raghnd's road,
But the act Of Assembly declares that
no company shall hold another company>S
stock unless il be expressly permitted; and
while the Seaboard road could buy the Pc
tersburg road. the Petersburg road would
have no authority to buy the Fredericksburg
road and without further legislation It is
impossible for the Petersburg road TO acquire
any such interest in any Of these roads as IS
necessary for them to carry out what they.
believe 10 be fhe true commercial policy.
Another rolnt is that these roads are crea-
ted for specific purposes. and they cannot
consolidate without all sorts Of annoyances !;
therefore the company desires such legisla-.
ton as will leave every company perfectly
free, with the same powers to buy STOCK
from each other.
Colonel Taylor: supposed that the sec.
ton had reference to contracts for irelShs.
Mr.. LYON: We did not mean that. a few
years ago there was q bill up, which was
very strenuously resisted, in regard TO rail-
roads crossing each other exchanging cars.
MIR. Daniel AS counsel for the Richmond,
Fredericksburg and Potomac Railroad Com
pany, which, of course, has a deep interest
in this bill. desire to call the attention OF
the committee 10 the law which was just now
referred TO. which law authorizes no conncc-
ton between the Scaboard road and the Pc
tcrsburg road, or any other road in the State
of Virginia, but merely in the State OF North
Carolina.
Mir. Daniel then read an act entitled
"An act authorizing the Seaboard and
Roanoake Company to acquire an interest
in connecting railroads"
list. Be ii enacted by the General Assem-
6yo Virginia, That it shall be lawful for
the Seabourd and Roanoke Railroad Com
pany, with authority from the State OF North
Carolina, to acquire and hold an interest in
any railroad connecting Herewith, or
bIanching thcrclrom, in said State.
"2d. This net shall be in force from its
pasSlgc." ..-
The Scaboard road could not, therefore,
get control Of any Virginia road.
Mr.. Lyon: The Petersburg road connects
with the Seaboard road in North Carolina,
and the reference in that act to the necessity
of getting permission from North Carolina
is the only circumstance which might sus-
tain the construction Of my learned friend.
The reason is that in February, 1863, the
seaboard aud Roanoke Railroad Company
obtained an act Of Assenbly--a charter con-
tanning thilty-onc sections, the first of which
declares that those thirty-one sections shall
he permanent provisions Of the charter, and
shall be unaItcrable by the State of Virginia
forever. without the consent OF the Legisla-
turc OF North Carolina. The converse Is
also true. So that ii establishes quasi con-
tract between the States.
II. i,,ip futi n
that law by my friend is SO foreign to the i'll
tcntion of those who made the bill that I
thought | would call the attention Of the
committee TO it.
Mr.. Robinson Who offered me control OF
the Petersburg roadI
Mr.. Lyon Mr.. Ragland.
Mr.. Robinson immediately after his pur-
chase!
Mr.. Lyon Before his purchase.
Mr.. Robinson May l ask you question,
Mr.. Lyon, in this connection! Do you
rccolcct about certain tclcgrums sent to me
in the city of Baltimore: Who were they
sent by?
Mr.. Lyon: On the night think Of, the lst
of February, Mr.. Rasand had bid over
Mr.. Bolling's bid for the stock, and run 1t up
from 55 to So. Mr.. Ragland had given Il
written promise that he would stand by the
ollcr till next day. He and / went to the
telegraph office, and my impression is we
seut tcryiaIns TO this effect: Reuben Kay
land has the option OF the citS'S stock in The
Petersburg ruud will you buy?" We stood
in the conpny's Office, and, think, sent oil
eight of these 10 different nen--lnany to
places where we knew the men were not
then stopping. We laughed, and said, " All
these fellows will tap the telegraph to get
each others messages, and it will be II very
good thing to let them all get The same mcs-
sage" | heard afterwards that they did
steal each others telegrams, and everyone
found he had got only his own.
Mr.. Robinson happened to be in Pc
tersturg at the timc and was on visit to
General Malone. While we were together
the information was brought to General Ma
hone that the City Council would meet that
afternoon for the purpose of considering an
offer made for the purchase of the clty's
stock III the Petersburg road. / overheard
part OF this conversation, which was after
wards repeated to me in full by General. Ma
hone. l AIN hardly at liberty TO state the
expressions made use of, but it was under
stood that the offer was then and there to be
made for this stock, and that the price was
500. was asked il ! would buy the stock.
| may here state that am Il mere represen-
tative OF stockholders; that / do not hold
any railroad in my own name, nor have the
pecuniary means to purchase any railroad.
My individual interest in the Richmond,
Fredericksburg and Potomac railroad is 10
shares OF stock; in the Seaboard and Roanoke
two hundred shares of common stock and
forty shares of guaranteed stock. | have a
most excellent set of stockholders in both
roads, many of'whom own stock in one and
do not hold any in the other; in fact the con-
trolling interests are entirely distinct. The
question was asked Is the city of Petersburg
willing TO part with this stock, which she las
cherished for so many years, for the purpose
of bringing trade to Petersburg? There
'wcre bids made that night. | told General
Malone that thought the stock was an en-
cellcnt bargain. was finally told that Mr..
Ragland had the refusal Of the stock at eighty
five. The next day a telegram came back TO
me from Baltimore asking me if would buy.
That is the only telegram l ever saw. After
wards l was told that coulG have the stock
at an advance; but no definite proposition
was made.
Mr. Lyon: NIr. Ragland said TINT the next
night they would probably begin the bid
ding again; that IS was enough; that il you
wanted it you might take it ut So, which was
the lust bid, provided you would also take
his $500 shares of private stock at the same
pIice. The shares of city stock amounted to
4,755. You asked Mr.. Ragland what he gave
for bis private stock. He said from 40 TO 81.
You said that % would cover all, and then
calculated that he would make $4,000:
There was q definite proposition made.
Mr.. Robinson: | did not look upon it as
Iot,
thority to buy the stock. Had tho question
been discussed by nv stockholders should