The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-04-01
n&ha r,anrilla Railroad Affair.

The Danville Railroad Affair.
Wetbfnk the article in yesterdays Dts'
patca on the subject Of the transferring o.
the states interest in the Danyillc railroad
was a. nearly right as could be to err at all,
aud vet we did err under tho impression
! made by the summary OF the committee Oh
the House Of Delegates 10 their veluminous
report. 81.
We erred hrst In saying that " the act un-
"der which the transfer was made provided
s ofor the sale and transfer Of $4,000 shares Of
arailroad stock at their par value Of 800
"per slsare.n The fact Is that the law pro-
yides that g The Richmond and Danyilie Rail-
g road Company be. and it is hereby, au-
"thorized to purchase, and the Board OF
6 Public w oFksi is directed to sell to the said
=. company, all the stock Of the State OF Vir-
gina In the said company" etc.
The act then goes on to state that twelve
hundred thousand dollars shall be paid by
the company for all Of the stock of tine
State of Virginia in said company" and that
1t shall be paid in twelve equal instaments
OF one hundred thousand dollars in the bonds
OF the State or certificates Of debt Of the
State; but nowhere was it stated how many
shares OF stock the State held in the said
Danvillo Railroad Company.
In the second place we erred in following
the report OF the committee, consisting Of
Messrs. HILL. THOMAS, and BoLLING, in say.
81. 3,,,{/ nj
stock was not certified to the State. Mr.. Br
FORD, President Of the DanYile Railroad
Company, states that he supposed the EXecr.
I tive and the Legislature were Informed OF
clared; for the proceedings of the COM
pany were communicated to both officially
His report to the company contained
tho statement OF grounds upon which the
dividend was declared, and he adds that he
thought the fact was fully public. aud com:
municated thus through the official report
of the proceedings of the annual meeting. lie
"deened the fact Of the increase Shares OF
: stock) entirely immaterial, as Il did not add
one dime to the value Of the States interest"
Anu this IS strictly true.
The point as to the failure to increase the
ualue of the States Interest In the stock OF
the company by increasing the number Of its
shares We presented yesterday. Not dime
was added thereto by the dividend of stock,
and therein consisted the folly of the increase
OF shares. The value Of shares Of stock is de-
termined by the diusdends upon the shares,
not BY their number. Just as failacious is it
10 hope to Increase The wealth Of II nation by
increasing the amount Of paper money aloat
as to increase the worth Of a corporation by
: increasing tue number of shares to its stock
holders.
The law providing for the sale Of. dali the
stock" Of the State ia the Danyille Railroad
Company, the idea that the State can now
claim to lie represented upon l., 900 shares
alleged not to have been sold, is altogether
absurd.
And the $4,000 shares being worth "not
dime" more than the 10000 were, the
State has really lost nothing by selling 2, 900
instead of $4,000 shares if there Was any
mistake of that sort: which, looking ut the
law, there has not been.
AS to the interest allowed upon the State
stock paid IN by the purchasers OF the State
stock in the Danvile Railroad Company, we
incline to the opinion that the State has paid
what the purchasers had no right to ask.
But that Is matter for judicial decision, and
we hope it will be referred to the proper tr-
bunal for such decision.
Excepting this last question, this q flare
up" is Of 10 moment. The States entire
interest In the Danyile road is unqucsiion-
ably sold, and we do not think 1t can he dis
turbed. The Danvills Company may have
omitted TO inform the State of the dividend
of stock in the proper manner; but ii it did, it
is certain that the proper officers of the
State had means of knowing what was
known to the public and communicated TO
them in the official proceedings of the
company. Had the stock in the Danvilc
Company been so enhanced in vaIiic by
merely doubling their number as that each
share after the multiplication was worth as
much MS single share was worth before. We
+ suppose no one doubts for moment that the
officers Of the State would have known the
fact and taken measures accordingly. The
truth was that the doubling Of the number
of SHARES was generally regarded as entirely
immaterial, siEce it added not title to the
value Of the States Interest. y.