The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-27
THE CUMBERLAND GAP RAILROAD.

On March Z0th the following minority
report, resolutions, etc.. were offered by
Mr.. Van Auken, of the House committee
on roads and internal navigation, and, ON
motion Of Mr.. Richmond, ordered to be
printed. The matter was called up Thurs
day on motion Of General Williams to
rescind the order to print, which motion
prevailed ayes 50, noes SO.
RICHMOND, VA, March, 1874.
qothe House o. Delegates Of Fi1ginia
The undersigned, dissenting from the
views of the majority of the committee en-
subject of the resolution concerning the
Atlantic. Mississippi and Ohio Railroad
Company, introduced by the delegate
from Scott:county, respectfully make the
following minority report:
The resolution referred to the committee
presented only one point of enquiry, name
ly: The expediency of requiring the At
lantic, Mississippi and Ohio Railroad Com
pany TO begin within specified time the
construction of the western division there
of, from Bristol to Cumberland Gap, so as
to insure the performance and fulfllment of
the chartered condition, that it shall be
completed within six years after the organ
ization Of the company.
At the outset OF the enquiry, the Allan
tic, Mississippi and Ohio Railroad Company,
by its president, in the presence of the COM
mittee, denied that it was under legal obli-
CATION to build the railroad from Bristol to
Cumberland Gap and insisted that under
The charter it was optional with the COM
pany to determine the time and the circum-
stances for beginning and for ending the
undertaking and indeed for choosing
whether it, (the said A. M. and O. Co.,
would or would not ever build the said rail-
road at all.
The company's construction OF its char.
ter, and of the company's duties and obli-
cations under it, are certainly new, and, in
our view, wholly inadmissible. The silence
ofthe General Assembly, under the crcum
stances, might be deemed acquiescence in
that construction. We are of opinion that
the Legislature should put on record a pro-
test against it, aud thus accept from the
company distinct issue rendered by it.,
involving questions Of law and of contract,
which may probably at some future day
become subjects Of grave judicial delihera-
ton.
The experience Of the common wealth in
the matter of the funding bill should warn
the General Assembly against hasty or
careless legislation, whenever about TO
make new, or tamper with old contracts.
The charter of the Atlantic, Mississippi
and Ohio Company (the act of June 18th,
1900 is contract between the common
wealth and the company, which author
lied and required other contracts, viz:
I. The deed Of mortgage dated 22d De-
celnber, 1870, to the Board of Public
Works. to secure the state $4,000,000.
I'll. The deed Of trust dated 9th Of Sep.
TENDER, 1871, to Skiddy, Duncan and
Barlow, of New York, to secure SIS ,000,-
900 of bonds bearing interest at 7 per
cent in gold.
III, The contracts made at the orgaE'-
cation of the Atlantic, Mississippi and
Ohio Railroad Company with, and between,
and among the stockholders OF the four
separate companies then aud there to be
consolidated.
All these contracts are SO dependent
upon and connected with each other, that
they must be read and interpreted togeth-
er. in order to ascertain the relative rights
and obligations of the numerous parties to
them.
The commonwealth granted franchises;
and sold assets worth $6,37l 1909; and
consented to take as security for 4,O0o,-
600. the purchase money, a second mort n1d
gage subordinate to first lien for sic, 000,.
900, solely upon the condition aud promise
that the whole of the 5,000,0 900 left
after satisfying pre-existing liens or incnm'
ORANGES. should be spent in completing
and improving the whole line from Norfolk
to Cumberland Gap within six years, ant
thus increasing the value of the MORTGAGE
subject.
The stockholders in each and every ont
of the four original companies land espe
cially the counties of Scott and Lee, al
we'll as individuals, stockholders in tn
Virginia and Kentucky Railroad Company
consented to sell Their local shares Q
stock and take in payment consoidates
shares upon the same condition and pro
mise: and also in consideration of the fac
that by the purchase from the state thel
assets had been increased $6,S7l 1903
and clear profit Of $2,37l, l30.39 ha
been realized by the transaction.
The bond-holders (of the sl5,OOO,0O'
loan) have lent and advanced their none
upon the faith of deed of trust whic
not only refers to the act of 18th OF june
1870, but in express terms pledges as 81
curity for the loan "a continuous line
railway from the seaport of Norfolk,
Virginia, to Cumberland Gap, in the Stat
of Kentucky, distance of about live hui
dred and twenty miles-four hundred an
twenty eight niles whereof from Norlol
to Bristol, in Tennessee, are now inishe
aud in actual operation, connecting :
Bristol with the railway system OF. u
South and Southwest, and the remalnlr
distance from Bristol to Cumberland Ga
about to be constructed, will connect No
folk with the railway system OF the STA
of Kentucky and of the great Northwest;
1t seems to the undersigned that u
commonwealth is morally and legal
bound to assure all the parties thus entic'
into parting with their stocks, and Wi
their money, that she will use "a
rightful power to compel the Alta
tic Mississippi and Ohio Ra,lro'
Company to perform and fulfill
its duties and obligations, as express
in the charter and other contracts rreierr
to, according to the true intent and mea
ing of the parties when they were several
made and entered into.
The question then remains: How CT
this be done now? We reply: