The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-06-17


ever, any such necessity should arise, such ac-
ton would be taken as to secure to the contrac-
tors the full acquitment of their claims, and
satisfactory settlement of the Indebtedness to
them. Under these circumstances, and with
such assurances, the contractors entered into
their work with activity and continued to push
it forward until they were formally notified
that operations must be suspended, which was
done in December. And Notwithstanding the
assurance given of the $220,000 available as
sets, and the purpose Of the company to pay
them up promptly each month, there were but
SAC, 900 paid to them after the new arrange
ment was made, including the work in Sep
TENDER, October, November and December. In
fact, during the whole progress OF the work
from the inception Of the contract with the
syndicate, to the suspension of the work, there
had been but little more paid to the contrac-
tors than they had expended in cash in pur-
chasing their respective outfits. 1t should be
borne in mind too, that the contractors had
borrowed money from the banks at a heavy
rate of interest to purchase the material nee
essary for the work. To meet their n,atured
obligations they were compelled to sell their
stock again at so per cent. loss in some instan-
ccs. The county and corporation bonds that
had been paid them, deprecated rapidly after
the complications of the company became Sc
rious, and, in fact, throughout all the transac-
tions, there was Il succession of misfortunes,
consequent upon the failure OF the company
to comply fully with the terms of the CONTRACT
that have well nigh proved ruinous to the men,
bers of the syndicate.
| The. company failed unaccountably Units
agreement to pay $4,000 per month in cash
and issued an order suspend.ng the work about
the Goth OF November. This was not made eff
fective along the whole line till the 22nd Of
December, at which time the work was meas
ured up and returns made by the several resi-
dent engineers. The company is lin arrears to
the syndicate for all work done since the LIST
of last October, and twenty per cent.fupon all
the work done prior to that date, aggregating
between three and four hundred thousand dol
lars.
At the time of the suspension of the work,
.hcre was no place at which the stock of ami
mails and all other appliances could be dispos-
ed of for the purpose of realizing SO that the
syndicate could be enabled to pay off the debts
they had contracted for labor, &C., and for the
purpose Of. getting in possession Of means, with
this view, they were compelled to sacrifice their
animals in some instances fifty-fve per cent.
below the price they paid for them.
In this condition of affairs, the annual meet
ing OF the stock holders came on in january
last, and after stormy and very Improbable
and aggravating session, adjourned over to
meet again in February. In the meantime,
the county of Rockbridge, which had paid ever
her bonds, obtained an injunction against the
use Of such portion of them as still remained in
the hands of the company. Some of the tax
payers of Roanoke had previously gotten out
an Injunction to prevent the supervisors from
delivering the bonds of that county, and with
a view Of testing before the courts the legality
of the subscription. The 100000 subscription
OF Roanoke was part of the s3,2O0,000 sub
scrbed capital stock of the company, consti-
tuting its basis of operations. The city of
Staunton had made two subscriptions-on of
conditioned on the completion of the road to
Staunton, which was paid over-the other, on
condition that So, $50, 900 were subscribed by
other parties able to pay-the $4,000 to COM
plete the s3,200.000. When the injunctions, a.
bove referred to, had been obtained and the, Sub
scription of the county Of Roanoke was to be
adjudicated, the City Council declined to pay
over the $50 900 in bonds until that question
was determined, regarding the Roanoke sub
scription as an essential feature in making the
last subscription Of the city legally binding.
At the last meeting of the stockholders in
this city, which was harmonious, and gave ev-
cry indication on the part Of all the subscri-
bers to amicably adjust the difficulties between
the contractors and the company, the whole
matter was fully discussed. 1t was understood,
that if Reckbridge would revoke her injunction
and Staunton could pay over her $4,000 in
bonds, the company would at once proceed to
adjust the affairs of the syndicate. Assurances
were given that Rockbridge was ready to raise
the injunction, if Staunton would deliver the
bonds. At meeting of the City Council to
consider the question, it was determined to
submit all the facts Of the case, properly ar
ranged by the counsel for the city and the at
torney for the company, to Judge Moncure,
or such other Judge as he might indicate, for
determination, the council agreeing to regard
such decision as final and binding. The attor-
ney for the company, acting merely as minis
teral officer, did not regard himself as authofi-
zed to bind the company, without formal au-
thority to Go so, and, as we presume, no such
authority was given, and the city council not
willing to bind itself without the other party
to the arbitration should be regarded as equal
ly bound, this aspect Of the matter was drop
ped.
1t was generally understood, at the last
meeting Of the stockholders, that if some salts
factory arrangement was not entered into by
which the syndicate would be paid, suit would
be Instituted at once against the company; and
in that event, Mir. Keyser, representing the
Baltimore and Ohio Company, said he should
confess Judgment and have no controversy
about it, so deeply Impressed was he with the
great injustice that was being done the gentle
men composing the syndicate.
All negotiations having failed-Rockbridge
maintaining her injunction, the city of statn-
ton refusing to pay over the $4,000 in bonds,
and the company pleading inability to meet its
oblioatiOns to the syndicate nv reason Of theca