The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-12-02
SUPPLEMENTARY REPORT

statement Of the company's affairs up to date
It said that = COMPROMISE had been effected
with Messrs. Shal1ahan, Mason and Hartman, BY
which they had agreed to settle upon the esti
mate Of tire Chief Engineer, taking the Valley
kailroad Company's notes, endorsed by the
Baltimore and Ohio Railroad Company, as
cash, and the residue in bond, as follows:
Bonds. Cash.
Shan allan .........~...... S ls,414 $32,7O4
Maso,,..... .............. 30,652 Sc. so7
i; 25,373 $4,000
In consideration of the company's not calling
for additional bonds until the works. resumed,
the County Of Rockbridge had agreed to dcliv-
er the bonds already subscribed; provided, the
said bonds were used exclusively to pay the
contractors. Lexington has already raised her
Injunction.
The amount now due the contractors by the
Clnef Engineers estimate, is as follows:
Bonds. Cash.
McMafnn G Grecn...... s 2f, III 40,s5O
I. X. Menitee........ I2,6H 1o,4zo
NIGHT SESSION.
The stockholders re-convened at Z O'Clock,
and the committee appointed to examine the
Presidents report, made the following report:
The heavy loss that has attended the opera
alton Of tile completed division Of the road, un-
der the existing arrangement wish the Balt-
more and Ohio Railroad, Is a source Of regret.
The statement furnished by the President and
Directors in their reports, shows . loss Of
1921 10, for the year ending September 30,
1875. This statement does not include any al
lowance for wear and tear Of the road, or an
account Of the proportion Of costs Of admins
tration properly charscable to the completed
portion Of the road. When these items are ad
ded to the account, it will be found that the
loss actually sustained by the company Will
greatly exceed the sum reported.
It Is impossible for your committee, with the
debt before them, to decide as to the fairness
OF the arrangement under which the road is
now being operated, but looking ut results.
they are satisfied that it woald be disastrous
to this company to continue that arrangement,
and they recommend that it be discontinued at
once.
In this connection without intending to init
mate that the present management of the COM
rany has been extravasant, but on the contra
ry, applauding the strict economy which
seems to have been observed during the past
year in the conduct OF the affairs of the COM
pany, we would recommend that every expend-
iture not necessary for the preservation of the
property Of the company be avoided.
We concur in the recommendation of the
President and Directors. that the Board OF Di-
rectors be reduced to seven and the President,
il this be done SO as to give representation in
the Board to the several interests represented
by the stockholders.
We also concur in the recommendation as to
the TIME to be fixed for the termination of the
fiscal year of the company, and the time for
holding the annual meeting Of the stock
holders.
In furtlerance of these views. we respectful
" submit the following resolutions for the con-
sderation Of the stockholders:
l. Resolved, That the following bylaws be
adopted:
LIST. The Board OF Directors Of the company
shall consist OF the President and seven tlircc-
tors, who shall be chosen annually, as now
provided by the charter and bylaws Of the
2nd. The annual meeting Of the stockholders
shall be held OH the second Wednesday Of No
vember in cacl year.
3rd. Tho fiscal yearof the company shall ter
inmate on the Both of September in each year,
and all accounts and reports shall be made up
to that date. !.
2. Resolved, That the Board of Directors be-.
instructed to vacatc all offices and to discharge
all employees not essential to the preservation
Of the property OF the company. and to reduce
all the other expenses of administration to the
m,nimum figure consistent with the existence
Of the company and the protection OF its pro-
perry.
8. Resolved, That the Board OF Directors be
instructed to at once proceed to terminate the
present arrangement under which the road
from Harrisonburg to Staunton has been oper-
ated by the Baltimore and Ohio Railroad, and
the Board be authorized to make lease Of the
road for period not exceeding one year, upon
terms that will at least cover the current ex-
penses Of the road, including Herewith fair
allowance for wear and tear and for expense
of administration.
4. Resolved, That the Board of Directors be re.
quested to report to the stockholders at rs car
ly day as practicable, what settlement, If any,
can be made of the accounts between the VAL
ley Company and the Baltimore aud Ohio
Railroad Company.
W. A. ANDERSON,
W. A. BURKE,
j. B. EVANS.
VIEWS OF STOCKHOLDERS.
After reading the report, Mr.. Anderson said
that he thought the recommendation Of the
committee in reference to leasing the road
should be adopted, and that the road should at
least be made to pay expenses instead of accu-
mulating debt ok over $4,000, not includ ing
the wear and tear nor the cost OF aJministra-
ton. II these two last items were taken into
consideration, the loss would probably reach
$50, 600 or $50, 600 perannum, which must inev-
itably end in the bankruptcy of the road.
The report was received and the committee
discharged.
The bylaws and resolutions were adopted
with the exception Of the Sd resolution, which
provided fer the immediate terminat ton Of the
arrangement under which the Valley Railroad
Is now operating lii reference to it. Colonel