The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1875-12-23
THE VALLEY RAILWAY.
PRESIDENT KING IN REPLY TO MR.. SAX
I0NSPR0P0SITION TO THE STOCKHOLD.

On Thursday morning we published card by
j. A. saxton, In the Canton REPOSITORY to the stock
holders OF the Valley Railway. President D. L.
King on Thursday published In the Akron Beacon
a reply to this card, which we present this morn
ing, as follows:
Mr. ]. A. saxtons card to the stockholders Of
the Valley Railway Company In your issue of
this date December l5th) Is calculated to mislead,
and to put the question fairly before those inter.
ested briefly reply. Mr., saxton states one propo-
sition not fully and merely alludes to the other.
There are as he states two propositions before the
Board of Directors. The one Is to raise money by
the sale Of bonds TO the shareholders only (who
have already put their money into the enterprise
at low price, to sufficient amount to secure the
building OF the line 10 point which will insure
earnings enough to pay expenses, interest, and
have a surplus of earnings besides. With this
portion Of the road completed and earning money
the directors are assured that the bonds will en-
hance In value and make profit to those Of the
stockholders who do not wish to hold them. This
plan, II carried out, will continue the ownership
OF the road nthe hands Of those who have helped
the enterprise from the beginning and to whom
all profits should inure.
The other plan so warmly advocated by Mr.
saxton for year or two past Is to sell the bonds
at low price, to new parties, who have no interest
In common with our stockholders And In addition,
TO donate thema sufficient amount of stock to give
them the absolute control OF the road when com
pleted. Propositions OF this nature were made to
the Board Of Directors several years ago and have
recently been renewed. Stockholders will readily
see that every dollar of stock given away is so
much water 10 dilute the value of that for which
they have paid their money.
In either Of these propositions the increase Of
the authorized capital is made absolutely neces
sary by a law of May, 1873. AsMr saxton has so
uniformly been absent from important meetings of
the board he is excusable in not understanding
fully the questions before 1t. He advises the
stockholders not to vote an increase of authorized
capital, when that very increase was urged by the
parties whose course he has esp0uSed If we fail
In the move to save the stockholders their road
the other proposition Is still open for an accept
ance-nothlng Is lost. But Mr.. saxton would
throw over the chances without trial. All Of
the directors favor an early connection with the
Marietta Railroad on fair terms, and when made,
II we can retain our ownership of the Lake end
Of the line, the stock will earn more money than
1t will If distributed over the line to the Ohio
river; this any one at glance can see The ques
tlon for the stockholders to settle Is very simple
one. VIII they make an extra effort to hold their
own property, or will they give 1t away2 By all
means make an effort to hold 1t, and when salts.
fed we cannot, then pass our property over to
those who can complete the road
The Board of Directors feel that their obliga.
tions to the stockholders bind them to use every
means to save them from loss Mr.. saxton's plan
would relieve them at. once from heavy pecuni
airy load, and when Il is shown that such is the
wish of those interested none will be SO glad to
follow Mr. saxtons lead and avoid further care
and liability as will be
Yours respectfully, D. L. KING.