The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-10-21
The Valley Railroad.

lleton, OF Baltimore. acting president Of the
Valley Railroad Company, and during which
the difficulties between the company and thst
county were arranged. The board has agreed,
upon certain conditions, to a dissolution OF the
Injunction obtained some time since, forbidding
the issuance OF bonds OF the county OF Rock
bridge 60 the amount of s1sgse00, portion of
the sum voted by that county towards the con-
stluetion Of the Valley Railroad The Citizen
giys.s the following account Of the proceedings
of the meeting:
Mr.. Pentleton was invited to make known
any proposition which he had to make for the
dissolution of the Injunction. He stated that
as was well known to the board there was suit
pending in Augusta; county. brought by con-
tractors, against the Vail Railroad Company.
The company had been using every effort to
make settlement without litigation. There
had Been difference between the company and
the cont actors IN regard to the basis OF settle
mrllt. Messrs. Sanahan and Harm IN have
consented to settle Upon the estim tie OF the
engineers Of the Valley Railroad Conpany.-
Mr. Menifee, he thought, would also agree to
accepltlle same proposition. MeMaion d Green
had not accepted, urging that they hld alrea y
settled with their sllb-clntlacttWs upon the e>-
innate OF their own engineers which was sir
900 more than that OF the chief engineer OF I've
Valley Railroad Company. The company also
claimed q subscription OF $40. 900 made by Me-
Mahon q Green to the capital stock OF the
road. ! lldcr these circumstances he thought
it probable Mcmahon & Green would not set
The upon the basis proposed. Mr.. Pendletoh
added that the Valley Railroad had at last sue
ceedetl i'll getting Il proposition from President
Carrot. OF the Baltimore & Ohio Railroad,
which he would now present. The letter is as
follows:
BALTIMORE Oct. 5, 1S75.-Second Vice.
Presidcnt:-l have your letter Of September
So Provided the settlement be made strictly
Oh the chief engineers estimates and final
statements, according to the terms of the con-
tact, and provided al back coupons are pii
by the county OF Rockbritlge and the cities OF
Lexington and Stannton and provided that
che settlement Tor the cash proportion shall not
exceed sl45,o 900, Git should be from $1,000 to
SO, 900 less, with all the back interest as above
coccted,) then agree, if the notes of the v.
H. X. company-one-half at twelve and one
half at eighteen months, with interest at six
per cent, are taken for the proportion of cash
due that provided the cities Of Baltimore
St'unton and Lexington and county of Rock
bridge so desire an request, and the commit
tee OF finance Of the Baltimore & Ohio railroad
approves, that the Baltimore and Ohio compa-
ny shall indorse said notes. The surplus bonds
named in your letter Of September 80, to be
transferred to the Baltimore and Ohio Railroad
and held as collateral security for the said in
elorsement and for the sale. the proceeds to be
used for the payment of the notes.
j. w GARRETT, President.
Mr.. Pendleton also read letter from Mayor
Vansant, OF Baltimore, to this effect:
BALTIMORE Oct. 8, 1s75.-The finance com
missioners of the city Of Baltimore assent to
the proposed arrangement. entered into be-
tween the V. K. IL. company and the Baltimore
aud Ohio railroad, having in view the raising
OF money to pay the debts due by the former
road to contractors, as also the further propos-
Ell arrangement with the county of Rockbrdye
and the city OF Lexington not to demand OF
either any more Of the bonds until the work
OH the Valley railroad Shall have been resum-
ed. JOSHUA VANsANT.
Chairman Committee of Finance
Mr.. Pendleton said he desired to come to an
understanding upon the basis as proposed The
county OF Rockbrdge. to dissolve the injnnc-
ton and allow tic bonds to be used in pay
ment OF the contractors, and the balance to be
held as collateral security to the Baltimore and
Chic Railroad Company for the payment OF
notes Endorsed by that company, upon which
the cash was to be raised necessary to meet the
demands OF the contractors. The entire in
t.ebtedness WAS s2SG,0 i'll bonds and cash, to
meet which there was: Rockbrdge bonds,
SlS9.003; Staunton bonds, $4,000; Lexing-
.oil bonds, $4,000. bonds already advanced
ootlsactors, s37 GOO total, s268, 500 to be paid
in bsnas. sl0S.00o, leaving a balance Of sl60.-
OO0 .rlfs balance is held as collateral secu-
ritv for TIE cash notes of Sl4J00O indorsed by
the Baltimore and Ohio Company. The Balti-
more and Ohio Company have guaranteed the
Roclibrdge bonds .t eighty cents, and they
could not be sold fer less.
In reply to an inquiry whether the use Of
Rockhrdge bonds as collateral security to the
Baltimore and Ohio Rail. DAD Company wonld
in any way affect the guarantee. Mr. Pendle
ton said: '.Nc; it was a Legitimate Use OF the
bonds, and could in no way affect the guaran-
teet'
The question having been asked whether
that portion OF the road between Stauntol and
llarrsonburg was now run at a loss to the com
pany, MIR. Pendleton said he receipts were
rapidly improving; i'll the last ten days one
hundred ald thirty cars OF live stock had been
carried over the road that the expenses were
being reduced; they had dispensed with an Of
flee i'll Baltimore and also at StaunJon they
were cutting down expenses, and he thought
the road would pay expenses ard more. 1t
was also asked whether there was anything due
the Baltimore and Ohio railroad, to which Mr..
Pendleton responded: mo. if the bonds
would pay the $l45.000, it would owe lothino.:'
Col. Davidson. Of Rockbridge, spoke by per-
misslcn, warmly in favor OF accepting the Drop
ostion. and after an extended discussion the
following paper was adopted unanimously by
the board anG accepted by Mr.. Pendleton, as
acting president OF the Valley railroad, as Il,
final settlement
The board have received the proposition of
Mr. P. P. Pendleton, president of the Valley
Railroad Company, in relation to the adjust
ment of the Injunction suit now pending be-
tween the county and the company. After
careful consideration of which it is ordered that
the counsel OF the county be authorized and
instructed TO consent, OH behalf of the county
Of RocEbridge, to a decree for the dis olutiof
Of said Injunction upon the following terms
l. The company shall file in the papers of
said suit evidence satisfactory to the counsel of
the county that provision has been made for
the payment Of the whole existing indebted
ness Of the company to contractors. Provided,
that as to the claims of McMallon & Green and
Menifee an assurance executed by the proper
officers of said company and filed with the pa
pers OF said cause that the bonds remaining af-
ter settling with the other contractors shall be
| held solely. for the purpose Of settling with
Mcmahon q Green and L. X. Menifee, and that
the company can command ample means tc
pay the said claims, shall be taken and deem.
ed as SUCH satisfactory evidence as to the claim.
OF McMahon & Green and Meniee
2. The proportion of Indebtedness Of the
company payable by any contract or arrange
ment between the company ana its creditors i,
county bonds, to be paid out Of the bonds NOW
enioined.
3. A certificate of 315O shares of tho CAPITA
~. N. II ~.