The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-06-17
The Facts Of the Case.
JUNE II, 1871;

response to numerous inquiries as to the histO
~ OF the difficulties now so unfortunately pend
ing over the interests of the organization, we
furnish our readers with the following state
Ment of facts:
Some time in 1872, negotiations opened be-
tween the V. r.. e. Co. and some gentleman
relative to the construction of the Valley Rail-
road from Staunton to Salem. These negotia-
tions were open until the month of May, 1873,
when a contract was made by the company
with number of gentlemen for the whole road
to Salem, but in which the company reserved
to itself the privilege ofre-letting to any other
party fifty seven miles, provided they could
succeed in having it taken at prices below those
agreed to be paid to the syndicate, by which
term the gentlemen who signed the contract in
May were designated. The contract required
the syndicate to commence operations within
sixty days. They accordingly-in the month
of July and within the specified time-broke
ground agreeably to the terms of their con-
tract, and at points designated in the counties
OF Rockbridge, Betetourt and Roanoke.
Whilst the syndicate was thus operating in
accordance with the terms of their contract
made in May, they, in the month of August OF
the same year, entered into another contract
with the company in all respects. as to price,
agreeing Herewith and only differing there
from in respect to the percentage OF discount
on the County bonds which were to be paid by
the company to the syndicate, and this differ
.ence was only slight. The syndicate, after
entering into the second contract with the
company, divided the work amongst its mem
bers individually, believing that when each
one could give his individual attention AMI su-
pervisien to a division OF the road, the whole
road could be progressed with more adv antage-
.evsly than if they. as a body. should give their
Joint attention and supervision to the entire
line.
When the syndicate contracted for the entire
line, tie company represented to them that it
had in stock subscribed, from the city of Balti-
more and B. & O. r. r.. 100000 less the
cost of construction of the road from Harrison
burg to Staunton, besides individual, corporate
and coiinty subscriptions amounting to the
sum of ST 200, 900, and that when this asggre-
StICV dliiOuuG VI s-oO,Ooo Woo SAPOi'NSA -
the construction of the road, it would have no
difficulty in negotiating mortgage on the con-
strlsoted road for sufficient funds to complete
the whole read to Salem, which, according to
the terms of the contract, was to be accom-
plished in September, 1876. The syndicate
were assured that no danger was to be appre-
hended from a suspension, as such contln-
gency was not contemplated by, nor did it en-
ter into the calculations of the company.
The syndicate accordingly at once provided
itself. through each Of its members, with a
large stock Of ali The necessary appliances re-
CURED for the construction Of Railroads, and
catered enthusiastically into the spirit of the
contracts made with the company in the best
possible faith They very soon, however, had
their ardor dampened by the action OF the
Company, in not paying to them their monthly
estimates when due, they having contracted
obligations, the payment of which was guaran-
teed to their creditors at certain stated times,
promises having been made to them based up
on the good faith Of the agreement made with
them by the company.
The active and prompt construction of a
work of such magnitude, it is we'll known. in
wolves IL very heavy outlay, particularly at the
commencement of operations at all points sim
ultaneously along the line. By the division of
the road amongst the members of the syndi-
.cate the number Of such divisions was six,
that figure representing the number of gentle
men composing it. Each of these had to incur
AN outlay for the following necessary supplies
ito the extent here given, viz:
100 head of stock at $165 each $21. $50
100 carts and harness SO * 5000
10 wagons and g $50 6 $500
Stables, shanties, commissaries and
blacksmith shops 5000
Derricks, machinery, quarry tools,
steel, hammers, picks, shovels, &c. 5000
-Aggregating, $42. 800
And this sum multiplied by six for the six
divisions OF the road makes an aggregate outlay
for the syndicate to commence operations, OF
2257,7oo
1t must be reoollected that work was COM
Eneneed OH the the first contract in July, 1873,
and it must also be recollected that the compa-
aly was to pay the contractors on monthly es-
Inmates; yet, the contractors received no mon
ey from the company until January, 1874, and
then, only about fifty-three per cent. of the
whole amount of work done. 1t was then
agreed by the company to pay sixty-four per
cent. of the monthly estimates in cash, but this
it failed to do till after April, at Which time
the company was to pay to the contractors six
ty-fouraper cent. in cash on each months esti-
innate and on the 18th Of each month, in which
it failed every succeeding month.
In September, 1874, the syndicate ascertain
ed that the funds Of the company were so much
reduced that it would tie impossible to pay for
the work if vigorously prosecuted. and an ar
rangement was entered into between the COM
pary and the syndicate by which $40, 900 worth
of work was to be done monthly during the
months Of September, October and November,
and $50, 900 worth Of work monthly during the
months succeeding, of December, January and
February. The syndicate still had faith in the
company's agreement and continued to work
accordingly, but reducing their forces on each
division so that the amount of work done should
not demand more than the sum agreed to be
paid; they could not, however, at once do this
SO that the work would measure exactly and
agree with the amount of money to be received
from the company, SO much so, that they found
by the last of September that they had done
more work by siXty-1ye thousand dollars than
Che e2sll they s..OuId pet from thn comnanv