The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1876-05-04
THE VALLEY RAILROAD.
THE PROPOSED LEASE FALLS THROUGH
THE SHENANDOAH VALLEY ROAD WITH

DRAWS ALL PROPOSITIONS.
The Baltimore Ane7icdn of Friday says. that
the Board OF Directors OF the Virginia Valley
Railroad Company re-asseinbled yesterday to
consider the leasing of the road to the Shenan-
doah, Valley Railroad Company, Mr.. P. P.
Pentileton, the President, III the chair, and all
the members Of the Board being present. AS
will BE seen below, the proposition was acted
upon and rel ected by tic vote. In order to
fully understand the proceedings of yesterdays
,i:eeting a resume of the action of the Board at
their session on Tuesday and Wednesday is
necessary. On Tuesday when the Board raeS
proposition was submitted from w. Mines,
Jr., President of the Shenandoah Valley r. r.,
to lease she Valley Railroad from Harlisonburg
to Staunron for 80 years at $20,0 900 Il year,pay-
able quarterly each year, and to deliver to the
Virginia Valley Company one-half of the net
earnings Of the division, the road to be return
ed at the expiration of 80 years in as good Or
der as received, less the usual wear and tear,
the balance of the line, rs completed in sec
tions of26 miles from Staunton to Salem, to
be paid for in the same proportion. Inc
Board declined to accept the proposition. but
by unanimous vote passed resolution that if
the President Of the Shenandoah Valley COM
pany would amend his proposition so as to
limit the time of the lease to fifteen years, and
that the incompleted portion OF the read be re-
CSANCu 40 Ill Va ttiIu
that good security be given for the perform
ance of the contract, the Board would approve
OF the proposition, and recommend it's ratifica-
ton to IL meeting of Stockholders to be held at
Starnton, May a0th.
At the meeting on Wednesday the commit
tee, consisting of Messrs. Seemuller, Norris
and Harnan, reported the following letter
from Mr.. Mines;
TO the President and Directors of the Virginia
Valley Railroad, &C.:
Your proposition embracing your resolution
acted upon by yoHr Board, has been duly re-
ported by your committee, and | accept your
terms, agreeing to give any security you may
desire. W. MILNES, JR.
After the letter was read there was consider
able discussion, and resolution was adopted
to recommit the whole matter to the commit
tee, and instructing it to require a bond of
$25OO00 to be given by Mr.. Mines as security
for the faithful performance of the contract.
and also request him to name the security.
When the Board re assembled yesterday the
committee reported the following reply from
Mr.. MilEes:
TO the President, Sci accept the terms
your committee ask the amount of security
you mention, s250,000, and agree upon the
confirmation and execution of said lease to en-
ter into bond. with good security, for the above
dOCtli1l, LIE OIltEldlQGl tdllcy COul-
pany agreeing to give bond of $4,000 as Sc
curiuy for the faithful performance Of the
agreement. w. MILNES, JR.
Mr.. Seemuller, OF the committee, stated in
this connection that III the matter of obtaining
The required security, Mr.. Mines declined to
name his security until tie terms of the lease
We're ratified by the stockholders OF the Vir-
ginia Valley Railroad Company, but that he
{Mr. Milnes) would agree to give satisfactory
security at once, provided the Virginia Valley
Railroad would give bond in the sum OF $50, 900
, that their recommendation us Directors would
| he acted upon favofably by the stockholders
Mr.. Seemnlller also stated that Messrs. Mines
| and Boycc. respectively President and Vice
President of the Shenandoah Valley Company.
would individually endorse the bond of Ss0,.
| 900. to be forfeited to the Valley Railroad
| Company in the event of the stockholders rati-
| flying the lease and they failed to give satisfac-
tory security in the sum OF $3.50, 600.
| Colonel Edward Pendleton, of Botetcurt
county, Virginia, offered the following rcso-
| luton:
| Resolred. That the Presidents of the SIirnsn-
doah Valley Railroad Company be informed
that his proposition to give II bond in the pen
atty of 1000 to secure compliance with his
proposition to lease the Valley Railroad be ac-
oepted. and that he be requested ut once to de-
liver such bond to the President of the Road.
| The vote was then taken on this resolution.
with the following result. the vote being virtu-
ally for the leasing Of the .oad:
Yeas-Messrs. w. Seesnuller. representing
Baltimore city (; Col. Allen, E. Pendeton, and
NJ. G. Hartman, representing the stockholders
OF Vrginia-4.
/ Nays-Messrs. Keyser and Norris represen-
ting the Baltimore and Ohio Railroad, and Mr..
D. Ii. Miller, representing the city.
- D,lt;
more, the President OF the Virginia Valley
Railroad. claimed his right to vote. Col. IIar-
man denied that, the 2; es(ent OF the Company
was vested with such privilege, and that it
had never been asked for by Il President of this
Company or any other Virginia Railroad Com
pany. After some discussion on both sides
recess of twenty minutes was taken, during
which the code Of Virginia was examined.
After tile code was examined the contending
parties did not agree, some Of them stating
that the code was not explicit enough on tile
subject. 1t was decided to telegraph to Judge
Sheffey, at Staunton, the Counsel Of the Com
pany, rs to the Presidents right to vote. A
recess Of one hour was taken, and at its con-
clusion reply was received from Judge Sheffey
to the effect that the President did possess the
right to vote. Mr.. Pendleton then voted with
what was previously the minority against the
leasing of the road making tie yDte 4 for
and against the lease, the President declaring
the resolution rejected. Messrs. Allen. Har-
man and Seemuller entered their protests
against the voting of the President.
Mr.. Miller, of Baltimore, offered a resolution
to the effect that majority of the Board fail
ing to recommend its lease to the Shenandoah
Valley Railroad and Messrs. Keyser Miller
and Norris having voted with the Board last
Tuesday in favor OF a resolution proposing a
lease of the road to that Company, they desire
| n Inv il ctHtad that thnV f,,I1u in
formed us to the ntents and purposes OF that
resolution, and that the whole matter be re-
ferred to meeting Of stockholders to be held
May 30th at Staunton without any recommen-
dation of the Board. Adopted.
Colonel e. Pendleton offered the following
Resolred, That Judge Sheffey, the counsel
of the Company, be instructed, in consultation
with q committee consisting of the President.
MIR. Keyser and Mr.. Seemuller. to draw lid a
contract of lease of our road, finished and I'M
finished, to the Shenandoah Valley Railroad
Company, in accordance with The proposition
of said Company, and upon the terms and con-
ditions agreed on; and also u bond for $3.50
600. as provided for in said proposition of the
Shenandoah Valley Railroad Company, SO that
the same may be ready for the action of the
stockholders of the Valley Railroad Company
to be held at Staunton on the Both May. 1876.
Lost by tie vote-yeas 4, nays 4, the yeas
being Messrs. Seetnuller, Allen, Hartman, and
Pendleton, of Botetourt; the rays Messrs.
Keyser, Norris, Miller aid P z. Pendleton.