The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1876-04-13
Valley Railroad.
McDoNoGu INSTITUTE, March II, 1876.

~. v. H. BRADY. ESQ-
Ma Dear Sir Your letter OF enquiry
in regard to the Valley Railroad only reached
me on my return from Stanton yesterday.
The effects OF the Board have been directed
all the winter to settle mp the claims of cone
tractors against tie Road, AMI to thus saving
If from the sacrifice threatened by our cretli-
tors. We were helpless until the advance of
negotiable notes by the Baltimore and Ohio
railroad Company. and the release of the
bonds Of the county of RockbFage placed us in
position to arrange for the payment of the
claims against us. Within the fast two weeks
the last of the contractors have been Paid off,
and;we now owe nothing OF any consequence
except our debt to the Baltimore and Ohio
Company. That debt consists of the STE, 900
advanced by negotiable paper for the payment
of contractors and of whatever balance may
remain upon final settlement CT the old ac-
| count between the two companies. This bal
ance is pIlt in the last seti lenet rendered lis
on March 4, 1876 at s26, SCI so. But in the
examination of the account many errors have
been found. These have been pointed ont and
before the last statement we handed in, corrcc-
tons to the extent of over $50, 900 had been
promptly made by the Baltimore and Ohio
Company. We think Il large mistake yet ex-
lists, which. if cor. ected, would cntitle the
Valley Railroad Company to credit of about
SlO0,OOO mere This matter is now under eX
animation by the Companies, and we lave cv-
cry reason to hope for !; fair and anlicable aj-
justment at no distant day. Should our ex=
pectatiDns be realiZe. the Valley Railroad
woul,i be entitled to Il sufficient credit on the
old account to reduce the indebtedness ON the
score OF advances to contractors from SIP. 900
to about Sln0,0O1. This little sum would then
represent all the debts due by the Company.
| except possibly Il few thousand dollars incur
red for the running and administration OF the
| road for the past few months. To meet this
debt the Company has over two hundred thou
sand dollars OF county or town bonds. These
are pledged to segHrc the debt, but as they arr.
guaranteed to produce 50 cents on the dollar
they are ample for he payment of our debts
whenever this may be called for.
After the dangers incurred by running short
of our means, and from which we have so mar
rowly escaped, the first Object of the Company
should be to keep out of further debt. 10 go
in debt now. in the present condition of all
railroad property, is TO ancite the certain sacri
flee of our interests. 1t is this conviction that
no doubt. induced the stockholders to deter
mine the other day to close the road Father
than continue to operate it at loss. Our ar
ralgeEsent with the Baltimore and Ohio Co.
for operating the road from Harl isonbnry to
Staunioi is costing us not less than 5000
per anntin, thus running tiae expenses from
six to ten Thousand dollars, expenses of admin
istration about ten thousand dollars, wear and
tear over thirty thousand dollars. At this rate
we would have been hopelessiy involved in
year or two. 1t is undoubtedly wiser to cease
business altogether for a While, cut down eX
penses toa minimum, and wait for Il more f;l-
vorabe opportunity, enables us to utilize Our
property. NJ, antifle we have in hand. sproper-
ty uuincumberetl, that is worth at least 30 per
cent OF our stock, leaving out of view all the
work done south Of Stannton. We shall not
have to wait long. The completion of the
connections of tile Chesapeake and OliiD Rail-
road and the connection OF either a railroad or
canal from Buchanan to Clifton Forge will
soon add greatly to the value OF the section OF
or road already finished, and to the induce
meats to push forward the nncompleted por-
tions.
AS you say, the present wot;!d be a good
time to continue the onnrction at very eco
nonlcal rates; very true, il we had the nln,l-
ey. But our future resource except the re-
mander of the county and town bonds is our
mortgage, and it is nut Of the question to raise
money Oh it now at other than rlliilous rates.
How long this may continue, cannot say
We may hope and expect that tile worst is over,
and that with the gradual Improvement from
the depression caused by the panic of 1873, the
valie IF the Railroad securities may rcsunc
something of its former position.
know that the county must feel the bur len
Of the tax severely, especially during the sus-
pension OF work. But you have most nnques-
tionab'y pursued the wise policy in levying
the whole tax, and in retiring your bonds as
fast as possible. You have thus made already
Il most material reduction in your debt, and
the same plan pursued few years longer will
render your burden easily manageable. The
county Of Botetourt is now following in your
footsteps, aud regrets, am told that this was
not done, us in your case, from the ii st. The
effect of your course is to give u strong lever
in working for the resumption of the work to
attain which end we are using all the means
in our power. With kind regards,
l ain very truly yours,
w. ALLAN.
III