The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1876-05-18
The Valley Railroad.

| favor III this or other communities among per
sous familiar with all the facts of the case.
The Importance of the subject to Baltimore
becomes at once apparent when it Is known
that our city has paid the sum of one million
dollars toward the building of the Valley road
and has another interest, direct or indirect, as
1t may be termed, in the business that must
sooner or later accrue to Baltimore from the
construction OF so important a connecting link
through the rich and productive country the
road passes. May lst the Valley road ceas
ed operations. and unless the stockholders
adopt prompt measures to wrest it from the
influence OF the corporation that has hound it
hand and foot, the large interest held by the
city OF Baltimore, and that of the counties Oh
Virginia, whose subscriptions aggregate ST.
100000, will soon become practically useless.
That the Baltimore & Ohio company is re-
sponsible for the present unfortunate condi-
ton OF affairs, no one who takes the trouble
to examine into the matter. or who has OBJ
served the policy of that corporation through
out, can for moment doubt. To those who
have not kept themselves fully acquainted
with the history Of this ''enterprise" on the
part Of that corporation brief explanation is
necessary The entire moneyed interest in
the Valley company is s3,200,OOO. OF this
amount the Baltimore &c Ohio company SUBJ
scribed 81 100000, the city of Baltimore ST.
100000, and the counties between Harrison
burg and Salem S1,200,000, portion of the
latter not having yet been realized. Under
the Baltimore Il Ohio arrangement the latter
corporation was to operate the completed por-
ton of the Valley road, charging simply the
expenses of running and agreeing to pro rate
equitably with the Valley company. This
was the distinct understanding when Mr.. ROB-
Valley company.
In the matter of pro-rating there is distinct
understanding that in operating short lines,
such as the Valley road, an advantage OF from
333 to 40 per cent is allowed, which, if car
ried out in good faith by the Baltimore &
Ohio company in this instance, would have
yielded revenue to the Valley company of
from $4,000 to $4,000 per annum. The Bal
timore IL Ohio company were not, however,
as prompt in carrying out the equitable"
part of the arrangement as they were in prom
ising to do so, and refused to pro rate except
mile for mile, and at all times Disseminated
against the Valley company Appeals were
made by the directors of the latter company,
both personally and formally to the Baltimore
u Ohio company, to which, finally, reply
was received declining to run the road on any
other terms than those existing. At meet
Ing of the stockholders held at Staunton, Vir-
GINA, iii November last, the representative of
the Baltimore & Ohio Company, Second Vice
ken subsequently, to closing the road, by suy-
costing that If proper appeal was made to
his company, better terms could be obtained.
In accordance with this an appeal was made to
which the Baltimore & Ohio company. by res
olution adopted at a meeting of its board of
directors, replied declining positively to oper-
ate the Valley road under any better arrange
ment than had heretofore existed. At a meet
ing OF the Valley company's stockholders sub
| ar ant IN ,iplnI sI y
the Baltimore & Ohio representatives alone
eNcepte(D that a continuation of the then eX-
isting contract with the B. & O. company
must result in inevitable bankruptcy to the
Valley company, and it was resolved to ter
inmate the arrangement, to take effect on the
LIST OF May. which was done. The Valley COM
pany was soon after notified that the alternate
had been accepted by the B. & o. company.
The Valley company still desiring an amicable
adjustment, made specific offer OF two
years lease to the B. & O., which shared the
same fate as all previous oyertures made to
that corporation. 1t was also distinctly unde;-
stood and agreed to by the representatives of
the B. u o. company that a sum less than
$50. 900 would be accepted by them, if a lessee
OF the Valley road could be secured, Mr.. Key
ser on that occasion stating that no amount of
money would be paid by the B. & 0. company
for the lease, and that it had been an unrroft-
able undertaking for his company to attempt
to operate it, etc. Finding themselves foiled
in every effort to effect a compromise of any
sort with the b. d D. company, short of sur
rendering the road into their hands, commit
tee was appointed to see If it would not be
possible to lease the Valley road, to which
scheme Mr.. Keyser, as the representative of
his company, gave his approval, and it was
unanimously resolved that if the road could be-
leased for fifteen years at the rate of $4,000
per,annllm and one-half the earnings, that it
should be accepted. This closed the neeota-
tons with the B. & 0. company.
The committee at once began their work,
acting with commendable promptness, and in
few days secured an offer from the Shenan-
doah Valley company to lease the road for a
period Of fifteen years or longer, at the rate
Of 500, 900 and one-half the earnings for the
completed portion between Harrisonburg and
Salem, and proportionate rate for the re-
naming sections as completed. Up to this
time the 3. & O company had expressed no
opposition to the lease being made to outside
parties, after refusing peremptorly to make
any offer for it themselves, presuming proba-
bly,, and with short-sighted sagacity, it must
now be confessed, that after being hawked
about the country it wonld eventually be offer
ed to that corporation OH its own terms. OBJ
stacles were at once thrown in the way Of the
proposed lease of the Shenandoah company.
Security was at once demanded in the sum of
$3.50, 000-an extraordinary requirement. UNI
der the crcumstances-and when the Shenan-
doah company acknowledged its ability and
willingness to produce the required bond, the
names of its slreties were demanded. This
was very properly declined, but as an earnest
of their intentions the Shenandoah company
offered to produce at once bond OF $4,000,
to be forfeited to the Valley company in the
event of the bond for $250,000 not being in
every respect satisfactory, provided the board
would guarantee that the stockholders of the
Valley company would ratiy the lease
Finding themselves defeated at every point,
the B. Il O. R. r. company at the recent VAL
ley directors meeting succeeded by the aid of
Pendleton's vote, in having the whole matter
OF the lease referred to the stockholders meet
ing which takes place at Staunton on the Both
inst. In the meantime the Shenandoah COM
pany has withdrawn its proposition, and the
Valley road is closed to passenger and freight
traffic.
In anticipation of securing the lease, the
Shenandoah Co. had entered into traffic
contract" for thirty years with the Western
Maryland Railroad Company, in which the
city has an interest of between SO, 900, 000 and
s4,00o,000, by which valley freight would have
been transported to Baltimore and the interest
OF the Western Maryland company and the
city been greatly promoted. What action the
stockholders will take at the approaching
meeting remains to be seen, but it is scarcely
possible that they will, after their dearly
bought experience with the Baltimore and Ohio
Company, suffer that corporation to again OBJ
tain control of the line after its repeated re-
fnsal to pay dollar for the lease 70 the