The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1876-06-01
Valley Railroad.

Stf 4fOfAD
TO BE LEASED BY THE BOARD OF DIRECT
QRFs.-TEMPoRARY LEASE.
At a meeting OF the stockholders of the Val
ley r. R. held in this city on the Both, tile
following proxies and stockholders represent
ing 1900 shares of stock, were present: Bal
|'timore, William Seemuller; 3. 6 o. R. r.,
William Kayser; Rockbridge county, w. A.
Anderson, J. B. Dorman, D. C: 2. Brady and
j. W. Abraham; Lexington, c. A. Davidson
and J. y; Barclay; staunton, i. B. Evans
and R. w, Burke; Botetourt county, Lewis
Linkenhoker. Individual stockholders, j. W.
Abby, Mcmahon a Green, n, &. Hartman, P.
S. & ]. P. Roller, G: A. Davidson, Judge
Sheffey and VIM. kayser. There were pres
ent also, F. P. Pendleton, President of the
Valley Il. R., and Messrs. Decatur Miller,
Richard Norris, 4r. and II. 6: Harman, Pr
rectors.
Maj. J. B. Dorman OF Lexington presided,
with Mr.. Madison, Secretary OF the Company,
as Secretary. After reading of the minutes OF
the last stockholders meeting, the Secretary
was directed to read also the proceedings of
the Directors meetings, held in Baltimore with
in the past three months, and particularly OF
that meeting at which Mr.. Mines had submit
ted his proposition to lease the road, which
was rejected.
At the conclusion of tile reading Col. Har-
man addressed the meeting, rellearsing the
circumstances under which Mr.. Mines bid
had been rejected, and criticisng tile action of
the President in voting, and thus remanding
the road to inactivity. Hc submitted a reso-
luton providing that committee be appoint
ed to lease the road for Is years, at $40. 900
per annum, and one-half the net earnings.
Also that COMMITTEES be appointed to lease the
road by the mouth, at $4,000 Der month, un-
til permanent lease can be made. In advo-
eating his resolutions he appealed to the rep
resentative of Baltimore city to stand shoulder
to shoulder with the Valley, and thereby secure
the leasing of the road. thus bringing into ac-
tivity the capital Of that city which is now
sumbering in the Western Maryland Road.
He felt confident that in five days lessee with
ample security could be obtained, il his reso-
luton was passed. He called upon the rep
rcsentative OF the B. & O. r. r. to join in al
so, and thought since that company had de-
clined to take the road at any price, it should
offer no objection to another parry.
MR.. KAYsER
Vice President Of the B. &. 0. r. r. followed
Col. Hartman, And said that the meeting had
difficult problem before it. At the meeting of
the pireYctors he had voted against the accept
ance OF Mr.. Mines bid, and believed now
| that lie had acted consistent with the interests
| ct the Valley Road. The stockholders had in
structed the Directory to lease the road for
J two years. COL Hartman had worked hard to
carry out the in-trpqetions, but had found no
one willing to take it for that length Of time.
Had he the speaker) been present at the stock
holders meeting he should have voted against
combining the lease to two years, well knowing
the difficulty which would arise in obtaining a
lessee for that term, for, in the present stag.
mated condition of trade, company connect
ing two foreign roads could not have prosper
ed. The Directory had extended the term of
the lease to l5 years, and the extension had
met with his approval, and would have met with
his approval when 2 bid was received had not
the question of collateral interests come up.
AS it was, the facts of the case were these :
The stockholders authorized the Directory to
lease the road for two years. The Directory
had failed to carry out the instructions, but, in
stead, had agreed to make Recommendation.
The proposed lessee had offered to enter into
bond with ample and satisfactory security,
but when the security was asked for he Nhe
lessee) declined to name it. Ample and salts
factory security is not good security. Il may
be ample at the time, but will it continue SO for
fifteen years? 1t had been announced that
the Pennsylvania Central and Cumberland
Maryland roads would back tile Shenandoah
Valley. He regarded such security as good,
but knew that neither Of the roads mentioned
would endorse for the Shenandoah Valley.
\ Having no power to lease the road, would the
4 Directory be acting judiciously had it agreed
to give bond ip the penalty Of $50 900, that the
proposition would be acceptable to the stock
holders? He hardly thought so. Col. Har-
man seemed to regard the B. & o. r. r. as
the natural enemy of the Valley, and had APP
pealed to Baltimore to stand shoulder ta
shoulder with the Valley. This could mean
nothing else than shoulder to shoulder
against the 3. & 9. R. R. He had no cause
to blush for the B. 6 O. R. R.. and asked
who had done more for the Valley chan that
corporation. 1t had placed its money here a!
all investment, and not in the hope of extend
ipg the road beyond Salem. for 1t already hat
a line IS miles shorter to the south. Since
the gentleman had referred TO the Western
Maryland road he would say, THAT Baltimort
would willingly sell out its interest in tina
concern us we'll as in the Valley road. HI
then submitted an amendment that the boar,
Of Directory be authorized to lease the roat
for Is years on the best terms obtainablc.
i MR.. ;sEEEMUL4lER
4 said that he must be fully satisfied that it wa
the intention of the board to lease the road a
once, before he could vote for the amendment
As to the security, as business man he wa
) unable to draw the distinction between ampl
and satisfactory security, and good security.
i; Mr.. Kayser replied that ample and satisfst
4 tory security might msan individual security.
4 Mr.. Seemuller.-bt,is not to be suppose
that anything SO RAerile as proposition bacl
ed only by individual security would be enter
!, tanned. He wapted definite action, apq I'll
n rot desire to see the Directory initiate its In