The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-02-19


sions for weeks, and not the sIig htest inti-
nation of any improper application OF
funds has been made to- them. Again, for
over three months the books and property
Of the company, under, the auspices OF q
United States court, were in the hands OF
persons peculiarly hostile to the owners Of
this road (put there in great part by the move
ments Of the Governor In that case referred
to in his message). These parties would
have been greatly gratified to have been able
to make and sustain charge OF misapplica-
tion or misrepresentation Of funds on the
part OF the managers OF the road. They
employed lawyers and accountants to that
end, but utterly failed, for the simple rea-
son that there had been no such mtsapplIca-
ton. f
THE MEMORY OF THE DEAD.
Fifth. The Governor tramples on the
memory of the dead when in speaking OF
the subscriptions Of S3,50G,000 to the pre-.
ierred stock OF the company he says:
"If they were not valid or oyerclogged
with conditions which made them worth
less, then, in either case, the contract with
the commissioners was based on delusion
and Misrepresentation" gI.rs Es,c
The contract in which those subscriptions
were considered was one with the making
Of which none of the present managers an O
owners OF this company had any connection
whatever. 1t was the work Of Edmund
Fontaine, the long, time-honored president
of the Virginia Central railroad, whose hon.
esty, integrity, and devotion to the interests
Of his road and Of the State were never
und could never be questioned; OF
John r. Baldwin and George W.
Boiling, both of whom are dead; and
of Thomas S. Flournoy, William }.
Robertson, and R. 81. Maury; and | can
say OF the three dead and OF the three living
parties to that contract that the people OF
this State can never be brought to believe
that they were parties to contract based
on delusion and Misrepresentation" even
though the intimation is conveyed in q SOL
emn, special message Of the Governor OF
Virginia.
But pass on from this mere tribute to
hOnored men to the facts connected with
these subscriptions, which are certainly
broken reed to rely upon to sustain claim
for forfeiture.
THE SUBSCRIPTIONS.
In three months after the signing OF the
contract with the commissioners the man
agement Of the Chesapeake and Ohio rail-
road changed hands, and the new Board CT
Directors doubted the advantage that would
accrue to the company by enforcing the COL
lections OF these subscriptions, because to
many were attached conditions which, while
not illegitimate, yet, in their Judgment, al
fected their desirability.
They therefore pressed on the work OF
construction with such funds as they could
procure. Before the end Of the year they
found that, unaided, the Virginia Central
Railroad Company could not build the road,
even though they could realize par for their
subscriptions (Which certainly could not
have been done), aud made arrangements
for the present owners to take charge OF
and build the road. They, in their turn,
considered it inadvisable to collect these
subscriptions, and proceeded at once to put
into the work their own money to an ex-
tent greater by many, many millions than
these discarded subscriptions. :
Now, as this message states that the pur-
pose OF requiring these subscriptions was
with the view OF securing at least a partial
guaranty Of the funds necessary for COM
pletiug the work. and Us S2,150,000 OF
these subscriptions were conditioned, as the
law allowed, to be spent on road the COM
pany had permission to build east OF Char
lottesville, and as the owners OF the road
put up at once sums far exceeding these
subscriptions, think I safely say there is
no point in this position.
BENEFITS OF LIBERAL LEGISLATION.
Sixth. When the Governor intimates that
the State is "not reaping the benefits OF its
liberal legislation - towards this road I ain
sure he occupies an isolated position, and
that he will scarcely find man of intelli'
gence at all acquainted with the advantages
| that flow to the people OF this State from
the operations of the Chesapeake and Ohio
railroad who will concur with him.
THE COST OF TIE ROAD.
Seventh. That the cost OF this road has
been immense no one knows better than
the people from whom the Governor seems
to wish to wrest it, and who have lost their
millions. But the greater part OF the money
for this cost has been distributed amongst
the people of Virginia, and the structure is
here now for their great advantage. They
should not complain. And il it be true
that it has cost more per mile than any
other road in America-which is by no
means conceded-it must be remembered
that no other road in America has been
built with such light grades through SO
rough country.
The State itself had spent before the war
on the twenty-five miles between CoVing-
ton and White Sulphur Springs $2,527,.
982. 90; and to utilize that work and com.
plete the road between those points has cost
this company an additional sum Of 50, 172,.
3SI. "a in hard money, exclusive OF oil dis
counts and interest. With these figures il
is not difficult to see why this road is costly
VIRGINIA NOT LOSER.
Eighth. What interest is the State in dan
| al oh "
ceding the unfinished work OF the Coving
ton and Ohio railroad to the Virginia Cen
tral railroad was to secure the completion
OF line OF road" from the waters OF the
Chesapeake to the Ohio river. This Object
has been fully attained and road Of which
its own builders and the people OF two
States can justly be proud exists. No los:
has therefore accrued on this point to the
State Of Virginia.
Under the disasters which have befaller
the company the only loss which the State
could sustain would be the stock she owned
in the Virginia Central railroad. Now, TIT
value OF that stock at the time the coutrac
was made was but ten dollars per STARE wher
sold in lots OF very few shares, and hat
4 the State put its shares on the marke
they could not have been sold in all proba
bility at all, or IL sold would have onlS
brought about what they. would now sci
for. But in the plan OF Reorganization
which is pro posed by the owners Of th
road it is intended that care shal
4 be taken Of all stockholders b,
giving them stock in the new com
pany to the extent they now holt
\ in the old, less such slight pro-ruta reduc
ton as may be necessary to give unsecured
1oating-debt creditors stock to the amount
OF their debts In this arrangement the Stat
will share alike with other stockholders
| The future value OF that stock will depen(