The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-02-17
The following, communication from 'the
Governor to the General Assembly was
sent to both houses yesterday:

The following, communication from the
Governor to the General Assembly was
sent to both houses yesterday:
.,>'@ COMMONWEALTH OF VIRGINIA.
GOVERNORS OFFICE, /.
RICHMOND, 10th February. 1877. )
To The Senate and House of Delegates:
deem it my duty to bring to the atten-
ton oi the General Assembly the imperilled
condition of the States interest In the Ches-
apeake and Ohio Railroad Company.
The contemplation OF speedy sale OF the
property Of the company, by decree OF the
Circuit Court Of Richmond city, makes it Of
the utmost importance that legislative ac-
tion should be taken to protect the rights OF
the Commonwealth.
The two acts of Assembly passed on the
26th Of February, 1865, and 1st>of March,
1867, respectively, together with the con-
tract which by virtue OF those acts consti.
tute part Of It's. charter, confer upon that
company its privileges and franchises-im-
posing upon it at the same time certain du-
ties and liabilities. fI43t,g
The State had expended five millions Of
dollars upon the Covington and Ohio road.
The whole of this property was given up
to the new corporation in order to promote
the speedy completion OF q great line OF
connection with the West; but among the
conditions OF this grant it was required by
the charter that the road should be COM
pleted to one Of two designated points on
the Ohio river within six years, and that the
work should be done in given style. These
conditions have not been complied with,
and it is proper to be considered how far
this default may operate as forfeiture OF
the charter; and if so, whether and in what
way the State shall assert its rights. Prompt
action is all the more needful in view OF the
fact that the company is claiming exemption
from taxation, and this Notwithstanding a
decision adverse to their claim by the Su-
preme Court OF Appeals.
THE ROAD TO TIE WEST.
The great concessions made to this COM
pany were in consideration Of the establish
through the State with the commerce OF the
West, and the increased value Of the stock,
amounting to more than two millions of dol
lars, which the State held in the Virginia
Central road. Up to this time the first OBJ
iect has substantially failed, and the stock
has run down until it Is generally regarded
as almost or wholly worthless. If the fail
ure Of the company to fulfil its contract had
resulted solely from misfortune, it would
still seem that the State, If possessed OF the
power, should reimburse itself at least in
part for the property it granted on condi-
| tions which have never been performed.
And yet exemption from taxation is now
being contended for by the company, with
out any idea or preteEse OF an equivalent
being secured to the State.
| But has the failure OF the company to
comply with its chartered obligations been
due to misfortune? The place now known
as Huntington was chosen as the western
terminus instead Of the mouth OF the Sandy
river, which long previously, and with gen.
eral concurrence, had been selected. Hunt
ington was the place at which whole terri
tory was bought up by those who were
managing the affairs OF the company, and
at which it was attempted to build up a
town for the purpose of assisting this great
speculation Of the railroad managers and
their friends. Every consideration OF pub
| lie policy, as we'll as the unquestionable re-
quirements of the charter, forbade the loca-
ton of the western terminus of the road at
that point. 1t is well known that great
natural obstacles render Huntington COM
paratively inaccessible to the river COM
merce Of the West during large portion
OF each year. .. ~
But, as bearing upon the question of for
feiture, your attention is invited to another
consideration. The commissioners, who un-
der the charter were authorized to make the
contract with the Central Railroad Com
pany, with the view of securing at least a
partial guaranty Of the funds necessary
for completing the work in the spirit of the
acts of incorporation, required as condi-
-; fhof n ho1y
of dollars should be subscribed to the pre-
ferred stock Of the company. 1t was only
when that subscription was reported to
them as having been completed that the
contract OF consolidation was executed.
If anything was ever realized from those
subscriptions it was certainly but the
merest trife. II the subscriptions were
made in good faith and valid, they should
have been applied to the work. II they
were not valid, or were clogged with
conditions which made them worth
less, then, in either case, the con-
tract with the commissioners was
based on delusion and misrepresentation.
In either case the State has been the suf-
ferer. II the condition and agreement
upon which the contract was based had no
real foundation submit for your consider
alton whether this fact does not fatally af-
feet the validity of its organization. II
these subscriptions to the amount OF three
millions and a half OF dollars had been real
lied; il the law prohibiting the sale of the
bonds Of the company at less than the pre-
scribed minimum had been observed; and if
the proceeds Of sale had gone into the trea-
sury of the company, it cannot be doubted
that, with an honest application Of the
means controlled by the corporators, and
with due exercise OF the "skill and eXpe-
rience" which was guaranteed, the road
would long ago have been completed ac-
cording to the provisions of the charter,
and the State would now be reaping the ad-
vantages OF its liberal legislation, instead Of
being threatened with the loss Of its entire
interest.
THE COST OF THE ROAD.
1t has been alleged that the road con-
structed by the Chesapeake and Ohio Com
pany cost more per mile than any other
road ever built on the American continent.
It has been alleged that the cost of the road
enormously and most unaccountably tran
scended the estimates of the engineers.
1t has been alleged that the trustees have
persistently disregarded the terms creating
the trust, and have diverted large portion
Of the trust subject to prohibited uses.
The commissioners who represent the
State in its relations to the Chesapeake and
Ohio Railroad Company had their attention
directed to this subject by the Board OF
Public Works in letter Of instructions
dated the 5th OF November, 1875, and here
with transmitted. Their investigations
have reached no result.
Judging of their action by their commrl-