The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-02-04
[Communicated.I

lCOm1nunicated.l Gse.s.Es.E
Speech OF Major w. r. G. Gregory on
the Charter Of the James-Riycr VAL
ley Railroad Company, Delivered
Before the Committees Orr Roads and
Internal Navigation of the General
Assembly. ssss5it 1
Major w. f. c. Gregory, by invitation,
appeared before the Senate and House Com
mittees OF Roads and Internal Navigation.
He explained the provisions OF the pro-
posed charter. 1t provided that DIR. W. r..
Walker, Joseph r. Anderson, Cyrus n.
! Mccormick, Franklin Stearns. Jesse Hoyt,
| Thomas Rutter, and Charles L. Todd, and
such persons, cities, towns, and counties,
as may become associated with. them, shall
be constituted body polite and corporate,
by the name of the James-River Valley Rail
road Company, with power to locate, con-
struct, and maintain q railroad from the
city OF Richmond and tide-water in its
vicinity thence up the valley OF the james
river to Lynchburg, Buchanan, and to Cliff
ton Forge. The capital stock to be Of two
kinds-first, two millions Of dollars in shares
OF one hundred dollars, known as prefer
red stock, entitled 10 semi-annual divi-
dends OF four per centum whenever the net
earnings admit OF it; second ali other stock
| to an amount not exceeding four million
OF dollars, to be called common stock, the
object being to use the two millions Of pre-
ferred stock to build the road; that the
persons named should open books for re-
ceiving subscriptions to the preferred stock
to the extent Of two million of dollars,
and to require payment OF not less than ten
per cent. cash, with authority to reject any
subscription from parties considered not
sufficiently solvent for the amount SUBJ
scrihed. Authority is given the company
to issue bonds TO the extent OF Sl,G00,000,
bearing interest at six per cent. per annum,
payable semi-annually; said bonds to be
used 1irst for the purpose OF acquiring title
rights, franchises, and property Of the James
River and Kanawha Company; the stock
holders representing mai iority Of the stock
in the James River and Kanawha Com
pany consenting to the sale, and the James
River Valley Railroad Company assuming
all the debts of the James River and
kanawha Company, and allotting two
millions OF ful-paid common stock
to the stockholders Of said company.
The remaining two millions of common
stock to be held by the company until the
last assessment of the preferred stock shall
be fully paid by the party holding said pre-
ferred stock; then said stockholders shall
be entitled to receive equal amount of CON-
mon stock. Authority is granted to con-
solidate with the Buchanan and Clifton
Forge Railway Company. and to pay the
stockholders other than the James River
and Kanawha Company the amount which
they may have paid for their stock, with in
terest from the time OF such payment. The
Board OF Public Works to be satisfied that
the two millions of preferred stock have
been subscribed by solvent parties and ten
pcr centum of same paid in before they issue
proxies representing all the stock held byt he
State in James River and Kanawha Com
pany to the JameS-River Valley Railroad
Company, and not to transfer the stock to
said company until the whole road OF said
company is completed. The said James
River Valley Railroad Company to organize
and commence work in four months, and
to finish said road within two years from
the passage Of this act.
Thus, said he, it is plain from the provi-
sions of the proposed charter that these
gentlemen intend to build the road to be
used in place of the canal, in order to de-
velope the wealth OF the great valley Of the
James river and 10 build up Richmond and
old Virginia. TO show the advantages OF
a railroad over the canal we ask you to look
back for moment. In 1919 the James
River Company was formed to clean out the
James river. In 1920 an act was passed to
|
James river and Kanawha river. The plan
was to have canal to some point not lower
than Lvnchburg; then turnpike across to
the Kanawla river, and that river to be
made navigable for Notwithstanding
that ut that early period our forefatbers
knew the advantage Of steam, it being thir-
teen years after the first steamboat on the
| Hudson, and eight years after the one on
the Clyde, in Scotland.
| In 1882 the James River and Kanawha
canal was chartered. There were three plans
granted. First, canal to some point not
lower than Lynchburg, with railroad to
the kanawha river; second, canal to Lynch
burg and railroad to the Ohio river; and
third, railroad from Richmond to the Ohio
river. Thus 1t appears that our fathers two
years after the first railroad in the United
States provided for one from Richmond to
the Ohio. But the canal was made instead
| OF the road, and what has been the result !?
Work was begun in 1886 and suspended in
1858. Amount expended, S12, 100000; the
average time OF expenditure between 1886
| 1S5S-twelye years-principal and interest
at six per cent. compounded, $24 800, 000.
From 1858 to 1S7S-tWenty years-principal
and interest at six per cent. compounded,
S6G, 3334, 900. How much has been returned by
dividends? Not one cent. Nor is this all.
There now stands debt against the COM
pany Of $1,650,0O0, while the cry is still
| for more money to repair that which
has always sunk every dollar put in it,.
| or the S12, 100000 in stock sunk in the ca
nal the State has $10,400,000; and though,
as State, she is not bound for the debts OF
the company, vet as stockholder she owes
ten twelfths of 81 1850, ,0OO-that is, $l,375,-
900. We are told that the State should try
to make money by the sale OF her interest
deed OF trust of 1857 for $750,000, and an
due and unpaid on the bonds secured in
the first deed, and under the terms of deed
sale may be made. Those bonds are worth
only $3.50, and seeond-class $50, while
the other bonds, under the third deed, will
not sell for ten cents on the dollar. The
question is not can the canal support itself,
! but win you let it be sold under the deed
for not more tfnn enough to pay tjrst-class
| creditors, or let us have it after paying all
the debts and then giving two millions OF
| dollars in common stock in road which will
| equal any ever built in the United States.
/ Why do I saysif q road is builtup this great
valley it will .pays Because it is the grand
artery the AortG--0ver the heart OF the
State. Look to Baltimore. In 1926 the
/ Baltimore and Ohio railroad was chartered
AT first they used horsepower, but III 1888
commenced the use of steam. Her capital
stock is now SIC, 900, 900; from 1S40to 1860
paid 5 per cent. dividend, from 1860 to 1878
paid S per cent, aud sometimes 10 per cent.
Par value OF stock, 800. In 1912 1t sold
| at $3.50: now S1l0 to $1l2-n0ne in the