The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-11-29

| SIGNATION AND REELECTION OF MAJOR
JOHNSTON AS PRESIDENT OF THE CANAL.
| COMPANY. &C., &C.
When the committee Of fifteen of the
James River and Kanawha Company having
under consideration. the proposition OF the
| Richmond and AIlegbany Railroad Com.
pany adjourned on Wednesday night the
| question OF guarantees had been referred to
a subcommittee, who were expected to re-
port Yesterday morning at IL O'Clock, to
which hour the general committee had adj
| journed. .....
| THE sUB-CoMMITTEE'S REPORT.
| The general committee met again at the
canal company's Office about half-past IL
| o'clock-General Logan in the chair, Colo
| mel William ?. Munford secretary.
Major Johnston, from the subcommittee
appointed to consider the question OF guar
antees to be required of the Richmond and
Allegheny Railroad Company, reported that
they had been compelled to consider the
entire question OF sale, and therefore sub
mitted the following report:
We. the subcommittee, respectfully re-
port that if, upon n full consideration OF all
the circumstances, and especially Of the
difficulties and dangers attending the far
the policy and plans OF the company, the
stockholders shall now determine to aban-
don the said policy and plans. involving
| the restoration of its line OF canal from
Richmond to Buchanan and Lexington,
| with its railroad connection from Buchanan
! to Clifton Forge, and the preservation OF
| the entire line under State control, then, In
that event, we unanimously recommend the
adoption OF the following as the terms OF
an agreement to be entered into with the
Richmond and Allegheny Railroad Compa-
ny, with the recommendation that the same
be accepted and adopted: .....
The Richmond and Allegheny Railroad
Company, corporation chartered by the
General Assembly OF Virginia, being author
lied by its charter to acquire the property
and franchises Of the James River and ka-
nawha Company, and having made propo-
sqIs to the stockholders of the said James
River and Kanawha Company in general
meeting assembled looking to such acquisi-
tion; and the said James River and Ka-
nawha Company being willing to make such
sale and conveyance OF its property and
franchises on the provisos and conditions
which are hereinafter expressed; the fol-
lowing preliminary contract is this day
made and entered into by and between the
said two companies:
First. The consideration to be paid and
rendered by the Richmond and Allegheny
Railroad Company shall be the assumption
aud payment of all the debts and obligations
OF the said James River and Kanawha Com
pany named in the accompanying schedule
which could be asserted against the James
River and Kanawha Company without
meaning thereby to acknowledge or give in
any manner any validity to any such debt
or obligation, which it could not have il the
same were asserted, againstthe James River
and Kanawha Company; and reservlng to
| the Richmond and Allegheny Railroad Com
| pany the right to make any and all defences
in the law or in fact which the said James
River and Kanawha Company would have
the right to make il this contract had never
been executed in the manner hereinafter
stipulated, and also the construction and
equipment Of the railroad hereinafter de-
scribed. ..g f.
Second. sum of money to be agreed
upon, not less than $4,000 nor more than
1000, shall be paid in cash by the Rich
mond and Allegheny Railroad Company to
the James River and Kanawha Company !;
and said sum shall be expended and paid
out by the president and directors OF the
said James River and kanawha Com pany
in payment of salaries and wages due off,
GERS and employees up to the time OF the
transfer, which may be made as hereinafter
provided, and in the payment OF such debts,
charges, costs, and expenses as may have
been incurred in the administration OF tue
company since the 1st day Of May, 1867
and should such sum be insufficient to pay
all of such claims the said President and
Board Of Directors shall have full discretion
and liberty in paying such as they may select.
But If there should be surplus remaining
| Il nt,e .s,,pr t1,a nInyt,
hereinbefore described, such surplus shall be
paid to the Richmond and Allegheny Rail-
road Company. But the bonds which may
| have been given, or which are TO be given,
to the State of Virginia for the maintenance.
clothing, and guarding OF convcts, aud
which said bonds are by the terms Of the
CONTRACT with the State to be payable five
years after their date, shall not be included
in the charges and expenses OF administra-
ton payable under this clause, though fully
included in the debts and obligations as
sumed by the Richmond and Allegheny
Railroad Company.
| Third. The remaining Indebtedness Of the
James River and Kanawha Company con-
sists principally of its mortgage bonds Of
different classes, varying in market value.
The Richmond and Allegheny Railroad
Company is willing to make this .contem-
| pun OulS Ou luC COHulGtOu
it can negotiate an equitable settlement with
the creditor Of said canal company other
than those specially paid under the I'd
section OF this agreement, and will forth
with proceed with such negotiations. Said
| last named company reserves the right, on
| failure in such negotiation, to give notice
| in writing to the President Of the James
River and Kanawha Company, or to its
secretary, or to any officer found in charge
or its principal office in Richmond, within
sixty days from this date, OF the failure OF
such negotiation, and Of the consequent an
nulment OF this contract. But II said no.
tice is not given within said sixty days the
right to give the same shall cease, unless the
time be extended by the Board Of Directors
OF the James River and Kanawha Company.
Fourth. The Richmond and Allegheny
Railroad Company binds itself to complete
and equip railroad from the city OF Rich
mond uiG the city OF Lynchburg along
thevalley OF James river to the town OF
Buchanan, In Botetourt county, with a
branch OF like gauge from the mouth OF
North river to some point on its main line
to the town Of Lexington, in the county Of
Rockbridge, to be agreed upon between the
county OF Rockbridge and the Richmond
and Allegheny Railroad Company, and
to commence work thereon within thirty
days after the execution by the James River
and Kanawha Company Of the conveyance
hereinafter provided for, and to complete
and equip one hundred and six miles there