The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-12-05
Valley Railroad.

BALTIMORE AND B. & 0. r. r. DECLINE
THE PROPOSITION OF THE VALLEY
sTOCKHoLDERs-THE CHARGE OF A DIS
LY DENIED-THE THRICE TOLD TALE OF
THE VALLEY R. R. AGAIN REPEATED
ANOTHER PROPOSITION TO LEASE THE
ROAD.
When Mr.. Evans called to order the ad-
ionrned meeting OF the Valley Railroad
stockholders, last Tuesday evening, the Com
pany:s office was CT DIVIDED. All of the in
tcrests, except Roanoke and number of
individual stockholders, were represented by
the same proxies that appeared at the last
meeting, with the exception OF Staunton's
representation, Mr.. Evans having been re-
inforced by Capt. Ransom and Mr.. Burke.
Besides the proxies were a number OF spec
tators, among whom were Richard Carter,
Commissioner Of Railroads for the State OF
Virginia, Gen. Meem and brother, of Shen-
andoah, Judge Mclaughlin. and others.
The reply Of Baltimore city, and the B. &
O.. r. r.. to the proposition for the division
of the road, rendered by the Valley stock
holders was read.
THE ANSWER.
1t declined acceptance Of the proposition,
and stated the reasons for such action at
great length. Baltimore's subscription was
based upon the understanding that the road
sht ul be through route. Should the prop
osition made be accepted, one Of the princi-
pal objects which induced the city to hazard
il, money as a subscriber to the stock Of the
road would be defeated, and the Commits
sioners of Finance did not feel warranted,
were there no other considerations present.
ed, in so radically changing the character
and direction of the city's investment.
Baltimore and the B. & O. r. r. snbscrib-
cd and paid $2,020,C00 and they are now
asked to surrender 81 miles of read upon
which has been spent over s1:000,0 900,
sum exceeding by over 100000 the entire
amount received to date from the Valley
stockholders. In addition to this the b. d
O. is to surrender s214, 900 in bonds held as
collateral for $l93, 1000, advanced in cash at
~
extreme financial difficulty to save the road
from sacrifice. In full consi deration OF the
surrender they are asked to accept 26 miles
of completed line upon which has been eX-
pended 1861, 900 less than the amount actu-
ally paid in cash by the two corporations.
This proposition was deemed so unfdr
that its simple statement would have been
sufficient to convince any uuprejudiced per-
son OF its one-sided nature, and the Finance
Commissioners would not have considered 1t
necessary to say more were 1t not that dis
position nearly akin to repudiat ion has been
exhibited on the part of some OF the sub
scribers in the Valley, which rendered it i'm
possible to make available the bonds on
hand, for which certificates of stock have
been issued. and were it not that it has been
more than minated that in the event Of
the rejection of this proposition an applica-
ton will be made to tn Legislature of the
State of Virginia to revoke the Company's
charter or otherwise embarrass its opera
lions.
The answer then reyie wed at length the
history of the road from its inception, re-
citing that at the commencement of the en-
terprise the Maryland stockhold ers paid up
promptly whilst those of the Valley were
dilatory in furnishing bonds, and large
portion of the individual stockholders failed
70 meet the demand: made upon them. AT
ter the work ceased, Roanoke enjoined the
use of her bonds, and to this day has never paid
dollar. Botetout and Rockbrdge had delivered
only part of their bonds, and their action
had been such as to render impossible the
negotiation of even the part surrendered.
The city of Staunton pursued practically
the same course as the counties. Having
subscribed $l50.000, it delivered but $780,,
900, making even that delivery conditional
upon the Company's not calling for the bal
ance until the work was resumed, notwith-
standing the fact that the road was opened
of all its benefits.
| Many of the individual subscribers to the
stock in the Valley failed to res pond to the
call for quotas, and the sum of 500. 800 de-.
posted to the credit of the Valley Railroad
! Company in the Valley Bank at Staunton
| (5eing the amount Of the first quota on in
dividual subscripton) was enjoined before
the money could be withdrawn.
The principal cause Of dissatisfaction on
the part Of the Valley interests, was fall
ure to resume work. The response to the
proposition closed with the answer to this, in
the following words
sThat the great financial revulsion COM
mencing in 1878 and lasting until the pres
ent time, which has so seriously affected all
railway interests, should have prevented the
negotiation of the bonds, and thereby COM.
PEELED the Company to suspend operations.
was misfortune in which the city OF Balti
more and the Baltimore and Ohio Railroad
Company have participated to their full ex
tent, these two interests having suffered an
annual loss OF interest to the extent of $50,
900 each. Having complied with all their
obligations, and even gone beyond what was
incumbent upon them,t they cannot but view
this proposition, which practically cortem-
plates the abandonment Of the object they
originally had in view,as unwise, injudicious
and unreasonable, and for the causes stated
| they must decline their assent. They, how
ever, advise their colleagues to do as other
communities laboring under similar difficult
ties are doing-namely, to abide patiently
their time until returning prosperity rem
ders the prosecution of the scheme to com
pletion practicable, and in the mean time by
adopting such judicious measures as will res
tore and strengthen their credit, place the
assets of the Company upon such a footing
as will enable it to liquidate its indebted
sand make available the unpaid subscrip-
| tiOns when reOllireu -
The answer was signed by F. c. Latrobe,
Jas. Hodges, Jas. Sloan, Jr., Finance Com
missioners CT Baltimore City, and by Jno.
W. Garrett, President of the B. 6 o. r. r.
HOW THE REPLY WAS RECEIVED.
As the Secretary in voice of oily amablity,
read the answer. the bile began moving in
the Rockbride delegation, but it remained
comparatively placid until the document was
concluded.
Mr.. Burke then moved that the answer be
spread upon the minutes of the meeting,
and in so doing dashed the blue into the
white powder, and the mixture commenced
to sizzle.
Mr.. Anderson moved as an amendment,