The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-11-13

large majority.
PRESIDENTS REPORT.
In the Presidents report the operation
of the road for the fiscal year ending
Sept. goth, 1879, was put down as
follows:
1878. 1879.
Gross earnings, S4o,6oI.5r S45,oo9.5o
Expenses, s5,63o.1o 34.3o7.99
Net earnings, S5,o61.41 $40, 7o1.5
A comparison with last year shows an
increase of S4,317.So, which is accounted
for by the fact of the road doing much
heavier tonnage business than in 1878
and at better rates.
A comparison of expenses shows de-
crease of 81, 3a2.1I. During the year
payments on subscription have amounted
to $780, on rent $S53.43, and on
bond paid by City Staunton SI,I4I.52.
Since the last meeting the force of the
road department has been cut down, but
has been again renewed in consequence
of the increased business. Considerable
permanent repairs have been made along
the line, and others are needed.
The general account with the Balti-
more & Ohio Road shows reduction in
the debt of SIS, 500. 10, or balance due
ofSI78,254.23,
The bonds hypothecated with the B.
& 0. R. R. amounted to $2o4, 500. A
sale of $4,000 of bonds has been made at
SO and 821a per cent, and the proceeds
applied to the payment of the debt.
The promising outlook for business
generally, encourages the hope that the
road will make a better showing next
year.
At the last meeting committee was
appointed to invite proposals for the
completion of the road, but no proposals
were received.
During the last session of the General
Assembly of Virginia. at the instance of
some Of the Valley counties, a bill was
passed which required the road to be
build to Lexington, in specified period,
and thence to Buchanan and Salem, I'M
der penalty of forfeiture of the rights and
charter of the company. Referring to
this act, the report stated that it
amounted to practical confscation of
the road, unless the company can build
the line to Salem within the time pre-
scribed. The sale that Is authorized
after the forfeiture of the charter, as ju-
dicially declared, vests in the purchaser
the right to its property, but subject to
the like requirement of building the road
to Salem within prescribed period, and
in case the purchaser fails to build the
road as required by the act, then the
property is forfeited to the several coun-
ties that have subscribed to the capital
stock of the original company.
The City of Baltimore, the report con-
tinued, has paid its subscription of ST.
900. 900 to the capital stock. The B. &
O. Road has paid 1920, 900 individ-
uals have paid large sums on private sub
scription, and the City of staunton has
done likewise, and yet all that has been
paid is to be taken away from these par
ties who have invested their money in
good faith, and turned over to the
counties in the Valley who have not yet
paid up their subscription.
''It will be seen that with this act hang
ing over the Company, and threatening
its existence, it will be utterly impossible
to raise money by mortgage upon the
road to enable the Company to complete
it to Salem. With such legislation as this
in Virginia, capitalists would not advance
their money to purchase bonds of the
Valley Company. Money cannot now
be obtained for investment in Virginia
or in securities of Virginia COZ
porations. hAe~uoc OF the widespread dis
trust of them, which has been increased,
whether properly or not) by the result
Of the late election, which the public has
been led to believe turned almost entire
Iy upon the question whether the debts
Of the State should be properly paid or
not. In view of the fact that the bonds
Of the State itself are at such low rates in
the market, depreciation resulting, it
is understood, from the disposition appar-
emily manifested by the people of Virgin
ia at the recent election, to disturb what
was believed to be final settlement of
the debt of the Commonwealth, and that
the actual investments of the stockhold-
ers in the stock of this Company, is put
in peril by the unfriendly act of legisla-
lion above referred to, it is perhaps reas-
enable, at any rate it is certain, that the
investing public will be careful about
placing their money in bonds of Vir-
ginia corporation, and it is equally true
that the means of prosecuting the work
Of the Company itself, cannot be obtain
ed without the negotiation of its own
bonds.
The position, therefore, of the Valley
Company, under this law, is simply this:
That the law requiring it to build its
road within specified period, at the
peril of losing its existence, and at the
same time, by the very fact of there be-
ing such law, it is deprived of the means
to do that which the law requires. be-
cause parties cannot be found to invest
their money in the bonds of the Com
pany, whilst the legislation of the State
is hostile to it and its interests
The board had no recommendation to
make to the stockholders, but expressed
the opinion that the interests of those
who were chiefly instrumental in procur-
ing this embarrassing and unfortunate
should induce them to bring
about its repeal.
The report closed with an expression
of regret at the death of the late Director,
Richard Norris, jr.
ACTION OF THE MEETING.
The report of the President and ac-
documents were referred to
! committee consisting of Messrs. Evans,
Barclay and Duval, who, after prolong-
a retirernent returned with q renart an