The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1893-02-23
New YORK, Jan. 81, 1893.
JOIN C. FuLLrrr, Esq,
Bullitt Building,
PHILADELPHIA, Penn.

DUllIlL DuiiQiIlS,
Philadelphia, Penn.
My DEAR Sm:-As suggested by you i'll
our conversation on Wednesday afternoon,
write YOU the principal points which
think arc Of Importance to the V. L. e..
Co. s situation.
The Company originated in the follow
ing manner: Certain parties bought up
lands in Southwest Virginia, East ZEN
nessee and Western North Carolina. Some
of these lands were bought in fee, on some
only the mineral rights were purchased,
and, as to part, an option was taken.
Under this latter head came what was
known as the Carter & Campbell grants,
being grants to coal lands in Western
Virginia, covering probably 100000 acres.
On this land there were numerous squat
ters and some other adverse claims of
title. The holdings Of the Company in
Guiding this, were roughly estimated to be
about 20O, 600 acres The parties securing
these lands, mineral rights and options,
associated themselves with others, making
ten holders altogether. Among these were
Messrs. Geo S. Scott, John h. lnnan and
VIM. z. Clyde, Of New York, and N. Thay-
err, Of Boston. These gentlemen proposed
to organize stock company which was to
include the property of tie Bailey Con-
structon Company, this latter Company
being engaged iii building what is known
as the S. A. & O. railroad, from Bristol to
Big Stone Gap, which railroad constituted
the principal part of its assets. The
parties representing the two Companies
came to an agreement as to the terms of
consolidation, and Mr.. Scott requested
to prepare prospectus, to. which sub
scriptions would be invited. He did this,
and had a number of copies prepared! by
typewriter. Upon its being examined be-
fore it's, issue,eit WIS discovered that he
had omitted to state in this prospectus
that an amount OF money, estimated to be
100000, would lie required to clear up
the titles. prospectus stating this was
Immediately prepared, and, am told by
the gentlemen who were then interested,
that they had supposed that the copies of
tile defective prospectus had never gone
into circulation. Itsappears, however. that
Mr.. Ayers, WHO was then Attorney Gem
eral Of Virginia, aud was much interested
in the Bailey Construction Co., got one
copy, ard one or two other parties, either
throughshim ordirectfy, got others. Mr..
Ayers showed this to various parties in
Virginia, and was asked by several to
secure some of the stock for them, which
he did. Mr.. Bronson, who was one of the
original ten, also received some subsctip4
tions from his friends, and to one of them
The delivered copy of the defective
prospectus. III is claimed that the subj
sorihers alfsigneti the correct prospectus.
This was in thespring of 81. During the
summer Mr. Seldom, with mining engi-
neer, went oyerithe property and made q
yersunfayorable reportof Ito his friends,
especially on the matter of the defects Of
title. lie claimed hat Ills signature was
TO d copy OF the prospectus which had NO
ILLUSION TO the $ltti, 900 due, aud stils mat
ter culininsted III 4 sui, which is still
pending. For 4 time, Mr.. Bailey can-
|tinued lin centrais OF the Bailey Constrac-
|fion Go. and the building of the railroad,
HUT WAS finally discharged as Manager
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