The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-08
JERSEY COMP ANY
GETSLARGE AWARD
Virginia Air Line Railway Or
dered to Pay $4,000 Damages
to J. NJ. H. Cornell & Co.

More than four years OF litigation
came to an end yesterday when the
United States Court Of Appeals ordered
the Virginia Air Line Railway Com
pany to pay damages amounting to-
s34,l41.72, to ]. NJ II. Cornell & Co,
of New Jersey. The opinion reverses
the Judgment OF the United stats
District Court at Lynchburg. which re-
turned d verdict for the Virginia COM
pany, awarding 1t damages In the
sum of s21.77S.S3.
The virginia Air Line Railway Com
pany is a Virginia corporation which
was formed TO build and operate a
railroad TO connect the tracks of the
main line and of the James River d.
vision of the Chesapeake and Ohio
Railway system. The new road was
TO cross Fluvanna County from north
to south. and the company had con-
tracted to have IL in operation by
May /. 1908.
On December 3. 1906, J. n H. Cor
nell, a New Jersey corporation, en-
tered into an agreement with the
company for the construction of the
road, undertaking to complete 1t by
May l, 1908 for a sum OF money not
10 exceed ss56.o0o, the contract nam
ing a number OF contingencies OF a
technical character. in the event of
which the cost was to be Increased
Charge Breach Of Contract.
Friction arose early between the
construction company and the rail-
road company over clause in the
contract, which provided a maximum
sum OF sssSSS per mile to be ex-
pended by the contractors for bal
lasting. The railroad company held
that the term ''ballasting' Included
properly aligning and surfacing the
track, while the New Jersey company
insisted that it was liable only for
the actual placing of the rock.
Pending the adjustment OF the dis
pute, work was at a standstill, with
the result that when the difference
was finally adjusted. It was found i'm
possible to complete tho road within
the stipulated time. It was finally turn
ed over TO the company on August %,
1908. and accepted as q skeleton track
in fair running surface On the sub
grade"
The railroad company fled suit for
a large sum of money for breach OF
contract, and the contractors retaliat-
ed by fling a mechanics lien for Ss3.-
256.96, alleging that changes in plans
following the adjustment of the bal
lasting dispute had caused II large
losses treason of suits fled against
it by subcontractors because OF GER
tain reelassifcations.
Mass of Evidence.
The opinion of Judge Rose. Of the
Circuit Court of Appeals, reviews tho
evidence in the case IN twentyodd
typewriter pages. Much of II Is ex-
tremely technical and seeks to estab-
lish the comparative liability of the
railroad company and the contractors
for the noncompletion OF the road
within the specified time
The United States District Court for
the Western District OF Virginia. at
Lyncheurg, held the New Jersey Cor
poration liable for s20.47s excess over
contract price for placing of ballast
and s35,443.75 for failure to complete
by May 1. 1908. The Circuit Court of
Appeals holds both OF these awards to
be unJustifable- In accordance with
this Judgment II deducts from the to-
tai OF these two awards s55.s2o.51. the
principal sum OF s21,77sss. which was
awarded to the Virginia company by
the Lynchburg court. rendering 6 clear
favor of the New Jersey corporation.
assessing II also with all costs and
interest from March %. 1910.
The total length of the road. the
construction OF which gave rise to the
litigation. r. a little more than TWEEN
nine miles It extends from a point on
the Chesapeake and Ohio Railway near
Lindsay TO point on the James River
Bluff.