Year: 1867

lion. JOHN b. BALDWIN.


s'h f STAUNToN, June 5th, 1867.
Robert H Maauy, Esq:


My DEAR SIR-Yours of the 4th instant is
just received, and hasten to reply. The let
ter of General Lee was written in answer to one
from me, sending him copy of the pamphlet
published by our commissioners. The letter OF
such man, on such subject, containing no
restriction upon the use to be made of it, I re-
gard as public property, and as such you are at
liberty to use it. sent the original to. friend
in New York, who takes a lively interest in the
success Of the Covington and Ohio Road, and
who, in acknowledging the receipt of it, says
'"The letter of General r. g. Lee will be val
liable not only for the furtherance of the enter
prise, but, to me, it will be souvenir which
will be kept with great care as coming from a
great and good man; a man whose character
in my estimation has no superior.


[ see from the Dispatch, of this morning,
that our contract has been signed, at Wheeling,
by the West Virginia Commissioners, and
hope that the meeting called for Friday night
is an earnest Of the purpose of the Central Rail
upon this great work with full sense of its vi
tai importance to every interest in Virginia and
especially to all that concerns the manufactu-
ring and commercial future of the State


wish [ could be present at the meeting, but
[ find that professional and private business,
too long postponed for matters Of mere public
concern, imperatively demands my present un-
divided attention.


The more think of the arrangement made
with the Central Railroad the better [ like it.,
and the more [ see in it Of hope and promise
for the great work about which we have thought
and talked and worked so earnestly together
Allow me to state very briefly a few of the rea-
sons which give me such encouragement:


l. The Covington and Ohio Road, standing
alone, has had merit enough to attract the ear
nest interest OF such men as Pell, and Cottenet,
and Grinnell, and Cutting and Fish, and to in
duce them to make active efforts to obtain the
funds by negotiation in Europe, to enable them
to undertake and construct the road as an in
dependent work. These gentlemen are no
mere speculat0rs or charter brokers they stand
in the very front rank of intelligent, sagacious
men of capital and of character, whose well
considered approval Of the enterprise goes as
far as human Judgment can, to stamp the
work as one of real, substantial merit


2. These gentlemen, when planning the con-
struction of the Covington and Ohio road, as
an independent work, as a matter Of course had
in their contemplation the benefits and advan-
tages to be derived from connection with the
Virginia Central road, as means of receiving
and forwarding trade and travel But they
had no expectation Of any financial connection
between the two roads, and certainly they nev-
rangement by which the two roads, when COM
pleted, should be worked together in such a
manner as to. give to the Covington and Ohio
road the entire earnings of their whole line, to
the extent of per cent, upon its full cost be-
fore the Central road should receive one dollar,
and yet this is the effect of our recent contract.


3. The whole line from Richmond to the
Ohio is 42S miles long, of which the COvington
and Ohio is 22S miles and the Central is 2O5
miles. IF completed, and worked as separate
establishments, having all the benefits of the
connection in trade and travel, but with dis
tinct accounts and profits there could be no
doubt that the Central road of 205 miles would
be far more valuable and profitable than the
Covington and Ohio road Of 223 miles, The
new arrangement, however, proposes that all
road until they reach per cent upon the out
lay for its construction, and then that the Cen
trail road shall begin its receipts out of the
common earnings.


f. The stockholders of the Central railroad
could never have been induced to consent to
such an arrangement except upon the convic-
tion that the road when completed to the Ohio
river, will pay per cent on the entire cost,
and thus in the end bring about equality among
the owners Of the two divisions of the road.
1t may be that the real result will fall some.
what short of this expectation but it is hardly
possible that it will fail so entirely as not to in
sure the eight per cent. upon the outlay for the
Covington and Ohio road. A profit Of four or
five per cent. on the entire line would be ample
to meet the requirement of the eight per cent.
preferred stock, and the experience of all the
great through lines establishes such result as
among the certainties of railroad enterprise
Even the Central road, in it's incomplete state,
before the War, was actually paying six per
cent on its debt and five per cent. on its stock
besides setting apart sinking fund


5. The best consideration | have been able
to give the subject satisfies me beyond a doubt
that the preferred stock for completing the
Covington and Ohio road will be reliable
eight per cent. stock free from taxation. If
this conviction can be impressed upon the
minds of capitalists the making of the road
may be considered an accomplished fact, and it
seems to me that just here is the point to which
we should address our first and most earnest eff
forts, We must render this eight per cent.
certain beyond controversy and palpable to the
most common observation. To do this, it has
occurred to me, is the proper mission of the
cities of Richmond, Petersburg and Norfolk =
Let these three cities unite In guarantee that
this preferred stock shall, either permanently
Or for given number of years, yield eight Der
cent. and let them make efficient and reliable
preparation to make good this guarantee by a
reliable contribution of any deficiency and [
think the stock would pass In every market for
what it processes to bean eight per cent stock
n n L. - -