Local Matters

September 1, 1868

Summary

Tells the story of the deals plans and struggles of a railroad project that connected Virginia and Ohio.

Transcription

LOCAL MATTERS. Chesapeake and Ohio Railroad- Contract for its Completion. - The following is the contract, as signed, between the commissioners of Virginia and West Virginia and the Virginia Central Railroad Company for the completion of the line of railway between Covington and the Ohio river : Memorandum of a Contract for the Construction of the Railroad from Covington to the Ohio River: The parties to the contract are : First. - The commissioners of Virginia under the following acts of the General Assembly - viz., 1st, " An act to incorporate the Covington and Ohio Railroad Company,'' passed February 26th, 1866 ; 2d, " An act to provide for the completion of a line or lines of railroad from the waters of the Chesapeake to the Ohio river," passed March 1st, 1807. Second.- The commissioners of the State of West Virginia, under the following acts of the Legislature - viz., 1st, " An act to incorporate the Covington and Ohio Railroad Company," passed March 1, 1866. 2d, 44 An act to provide for the completion of a line or line's of railroad from the waters of the Chesapeake to the Ohio river," passed February 26, 1867. 3d, "An act to amend and reenact the fifteenth section of an act providing for the completion of a line or lines of railroad from the waters of the Chesapeake to the Ohio river," passed February 26, 1867, and February 6, 1868. Third. ? The Virginia Central Railroad Company, the said commissioners of Virginia and West Virginia, by virtue of the authority given them by the statutes already referred to, and in order to secure the speediest and best construction, equipment, and operation of the said railroad from Evington to the Ohio river according 10 true intent and meaning of the ca:(^ statutes, have contracted therefor * its the said Virginia Central Railroad Company as the party giving the be^t terms and the mo?t satisfactory assurances of having the capital, capacity, and responsibility contemplated and required by the said statutes : and have introduced into the said contract the following additional stipulation proposed by the stockholders of the said Virginia Central Railroad Company in general meeting on the 29th day of .November, 1867, arid accepted by commissioners being for the benefit or' their respective States, and in furtherance of the purpose declared by the legislation aforesaid ? viz., 1. The work to be commenced and completed in the time and manner provided in the charter. 2, The company to guarantee four per cent, semi-annual dividends upon any stock which may be subscribed for the construction of said road after the completion of the road to the Ohio river, and in the mean time said stock shall be preferred in any dividends which shall be declared by the company to an extent not exceeding four per cent, semi-annually. 3. The company to borrow such Bums of money at a rate of interest not exceeding eight per cent, per annum as may be necessary, in addition to the funds arising from stock subscriptions for the completion of said road, and to execute a lien on its property and revenues to secure the payment ./i the principal and interest of such loans: Provided , That subscriptions may be received to be applied to the construction of the work continuously l'rom either end of the line. 4, The company may guarantee the payment of principal and interest of bonds to cities and counties receivable in payment to subscription to stock. - [>. That bonds of cities and counties at ninety cents in the dollar, and bearing eight per cent, per annum interest, convertible into preferred stock, may be received in payment of subscription of stock. 6. Nothing contained in any contract made by this company shall have the effect to deprive the present creditors of the company of their claims for satisfaction out of the present property of the company ; and it shall be the duty of the president and directors, before executing any further lien on the present property of this company, to secure by mortgage any portion of the funded or loaning debt not heretofore so secured that cannot be promptly paid in the ordinary administration of the affairs of the company. And the said Virginia Central Railroad Company having undertaken and contracted to construct the said railroad on the terms and conditions after, it is hereby declared and certified that the said company shall hereafter be known as 44 The Chesapeake and Ohio Railroad Company and is entitled to all the benefits of the charter of the Covington and Ohio railroad, and to all the rights, interests, and privileges which by the statutes aforesaid are conferred upon the Chesapeake and Ohio Railroad Company when organized. In testimony whereof the Commissioners of Virginia and West Virginia have set their hands and seals. And the said Virginia Central Railroad Company has caused the corporate seal of the company to be affixed, with the signature of Edmond Fontaine, president of said company, this 31st day of August, 1S68.
About this article

Contributed By

Jacob Markman

Identifier

MarkmanJacob-18680902-localmatters.pdf

Citation

“Local Matters,” Reconstructing Virginia, accessed November 27, 2021, https://reconstructingvirginia.richmond.edu/items/show/1107.