CORRESPONDENCE
OF THE
PKESIDEjSTT
OF THE
îaiES RIVER Â1RAIWHA COIPAM.
.-ri
i
-•'rV •
^VITII
AX ASSOCIATION OF FIIEXCH CAPITALISTS,
WHO PROPOSE TO COMPLETE THE
ANAL AND WATER LINE IMPROVEMENT,
FROM
BUCHANAN TO THE OHIO RIVER.
RICHMOND :
PRINTED AT THE DISPATCH JOB OFPICÍ.
1860.
Extract from the Twenty-Fifth Annual Report of the President and
Pireetors, to the Stoekholders of the James River and Kanawha
Company.
The board have had before them for several months past offers from
an association of French capitalists, represented in this country by Mr.
E. de Bellet des Minieres, proposing,
First—To buy out the works, property and franchises of the com¬
pany; so that they and their associates may become the successors of
the James river and Kanawha company, enjoying all its rights and
privileges, and bound by all its obligations :
Second—To lease for a term, or in perpetuity, the works of the
company, finished and unfinished, with the right to complete them ac¬
cording to the charter and plans of the company :
Third—To loan an amount of capital, upon an adequate security,
sufficient to complete the improvement to the Ohio river:
Fourth—To undertake as contractors to complete the work, re¬
ceiving in payment the bonds of the company satisfactorily secured,
the usual form of contract being observed, with full right of control
on the part of the company by its officers and agents.
Mr. Ue Bellet, whose correspondence on this subject has been ex¬
ceedingly earnest and anxious, assures the board that his associates
include some of the first financial houses in Europe ; that they have
had experience in similar undertakings ; that they are the owners of
a very large and valuable tract of land in western Virginia, which it is
their interest to develop and improve ; and that they can and will fur¬
nish any proper guarantee the company may require of their ability to
comply in the most sstisfactory manner with any engagement they may
enter into.
To these proposals, flattering as they are, the board can only reply
that the company is not in condition to act without the previous or con¬
current action of the legislature Nevertheless, they are brought to the
notice of the stockholders for such action ôn their part as may be
deemed proper.
Office of tub James River and Kanawha Company,
Richmond, Yirginia, November 21st, 1859.
}
To Mr. Ernest db Bellot des Minieres,
&c., &c., &c., &c.
My Dear Sir:—At the twenty-fifth annual meeting of the company,
which, was held at their office in Richmond on the 24th of October last,
the board of directors informed the stockholders of the offers which
were made by yourself and your associates, some time since, for the
completion of the James River and Kanawha Canal. The subject was
referred to a committee, for consideration, and the committee after¬
wards reported a resolution, which was unanimously adopted, in these
words, to wit :
" Resolved, That the president be requested to continue his corres¬
pondence with Mr. E. de Bellot des Minieres, with a view to the nego¬
tiation of an arrangement for the completion of the James River and
Kanawha Canal, upon terms satisfactory to the board of directors,
subject to the approval of the General Assembly."
It affords me pleasure to comply with this request of the stock¬
holders.
In doing so, I shall pursue generally the order of topics, suggested
by the letter which you did me the honor to address to me in March
last, and will furnish you, as far as I can, in a condensed form, the
information you then desired,
A history of the James River and Kanawha Company would un¬
doubtedly be both instructive and interesting—and to some extent, is
obviously appropriate to such a negotiation as that you have proposed
to us,—but within the brief time, at my disposal, previous to the meet¬
ing of the Legislature, surrounded as I am daily by urgent official du¬
ties, it would be impracticable for me to collect, and perhaps tedious
to relate, all the facts and events which otherwise I would be gratified
to lay before you. I shall therefore, by way of narration, only at¬
tempt to show, that the projected line of the James River and Kana¬
wha improvement, constituting the central water line through Virginia,
has long been regarded with interest by some of the most eminent men
of our State, and that it promises, when completed, as grand and bril¬
liant results as perhaps ever followed the construction of any improve¬
ment whatever.
It should be premised that the construction of canals, for transpor¬
tation, is of comparatively modern date in those countries with which
Yirginia has been most in communication. The first important canal
constructed in France, was that of Briare, begun in 1605, during the
reign of Henry .IV., and completed in 1642. The first considerable
work of this kind in England, was the Sanleey canal, for which an act
of Parliament was passed in 1755. The Duke of Bridgewater com¬
menced the execution of his project in 1768. In 1765, the General
5
Assembly of Virginia passed an act for improving the navigation of
James river, from Westbam downwards through the great falls, and the
north branch of James river, (now called the Rivanna,) from the mouth
thereof upwards, and authorized the trustees to contract for the cutting
of such canals, and the building and placing such locks therein, as they
might think proper, in the execution of those purposes. This is the
act to which Mr. Jefferson, (the third President of the United States)
refers, when asking himself the question, ' Whether his country was
the better for his having lived at all " The Rivanna," he writes,
" had never been used for navigation ; scarcely an empty canoe had
ever passed down it. Soon after I came of age I examined its ob¬
structions, set on foot a subscription for removing them, got an act of
Assembly passed, and the thing effected, so as to be used completely
and fully for carrying down all our produce."
The idea of a communication by a public highway, between the val¬
ley of the Ohio river and the valley of the James river, we may sup¬
pose to have originated with Governor Spottswood, when, on the 20th
of August, 171(i, he sat out from Williamsburg on his expedition over
the Appalachian Mountains, as he called them, but which we call the
Blue Ridge. Previously, these mountains had been considered an im¬
penetrable barrier to the progre.ss and enterprise of the whites. It
was he who, accompanied by his troop of rangers, (men appointed for
the defence of the frontiers,) a few friendly Indians, and some of the
gentlemen of the colony, effected the first passage over them, on horse¬
back ; in commemoration of which event, he received from his King
the honor of knighthood.
The first suggestion, however, of a through line., which I have seen,
is contained in a letter of the Rev. James Maury, (a nephew of John
Fontaine, who accompanied Governor Spottswood in his trans-montaine
expedition,) dated Louisa county, Fredericksville parish, January lUth,
1756. He is writing to one of his uncles of a map, and pamphlet ex¬
planatory of the same, published by Lewis Evans, of Philadelphia, and
says : " Though both it and the pamphlet be liable to several excep¬
tions, and I believe just ones, yet both are very useful in the main, and
together, give an attentive peruser a clear idea of the value of the now
contested lands and waters to either of the two competitor princes, to¬
gether with a proof amounting to more than probability, that he of the
two who shall remain master of Ohio and the Lakes at the end of the
dispute, must, in the course of a few years, without an interposal of
Providence to prevent it, become sole and absolute lord of North
Aiherica ; to which* I will farther add, as my own private opinion, that
the same will one day or other render either Hudson's river at New
York, or Potomac river in Virginia, the grand emporium of all East
Indian commodities ! Marvel not at this, however surprising it may
seem ; perhaps, before I have done with you, you will believe it to be
not entirely chimera.
" When it is considered how far the eastern branches of that im¬
mense river, Mississippi, extend eastward, and how near they come to
the navigable, or rather canoeahle parts of the rivers which empty
themselves into the sea that washes our shores to the east, it seems
6
Kiglily probable tbat its western branches reach as far the other way,
and make as near approaches to rivers emptying themselves into the
ocean to the west of us, the Pacific Ocean, across which a short and
easy communication, short in comparison with the present route thither,
opens itself to the navigator from that shore of the continent unto the
Eastern Indies."
The " dispute" above referred to, was that known in Virginia as the
"Seven Years' War," or the " French and Indian War," commencing
with the seizure of the post occupied by the Ohio company, at the fork
of the Ohio river, and the erection there of Fort Duquesne, by Cap¬
tain Contrecœur, in the spring of 1754 ; which brings me to speak of
one of the earliest and most illustrious friends, if not the real projec¬
tor, of the James river improvement.
As early as 1748, George Washington, then just entering his seven¬
teenth year, had been employed by Thomas, the sixth Lord Fairfax, to
survey and divide portions of his lands on the south branch of the Po¬
tomac river ; which service brought him first into acquaintance with
the region of the Alleghany mountains. The following year he was
appointed a public surveyor, the duties of which office he performed
for three years, and which again carried him into the same wild region.
In 1753, the Governor of Virginia, Robert Dinwiddie, received in¬
formation of a body of French forces being assembled in a hostile
manner on the Ohio river. With the advice of the council, he selected
and appointed Washington as an express messenger, to bear a letter to
the commandant of the French forces, instructing him at the same time
as to the nature of the inquiries and observations he was to make on
his journey.
This expedition is an exceedingly interesting event in the life of
Washington. It was accomplished amid sufferings and perils that re¬
quired the constant exercise of extraordinary resolution, fortitude and
endurance.
Leaving Williamsburg on the last day of October, he returned on the
16th day of the ensuing January, and delivered the letter which he had
brought from the French commandant to the Governor, and with it a
manuscript journal of his travels.
It is said, that Washington on this occasion, in his interview with
the Governor and council, urged the importance, as well for commer¬
cial as for military purposes, of a connection between the east and the
west. Be this as it may, it is known that he cherished such a scheme
the balance of his life. In 1770, 1772 and 1774, he made tours of
examination, with the view to supply himself with facts which would
enable him to show the feasibility, expense, and advantages of the con¬
nection. In a letter to Mr. Jefferson, dated the 29th March, 1784, he
informs him that more than ten years previously he had been struck
with the importance of a communication between the waters of the
Ohio and Potomac ; that he became the principal mover of a bill in
the General Assembly, of which body he was then a member, to em¬
power a number of subscribers to undertake, at their own expense, the
extension of the navigation of the Potomac from tidewater to Wills'
creek, a distance of about one hundred and fifty miles, with a portage
7
between it and the streams capable of improvement whieb run into tlie
Obio ; tbat bis plan comprebended a similar improvement and connec¬
tion for the James river, and that it was in a tolerably good train,
when be sat out for Cambridge in 1775, to take the command of the
army. The war afterwards, be writes, naturally called men's attention
to different objects, and all the money they could raise was applied to
other purposes
General Washington resigned bis commission as commander-in-chief,
in December, 1788. At that time, he supposed tbat be was taking his
"leave of all the employments of public life." Three months after¬
wards, we find him turning to his cherished project, and writing to Mr.
Jefferson, " with you I am satisfied that not a moment ought to be lost
in re-commencing this business;" and then intimates, that he could
not determine how far, upon mature consideration, be miglit depart
from the resolution he bad formed, of living perfectly at bis ease, ex¬
empt from every kind of responsibility. "The trouble," he continues,
" if my situation at the time would permit me to engage in a work of
this sort, would be set at naught, and the immense advantages whieb
this country would derive from the moasure, would be no small stimulus
to the undertaking, if that undertaking could be made to comport with
those ideas, and tbat line of conduct, with which I meant to glide
gently down the current of life."
On the first day of September following, he left Mount Vernon on
another tour to the west. Tiie intention which mainly prompted this
journey was to make an extensive and critical reconnoisance of the
summit range which intervenes between the head waters of the Poto¬
mac and the Ohio rivers, and to supply himself with facts and argu¬
ments relative to the proposed double line of communication between
the east and the west. The entire distance he travelled exceeded six
hundred and fifty miles. Generally, it was pcrfo'-med on horseback ;
but in numerous instances, on account of the rough and i ocky charac¬
ter of the country, he was compelled to dismount, lead his horse, and
travel on foot. With few intervals, the routes that were examined lay
through uncultivated, wild, and mountaiuous districts. When he
reached the first settlement beyond Fort Cumberland, he was advised
of the great dissatisfaction which prevailed among the Indians inhabit¬
ing the country, and caiHioned not unnecessarily to expose himself to
their wiles and treachery. This information did not in the least deter
him from the pursuit of his patriotic object. lie kept a journal, in
which were minutely recorded his conversations with every intelligent
person, whom he met, respecting the facilities for internal navigation
afforded by the rivers, which have their sources among the Alleghany
mountains, and tlow thence either to the east or the west. He re¬
turned to Mount Vernon on the 4th day of October, and on the 10th
of the same month, communicated the results of his observations to the
Governor of Virginia, Benjamin Harrison, a warm personal friend of
IVashington, and the father of William Henry Harrison, ninth Presi¬
dent of the United States. In his letter, introducing the subject, Gen.
W'ashington says : " I shall take the liberty now, my dear sir, to sug¬
gest a matter, which would, (if I am not too short sighted a politician,)
8
mark your administration as an important era in the annals of this
country, if it should be recommended by you, and adopted by the As¬
sembly." And then proceeds : "It has long been my decided opinion,
that the shortest, easiest, and least expensive communication with the
invaluable and extensive country back of us would be by one or both
of the rivers of this State, which have their sources in the Apalachian
mountains."
Governor Harrison communicated the subject to the Legislature
with a message, as follows :
"In Council, October 18, 1784.
" To the Sonorahle Speaker of the House of Belegatss :
The opening of the navigation of our western waters is of such im¬
mense consequence to the State, that it has engaged the attention of
our late worthy commander-in-chief, and induced him to favor me with
his opinion on the subject, which I enclose and request the favor of
you to lay it before the Assembly. His reasoning is so conclusive, that
I have not a doubt of the utility of the measure remaining with me,
and shall feel myself extremely happy if the Assembly should coincide
with me in opinion, and should set on foot the surveys recommended
as a necessary preparatory step to the undertaking." He then presents
various considerations in its support.
On the Ibth'of November, General Washington arrived in Rich¬
mond, where the General Assembly was then sitting. The House of
Delegates being informed of his arrival, adopted unanimously a resolu¬
tion expressive of their reverence for his character and affection for
his person, and appointed a committee of five members, of whom Pa¬
trick Henry wâs chairman, to wait upon him with the respectful regards
of the house. The object of his visit was, not only to meet the Mar¬
quis de la Fayette, who arrived in the city on the 17th, but also to
promote in the Legislature his view of a plan of internal improvement.
On the loth of December, it was ordered in the house, that leave
be given to bring in a bill for opening and extending the navigation of
James river ; and Mr. Madison, afterwards President of the United
States, was made the chairman of the committee who were instructed
to prepare and bring in the same. This bill became a law on the 5th
of January, 1785, on which day the speaker, John Tyler, (the father
of John Tyler, the tenth President of the United States,) signed the
following enrolled bills, viz : An act for clearing and improving the
navigation of James river ; An act for opening and extending the
navigation of Potomac river ; An act for vesting in George Washing¬
ton, Esq., a certain interest in the companies established for opening
and extending the navigation of Potomac and James rivei's.
The act for clearing and improving the navigation of James river,
authorized books of subscription to be opened in the city of Richmond,
the borough of Norfolk, at Botetourt courthouse, at the town of Lew¬
isburg, in Greenbrier county, and at Charles Irving's store, in Albe¬
marle, The books were to be opened on the first day of February then
9
next ensuing, and to be continued open until the tenth day of August
following ; and on the twentieth day of August there was to be a
general meeting of the subscribers, at the city of Richmond. The
subscriptions were limited to one hundred thousand dollars, provision
being made for scaling them, in case more than that sum should be sub¬
scribed. The subscribers were incorporated into a company, by the
name of the 'James River Company.' They were empowered and re¬
quired to elect a president and four directors, for conducting the un¬
dertaking, and managing all the company's business and concerns, for
and during such time, not exceeding three years, as the subscribers, or
a majority of them, should think fit. There was to be a general meet¬
ing of the proprietors on the first Monday of October in every year,
at such convenient town as should be, from time to time, appointed by
the general meeting. The stock was declared to be real estate. Tolls
were prescribed, but were allowed to be paid on condition only, that
the company shoidd make the river well capable of being navigated in
dry seasons by vessels drawing one foot water at least, from the higliest
place practicable, to the great falls, beginning atWestham, and should
at or near the said falls, make such cut or cuts, canal or canals, with
sufficient locks, if necessary, each of eighty feet in length, and sixteen
feet in breadth, as would open a navigation to tidewater, in all places
at least twenty-five feet wide, except at all such locks, and capable of
conveying vessels or rafts drawing four feet water at the least, into
tidewater, or should render such part of the river navigable in the
natural course. The work was to be commenced within one year after
the company should be. formed, and completed within ten years there¬
after.
A meeting of the subscribers was held in the city of Richmond, on
the 20th of August, 1785, when those books only which had been
opened in Richmond, were laid before them ; by which it appeared that
the whole number of shares was nearly completed : but it was thought
advisable to postpone the admission of other subscribers, until the suc¬
cess of the books opened elsewhere could be known. Soon after the
meeting rose, one of the managers above the falls reached the city,
and gave an account of subscribers, which rendered it probable that
the capital sum was over-run. On the next day, the meeting pro¬
ceeded by ballot to the election of a president and four directors ;
when George Washington was elected president, and John Harvie,
David Ross, William Cabell and Edmund Randolph, were elected
directors.
Edmund Randolph, (afterwards Attorney General, and Secretary of
State of the United States, under General Washington's administra¬
tion,) in communicating these facts to the General, wrote :
" I endeavored to deliver you from the appointment to the office of
president, but the universal suffrage called you to the post, without an
expectation, however, that you should undergo more of the business
than your own convenience may reconcile to ycat."
The regular annual meeting took place in October, when the same
officers were elected for the term of three years. Subsequently, Jas.
2
10
Buchanan was elected by the board of directors, treasurer, James Har¬
ris was elected manager, and James Brindley engineer.
This constituted the "Old" James River Company. It continued
until the year 1820. The presidents successively were, George Wash¬
ington from the 21st August, 1785, to the 5th October, 1795 ; William
Foushee from the 5th October, 1795, to the 20th January, 1818 ; John
G. Gamble from the 21st January, 1818, to the 22d March, 1819 ;
Wilson Gary Nicholas from the 22d March, 1819, to the 20th Februa¬
ry, 1820.
On the 17th February, 1820, the Legislature passed an act, entitled
" an act to amend the act, entitled an act for clearing and improving
the navigation of James river, and for uniting the eastern and western
waters, by the James and Kanawha rivers." The provisions of this
act were made subject to the ratification of the James river company,
which having been duly given, the act was thereafter to be considered
a compact hetwcen the commonwealth and the company. By the terms
of the compact, the rights and interests of the company were tr'^ns-
ferred to the commonwealth, the company acting as an agent and hold¬
ing in trust for the benefit of the commonwealth, but executing the
improvements under the control, direction and superintendence of
commissioners appointed by the Legislature. By an act passed Feb¬
ruary 24th, 1823, this mode of prosecuting the work was abandoned,
and from and after that time all the rights, powers, duties and privi¬
leges of the president and directors were conferred upon the Governor,
Lieutenant Governor, Treasurer, Auditor and Second Auditor of the
Commonwealth, ex-officio, whose transactions were to be still in the
name of the " James River Company." This organization continued
until the year 1835. The president under the compact was John Coal-
ter, from the 29th February, 1820, to the 17th March, 1828. The
Governors whoT\mre presidents ex-officio, were James Pleasants, John
Tyler, William B. Giles, John Floyd, Littleton Waller Tazewell.
The James River and Kanawha Company was incoimorated March
16th, 1882, and organized May 25th, 1835. By the cmirter the whole
interest of the commonwealth in the works and property of the then
existing James river company was transferred to the James river and
Kanawha company ; the State being interested in the latter to the ex¬
tent of three-fifths of its capital stock, and individuals and corpora¬
tions to the extent of the remaining two-fifths. No change of organi¬
zation has since been made. The presidents have ^een Joseph C. Ca¬
bell, from the 28th May, 1835, to the 10th February, 1846 ; Walter
Gwynn, from the 5th March, 1846, to the 7th May, 1847 ; William B.
Chittenden, from the 7th May, 1847, to the 12th February, 1849;
John Y. Mason,'from the 11th May, 1849, to the 26th October 1853 ;
Thomas H. Ellis, from the 26th October, 1853, to the present time.
The Old James river company constructed a canal around the falls
of James river, extending from the city of Ri^^'mond to Westham, a
distance of about seven miles, and improved the bed of the river by
sluices as high as Looney's creek, in the county of Botetourt- The
capital was $140,000 ; one-half owned by the State, the other half by
individuals. In addition to the capital, which was expended in original
11
work, tlieve was expo: ' /.I out of the profits, in constructing locks at
Richmond to communicate with tide water, and other permanent im¬
provements, in improving the navigation of the North river in Rock¬
bridge county, tlie Rivanna river in Fluvanna county, and Willis's
river in Cumberland county, and in repairs, the sura of §234,000. For
the rights of the James river company in the waters of James river,
and the improvements and works of the company, the State agreed to
pay the stockhoi ' ■n annual dividend of 12 per cent, for the term
of twelve years, and of 15 per cent, forever thereafter, upon their
shares. The stock is now owned and held as follows, viz :
By the Commonwealth of Virginia 250 shares.
By the Board of Public Works 34 "
By the Literary Fund 225 "
By Washing... College 100 "
By William and Mary College 22 "
By individuals 69 "
Total 700 "
Which are estimated at §500 per share.
The seco-- James river company, on State aeeount, enlarged and
re-constructed the former eanal from Richmond to Westhain, and e.x-
tended the same to Maiden's Adventure in Goochland, a distance of
28 miles,—constructed a canal through the Blue Ridge, seven and a
half miles long,—constructed a turnpike road from Covington to the
mouth of Big Sandy river, two hundred and eighty miles long,—and
improved the Kanawha river by wing-dams and sluices, from Ch.arles-
ton to its mouth, a distance of about sixty miles. According to a re¬
port made by the Second Auditor to the House of Delegates, dated
23d December, 1843, these several improvements cost the State, (ex¬
clusive of the expenditure by the Old James river company,) as
follows :
James River Canal 643,808 28
Blue Ridge Canal 368,609 28
Kanawha Turnpike Road 263,837 63
Kanawha River '. 91,666 72
§1,367,921 91
These works were sold to the James river and Kanawha company at
the valuation of one million of dollars, the State receiving a credit for
that amount in part of her subscription to the capital .stock. The new
company moreover was charged with the payment oí the annuity of
§21,000 forever to the stockholders of the Old James river'company :
and as this sum is equivalent to a principal of §350,000, at six per
cent, interest, it will be seen that the present company took the old
works at the price of §1,350,000, which makes their proportional cost,
as follows :
12
James River Canal $635,373 39
Blue Ridge Canal 363,779 92
Kanawha Turnpike Road 260,380 94
Kanawlia River 90,465 75
$1,850,000 00
For an exceedingly able and interesting review of the affah's of this
company, and vindication of its general policy, I refer you to the sup¬
plement to the eleventh annual report, prepared by the first president,
Joseph C. Cabell, Esq. [See Annual Reports, Vol. 2, p. 627 to 769.]
For an equally lucid and conclusive exhibit of the very striking ad¬
vantages afforded by this improvement, I refer you to the report made
by Edward Kenna, Esq., chairman of a select committee, to the twen¬
ty-first annual meeting, [see Annual Reports, Vol. 5, p. 104 to 166,]
and to a report, or rather " notes and memoranda," furnished by Chas.
B. Fisk, Esq., chief engineer of the Covington and Ohio railroad, for
the use of an internal improvement convention, which assembled at the
White Sulphur Springs in the summer of 1854. [This document is
herewith separately communicated, together with a map and profile.]
Experience in this country has not been altogether favorable either
to the construction or management of public works exclusively on State
account. It is believed that objections are applicable also to corpora¬
tions, over which the State has no control. We, here in Virginia, have
adopted what is known as the "joint stock" system—combining public
and private subscription, and regulated by a scale of voting, which is
intended to make the power of the State a conservative, preventive
power, while generally the governing power is left to that vigilance,
prudence and economy which private interest is presumed to impart.
In the case of the James, river and Kanawha company, each stock¬
holder may, in person or by proxy, give the following vote, on what¬
ever stock he may hold in the same right, to wit : one vote for each
share of such stock not exceeding ten, and one vote for every four
shares exceeding ten : but the vote of the State shall not exceed two-
thirds of the whole number of votes given by others in the same elec¬
tion, or on the same question.
The capital stock is at present held as follows :
By the Commonwealth of Virginia 30,000 shares.
By the Bank of Virginia 5,004 "
By the City of Richmond...' 5,768 "
By the City of Lynchburg 678 "
By Washington College 100 "
By individual stockholders 8,455 "
Total 50,000 "
To constitute a general meeting, there must be present, either in
person or by proxy, a number of stockholders, having a right to give a
13
majority of all the votes which could be given at a meeting of all the
stockholders.
The stock held by the State is represented in these general meetings
by three proxies, appointed by the Board of Public Works.
The aftairs of the company are administered by a president and six
directors, constituting a board, chosen as follows : the president is
elected by a vote of all the stockholders present in general meeting ;
one director is elected in the same manner; two directors are elected
by vote of the private stockholders alone ; and three directors are ap¬
pointed by the Board of Public Works. These appointments and elec¬
tions are made annually.
A branch organization, which is meant to be merely temporary,
called the "Kanawha Board," has been recently introduced, for the
purpose of aiding in improving the navigation of the Kanawha river
from its mouth to Loup creek shoals. It is composed of the president
of the company and five directors, three of whom are appointed*by
the Board of Public Works, and two elected by the stockholders other
than the State. The directors are required to be residents of the Ka¬
nawha valley. The Kanawha board, as special agents, are entrusted
with the control, management and supervision of the Kanawha im¬
provement, subject to the instructions of the stockholders ; but have no
control over any of the other works or affairs of the company. In
case the president shall difi'er with the Kanawha directors in any mat¬
ter involving in his opinion the general interests of the company, he
has authority to call a meeting of the two boards of directors together,
and submit such matter to them as one board ; and their decision shall
be carried into effect.
By the act of incorporation, it is provided that the works which the
James river and Kanawha company "shall construct, and the property
which they shall acquire by purchase or condemnation, under the au¬
thority of this law, shall be vested in them and their successors for¬
ever, for their own use and benefit, exempt from all public taxes, bur¬
dens or charges, other than those which may be imposed or authorized
bv this act."
• • .
I come now to a description of the line.
What is usually known as the Virginia Water Line, extends from
the Capes of Virginia to the Ohio river, a distance of 636 miles, and
consists of
I. The James river, from its mouth to the head of navigation at the
city of Richmond, a distance of 161 miles ; and
II. The James river and Kanawha improvement, extending from the
city of Richmond to Point Pleasant, at the mouth of the Kanawha
river, a distance of 485 miles.
James river is navigable for ships of one thousand tons burden,
drawing seventeen feet, from its mouth to City Point, 36 miles below
Richmond. From City Point, vessels drawing fifteen feet water can
ascend to Warwick, five miles below Richmond. From Warwick to
Richmond the river is navigable at this time for vessels drawing eleven
and a half feet water. But improvements are in progress at the ex¬
pense and under the supervision of the city of Richmond, by which the
depth will be increased to sixteen feet, from Richmond to City Point.
14
ïhe James river and Kanawha company have, however, no authority
over James river below Eichmond.
For the purpose of description, the James river and Kanawha im¬
provement will be divided into
1st. The Richmond dock and tidewater connection 1 mile.
2d. The First division of the canal, extending from
Richmond to Lynchburg 146^ "
3d. The Second division of the canal, extending from
Lynchburg to Buchanan 50 "
4th. The Third division of the canal, extending from
Buchanan to Covington 47 "
5th. The Fourth division of the canal, extending from
Covington to the Greenbrier river 33^
6 th. The Greenbrier and New rivers to Loup creek
shoals on the Kanawha...' ." 119 "
•7th. The Kanawha river from Loup creek shoals to the
Ohio river :. 89|- "
First. The Richmond Rock and Tidewater Connection. By
means of this improvement, vessels ascend from the river into the
dock, where they are met by canal boats, which descend from the
basin at the terminus of the canal, and lay along side the vessels, for
the purpose of exchanging cargoes ; or, the canal boats can descend
to the river, and without breaking bulk, be towed to City Point or
Norfolk.
Vessels enter the dock by means of a ship-lock, which is founded
upon solid rock, and built of the most substantial cut granite It is
180 feet long between the gates, 85 feet wide, has a lift of 15 feet, and
has 16 feet water on the miter sill. "It will pass vessels of 500 tons.
The dock is 4,100 feet long from the ship-lock to 17th street, and
has a continuous wharf, protected by a granite wall, for its whole
length on the north side, and for about 1,000 feet on the south side.
The depth is from 11 to 15 feet, and the average width 100 feet.
Above 17th street is a continuation called "the upper dock," which is
also surrounded by a substantial granite wall, and is now only used by
canal boats, but whenever the trade shall demand it, it can be made
accessible to vessels, by means of a pivot bridge, thrown across in the
line of 17th street extended. This upper portion is 800 feet long and
200 feet wide.
The dock is connected with the basin by means of five locks, having
an aggregate lift of 69 feet. These locks are built of hewn granite,
and, with the ship-lock, will in their style and finish compare favorably
with any similar works in this country.
The total cost of the dock and tidewater connection has been
$851,812. It was completed in the year 1854.
Second. The first division of the canal, extending from the basin
in Richmond to the city of Lynchburg, comprising 137f miles of ca¬
nal and 8| miles of slack water navigation.
The trunk of the canal is 80 feet wide at the bottom, and 50 feet
at the water line, and was originally cut to a depth of five feet. The
tow-path is 12 feet wide and the berm bank 8 feet.
15
The locks are 100 feet long between the gates, and 15 feet wide in
the chamber. The total lockage from the basin in Richmond to
Lynchburg is 429 feet. Ti." works of art on the first division con¬
sist of :—
52 lift locks, having a total lift of 429 feet; 6 guard locks ; 2 ac¬
commodation locks ; 3 principal dams across James river, affording
slack-water navigation ; 9 other dams across James river, or to islands
in the river, which serve for the purpose of feeders to the canal, or for
connection with the southside of the river ; 11 aijueducts, three of
which have wooden trunks, and the remainder are of cut stone ; 191
culverts ; 138 farm and road bridges over the canal ; 3 two-path
bridges.
Of the locks 22 are built of cut stone, and the remainder of rubble
masonry, faced with timber and plank.
For a minute description of this division of the canal, see the 5th
annual report of the president to the stockholders, from page 515 to
page 542.
It was completed in the year 1840, and has cost §5,837,028, or
§39,982 per mile.
On the first division are works connecting the canal with the soutli
side of James river, usually called the '• South Side Connection."
These works are a dam and an outlet lock at Cartersville, and three
bridges ; one at New Canton, one at Hardwicksville, and one at Bent
Creek. These bridges are wooden, arched, and covered, and built
upon cut stone abutments and piers. The total cost of the south side
connections has been §162,1185.
There is also a connection on the north side of the river with the
improvement of the Rivanna river, an important tributary to the
James, which has cost the James river and Kanawha company the sum
of §115,043.
Third. The Ht'cond division of the cinal e.xtends from the city
of Lynchburg to the town of Buchanan, a distance 50 miles, and con¬
sists of 22 miles of canal and 28 miles of slack water navigation.
The principal works of art on this division, are :
38 locks, having a total lift of 299 feet, built with a few exceptions
of cut stone ; 4 stone dams, and 7 timber dams, across James river ;
1 aqueduct of 50 feet span ; 8 culverts ; 48 square drains ; 17 tow-
path bridges ; 2 farm bridges ; and 1 street bridge, of 100 feet span,
over the basin at Lynchburg.
For a minute description of this division, see 17th annual report,
from page 218 to 225.
It was completed in the year 1850, and has cost §2,422,556, or
§48,451 per mile.
Connected with the second division is the North river improvement,
extending from the mouth of North river to the town of Lexington, a
distance of 19| miles. Of this improvement 10 miles are canal, and
9J are slack water navigation. The principal works of art arc—
22 locks, all of rubble stone masonry, and of the same size as those
on the main line of the canal, and having a total lift of 188 feet ; 9
stone dams, and 1 timber dam, across North river, and 4 aqueducts.
16
For a more particular description of this Ufork, see the 23d annual
report, from page 373 to 875. This "work is not yet completed, hut
">vill be by the end of the following year. It has already cost, in¬
cluding the outlay of the North river navigation company, by "ivhich
company it "was commenced $506,551 ; and to complete it, it is estima¬
ted "will cost about $30,000 additional.
Fourth. The third division of the canal, follows the valley of
James and Jackson rivers from Buchanan to Covington, a distance of
47 miles.
This division has been definitively located, and the first 15 miles above
Buchanan was put under contract in the year 1853, hut, for the want
of funds, the work-was suspended in the year 1856.
Forty-one miles are canal, and six miles slack water navigation.
The total lockage is 436|- feet.
The principal mechanical structures are 36 lift locks, two guard
locks, one guard and lift lock, four aqueducts across James river, each
about 320 feet long, three aqueducts of 50 feet span, and three dams
across James river There are also the Marshall tunnel, 1,900 feet
long, and the "Mason tunnel, 198 feet long ; by means of which, 5|-
miles of distance are saved.
Of this work there are now nearly completed ten lift locks, and the
abutments and piers of three of the aqueducts over James river. The
foundations of two of the dams, up to the surface of low water, have been
put in ; about 800 feet of the Marshall tunnel has been excavated, and
the Mason tunnel is completed. The mechanical work upon this division
is executed in the best style, and of the most substantial material, all
of the structures being built of hewn limestone, laid with hydraulic
cement.
The estimated cost of this division-, based upon careful surveys and
accurate cross sections of the whole line, and estimated at prices for
which a good deal of the work has been let and partly executed.
Fifth. The fourth division of the canal, extending from the town
of Covington to the Greenbrier river, 33-^ miles.
At Covington the canal crosses Jackson's river by an aqueduct, and
follows the valley of Dunlap's creek to Crow's tavern, at the base of
the Alleghany mountain, a distance miles; for a description of
which see 20th annual report, page 756.
At Crows' the line of canal leaves the valley of Dunlap's creek, and
following the bed of Fork run, ascends the eastern side of the Alle¬
ghany mountain, by a series of locks and dams, to the summit level.
The distance from Covington to the eastern entrance of the Alle¬
ghany tunnel is 20.7 miles, and the total lockage is 675 feet.
The summit level is 4J- miles long, and 1,921 feet above tide water,
and pierces the Alleghany mountain,by a tunnel 2 6-10 miles long.
IS
The amount of work done is
$2,555,131 GO
511,094 00
Leaving the amount still to be done
$2,044,037 00
17
Emerging from the -western side of the Alleghany mountain, the
canal descends by the vallies of Tuckahoe and Howard's creeks, 241
feet in a distance of 10 miles, to the Greenbrier river.
The summit level, and the portion of the canal on eaeh side of it
between Dunlap's creek and the Greenbrier river, a distance of 15^
miles, will be supplied with water chiefly from Anthony's creek. Upon
this creek a reservoir is to be made, covering 2,753 aces of land, and
having an average depth of 60 feet, from which the water will he con¬
ducted by a feeder canal about 9 miles long to the summit level. For
information and proof of the sufiiciency of the supply of water for the
summit level, see " Reports on the Survey of Summit Level," in 17th
and 18th annual reports.
The works of art on this division east of the Alleghany, will be 63
locks, 8 dams across Dunlap's creek, and 1 across Brush creek ; one
aqueduct over Jackson's river 250 feet long, and one over Dunlap's
creek 100 feet long ; and west of the Alleghany, there will be 24
locks, one aqueduct of 50 feet span over Tuckahoe creek ; one aque¬
duct of 50 feet span over Howard's creek, and one dam across How¬
ard's creek.
The estimated cost of the fourth division is as follows :
1. From Covington to the eastern entrance of the Alleghany tunnel,
20.7 miles, based upon an estimate made by John B. Mills, chief
engineer, in 1851, to which the chief engineer adds 25 per cent.,
making §1,574,086 00
2. From the eastern entrance of the Alleghany tun¬
nel to Greenbrier river, 12.63 miles, including the
reservoirs and feeders for the summit level, based
upon surveys made in the year 1851, by Edward
Lorraine, now chief engineer, revised and cor¬
rected, with 20 per cent, added for contingencies, 2,842,821 00
Total estimated cost of fourth division §4,416,907 00
Sixth. The Greenhrier and New Rivers, from the mouth of How¬
ard's creek to Loup creek shoals on the Kanawha, 119 miles.
From the mouth of Howard's creek to the Ohio river, the character
of the improvement will be changed. The line that we have been
heretofore occupied with from Richmond to the Greenbrier river is to
consist of a 'canal of the dimensions previously described under the
head of the First Division." The line down Greenbrier, New and
Kanawha rivers, will consist of an improvement of those rivers for
steamboat navigation,—and the mouth of Howard's creek, or what is
known as " Greenbrier Bridge," will be either the point of tranship¬
ment from steamboats to canal boats, or the point where canal boats
having been towed up by steamboats will change steam power for horse
power, and vice versa.
1. Greenbrier river from Greenbrier bridge to New river, 49.62
miles.
3
18
This part of the line was surveyed by Edward H. Gill, civil engi¬
neer, in the year 1841, and an estimate of the cost of a mixed im¬
provement for canal and slack water navigation was furnished.
The present chief engineer has estimated this section of the im¬
provement from Mr. Gill's notes of the width and fall of the river, but
has provided for locks and dams adapted to steamboat navigation.
The dams and locks to be of stone. The locks to be 200 feet long
between the gates, and 40 feet wide in the chamber, which will admit
steamboats of 350 tons burden, or four canal boats at once.
Twenty-one dams 300 feet long and 25 feet high, with locks as above,
at $116,500 each, $2,446,500.
2. New river, from the mouth of Greenbrier to the foot of Loup
creek shoals, 69.28 miles.
This part of the line was estimated by Mr. Gill for a lock and dam
improvement, adapted to steamboat navigation, the locks to be löO feet
long and 30 feet wide. See his report in the 7th annual report,
page 61.
As his estimate was for stone dams and locks, the present chief en¬
gineer has adopted it, and made the requisite addition thereto for the
increased length of the locks.
The economy of increasing the length of the locks will be obvious
when you consider that the short locks will only pass steamboats of 175
tons burden, or two canal boats, while the long locks will pass steam¬
boats of 350 tons, and four canal boats, thus doubling their capacity
at a cost of about $765,000, or about 37 per cent, on the original es¬
timate.
After making the addition for the increased size of the locks, Mr.
Lorraine adds 20 per cent, to the whole, for contingencies, which
brings the estimate for the New river division to $3,396,480.
It may be proper to state that the surveys of the Greenbrier and
New rivers have not been so elaborate nor so exact as those of other
parts of the line, but they have been surveyed sufficiently to obtain a
correct profile, and the general character of the beds of the streams,
and to establish beyond any doubt the practicability of their improve¬
ment in the manner proposed. Of the practicability of their improve¬
ment, we may feel well assured by the concurrent opinions of Benja¬
min Wright, Edward H. Gill and Charles B. Fisk, three eminent, practi¬
cal, hydraulic engineers. Judge Wright, after acquiring pi-actical ex¬
perience and high reputation on the Erie canal, wa? selected as the
first chief engineer of the James river and Kanawha company. In
his letter to the board of directors, published in the 7th annual re¬
port, page 73, he says : " From the facts disclosed by the survey on
the lines of the Greenbrier and New rivers, I am satisfied that the
difficulties of improving those rivers have heretofore been overrated,
and that the plans now proposed for that purpose are both practicable
and expedient. I have carefully examined the esrimates for the rivers
above named, and am impressed with the belief that with good man¬
agement the work can be successfully executed for the amount of those
estimaf^es." ^
19
Mr. Fisk, the late eminent chief engineer of the Chesapeake and
Ohio canal, has als.y personally examined the Greenbrier and New
rivers, and approved of the proposed plan for their improvement. See
his "report on the improvement of the Kanawha, New and (xreenbrier
rivers," in the 21st annual report, page 74.
Seventh. The Kanaioha river from Loup creek shoals to its mouth,
a distance of 89 3-10 miles.
This river is r.iready navigable for steamboats for 70 miles above its
mouth, for about ten months in the year, but the navigation is inter¬
rupted by low water for four months in the year, and entirely sus¬
pended for about two months.
It is proposed to improve this stream by straightening and deepening
the channels, and by concentrating the water in them by means of
wing dams.
The estime 3 of the cost of this section is based upon recent sur¬
veys made under the direction of the present chief engineer, and is as
follows :
Dam at Lyken's shoal, 650 feet long and tO feet high, with guard and
lift lock of 10 feet lift, all of stone, §139,750
From Lyken's shoal to Point Pleasant, improved for sluice
navigation, as above described..- 410,565
550,317
Add for couïingencies 10 per cent 55,031
Total cost of improving Kanrwha river §605,348
I will remark that the proper plan for the improvement of the
Kanawha river has been a subject of contention since the organization
of the company. In 1838, Mr. Charles Eilet, Jr., at that time the
chief engineer of the company, recommended an improvement by
sluices, and canals, and locks in the river. Judge Wright, the consul;
ting engineer of the company, dissented from these views of Mr. El-
let, and recommended an improvement partly by sluices and partly by
locks and dams across the river. See 4th annual report, page 462 to
491. In 1854, Mr. Charles B. Fisk was requested to examine the Ka¬
nawha and report a plan for its improvement, which he did, and re¬
commended an improvement by open dams. See his reports, 20th an¬
nual report, page 741, and 21st annual report, page 74. Mr. Fisk's
plan was formally adopted by the stockholders in January, 1858. In
March, 1858, the stockholders resolved to employ Mr. Charles Eilet,
Jr., to examine the Kanawha river, with a view to its improvement by
means of reservoirs. Accordingly, in the ensuing summer, Mr. Eilet
made a survey, and at the 24th annual meeting submitted an elaborate
" report on the improvement of the Kanawha, and incidentally of the
Ohio river, by means of artificial lakes." Thereupon, the stocholders
rescinded their resolution of January previous, and referred- the whole
subject to a committee of eleven, with authority and instructions to
decide upon what plan the river should be improved. The committee
20
of eleven met on the 24th of February last, and adopted Mr. Filet's
plan of improvement. The stockholders upon receiving the report of
this committee, at the last annual meeting, merely ordered it to be laid
upon the table.
The committee while adopting Mr. Ellet's plan, recommended that
it be carried out only in part at present, by an improvement estimated
to cost $250,000.
The estimated cost of improving the Kanawha river upon Mr.
Fisk's plan, is $605,348.
The cost of improving the river on Mr. Ellet's plan, is estimated by
him at $500,000.
It is the opinion of the present chief engineer, that the hed of the
river cannot be improved upon any plan adequate to the accommoda¬
tion of the through trade, for a less sum than the estimate for Mr. Fisk's
plan ; and that if Mr. Ellet's reservoirs be built, the sum of $529,080
should be added, making the total estimated cost of improving the
Kanawha river $1,134,428.
In the present state of the case, I have taken Mr. Lorraine's esti¬
mate of $605,348, as the cost of improving the river from its mouth
to Loup creek shoals.
Recapitulation.
Cost of the finished portion of the James river and Kanawha im¬
provement :
Dock and tidewater connection $851,312
First divison, Richmond to Lynchburg ...-. 5,837,628
South side connections 162,685
Rivanna connections 115,043
Second division, Lynchburg to Buchanan 2,422,556
North river improvement, as completed 536,551
Third division, work done 511,094
$10,436,869
Estimated cost of the unfinished portion of the James river and Ka¬
nawha improvement :
Third division, Buchanan to
Covington 47 miles, $2,044,037
Fourth division, Covington
to Greenbrier river.^. 33.33 " 4,416,907
Greenbrier river .'. 49.62 " 2,446,500
New river 69.28 " 3,396,480
Kanawha river 89.30 " 605,348
288.53
$12,909,272
Let us now try to estimate the future trade of this line.
n
21
In considering tíiis branch of our subject, it will be of courée impos¬
sible to use that exactness of expression and accuracy of facts and
figures which I have been enabled so far to use when speaking of the
past. We enter now somewhat into the region of probabilities; mak¬
ing our comparisons of a future, not however wholly speculative or
fanciful,—but a future which, based upon certain facts, and governed
by certain laws, must produce certain results. The laws of. trade are
as fixed and sure as those of nature. One of them is, that all other
things being equal, freight will seek the shortest and cheapest route to
market. If, then, it can be shown, that the water line route through
Virginia is the shortest and cheapest transit for the products of the
Great West to the Atlantic seaboard, and thence to a European mar-
ket; if it can be shown that this route possesses eminent and distin¬
guishing advantages over every other route ; the question will be, not
what will be the trade of the James and Kanawha canal, but what the
capacity of the canal : for its trade will be the trade of the great west,
limited only by its capacity to accommodate tbat trade.
I have already invited your attention to Mr. Cabell's "supplement,"
and Mr. Kenna's and Mr. Fisk's reports. I now again adduce them,
for proof of the position just taken in regard to the superiority of the
Virginia water line route. If I mistake not; you will admit their ar¬
guments to be absolutely conclusive on this point. In reference to Mr.
Fisk particularly, I deem it appropriate to say, that he is one of the
most distinguished civil engineers in the United States, and one who
is remarkable for the caution with which his statements are made, and
their accuracy when made. Ton will observe in. his report, that while
his object is to prove the advantages and value of the Covington and
Ohio railroad, he has demonstrated that that road is chiefly indebted
to its connection with the water line for its superiority over other routes
in the transportation of heavy freight.
I can add but little to the facts and arguments presented by these
gentlemen in their respective reports ; yet I may show, that Virginia
possesses not only the best route from the Ohio to the Atlantic, but
that upon her Atlantic seaboard she possesses the most capacious, safe
and convenient harbor from Florida to New Foundland ; and for this
purpose, I take the testimony of Lieutenant Matthew F. Maury, of
the United States navy, whose contributions to nautical science have
elicited the applause of the world. In a series of letters to his son,
upon the internal improvements of Virginia, published in the year
1854, he thus describes the commercial advantages of Norfolk ;
" As to the natural advantages of position, depth of water, and ac¬
cessibility by land and sea, Nokfolk has no competitor amono the
seaport towns of the atlantic.
"Midway the Atlantic coast line of the Unifed States, Norfolk is
the most convenient, because the most central point where the produce
of the interior may be collected, and whence it may be distributed,
north and south, right and left, among the markets of the seaboard.
" Its climate is delightful. It is exactly of that happy middle tem¬
perature where the frosts of the north bite not, and where the pesti¬
lence of the south walketh not. Its harbor is commodious, and as safe
22
as can be. It is never blocked up witb ice, and as to the egress and
ingress between it and tbe sea, it possesses all the facilities that the
mariner himself could desire. It has the double 'advantage of an outer
and inner harbor. The inner harbor is as smooth as any mill pond ;
in it vessels lie with the most perfect security, where every natural fa¬
cility imaginable is offered for lading and unlading. Being ready for
sea, the outward bound trader dropping down from this snug mooring,
and approaching the sea, finds a storm raging from outside. The outer
harbor then affords a shelter until the fury of the gale is spent, when
the white-winged messenger trips her anchor, trims to the breeze, and
goes forth rejoicing on her way to the haven where she would be.
" Moreover, the prevailing winds in the parallel of Norfolk are west¬
erly winds, which are fair for coasting, and for going seaward in any
direction. A little to the south of that parallel you find the northeast
trades, which are fair winds for the inward-bound Norfolk vessel.
" Then there is the Gulf Stream—that mighty river in the ocean—
upon the verge of which Norfolk stands. It flows up with a current
which, without the help of sweeps, sails, or steam, will carry the Eu¬
ropean bound vessel out of Norfolk at the rate of nearly one hundred
miles a day, directly on her course.
" Then at the sides of this, and counter to it, are eddies which favor
the same vessel on her return to Norfolk. These hawse her along and
shorten her voyage by many a mile.
"Next, to complete the survey seaward, cast your eye down to the
great Amazonian water shed of South America. That river drains a
district of country twice as large as the whole Mississippi valley. The
volume of water discharged by the Amazon, into the sea, exceeds by
six fold that which the Mississippi empties into the Gulf ; and it opens
a highway for commerce and navigation from the sea to the foot of the
snow-capped mountains that rise upon the rim of this great basin, and
touch the clouds under the equator. This country is to be the cornu¬
copia of the world. Its climate is that of an eternal spring, its soil
the most prolific on the face of the earth, and its minerals the richest
and the rarest, and the most abundant that ever adorned the person, or
ministered to the convenience of man.
" But you have read your uncle Lewis Herndon's Exploration of the
Amazon,—you have studied with me the physical geography of the
country drained by it, and you understand how and why the winds are
constant and fair hoth ways for vessels trading between that river and
Norfolk.
" Such are the natural advantages of Norfolk seaward. Let us look
ashore, and consider them landward. You will better appreciate these
by studying them in contrast. Therefore, we will compare them with
the natural inland advantages of New York.
" A bay or harbor which is conveniently accessible to the sea, is sup¬
posed to offer natural advantages for a commercial city in proportion
to the fertility and extent of the back country that is tributary to it.
The back country that is naturally tributary to the city of New York,
is confined to the counties that are drained by the Hudson, or washed
by the waters of the Sound. And if there were no such things as in-
23
ternal improvements—no way in the interior by which produce and
merchandise could be transported from one water shed to another—the
people for whom New York would export and import would he those
who live in the valley of the Hudson, or who inhabit the shores of
Long Island Sound.
" Now contrast the fertility and extent of this country with the back
country that is tributary to Norfolk. Both shores of Chesapeake Bay
are tributary to it; and this magnificent sheet of water is the natural
receptacle also of the drainage and surplus produce of the valleys of
the James river, the York, the Rappahannock, the Pptomac, and the
Susquehanna, and with a perfect net work of creeks and coves that in¬
dent their shores. The back country therefore which, without portage,
is naturally tributary to Norfolk, not only surpasses that which is tri¬
butary to New York, in mildness of climate, in fertility of soil, and
variety of production, but also in geographical extent by many square
leagues, the proportion being as three to one in favor of the Virginia
port.
•' But there are such things as natural portages, by which commerce
even in a rude state may pass from one river valley to another on its
way to the sea. Now let us see what portions of country are nearer to
New York and what to Norfolk, assuming that if these natural porta¬
ges he equally improved, all that country which they will bring nearer
to Norfolk will be tributary to Norfolk, and all that they may bring
nearer to New York will in like manner be tributary to New York.
" Therefore, to diñde and lay off this back country, turn to the
map ; stretch a string upon it from Norfolk to New York, and make
a dot half way between them. Now seek a point on the south shore
of Lake Erie that is equi-distant from New York aaid Norfolk ; draw a
line from the dot to this point, and you will have a dividing line of dis¬
tance between the two places, every point along which will be just as
far from the one place as the other. You will find that this line runs
through Delaware, and cuts Lake Erie, near Cleveland Ohio.
" Thus you perceive that Chicago, in Illinois, and St. Louis, Mis¬
souri, are actually nearer to Norfolk than they are to New York even
by an air line. You see, moreover, that as between New Y^ork and
Norfolk, the natural advantages here are greatly in favor of the latter.
The most direct way to the sea through either op these ports,
from most of the Lake country, and from almost the entire
Mississippi valley, lies through Virginia. The natural advanta¬
ges then, of Norfolk, in relation to the sea, or to the hack country, are
superior beyond comparison to those of New York."
The present delegate elect from the city of Norfolk to the General
Assembly, Mr. Bisbie, WTote a pamphlet two or ^iree years ago, enti
tied "An appeal for the speedy completion of the water line of Vir
ginia," which has been extensively circulated, and has attracted much
attention, in which he thus strongly groups his views of what he calls
the two grand centres of Atlantic and interior trade.
"We beg the reader to look again at the map ; to observe that the
junction of the Ohio with the Mississippi is the grand converging point
of the Kansas, Nebraska, Missouri, Mississippi, Illinois, Ohio, Cumber-
24
land and Tennessee rivers—the geograpical centre of their trade, and
the converging and diverging point of full ten thousand miles of inland
steamboat navigation—a vastly greater amount than any other gather¬
ing point in the world !
"Then look at Norfolk, the great central sea port of the Atlantic;
at the very centre of the Atlantic coast ; on the finest, most conve¬
nient, safe and capacious harbor on this continent ; open at all times
of the year ; accessible from any point and with any wind ; and, all
in all, better calculated for a mighty trade than any harbor in the
world ! ,
" Then consider* this vast centre of interior, and this vast centre of
Atlantic trade, are, excepting the little space occupied by the " un-
finished section" connected by an unbroken water line, wbich is at
once shorter, safer, cheaper, and more reliable than any other, and
open to trade for eleven months in the year.
" Does it not look as if these two great centres were made expressly
for each other—and that we. are almost abusing Providence in letting
the little gap remain unfinished ?"
The present patriotic, able and eloquent chief magistrate of our
State, in his letter to Mr. Lacouture, of the 12th April, 1857, ex¬
presses himself to the same effect. He describes Norfolk as " a point
where there is a harbor spacious enough and deep enough for all the
merchant and naval marine of the world, and affording a site for a city
rivaling in the course of time New York or London." He portrays
in the most graphic language the resources of Virginia within her own
limits—demonstrating that her counted and uncounted wealth alone, is
enough to justify all her expenditure and taxation, past and prospec¬
tive, for the completion of her main lines of improvement—and par¬
ticularly that line which is to join the waters of the Chesapeake to those
of the Ohio—which has ever been a favorite improvement with him.
And he adds : But if Virginia were a waste from the seaboard to the
Ohio, without a tithe of this perpetual resource, still the back country
beyond her is interminable and exhaustless, and her eligibility or
track eor its produce is worth ten-fold more millions than she
can ever be called on to expend !"
The evidence would thus appear to be conclusive, that when the
Virginia canal is completed, it will command the trade of the West,
and doing that, must be worked up to its utmost capacity ; and there¬
fore, in calculating the future trade of this improvement, we have only to
decide upon its actual capacity for through freight, in connection with
its tributary and way freight.
The capacity of the canal at Richmond will be limited by the num¬
ber of boats that can be passed through the first lock above the city.
To ascertain this, we will suppose a boat to pass through this lock every
7J minutes; which was the daily average on the Erie canal at Lock
No. 3, in the year 1853, when that canal did its heaviest business ;
and we will assume that the canal will be in working order for eleven
months in the year, or 330 days, and that the average load of a boat
will be 50 tons, or 100,000 pounds. There would then pass this lock
in one year, 63,boats and 3,168,000 tons. This is less than the
^ 25
actual tonnage on the Erie canal in 1853, which amounted to 1,742,056
tons of up freight,.and 2,505,797 tones of down freight, a total of
4,247,853 tons. Assuming then that 3,168,000 tons will enter or leave
the basin at Richmond, it is necessary to determine the different points
to and from which this freight will be shipped, and how much of it will
be through freight. The present tonnage on the canal is about 200,000
tons, of which about
10,000 tons are carried 196 miles.
80,000 " " " 146 "
110,000 " 60 "
If the work were fully and fairly in use, I think Ve might calculate
upon the following increase and distribution of freight :
140,000 tons, an average distance of 50 miles, at IJ
cents per ton per mile ^105,000
130,000 tons, to and from Lynchburg, a distance of
146 miles, at 1 cent per ton per mile 189,800
20,000 tons, to and from Buchanan, a distance of
196 miles, at 1 cent per ton per mile 39,200
30,000 tons, to and from Covington, a distance of
243 miles, at cents per ton per mile 54,675
100,000 tons cannel coal and oil from the Kanawha
valley to Lynchburg, a distance of 250 miles,
at ^ cent per ton per mile 125,000
200,000 tons cannel coal and oil from the Kanawha
valley to Richmond, a distance of 400 miles,
at cent per ton per mile 200,000
2,548,000 tons, through freight, 485 miles, at 2 mills
per ton per mile .* 2,471,560
Revenue from tonnage of the Kanawha river westward, 100,000
Do. from the Richmond dock 100,000
Do. from water rents 30,000
Do. from passengers 10,000
§3,425,235
That the estimate of 2,548,000 tons for the through tonnage is
moderate will I think be acknowledged, when it is known, that the ac¬
tual capacity of freight boats, of the largest size now navigating the
canal, is from 80 to 90 tons. If the calculation were made upon a
basis of 70 tons to the boat, the result would be a capacity for through
freight of 3,815,200 tons. Moreover, in consequence of the deposits
of mud, and washings of sand from the hill sides, the canal has not its
full depth of 5 feet, but has actually filled up in some places to about
31 feet, and that is the depth to which boats are now loaded. A very
little additional expense, (which in consequence of the embarrassed
condition of the company's affairs they cannot now encounter,) would
maintain a depth of 4| feet, and then the capacity of boats would be
increased to 100 tons. Nor in this estimate do I consider the effect of
4
26
steam as a motive power, whicli will most probable at an early day bo
introduced upon the canal.
The estimate of revenue above given is based upon assumed rates
and quantities, the value of which you are as competent to determine
as I am. For instance, you will be able to say whether thirty thou¬
sand tons to and from Covington, independently of all reliance upon
the Covington and Ohio railroad, be a sufficient estimate, considering
even the lumber trade alone, which I doubt not will be immense, im¬
mediately upon the completion of the canal to that point. So, too, as
to the quantity of cannel coal and cannel oil, from' Kanawha to Kich-
mond. If I be not mistaken in the future demand for these articles
at this point, one-fourth of the capacity of the canal would probably
be required for that trade alone. Then again, the articles of salted
meats, flom-, grain and tobacco, seeking exit to Europe. Here the
difficulty is rather to keep the estimate within limits which shall appear
to be reasonable, than to exaggerate it. Credulity is indeed taxed,
when we consider the products of the great central region of the
West,—that almost illimitable region of the richest land upon earth,
which most remarkably has so small a number of outlets by water to
connect it with the rest of the globe : these being the Mississippi river
in one direction and the St. Lawrence river in another ; both of which
we know are liable to many obstructions and dangers And so far as
the artificial routes through the States of New York, Pennsylvania and
Maryland are competitors, we know equally that our line possesses ad¬
mitted and decided advantages over them. On this point I beg to
quote the language of my honored predecessor Judge Mason. In his
last report to the stockholders, before proceeding upon his mission to
France, speaking of the canal and the Covington and Ohio railroad,
he thus expresses himself. (See 19th Annual Report, page 561 :)
" In the great valley to which these improvements are tending, the
estimated annual production of articles of commerce for transportation
to the Atlantic ports of the LMited States, is seventeen millions tons
of freight. Considering the physical objections to the down stream
transportation by way of New Orleans, arising from the heat and
moisture of the climate, often highly injurious to breadstuffs, the cereal
grains, tobacco and provisions, and the interruption of the northern
routes, for many months in the year, by the severity of the climate,
I have not doubted that if lines of transportation shall be established
through Virginia to the Ohio river, they must and will command a con¬
siderable portion of the trade of the valleys of the Mississippi and the
Ohio. The capacity of the railroad is not equal to the transportation
annually of more than four hundred thousand tons. The capacity of
the canal is to cai-ry nearly three millions. Both improvements will
find most remunerating employment. The length of your improve¬
ment will be 483 miles ; and if it can command one million tons of
extra territorial freight, conceding to the railroad all the passengers,
and as much freight as it can carry, you may reduce your tolls to one
cent per ton per mile, and your revenue will be four millions eight hun¬
dred and thirty thousand dollars, exclusive of freight on articles of
27
coûsumption taken in return, and of the way freight furnished by the
people of Virginia, along the whole length of the line.
" Is this an extravagant anticipation ? The articles of fi-eight mak¬
ing the enormous aggregate before stated, are the surplus products of
the interior, and must find their way to market by some line of navi¬
gation or improvement. The competing lines are limited in number.
The Virginia lines will have the advantage of distance and of climate
over both southern and northern routes ; and over those by the Lakes,
this controlling advantage, that the great productions of provisions and
bi-eadstufis being reiidy for market in December and January, cannot
use the northern water lines, while obstructed by ice, but through Vir¬
ginia they may be sent to market in the winter months ; thus avoiding
the necessity of keeping them on hand at risk of injury or loss, with
the advantage of applying labor to getting them off, at a season when
it could not be very advantageously employed in the field ; and of the
commercial advantage of converting them into money at an earlier
day. The interest on the proceeds of sale, by our routes, for the pe¬
riod which must elapse before they can be sent by the New York ca¬
nal, would make a most important item in our favor."
In estimating the value of this canal, I do not propose to consider
the subject in tîhe enlarged aspect of its value to the State—as a ineans
of developing agricultural, mineral and manufacturing resources, of in¬
creasing population and wealth, of creating a domestic and foreign
trade, of imparting greatness and splendor to the metropolis, of build¬
ing up Norfolk as a center of commerce ; but simply of its value as a
monied investment.
The actual cost to the James river and Kanawha company of all the
works and property belonging to the company has been §10,413,996
The estimated cost of completing the water line is, in
round numbers 13,000,000
Supposing that it would take five years to complete the
work, there would then be an interest account of—
5 years on, say §2,000,000 at 6 per cent §600,000
4 " " 3,000,000 " " 720,000
3 « " 3,000,000 " " 640,000
2 " " 3,000,000 " " 360,000
1 " " 2,000,000 " " 120,000
2,-340,000
Total cost when completed §25,753,996
Estimated revenue §3,425,235
Expenses of repairs, salaries of agents, &c.,
at §750 per mile 363,750
Net income §3,061,4S5
Which is very nearly twelve per cent, upon the whole cost of the
work.
The financial condition of the company is of course a matter of
great concernment in a negotiation like the present.
28
A few brief paragraphs under this head will sufBce to make you un¬
derstand our present condition and the cause of all our woes.
The original capital was five millions of dollars— of which the State
paid one million in old works, and of the private subscription there
proved to be insolvent $73,3-36 46,—leaving $3,926,663 54 as the ac¬
tual available cash capital ! and even this, in consequence of the failure
of the Bank of the United States, the commercial disasters of the
years 1836 and '37, and other unfavorable circumstances, was collected
slowly, irregularly, and at heavy cost. All beyond the capital thus re¬
alized, has been borrowed money, on which the company has been re¬
quired to pay interest from the day it was received, before it was ex¬
pended, and of course long before it began to yield any return. The
amount of interest actually paid is $2,765,397 25, exclusive of the
annuity of $399,000 paid to the stockholders of the Old James river
company.
The charter of the company, section 28, (Annual Reports, Vol. I,
p. 755,) is as follows :
" If the capital of five millions of dollars shall be found insufiicient
to complete the works required of the company, they shall be at liberty
to enlarge their capital to any amount which may he found necessary
to that end. The commonwealth shall be at liberty to take two-fifths
of the additional capital, or any portion thereof, and the other stock¬
holders to take the residue."
As the work progressed, the cost considerably exceeding the esti¬
mate, it became apparent even before the completion of the line to
Lynchburg, that an increase of capital would be required for its con¬
tinuous prosecution. Application was therefore made to the Legisla¬
ture, at the session of 1838-'39, praying that honorable body to sub¬
scribe on the part of the State three-fifths of the sum of six millions
of dollars, proposed to be added to the company's capital stock, and to
give authority to the company to subscribe on its own part, the other
two-fifths of this additional capital, with certain conditions annexed.
But the Legislature preferred to authorize the company to borrow on
the credit of the corporate funds, the sum of one million five hundred
thousand dollars, provided the loan could be negotiated at an interest
not exceeding six per centum per annum, payable at some place either
in the United States or in Europe, the faith of the State being pledged
as guarantee for the punctual payment of the interest, and the re¬
demption of the principal, according to the terms of the loan. This
was the act, passed March 23d, 1839, under which the first guaranteed
bonds were issued. The president in laying it before the stookholders,
expressed his sincere regret at the failure of the proposition submitted
by the company, because, as he stated, it was introducing the policy of
operating exclusively on borrowed funds, at an earlier period than was
desirable by the company. Nevertheless, in view, as well of the evils
which its rejection would produce, as of the benefits which its adoption
would confer, (among Vhich was, that the judicious and economical ex¬
penditure of the amount of the loan would carry the work into the
heart of the Valley of Virginia,) he recommended to the stockholders
to give their sanction to all the provisions of the act,—and the act
29
was accordingly accepted and adopted as an amendment of their char¬
ter. No mortgage or other specific lien was at that time required of
the company.
About a year thereafter, a gentleman of South Carolina, of well
known abilities and of high character, being about to proceed to Eu¬
rope to negotiste a loan for the republic of Texas, the company en¬
trusted to him, under suitable instructions, an amount of five per cent,
sterling bonds, equivalent to $550,000. This gentleman visited vari¬
ous cities in Europe, earnestly endeavoring to effect a sale of the bonds ;
he pledged a part of them with a house in London, for a small advance,
which was duly remitted ; and finally effected a credit with a house in
Amsterdam, on an hypothecation of the remainder of the bonds, but
applied the money chiefly to the uses of the Texian government, under
the expectation, as he ever afterwards declared, that the misappropria¬
tion would be of very short duration, and that it would be rectified
from the proceeds of the Texian negotiations.
Immediately upon the receipt of these embarrassing tidings in Rich¬
mond, they were communicated by the president and directors to the
General Assembly, then in session, accompanied by a memorial and all
the documents and correspondence relating to the negotiation ; and the
committee to which they were referred, after a careful and deliberate
investigation, by an almost unanimous vote, reported a bill in confor¬
mity to the prayer of the petition.
The two houses of Assembljq however, did not concur in the views
of the committee. The bill as reported encountered an active and vio¬
lent opposition. And on the 25th March, 1842, an act was passed au¬
thorizing a loan to the company of $250,000, in certificates of State
stock, for the purpose chiefly of redeeming the guaranteed bonds which
had been pledged in London and hypothecated in Amsterdam, But
the act required
First. That the company should execute to the Board of Public
Works a mortgage or other specific lien on all their property, real and
personal, and upon the nett income of all their tolls and receipts.
1. To secure the payment of the annuity to the Old James river
company.
2. To secure the State from loss by reason of her responsibility for
the guaranteed loan under the act of March, 1839.
3. To secure the payment semi-annually of the interest, and re-pay¬
ment of the principal of the certificates then authorized to be issued.
Second. That when redeemed, the company should return to the
ti-easurer of the commonwealth one hundred thousand dollars of the
guaranteed bonds, to be by him cancelled.
Third. That the company, until authorized by the Legislature, should
enter into no new contract or engagement for work to be done on the
line of its improvement.
Fourth. That the certificates of stock authorized to be issued under
this act should not be at any time disposed of at less than their par
value, without the consent of the Board of Public Works ; that the
company should be prohibited from making any new issues or re-issues
of scrip or post notes ; and that instead of one proxy to represent the
30
stock of the cómmonwealth in the annual or other meetings of the
stockholders of the company, there should be three proxies, appointed
by the Board of Public Works, who were instructed to prepare and
vote for a reduction of at least ten per cent, in the salaries and com¬
pensation of all the ofBcers of the company, except those whose salary
did not exceed $500.
I need go ■ but one step further to account for a paralized credit.
This will be found in an act passed March 24th, 1843, entitled an act
authorizing the company to increase their tolls, and for other purposes,
the sixth section of which is in these words :
" 6. Be it further enacted, That if the said company shall make de¬
fault in the payment of any money now advanced, or hereafter advanced
for the payment of interest on the guaranteed debt of the company by
the commonwealth, or any instalment of the annuity to the Old James
river company now in arrear, or which may hereafter become in arrear,
when payment thereof shall be required by the General Assembly, or
the Board of Public Works, it shall be lawful for the Board of Public
Works to recover the sum or sutas so due, with lawful interest thereon,
by motion in the name of the commonwealth, on ten days notice, in
any court having jurisdiction of motions in behalf of the common¬
wealth, against public defaulters. And to enforce the execution of
any judgment recovered on such motion, the court in which such judg¬
ment shall have been recovered, may, on application of the common¬
wealth, direct a writ of sequestration to issue against the goods, chat¬
tels, lands and revenues of the said company, the execution of which
writ shall be under the control of the court. On the levy of the said
writ, the revenues of the said company thus sequestrated, shall be ap¬
plied, first to support and preserve the works of the company—second,
to the payment of the interest on the guaranteed debt of the company,
or instalments of the annuity to the Old James river company, which
may be in arrear during the pendency of the writ—and finally to pay
the judgment, interest and costs. The sequestration shall continue
until these objects are accomplished. Nothing in this act shall be con¬
strued to waive or impair the right of the commonwealth to enforce the
mortgage executed in pursuance of the provisions of the act of Assem¬
bly, passed March twenty-fifth, eighteen hundred and forty-two."
This enactment which was required to be adopted, and was adopted,
as an amendment of the charter, was substantially repeated in the se¬
cond section of an act, passed February 21st, 1845, entitled an act for
the relief of the company.
I now submit to you the following statement, showing the amount
invested in the works and property of the company, from its organiza¬
tion in May, 1885, to the 30th September, 1859.
Cost of construction:
f
Richmond dock -
Tidewater connection.
Canal
Southside connections,
$244,721 98
606,590 14
8,934,788 49
162,685 09
31
^10,413,996 13
§2,261,344 91
Rivanna connection 115,043 21
North river improvement 81,011 95
Blue Ridge turnpike road 9,273 80
Kanawha turnpike road 192,874 78
Kanawha river improvement 67,011 66
Cost of re-pairs a-nd maintenance ;
Richmond dock 66,559 06
Tidewater connection 5,030 44
Canal 1,843,069 53
Blue Ridge canal, turnpike and ferry, 35,121 49
Kanawha turnpike road 216,326 52
Kanawha river 95,237 87
General charges :
Dividend on stock 11,599 59
Annuity to Old James river company, 399,000 00
Interest on debt to the State 736,524 01
Interest on guaranteed debt 1,878,980 71
Interest and sinking fund on North
river bonds 67,390 40
Interest and discount on temporary
loans 82,502 13
Expenses of the general administra¬
tion of the company 162,751 19
Loss by General James Hamilton 63,820 45
Loss by notes and securities received
in satisfaction of stock subscrip¬
tions 4,623 57
, 3,407,192 05
Total expenditure of every kind §16,082,533 09
Capital subscribed :
By the commonwealth 3,000,000 00
By individuals §2,000,000 00
Less amount uncol¬
lected 68,712 89
1,931,287 11
Debt without interest 4,931,287 11
Capital borrowed : *
From the commonwealth'. 3,351,784 99
From guaranteed bonds 2,260,000 00
§11,151,245 98
32
From banks and individuals 394,674 68
From post notes 3,222 69
Debt bearing interest 6,009,682 36
Income invested $5,141,563 62
Divided thus :
From tolls, rents, penalties and fees, 5,065,655 54
From sales of real estate 28,484 46
From premium and interest on bonds
and State stock 57,710 60
From insurance 10,000 00
5,161,850 60
Balance 1st October, 1859 $20,286 98
The indebtedness of the company is as follows :
I. To the State of Virginia for State stock and money loaned under
successive acts of the Legislature, to wit ;
25th March, 1842 250,000 00
21st February, 1545 ■ 268,645 33
18th December, 1846 57,559 36
1st March, 1847 1,236,000 00
25th January, 1850 110,000 00
5th June, 1852 •. 120,000 00
7th January, 1853 67,770 00
2d March, 1853 640,000 00
29th March, 1853 70,000 00
3d March, 1854 60,000 00
19th January, 1856 135,070 80
15th March, 1856 67,350 90
22d, December, 1857 i 269,388 60
Aggregate $3,351,784 99
On nearly the whole of this debt there is an arrearage of several
years interest.
II. To the holders of bonds, issued by the company and guaranteed
by the State of Virginia, under successive acts of the Legislature, to
wit ;
23d March, 1839 1,400,000 00
9th March, 1849 350,000 00
12th March, 1849 150,000 00
15th March, 1850 .' 360,000 00
Aggregate $2,260,000 00
33
These bonds are irredeemable for a given number of years from
their date,—and then payable at the pleasure of the company, except
those issued under the authority of the act of the 9th March, 1849,
which are payable 25 years from their date, or at any time within that
period, at the pleasure of the company, on giving six months' notice
to the holders thereof. The semi-annual instalment of interest which
became due on these bonds, on the 1st day of July last, is unpaid.
III. To the stockholders of the Old James river company a per¬
petual annuity of $21,000, guaranteed by the State of Virginia, under
the 21st section of the act of the 16th March, 1832. This sum, paya¬
ble in semi-annual instalments, and continuing forever, represents a
capital (at 6 per cent, interest,) of §350,000.
IV. To private and corporate creditors, to whom money is due by
obligations of several kinds, to wit :
1. Salaries and wages of ofiScers, agents and employes, for services ;
2. Accounts for supplies of clothing, provisions, oil, lumber and
other materials, &c. ;
3. Bonds for the hire of slaves ;
4. Negotiable notes given in settlement of amounts due for services,
supplies, hires, &c. ;
5. Estimates for work on the New Canton bridge, Bosher's dam,
Joshua Falls dam, and North river improvement ;
6. Bond for money borrowed on account of the tidewater connec¬
tion ;
7. Bonds issued to contractors for work on the 3d division ;
8. Bonds issued to contractors for constructing a canal to supply the
city of Lynchburg with water, and for raising the level of the canal at
Lynchburg, with a view to an increase of the water power ;
9. Bonds issued to contractor for work on the North river improve¬
ment;
10. Bond for the purchase of real estate at Lexington, in connec¬
tion with the North river improvement ;
11. Eight per cent, bonds, given in exchange for bonds originally
issued for work on the third division.
The aggregate of this fourth class of debt, which we call the
" Floating Debt," was on the first day of October last, $428,932 82.
In addition to the foregoing, certain bonds of the North river navi¬
gation company, which were issued prior to the act of the 16th March,
1858, authorizing the transfer of the franchises of the North river
navigation company to the James river and Kanawha company, have
been guaranteed by this company under the authority of an act of the
General Assembly, passed March 9th, 1853. In pursuance of the last
mentioned act, agreements have been entered into between the two
companies, whereby the James river and Kanawha company has
pledged the tolls to be received by it upon the tonnage passing to and
from the improvement of the North river navigation company, over
and above the sum of $5,000, as security for the payment of the in¬
terest and redemption of the principal of the loan. A trustee has
been appointed to receive and apply the tolls so pledged. The whole
amount of bonds issued is $200,000 ; on which 6 per cent, interest.
34
and 5 per cent, as a sinking fund, (making $22,000,) are annually paid
in semi-annual instalments ; but tke trustee having invested the sink¬
ing fund and the semi-annual interest upon the same in these bonds,
there is now outstanding, held by others than himself, only the sum of
$160,878.
To secure the debts due to the State, and the debts guaranteed by
the State, and the annuity to the Old James river company, mortgages
have been executed by the company to the Board of Public "Works, as
follows :
One dated 9th May, 1842,
One dated 28th June, 1847,
One dated 27th February, 1851,
One dated 7th April, 1851,
One dated 30th April, 1858,
One dated 9th March, 1854.
And deeds of trust have been given as follows :
One dated 14th February, 1856,
One dated 1st February, 1858.
These indentures convey all the property, real and personal of the
company, with all and singular the rights, privileges and appurtenan¬
ces thereto belonging, and all the rents, issues and profits, and espe¬
cially the tolls which may be derived therefrom ; but the deeds of
mortgage contain the proviso, that until the mortgages be foreclosed,
the company, their officers, agents and servants, may remain in the
undisturbed use and possession of the property, may collect and receive
the tolls and other income thereof, an'd may defray therefrom the ne¬
cessary charges for the repair, support and management of their canal,
and other works, and for the administration of the company, before
applying any part to the payment of the annuity, interest or principal
intended to be secured. And the deeds of trust contain the proviso
that the trustee shall not have the right to sell, except upon being re¬
quired so to do by an act of the General Assembly, prescribing the
manner and terms of sale, and the time of previous notice.
It is proper that I should mention also the existence of several suits
against the company for claims, the justice of which is denied, and
which are therefore resisted. The most important of these are—
1. A case from the county of Kanawha, involving a judgment for
$5,400 ; to which a writ of supersedeas has been allowed by the court
of appeals.
2. A case from the county of Amherst, involving a judgment for
$8,863 20 ; which has been sent back by the court of appeals for a
new trial, upon principles favorable to the company. A second case of
the same nature is depending and undetermined in the circuit court of
the same county.
8. A case from the county of Fluvanna, involving a, judgment for
$2,000 ; from which the company mean to appeal.
Supersedeas bonds have been or will be given in these and other
cases.
Two suits have been instituted by the company in the circuit court
for the District of Columbia, the object of which is to recover, out of
85
the funds to be paid by the government of the United States to the
creditors of the late republic of Texas, the sum of §98,104 68, vritb
interest on §63,820 45, part thereof, from the 12th day of August,
1852. Injunction bonds have been given in these two cases.
M hen the work upon the third division was suspended for the want
of means, in December, 1856, the contracts were closed and liquidated
damages paid ; but the contractors reserved to themselves the right to
resume operations under their original contracts, whenever the compa¬
ny should decide to go on with the work of construction, provided
they elect to do so within thirty days after notice to them respectively
of such decision. Fifteen miles of this division of the canal, except
the light section work, and the farm bridges upon it, were put under
contract for construction in Aimust, 1853. The estimated cost of the
work thus let to contract was §815,188 ; the amount of work that has
been done is §374,170; leaving the amount remaining to be done, esti¬
mated at §441,018.
On other portions of the line, there are existing contracts as follows :
1. For the completion of the North river improvement.
2. For the re-construction of Bcsher's dam.
3. For the re-construction of the Joshua Falls dam.
4. For completing the raising of the Lynchburg level, including the
guard bank on Daniel's island.
The aggregate estimated cost of these several improvements is (ap¬
proximately) §123,333.
There are a number of existing contracts for the supply of water
power to milling and manufacturing establishments upon the line of the
canal. The right of the lessee to the use of water is subservient to
the navigation in aU cases but two—one at Richmond, the other at
Lynchburg. The amount receivable from this source at present is about
§10,000 per annum. Some years ago, the chief engineer estima¬
ted that the revenue from the sale of water at Richmond alone would
in time be equal to the interest on a eapital of two millions of dollars-
I think it highly probable, that such an extent of water power, in po¬
sitions so eminently advantageous, as our line affords, is not to be
found elsewhere in the United States.
The number of officers and agents at this time in the service of the
company, is as follows :
The president.
Six directors.
The secretary.
One book-keeper.
One clerk.
The president pro tern, of the Kanawha board.
Four directors of the Kanawha board.
The secretary of the Kanawha board.
The chief engineer.
Two assistant engineers.
Two superintendents of repairs.
Three toll-gatherers on the canal.
Three toll-gatherer's clerks.
36
Three inspectors of boats,
Ninety-eight lock-keepers,
One distributing agent.
Two master masons,
Four master carpenters.
Six overseers.
One ferryman,
One collector on the dock, '
Two collectors on the Kanawha river.
Four bridge-gate keepers.
Two turnpike agents.
Thirteen turnpike-gate keepers.
One patrol.
Whole number of ofiScers and agents one hundred and sixty-five,
who may receive an annual compensation of $55,746.
There are of course in addition to these a number of subordinate
mechanics and laborers employed in the various operations of the
company.
In regard to the charter, about which you inquire particularly, it
would be impossible for me, without great labor, to furnish you a copy
which would be either useful or intelligible. The James river and Ka¬
nawha company are the successors of both the James river company
and the Richmond dock company. The act incorporating the James
river company was passed at the " October session, 1784 since which
time other acts and parts of acts relating to that company have been
passed to the number of sixty-eight. The act incorporating the
Richmond dock company was passed February 19, ,1816 ; since which
time acts and parts of acts relating to that company have been passed
to the number of eleven. The act incorporating the James river
and Kanawha company was passed March 16th, 1832 ; since which
time acts and parts of acts relating to the company have been passed
to the number of eighty-three.
By their acceptance of the conditions prescribed by the General
Assembly in an act passed March 2d, 1853, the James river and Ka¬
nawha company became " subject to the provision of the Code of Vir¬
ginia, 80 far as they relate to internal improvement and joint stock
companies." Under the provisions of the Code, the charter may now
be altered or modified by any future Legislature as may seem to it
proper, except that no law shall be passed for taking from the company
its works or property without making to it just compensation, or for
changing its tolls without its assent, in any other cases than such as
are specially provided for in chapter sixty-one.
The twenty-seventh section of the act incorporating the stockholders
of the James and Kanawha company provided, that if the works re¬
quired of the company, were not finished within twelve years after the
first general meeting of the stockholders, then their charter should be
forfeited, and all the works of the company, with the land on which
they are situated, and all the rights, privileges and immunities of the
company should he vested in the James river company (as then exist¬
ing) for the benefit of the commonwealth ; and in that event the James
37
river company was to be regarded as the successor of the James river
and Kanawha company, but not to be liable for any debts contracted
by them, or entitled to any part of their personal property. Ey an
act passed March 1st, 1847, the time limited for the completion of the
works of the company was extended to the 25th May, 1859.
The Code, (chapter 61, section 31,) contains a general provision ap¬
plicable to any company which shall fail to commence and complete its
works within the time prescribed by its act of incorporation.
It is not for me to determine how far the Legislature would be jus¬
tified in taking advantage of the clause of forfeiture in the charter of
the James river and Kanawha company. Mr. Cabell, the first presi¬
dent, in his supplement before referred to, considers the question in an
exceedingly interesting and earnest manner, recalling to recollection
the position in which the improvement stood, and the light in which it
seemed to be regarded by the State, at the period of the adoption of
the new charter. Eeplying to the suggestion, that the improvement
was a mere trust confided to the present company, and that the period
for the execution of the trust was about to expire, he states (p. 752,)
" I can only declare it as my solemn conviction, that if such doctrine
had been advanced, and had been respectably maintained at the period
of the adoption of the charter, it would have been fatal to the sub¬
scription, and the company would not have been formed." Again, p.
759^ " not only did the legislative and executive departments of the
government thus actively and avowedly encourage the citizens of Vir¬
ginia to come forward and support the new scheme of improvement,
but the whole course of the proceedings, and the whole history of the
period bear the most ample testimony to the general expectation then
entertained, that the enterprise in which they were invited to embark
millions of money, was to be a manly, dignified and permanent eifort,
and that the charter about to be consummated would, in the event of
no act of malfeasance on the part of the company, be in point of fact,
a perpetual grant." And again, p. 762, "I repeat that I believe that
it was the general, if not the universal expectation, at the period of
the enactment of the charter, that the system then proposed to be
adopted, if carried into execution, was not to be changed or abandoned
for slight or transitory causes, and that, in the event of no act of mal¬
feasance being committed on the part of the company, the stockholders
might be fully persuaded that the Legislature would always be too just
and too magnanimous to regard the chartered privileges in any other
light than in the nature of a perpetual grant. Believing sincerely
that such were truly the intentions of the General Assembly! I did
not hesitate in the course of numerous public addresses to the peo¬
ple of the counties on the line, delivered in the course of the years
1833 and 1884, to treat with contempt, indignation and scorn, the idea
that the Legislature ever would wield the power conferred by the for¬
feiture clause in the charter for any other end than to secure integrity
and good faith on the part of the company, with a view to the ultimate
consummation of the scheme."
The forfeiture of a charter, differs, I believe, from the expiration of
a charter. In the latter case, there is an unqualified limitation, de-
38
pending Upon tlte lapse of time,—so that the corporate powers and ob¬
ligations cease on a given day, unless otherwise specially provided, as
of a bank, which may collect debts, &c., after the expiration of its
charter ; hut in the former case, limitation or forfeiture depends upon
the performance of a condition, which there may have been good and
sufficient reason for not complying with. Hence, I am advised, our
courts hold that the franchises of a corporation cannot be forfeited
without a judgment, either on scire facias, or quo warranto ; nor can
Teal estate conveyed to a corporation be divested by non user alone,
without a judicial sentence. In other words, the forfeiture must be
ascertained by the sentence of a competent court in a proper proceeding
for the purpose.
Should an action he instituted to enforce a repeal of the charter, or
dissolution of the body, in the case of the James river and Kanawha com¬
pany, it would not be difficult I think to adduce many extenuating cir¬
cumstances. There is indeed nothing in the history of this company, of
which I am aware, to cause just apprehension that proceedings will be in¬
stituted to enforce a repeal of the charter. The corporation has been guilty
of no wilful abuse or improper neglect ; there has been no misapplication
of the powers entrusted to it—no omission to comply with any condi¬
tion which it was in its power to perform—nothing producing, or hav¬
ing a tendency to produce mischievous consequences to any one. So
far from wilful non-feasance, scarcely a session has elapsed that the
company has not beseiged the Legislature with applications to enable
it to comply with the main condition of the charter. If ever there
has been a stretch of authority, it has been toward the great end and
design of the charter—the vigorous prosecution, early completion, and
permanent maintenance and good order of the improvement. The
whole capital has been expended honestly, if not in all cases judicious¬
ly, But the errors of administration commonly alleged, have been
long since excused by the Legislature itself. So far as I can perceive,
no interest of the State would be promoted by the dissolution,—no ex¬
isting danger to the community requires it,—it is not pretended that
stockholders more zealous or more patriotic could be found than those
now associated with the State,—in short, nothing can be urged against
the company except insolvency—and that, resulting in great degree,
as has been partially shown, from legislative action, against which the
company protested at the time. Admitting, however, the forfeiture in¬
curred, the Legislature may easily by grant revive or renovate the old
corporation with the old corporators.
There is an act of Assembly, of which I feel it my duty likewise to
apprise you, entitled " An act to make investments of the common¬
wealth more productive, by enforcing the payment of interest and
sinking fund on loans to internal improvement companies; of divi¬
dends on preferred stock, and the interest on the bonds of such com¬
panies guaranteed by the State," passed March 27, 1858. ' [See Acts
of Assembly, 1857-'58, chapter 7, page 6.]
In the case of the James river and Kanawha company, the president
and directors have done nothing but what they were authorized and
required by the Legislature and their mortgages to do,—that is to say,
39
they have applied the revenue first to the payment of the current ex¬
penses of the administration of the company, and the repairs of the
improvement. They consider themselves therefore fully 'within the
exceptional clause of the second section of the act, which is in these
words : " But so much of the revenue of any company as may have
heen pledged, with the express assent of the General Assembly, to the
payment of any other debt, in preference to the debt to the State,
shall not he included in the gross revenue hereinbefore mentioned."
Moreover, the hoard consider, there was a condonation by the Legisla¬
ture up to the last mortgage or deed of trust given ; the Legislature
having then recognized the existing state of things, and made provision
for it.* Nevertheless, I am informed that the Auditor of Public Ac¬
counts has notified the Attorney General of the failure of the company
to make payments into the treasury in the cases and manner named in
the second section of the act, hut so far as I am apprized, the Attorney
General has not yet moved for judgment against the company.
I have thus, as minutely and particularly as you seemed to desire,
given you such a narration of the history and aifairs of the company,
as I suppose sufficient to enable .you to comprehend the present condi¬
tion and future prospects of this great improvement. You have seen
tke early beginning of the scheme under the immediate auspices of the
illustrious Father of his Country. You have seen how much was ac¬
complished in its prosecution under the auspices of the State. You
have seen how much, I should rather say, how little has heen accom¬
plished under the aupices of the State's successor, the present company-
Should this view have brought you to the same conclusions with my¬
self, you will find it difficult to understand how Virginia could have so
long permitted such an improvement to remain incomplete. To me, I
confess it is amazing, that the people of the State have not years ago
sent up their delegates to the General Assembly, with instructions to
employ all the means, and concentrate all the energies at their com¬
mand for the accomplishment, in the shortest possible time, of an en¬
terprise, which when completed, will pour a tide of trade and com¬
merce into the towns and cities, and sea ports of the State, the rich¬
ness of which, I verily believe, no man can estimate. While I may he
permitted as a son of Virginia to bewail this great remisness, as I con¬
ceive it to be, on her part, my present purpose is, however, to deal
with things existing rather than with things past."
Having in my letter to you of the 8th of September last, submitted
several inquiries, with the view to ehcit proposals from which I might
select, I beg leave now particularly to call your attention to the last of
those inquiries, and to suggest that I think an arrangement might he
made upon the basis therein indicated, with mutual advantage to your¬
selves and the company.
* This view is confirmed by aa act of the General Assembly, passed 20th December,
1859, entitled " an act to provide for the payment of interest upon the bonds of the
James river and Kanawha company, which have been guaranteed by the State of Vir¬
ginia," which requires of the company a mortgage upon its whole property, real and
personal, to secure the payment not only of any debt now due, but of any that may
hereafter become due from the company to the commonwealth. [See the close of this
pamphlet.]
40
The scheme is briefly this :
I value the works and property of the company at $10,000,000
And propose that the present stockholders shall contri¬
bute them at that valuation.
The engineer estimates the cost of comple¬
ting the improvement at $13,000,000
And estimating five years as the time ne¬
cessary for completion, there should be
allowed an interest account of, say $2,000,000
I propose then that you shall undertake as contractors to
complete the improvement, at prices to be agreed
upon, you receiving your pay in stock, which may
amount to, say 15,000,000
$25,000,000
On which, if so much, dividends will be declared and paid in pro¬
portion to the amount of stock held by the parties respectively.
What are the inducements for you to make such an arrangement ?
First. As I understand, you are the owners and possessors of three
hundred thousand acres of land upon the waters of the Guyandotte,
the Tug Fork of Eig Sandy, and branches of the Great Kanawha,
rivers,—being a part of the lands formerly belonging to Col. James
Swan, which by an act of the General Assembly, passed in the year
1833, were vested in J. P. Dumas, curator, for the benefit of Colonel
Swan's creditors, and have now been confirmed to you and your asso¬
ciates by the decree of a competent court, from which no appeal has
been taken.
These lands abound in minerals, unequalled it is believed by any in
the world in variety, extent and value, and particularly in bituminous,
splint and cannel coals, which as yet remain almost literally undis¬
turbed. Who can estimate the value of such a domain, this improve¬
ment being completed ? In my deliberate judgment, you and your
associates would, in that case, be no contemptible rivals of the Bourse
or the Credit Mohilier of your own country.
Secondly. As contractors, having the control of large means, and
therefore able to command labor, supplies, and all the appliances re¬
quisite to conducting an enterprise with vigor, skill and judgment, you
might expect to realize, under what we are accustomed to regard ordi¬
nary cash prices in this country, a profit in itself fully remunerative.
Thirdly. No well informed person can doubt what would be the
dividends upon a judicious outlay of the capital necessary to complete
this improvement in a durable manner. Hence, your profits in this
particular, would probably exceed those of any investment you could
expect- to make in Europe ; and therefore, the acquisition of stock,
even in this aspect, ought to be acceptable and satisfactory.
I will not conceal my earnest desire to complete an arrangement
with you on terms which shall be satisfactory to my company and the
Legislature. Of course I could expect you to do nothing, in the pre¬
sent embarrassed condition of the company, without the full concur-
41
rence of the Legislature,—and therefore I must ask you to assume,
as the basis of a final arrangement, that the Legislature, in order to
obtain for the State the advantages which it is admitted would result
from the completion of the improvement, will relieve the company of
every existing lien and liability, so far, at least, as you and your in¬
terests may be affected thereby.
On the other hand, it is assumed that you will satisfy the Legislature
of your ability to comply with any contract you may make with the
company.
Why should the ability be wanting ? If the financial notabilities of
your country, men whose personnel and means alike command the pub¬
lic confidence, and who are known in every money market, and are ac¬
customed to look abroad through the world for opportunities of invest,
ment, can be made to understand the facts of the case, I see no reason
why, with our stock in hand, you should not be able to obtain advances
to any extent which might be called for by possible deficiency on your
part and the exigency of the work. Why indeed should not the Em¬
peror of your great nation, see in such a contract, coupled with the
relations which unhappily exist between the northern and southern
States of this Union, an opportunity of which he might avail himself,
as by a coup d'etat, to establish direct trade between the Southern
States and France ? France ! once our ally, having no sympathy now
with Exeter Hall, or its mischievous doings, and ready, as she is able,
to quadruple the current exchange of values between herself and the
South, the southwest and the west of this wonderfully productive coun¬
try. France ! in whose magnificent capitel you find to-day, a decisive
mark of our regard, in the bust of the noble Marquis, which was voted
by the commonwealth of Virginia to the city of Paris at the very mo¬
ment that Washington was inaugurating the great work which we are
called upon to complete.
I submit with deference these views and suggestions, and soliciting
your favorable consideration of them.
Remain, dear sir.
With great respect,
Your very obedient servant,
THOMAS H. ELLIS,
President.
6
42
Office of the James River and Kanawha Company, "I
Richmond, Recemher 3,1859. j
To Messieurs. Ernest db Bellot des Minieres,
and
Theodore Olivari,
&c., &c., &c., &c.
Q-entlemen—Under the reservations- contained in the 4th resolution
which was adopted by the stockholders, at their meeting on the 27th
of October last, I respectfully submit to yourselves and your associates
the following scheme for the completion of the James river and Kana¬
wha canal :
The present stockholders to contribute their works at the
price of 110,000,000
You to complete the improvement, the es¬
timated cost of which is 113,000,000
Interest to be allowed on the sums ad¬
vanced by you from time to time for
that purpose, which may amount to,
say 2,000,000
$15,000,000
Total cost when completed, (estimated,) $25,000,000
Of which the public share, or share of
the State of Virginia, will be, in shares
of stock, at $100 per share $8,000,000
The private share, exclusive of yours,
will be - 2,000,000
Your share—the whole amount of your
advances not exceeding 15,000,000
Total $25,000,000
You to pay $500,000, (part of the said $15,000,000,) for the pur¬
pose of relieving the company of its floating debt, of which sum,
$250,000, to be paid so soon as a definitive agreement shall be signed,
and the balance paid in sufficient time to meet the residue of the debt
as it becomes due ; or, the said balance may be paid at the same time
with the first $250,000, if you so prefer. Certificates of stock to be
issued for the amount paid at the time of payment.
The company to contract with you for you to execute the work at
prices, and on terms to be agreed upon, the work to be completed by
or before the 4th day of July, 1865 ; the plan and the mode of execu¬
ting the work to be exclusively under the control, judgment and dis-
43
cretion of the company,—but the prices to be fixed by agreement be¬
tween the company and yourselves,—and in case the company and
yourselves should diflTer, or be unable to fix such prices by agreement,
the difference to be decided by arbitrators, one to be selected by the
company and one by yourselves, with power in the arbitrators, in case
of their disagreement, to call in an umpire, whose award shall be final.
Estimates of the work performed, and materials furnished, to be ta¬
ken quarterly by the engineers of the company, in the mode provided
for in the contract, and interest to be allowed on the quarterly esti¬
mates ; but twenty per cent, of the said estimates respectively shall be
left in the hands of the company until the completion of the work,
when the same, with interest, shall be settled for in stock at par upon a
final settlement between yourselves and the company.
It is to be understood, nevertheless, that the company reserve to them¬
selves, and are to have the right, in case the commencement of your
operations be unreasonaly delayed, or after they are commenced shall
be neglected, or prosecuted without reasonable diligence, to give notice
and rescind the contract between the parties, and treat the same as
abandoned on your part ; in which case the whole reserved per centage
in the hands of the company shall be forfeited.
The balances of the estimates, (after deducting the reserved twenty
per cent., before mentioned,) and the interest upon said balances re¬
spectively to be paid from time to time in stock at par, until the aggre¬
gate sum, composed of the said balances with interest, and the reserved
sum, with interest, shall reach §15,000,000—if so much be necessary
for the completion of the work. But the amount of stock to be held
by you, and in regard to which your interests as stockholders shall be
regulated, shall be governed by the amount of your payments, advances
and estimates, with the accrued interest, for which stock at par shall be
issued as aforementioned. All amounts beyond the said sum of
§15,000,000, if any, to constitute debt from the company to you, on
which interest shall be paid before dividends. If preferred by you the
aggregate of stock may be limited to §8,000,000 ; all beyond that sum
being debt from the company to you, on which interest shall be simi¬
larly paid. But your rights and interests as stockholders, in case of
such Hmitation, to be diminished in conformity therewith.
Dividends out of the nett profits of the work to be payable semi-an¬
nually, in proportion to the amount of stock held, but not to exceed
the per centum allowed by the charter.
When §500,000 shall have been paid in cash, your vote in a meeting
of the stockholders, shaU be one-fourth of the vote given in any elec¬
tion, or on any question, by others than the State and yourselves ;
when the improvement has been completed to Covington, your vote
shall be one-half of the vote given by such others ; and when the en¬
tire improvement has been completed, your vote shall be two-thirds of
the vote given by such others. The vote of the State in respect of
her present stock, which amounts to §3,000,000, to remain as at pre¬
sent, to wit : not to exceed two-thirds of the whole number of votes
given in the same election, or on the same question by others than
yourselves. In respect of her additional §5,000,000, the vote of the
44
State to be one-tbird of tbe vote given by yourselves. This provision
is based upon the expectation that you wiH be stockholders to the
extent of $15,000,000. In case of your being stockholders for a less
amount, your, vote will be proportionately diminished, observing the
same ratio in regard to other votes as results from the proportion above
indicated on the supposition that your stock would be equal to
$15,000,000.
In the event of your assigning any shares of your stock, the votes
of your assignees shall be rateable in proportion to their respective
amounts of stock,—the whole of your and their votes together not to
exceed the vote which you could give if there were no assignment.
Such books shall be kept as may be necessary to distinguish this
particular stock.
This scheme pre-supposes that the State will convert into stock the
whole debt of the company, other than the-floating debt, and will sur¬
render the existing liens.
I have the honor to be, gentlemen.
With much consideration.
Your obedient servant,
THOMAS H. ELLIS,
President.
45
Reported in the House of Delegates, from the Committee of Roads
and Internal Navigation, December 21st, 1859.
A. BILL
To Amend the Charter of the James River and Kanawha Company.
The mode of constructing the works on the line of the James river
and Kanawha company by loans of money having involved the com¬
pany in embarrassments which render it impracticable to carry on the
work longer on that plan, and the General Assembly deeming it of the
greatest importance that the improvement shall be completed, and
being anxious to encourage the undertaking thereof : therefore,
1. Be it enacted. That the capital stock of the James river and Ka¬
nawha company be, and the same is hereby increased to twenty-five
millions of dollars, in shares of one hundred dollars each.
2. That in addition to the shares now owned by the State in said
company, the Board of Public Works be, and it is hereby directed to
subscribe on behalf of the commonwealth for fifty thousand shares of
said capital stock, which shall be taken in full satisfaction of the debt
now due from the said company to the State, and for the assumption
by the State of the debt for which the State is bound as the security
for said company, and the annuity to the Old James river company.
3. Upon the receipt of the certificates for the said fifty thousand
shares of stock, the Board of Public Works shall give to the James
river and Kanawha company a receipt in full for the said several debts
due to the State, and for any claims against the company on accoimt
of the debts for which the State is responsible as security of the com¬
pany, or on account of the annuity to the Old James river company,
and shall by proper deeds release to said company all liens, whether
by deeds of trust, mortgages or otherwise, held by the State upon the
works and property of the company, to secure any debts due to the
State, or which may be guaranteed by the State.
4. Upon the receipt of the certificates for the said fifty thousand
shares of stock, the Board of Public Works is hereby directed, upon
the surrender by the holders thereof ef any of the bonds of the
James river and Kanawha company for the payment of which the State
is responsible, to issue to said holders a corresponding amount of the
bonds of the State, made in the manner prescribed by law, payable
thirty-foui" years after their date, and bearing interest at the rate of
six per cent, per annum, payable semi-annually. And the board shall
thereupon cancel and file the bonds so surrendered, and deliver to the
46
James river and Kanawha company a statement thereof, with"the num¬
ber, amount and date of each bond.
5. The annuity to the Old James river company, and the interest on
the bonds of the James river and Kanawha company, for which the
State is responsible, until the said bonds are surrendered as herein
provided for, shall be paid out of the treasurji- of the State in the mode
provided by law for the payment of the bonds of the State issued for
purposes of internal improvement. \
6. The remaining one hundred and fifty thousand shares of stock of
the James river and Kanawha company, created by this act, shall be
sold or disposed of by the said company in any manner that may seem
most judicious to it : Provided, That they shall not be disposed of for
less than their par value.
7. The council or proper authorities of any city or town, and the
county court of any county are hereby authorized to subscribe on be¬
half of such city, town or county, for stock created by this act, and to
borrow from time to time, on behalf of any such city, town or county,
such sums of money as will be required to effect said object, and to
levy, assess and collect such taxes as in their opinion will be necessary
for the purpose of paying the interest and redeeming the principal
which the said council or authorities or county court may negotiate by
virtue of this act.
8. If any persons or companies shall contract to construct any por¬
tion or section of the work on the line of the improvement, or the
whole thereof, so much of the price of the work executed by such per¬
sons or companies as may be agreed upon between the James river and
Kanawha company and such persons or companies, may be from time
to time, after the same has become due, invested in the stock of said
company, until the whole capital stock of the company shall have been
taken.
9. If any persons or companies shall jointly make or contract for
the execution of the whole of the work on the line of the improvement,
or on the main line thereof, they shall, when they hold five thousand
shares of said stock, have a vote in any meeting of the stockholders of
the company, equal to one-fourth of the vote given on any matter or
question which shall arise in such meeting, by others than the State
and themselves. When the said work shall be completed to Covington,
and such company shall hold twenty thousand shares of the stock, their
vote in such case shall be equal to one-half of the vote given by others
than the State and themselves ; and on the completion of the work, if
such company shall hold one hundred and fifty thousand shares of said
stock, their vote shall be equal to two-thirds of the vote given by others
than themselves and the State. And if they shall hold less than one
hundred and fifty thousand shares of said stock, their vote shall be
diminished in proportion. The vote of the State shall be one-third of
the vote given by others than the State and such company, and one-
third of the vote given by such company.
10. This act shall be in force from its passage.
47
At a meeting of the stockholders of the James river and Kana-wha
company, held at their olSce in the city of Eichmond, on Thursday,
January 19th, 1860, the following resolution was adopted:
" 2. That the company approve the provisions of the hill for the
amendment of the charter of the James river and Kanawha company,
as eminently calculated to give value to the present stock of the com¬
pany, to relieve the State in a few years from the hurden of paying
the interest upon the debt of the company, and of completing the im¬
provement according to the original plan and purposes of the State in
undertaking it. That a hiU substantially such as that reported, is de¬
manded by the interests of the stockholders and the State, and it is
urgently pressed upon the favorable consideration of the General
Assembly."
48
THIS DEED, made this nineteenth day of January, in the year
1860, between the James river and Kanawha company of the first
part, and the Board of Public Works of the State of Virginia of the
second part, witnesseth :
Whereas, by an act of the General Assembly of Virginia, passed on
the 20th day of December, 1859, entitled " an act to provide for the
payment of interest upon the bonds of the James river and Kanawha
company, which have been guaranteed by the State of Virginia," it is
enacted that the Auditor of Public Accounts be authorized and directed
4;o pay, out of any money in the treasury not otherwire appropriated,
to the persons severally entitled thereto the interest, amounting to
$67,800, which became due and payable on the 1st day of July, 1859,
upon the bonds of the James river and Kanawha company, which are
guaranteed by the commonwealth ; and also in like manner to pay the
semi-annual instalment of interest, amounting to the sum of $67,800,
which became due and payable the 1st day of January, 1860 : Provi¬
ded, however, that such payments shall not be made until the Board of
Public Works has certified to the said Auditor that the said company
has not paid the said interest, and is unable to pay the same. And
whereas, she said act further provides that before the James river and
Kanawha company shall receive any of the benefits of the act, they
shall execute a bond secured by mortgage for any sum or sums of mo¬
ney paid in pursuance of the said act, in all respects similar to that re¬
quired by the fifth section of the act passed January 19th, 1856, enti¬
tled an act to provide for the payment of the interest upon the bonds
of the James river and Kanawha company, which have been guaran¬
teed by the State of Virginia. And whereas, (the said company being
unable to pay the said interest or either instalment, or any part there¬
of,) the Auditor of Public Accounts is proceeding according to the
provisions of the said act to pay to the persons severally entitled there¬
to the interest aforesaid, and the James river and Kanawha company,
in pursuance of the said act, have executed their bond to the common¬
wealth of Virginia in the penal sum of two hundred and seventy-one
thousand two hundred dollars, bearing even date herewith, and with
condition for the payment on demand by the said company unto the
commonwealth of Virginia, of each and all of the sums of money paid,
and that may or shall be paid by the commonwealth in pursuance of the
said act of Assembly, with interest at the rate of six per centum per an¬
num on each of the said sums from the time it may or shall be paid by the
commonwealth until re-paid by the company as aforesaid. And where¬
as, the said company now intend, and desire to execute, and do hereby
execute the mortgage by the said act required.
Now therefore, for and in consideration of the premises, and for the
further consideration of one dollar to them in hand paid by the Board of
Public Works, the James river and Kanawha company have granted, and
do grant, bargain and sell, convey, assign and transfer unto the said
49
Board of Public Works the whole property, real and personal of the
said company, and the nett tolls and receipts of said company, after
after defraying annual costs and expenses of repairs and of adminis¬
tration : Provided, nevertheless, that if the said James river and Ka¬
nawha company shall well and truly pay into the treasury of the com¬
monwealth, upon demand being made therefor according to law, the
sum of money, with all interest thereon, provided for in the condition
of the said bond so as fully to comply with the said condition ; and if
the said company shall well and truly pay when due and payable, and
when payment shall be demanded according to law, all debs now due,
or which may hereafter become due from the said company to the com¬
monwealth, then this DEED to be void, otherwise to remain in full
force and efiPect.
And it is further provided, that in case default shall be made by the
said company in the payment of any sum of money provided for in the
condition of the said bond when demanded according to law, or in case
default be made by the said company in the payment of any deht now
due, or that may be hereafter due from the said company to the com¬
monwealth, when payable according to law, it shall be lawful for the
Board of Public Works, by proper proceedings, forthwith to foreclose
this mortgage for the benefit of the commonwealth of Virginia.
In testimony whereof, by direction and authority of the
stockholders of the James river and Kanawha company,
[seal.J Thomas H. Ellis, President thereof, hath hereto set his
hand and affixed the seal of the company the day and year
first herein written.
THOMAS H. ELLIS, President
of the James River and Kanawha Company.
coeporation of richmond, to wit:
I, Alexander H. Sands, notary public for the corporation aforesaid,
in the State of Virginia, do hereby certify that Thomas H. Ellis, Pre¬
sident of the James river and Kanawha company, whose name is
signed to the writing hereto annexed, bearing date on the 19th Janua¬
ry, 1860, hath acknowledged the same before me in my corporation
aforesaid ; and hath further acknowledged that the seal affixed to the
said writing is the corporate seal of the said James river and Kanawha
company, and that the same was so affixed to the said writing hy him¬
self as president thereof, with the concurrence of the said company.
Given under my hand this 19th day of January, A. D. 1860.
ALEX'R H. SANDS, N. P.
Examined and approved, January 19th, 1860.
J. R. TUCKER.
50
OFFICERS
of the
JAMES RIVEE AND KANAWHA COMPANY, ,
On the Isi day of January^ 1860.
Thomas H. Ellis, President.
James Lyons, of the city of Richmond, John M. Speed, of the city
of Lynchhurg, and Samuel McDowell Reid, of the town of Lexing¬
ton, Virginia, directors on the part of the State.
David J. Rurr, of the city of Richmond, director on the part of the
private stockholders and the State.
Thomas M. Bondurant, of the county of Buckingham, and William
W. Boyd, of the town of Buchanan, directors on the part of the pri¬
vate stockholders.
William P. Munford, secretary.
Edward Lorraine, chief engineer,
Andrew M. Lusk, assistant engineer on the North river improve¬
ment.
Elias L. Chinn, superintendent of repairs on the Richmond dock,
tidewater connection and first division of the canal.
James M. Harris, superintendent of repairs on the second division
of the canal and North river improvement.
John Currie, Jr., collector on the dock.
Robert B. Snead, toll-gatherer at Richmond.
Thadeus H. Ivey, toll-gatherer at Lynchhurg.
Alfonzo Finney, toll-gatherer at Buchanan.
William Ridgeway, agent on the Blue Ridge turnpike and ferry.
Albert Michaels, agent on the Kanawha turnpike road.
"KANAWHA BOARD."
Thomas H. Ellis, president.
James L. Carr, president pro tempore.
John P. Hale, James H. Fry, George Jeffries and John D. Lewis,
all of Kanawha county, directors.
Alexander T. Laidley, secretary.
John A. Byers, assistant engineer.
William J. Rand, collector at Charleston.
William W. Sherwood, collector at Point Pleasant.
INDEX.
PAGE
Ml'. E. de Beilot des Minieres, propositions submitted by him,
and action of the stockholders upon them 3
Letter of President to him, 21st November, 1859 4
Messrs. E. de Bellet des Minieres and Theodore Olivari, letter
of President to them, 3rd December, 1859 42
Canals, Briare in France 4
Sankey in England 4
Bridgeivater in England 4
James river in Virginia 5
James river company, (1st,)
History of 5
Amount of vrorks executed by 10
Stock how held » 11
James rivef company, (2d,)
History of 10
Amount and cost of work executed by 11
James river and Kanawha company,
History, policy and organization of. 10
Stock now held 12
Description of the line of its improvement, to wit :
1. Richmond dock 14
2. 1st division of canal 14
3. 2d do. do 15
4. 3d do. do 16
5. 4th do. do 16
6. Greenbrier and New rivers 17
7. Kanawha river 19
Cost of finished portion 20
Estimated cost of unfinished portion 20
Estimate of future trade 21
Advantages of Norfolk 21
Capacity of the canal 24
Estimate of future revenue 25
Value of the canal as a monied investment 27
Financial condition of the company 27
Total amount invested in the works and property of the com-
P ly 30
Indi tedness 32
Mor gages 34
Suits 34
11
INDEX.
Contracts
Officers, agents, and their compensation
Charter
Clause of forfeiture
Act of sequestration
Scheme for completing the improvement
Legislature—Bill pending to amend the charter of the James
river and Kanaivha company
Resolution of stockholders, approving the pending bill to amend
the charter
Mortgage executed by the company to the Board of Public
Works, on the 19th January, 1860
Officers, 1st January, 1860