[DQ,C. No. LXX.]
REPORT
or
THE SELECT COMMITTEE
TO INVESTIGATE THE AFFAIRS OF THE
JAMES RIVER & KAIA¥HA COMPAM
1853-3.
[Doc. No. 70.]
REPORT.
3
The select committee appointed by the house of delegates to investigate the
administration and alfairs of the James river and Kanawha company, and to
which a communication made by John Y. Mason, Esq., president of the said
company, to the house, was referred, have had the same under consideration, and
report :
That under the charter granted by the general assembly in 1832, the company
was organized and proceeded in the construction of its works ; that in 1842, the
canal being then completed to Lynchburg and some progress made above, the
legislature, by an act of that session, suspended its further operations, and thus
the affairs of the company continued until 1847, when, by the act of March 1st,
1847, a loan of $1,236,000 was made to extend the canal to Buchanan ; and by
acts passed at the same session, authority was given to borrow five hundred thou¬
sand dollars to make connections of the Rivanna river and the canal at Colum¬
bia with the Southside at four points, and with the Tidewater at Richmond.
In the interval between 1842 and 1847, investigations were made into the com¬
pany's affairs by joint committees of the senate and house of delegates, and
elaborate reports submitted to the two bodies.
Your committee in their investigation have not gone behind the date of these
acts of the legislature : they have carefully examined the annual reports and com¬
munications of the company since that period, especially in reference to the sub¬
ject matter of the communication of the president referred to the committee. At
each annual general meeting of the stockholders, which by law cannot be held
without the presence of the state proxies, the president has submitted his reports,
giving full and detailed information of the condition of the affairs of the com¬
pany, the state and progress of its works, and the receipts and disbursements of the
revenue and money of the company. Every application to the legislature has
been considered and determined on by the stockholders, and prepared and pre¬
sented by the president and directors to the legislature. The reports and accom¬
panying papers have been in every instance communicated to the Board of pub¬
lic works and to the legislature, and, as official documents, printed and published,
and form a part of the archives of the state. After a careful examination of
these several papers, the committee unanimously declare that the utmost frankness
and candor have been observed by the president and directors of the company in
their communications to the legislature, and there is nothing to justify a suspi¬
cion that there has been concealment or suppression, either as to the state of the
company's affairs, or the uses for which funds asked for were intended. The
amount has been fairly and clearly stated, the money applied to the purposes of
the company, and these purposes and its application regularly stated and pro¬
perly vouched on settlements carefully and minutely made by order of the stock-
/
4
[Doc. No. 70.]
holders. There is no ground whatever to impeach the integrity of conduct or
frankness and candor of the president of the company, in the complex, engross¬
ing and difficult duties which have devolved on him.
Your committee have confined their examination to the general administration
of the affairs of the company : as no charge has been made before them, they
have not undertaken the investigation of any specific matter of detail. It would
have involved a great consumption of time and much delay, and such subjects
more properly belong to the stockholders or board of directors. The large and
increasing number of incorporated companies in which the state is interested,
show clearly the impolicy, unless in urgent cases, of the legislature entering into
such examinations, and indicate very clearly the propriety of increasing the power
of the state in the joint stock and internal improvement companies in which she
is interested, so that such investigations may receive fully the public confidence,
and the interests of the state, in the judgment of all, be amply protected. Such
a policy is peculiarly demanded in the administration of the affairs of the James
river and Kanawha company, so heavily indebted to the state and so entirely de¬
pendent upon public favor.
The general system adopted by the company for repairs of the canal and its
system of police seem to be judicious in guarding against breaches or injuries,
and in promptly and efficiently repairing them when they occur.
The moneys of the company are deposited in the Bank of Virginia, and do not
pass through the hands of any officer of the company except the toll-collector,
and cannot be checked out but by the check of the secretary, countersigned by
the president, and the payment by check must be sustained by a voucher which
has been authorized by the board of directors. On the books of the company
separate accounts are kept of the expenditures in each specific subdivision of the
company's improvement. The committee perceive no necessity for any law or
the expression of any opinion by the house of delegates in regard to these
matters.
The committee ascertained from the reports of the president and the financial
statements which accompanied them, that it had been the practice of the com¬
pany to use for one purpose money intended for and appropriated by law to ano¬
ther, and to refund it as circumstances permitted ; and it appeared, at the date of
the last financial statement, that the company was heavily indebted to one of its
subdivisions of improvement for money thus transferred.
It also appeared that the funds arising from tolls and other revenues were re¬
cently applied by the company to purposes of construction, contrary to the tenor
of the mortgages upon its works, leaving unpaid the interest upon the bonds on
which the state is bound as principal or security. By the correspondence which
is herewith submitted, it will be seen that the president of the company was re¬
quested to submit such explanations as he might think proper on the management
and condition of its affairs to the committee, and that his attention was particu¬
larly drawn to these two subjects. He did so orally with frankness and much
ability, and subsequently, at the request of his board, addressed to the committee
a written exposition of his views, which is herewith submitted.
1. The acts of the legislature loaning funds to the company or guaranteeing
its bonds, have specified the portions of the works to be constructed or the objects
of expenditure. It appears that on converting the bonds into money, the pro-
[Doc. No. 70.]
5
ceeds have beea deposited in bank to the credit of the company, and checked out
without reference to the specific object for which they were intended by the com¬
pany and appropriated by the law, and the application made on the books of the
company.
The reports of the company annually communicated to the legislature, show
that this power has been exerted in every year since 1839—the reasons for it are
stated with frankness and argued with much ability in the written communication
of the president, already referred to—a brief synopsis of which may be proper
in justice to the company. He contends that the acts authorizing the loans of
state bonds or the guarantee of the company's bonds, which were necessarily con¬
verted into money, did not constitute a trust which would protect the proceeds
from the claims of creditors of the company not founded on the specific work
for which the loan was made—that as the company was bound by law to
deposit its funds in the Bank of Virginia, a creditor's proceeding attaching the
funds of the company in the hands of the bank could not be resisted ; that the
facts relating to each instance of borrowing from one fund to another were made
known, and were never objected to by the legislature or by either of its joint
committees of investigation or by the stockholders ; that " the present officers of
the company" had a right to presume that this course of management had the
approval of the legislature; that the deficiencies of means for any given work to
which loans were made were unforeseen, and the funds transferred bona fide ap¬
plied to complete the line of the company's improvement continuously, which
was the declared policy of the company affirmed by the legislature ; that by ap¬
plying funds intended for the third division to complete the second division of the
canal, they acted in strict conformity with this policy ; that it was judicious and
promotive of the best interests of both the company and the state, because at the
time the largest transfers were made, nearly two millions of dollars had been
expended on the second division, without completing it so as to be used, and for
this sum the company was bound to pay interest and the state was bound as its
surety ; and finally, that the application for means for the third division was pre¬
dicated on the advantages of going on with that work in continuation of the se¬
cond division when completed, and if this were not completed, besides tbe rninous
loss on account of interest, without receiving any revenue, the small section of
the third division which the appropriation was adequate to construct was utterly
useless ; and that in the course taken, the president and directors carried out the
main and controlling intent of the legislature.
While the committee acknowledge the force of the views thus succinctly ex¬
pressed, and regard the pursuance of what had become the, settled policy of the
company as resulting as much from the fault of the legislature in its unbroken
silence year after year, when the acts of the company were known, as of the
company itself, yet they insist that the terras of the law ought to be strictly and
rigidly observed by a company obtaining a loan from the state; and if the law
bears harshly upon its interests, the proper remedy is an application to the legis¬
lature for relief. The representative might vote for an appropriation to the Tide¬
water connection of the James river and Kanawha company, who would be un¬
willing to vote money to its 3d division of improvement, and vice versa. If the
company can transfer funds from one division to another, it elects, and not the
legislature, the specific improvement to which an appropriation should be applied.
6
[Doc. No. 70.]
The committee think it just to the company to say, that the policy complained
of appears to have been adhered to from the presumed acquiescence for many
years of the legislature, and that a disposition has been manifested to conform to
what shall be its present will; they therefore recommend the adoption of a reso¬
lution disapproving the policy heretofore pursued, and, if necessary, the passage
of a bill forbidding such transfers in the future, and protecting loaned funds from
the claims of any creditors of the company, unless they arise from the prosecu¬
tion of the work to which the loan is specifically appropriated.
2. By the terms of the mortgages given by the canal company to the state as
security for loans made, the property and surplus tolls received by the company
are pledged for the payment of the interest and annuity debt, for which the state
is bound. This surplus is what may remain in each year, " after defraying there¬
from the necessary charges for the repair, support and management of their ca¬
nal and other works, and for the administration of the company." It appears
that for six years, commencing with the year ending the 31st of October 1847
and ending the 30th September 1852, the interest of the company was duly paid;
that during that period of six years, the aggregate sum of $1,108,802 36 was
thus paid. The paper marked C, accompanying this report, will show the
amount during that time paid for interest and the annual increase of the charge
of interest resulting from the increased amount of debt as the work progressed ;
and will also show the amounts paid for repairs of canal, general administration,
agents, including lock-keepers and others, making in the aggregate the sum of
$1,610,570 65.
The general income of the company met these heavy charges until the 1st of
July 1851, when $48,628 48 of money, intended for the Tidewater connection,
was applied to the payment of interest then due.
At the next general meeting in November 1851, the president, anticipating a
further deficiency in the next year, communicated the fact to the stockholders,
and recommended an application to the legislature for a loan of $ 300,000 of state
bonds, to supply deficiencies of funds for construction and of income to pay inter¬
est; or that it should pay the semi-annual interest of the company's bond debts
until the 1st of July 1853. The legislature loaned $120,000 to pay interest, by
the act of June 5th, 1852; and the income pledged for the payment of interest
being thus relieved, the president and directors acted on the belief, apparently
authorized, as will be more fully seen by reference to the annual report to the
stockholders in October 1852, that the further sum of one hundred and eighty
thousand dollars would be loaned by the state in time to meet the interest due on
the 1st of January 1853. The committee of finance had reported a hill loaning
the sum of $300,000, the amount asked for by the company, which was only re¬
duced to the sum of $120,000, because the legislature had determined to adjourn
to a day anterior to the 1st of January 1853, and because the results of the new
tax bill were involved in doubt. Acting under the impression that they would
have aid from the state, the president and directors applied the income of the
company to the discharge of claims for works of construction. It does not ap¬
pear that on any other occasion, in the period to which the committee have con¬
fined their attention, this has been done; but they cannot approve of it, and they
fegret alike the policy that asked and the policy that granted the loan for the
purposes avowed. It would have been better to have made an appropriation at
[Doc. No. 70.]
7
ouce to supply déficiences of construction, and to have liquidated so much of the
interest as the company was really unable to pay. While the committee enter¬
tain this opinion, they believe that the president and directors of the company
and the legislature acted alike for what they deemed the best interests of the
company and the state ; but it is desirable that the income pledged for the indem¬
nity of the state shall be so applied, and that there shall be a clear and explicit
understanding on this subject for the future.
The committee do not doubt that the company will readily conform to the
will of the legislature on this subject. In fact, without its sanction, such a diver¬
sion of its funds would furnish both a legal and moral justification for the fore¬
closure of the mortgages upon its works. Nor do the committee doubt the future
ability of the company to pay the interest upon its present debt. The fact, that
under the most adverse circumstances, with the income from its canal to Lynch¬
burg and its western improvements, it has been able to meet such heavy charges,
affords strong evidence confirmatory of this opinion ; and now that its works are
greatly extended and completed for 200 miles, with comparatively small excep¬
tions, and they approaching completion, it is obvious that its revenues are increas¬
ing, its business enlarging, and its usefulness as a great state work becoming more
rapidly demonstrated. Its feeders, and more particularly the Virginia and Ten¬
nessee railroad, now rapidly progressing, must greatly augment its revenues.
In 1842 the revenue of the company from tolls alone was - $99,513 93
In 1852 " " "• " " - 209,210 81
Making in ten years an increase of 170 per cent.
The returns already received indicate that the receipts of the present fiscal
year will largely exceed the last. The revival of the iron trade and the increased
business from the Virginia and Tennessee railroad alone, will, in the opinion of
the committee, after the 1st day of July next, enable the company to redeem its
engagements to the state, and it is not their province to speculate further.
The large debt of the company which has accrued from borrowing money for
construction without an increase of the capital stock—on all of which debt inte¬
rest has been chargeable and paid, and for which the state is responsible—has, in
the opinion of the committee, materially affected the condition of the state as a
stockholder, and ought to increase its relative influence in the management and
control of the company.* They recommend that the James river and Kanawha
company shall be brought under the provisions of the Code of Virginia regulating
internal improvement and joint stock companies, so as to give the state at the
board of directors a representation in proportion to her stock, and to leave the
regulation of her vote and that of the private stockholders as prescribed by the
Code, subject to such modifications as the legislature may by general law at any
time direct.
The committee have been content, with the simple presentation of a resolution
expressive of its opinions, to leave all questions concerning the number of the
officers, engineers and employees of the company, the extent of their services
and the amount of their salaries, to those more immediately interested in its ma¬
nagement, and have therefore instituted no extended enquiries upon these subjects.
It is sound policy to leave the protection of the state's interest where it properly
belongs and can be more intelligently afforded—to the representatives of the state
at the board (when she shall have any) and to her proxies in the general meetings
8
[Doc. No. 70.]
of the stockholders—coDvinced that a Board of public works elected by and di¬
rectly resposnible to the people will appoint none but those who will advocate
and enforce the most rigid economy.
The committee recommend the adoption of the following resolutions :
1. Resolved, that the house of delegates disapprove of the policy, heretofore
pursued by the James river and Kanawha company, in diverting funds to one of
its heads of improvement appropriated by law to another.
2. Resolved, that the revenues of the said company—" after defraying there¬
from the necessary charges for the repair, support and management of their canal
and other works, and for the administration of the company"—should, in con¬
formity with the terms of the mortgages to secure the commonwealth, be rigidly
applied to the payment of the interest and annuity debt for which the state is
bound.
And the committee recommend the adoption of the following joint resolutions;
1. Resolved by the general assembly, that no person shall be appointed a di¬
rector or proxy of the state in the James river and Kanawha company who is in¬
terested in any lateral improvement connected therewith or shall be a contractor
upon any part of its works.
2. Resolved, that the directors and proxies of the state shall be instructed to en¬
quire into the list of the officers, engineers and employees of said company, with a
view, if practicable, to a reduction of their number, and to a decrease, if demanded
by sound economy, of their salaries, and that the said representatives of the inte¬
rests of the state insist upon- the individual services of the principal officers and
chief engineer of said company.
[Doc. No. 70.]
9
APPENDIX.
Richmond, Dec. 33d, 1853.
Sir,
My attention has been called to a report of the proceedings of the house of
delegates of the 22d instant, as published in one of the city papers of this morning, in which
I find the following: "He (Mr. Lewis) charged the James river and Kanawha company
with having obtained money from the legislature under false pretenses, and said they would
be convicted of the charge if tried by any jury of twelve men of the country.'* Reluctant
as I am to obtrude myself on the notice of the house, I have too much respect for its mem¬
bers to permit so grave a charge to pass without some effort to withdraw myself and the
James river and Kanawha company from the just condemnation, if the imputatiori be
deserved.
The applications made to the legislature in behalf of that company, have been presented
by order of the stockholders. Since my connection with the company every petition pre¬
sented has been prepared by me, or under my immediate supervision, and I hold myself
responsible for the truthfulness, sincerity and candor of every statement contained in them,
and, therefore, must bear my full share of any moral delinquency involved. Thus situated,
my duty to myself and to the company leaves me, in my judgment, no alternative but to ask
at the hands of the house of delegates that proper measures be adopted, by which the
affairs of the company generally may be investigated, and especially that an opportunity
may be afforded of vindication against the charge, which, if not founded in error, would
justly subject those who may be implicated, to tlie condemnation of all honorable men.
1 have the Honor to be,
Very respectfully, your ob't servant,
J. Y. MASON,
Pres't Jas. River and Kanawha Co.
To the Speaker of the House of Delegates.
2
10
[Doc. No. 70.]
Resolved, that a select committee of five be appointed to investigate the admiuistrati(
and affairs of the James river and Kanawha company, to whom the communication of
Y. Mason, Esq., president of the said company, shall be referred, and tiiat said committ
have power to send for persons and papers.
[Doc. No. 70.]
11
Office of James River and Kanawha Co.
■ Richmond, December 30th, 1852.
Sir,
The executive committee, in the absence of the hoard of directors of the James
river and Kanawha company, have instructed me to communicate to the committee of the
bouse of delegates, appointed under the resolution of the 23d instant, the accompanying
copy of resolutions adopted on the subject of your enquiries.
' I beg to add the assurance, that it will afford me, and all the officers of the company,
much pleasure to furnish every facility in our power to you, and to each member of the
committee, in the discharge of the duties devolved on you.
Very respectfully.
Your obedient servant,
J. Y. MASON,
Pres't Jas. River and Kanawha Co.
Thomas Wallace, Esq.
Chairman Committee House Delegates.
At a meeting of the executive committee of the James river and Kanawha company, held
on Wednesday, December 29th, 1852:
The president laid before the committee the following letter, addressed by him to the
speaker of the house of delegates, which was read and approved:
Richmond, Dec. 23d, 1852.
Sir,
My attention has been called to a report of the proceedings of the house of
delegates of the 22d instant, as published in the city papers of this morning, in which I find
the following : "He (Mr. Lewis) charged the James river and Kanawha company with
having obtained money from the legislature under false pretenses, and said that they could
be convicted of the charge if tried by any jury of twelve men of the country." Reluctant
as I am to obtrude myself on the house, I have too much respect for its members to permit
so grave a charge to pass without some effort to withdraw myself and the James river and
Kanawha company from the unjust condemnation, if the imputation be undeserved. The
applications made to the legislature, in behalf of that company, have been presented by
order of the stockholders. Since my connection with the company, every petition pre¬
sented has been prepared by me or under my supervision, and I hold myself responsible
for the truthfulness, sincerity and candor of every statement contained in them, and must
therefore bear my full share of any moral delinquency involved. Thus situated, my duty
to myself and to the company leaves me, in my judgment, no alternative but to ask at the
hands of the house of delegates that proper measures be adopted by which the affairs of
the company generally may be investigated, and especially that an opportunity may be
offered of vindication against the charge, which, if not founded in error, would justly subject
those who may be implicated, to the condemnation of all honorable men.
I have the honor to be,
Very respectfully, your ob't servant,
J. Y. MASON.
To (Ae Speaker of the House of Delegates.
12
[Doc. No. 70.]
The president also stated that a committee had been appointed nnder the following reso¬
lution of the house of delegates of the 23d instant :
" Resolved, that a select committee of five be appointed to investigate the administration
and affairs of the James river and Kanawha company, to which the communication of J,
Y. Mason, Esq., president of the said company, shall be referred, and that said committee
have power to send for persons and papers."
On consideration, the following orders were adopted:
Resolved, that the secretary of this company be instructed to submit to the free and full
inspection of the house committee, the books, records and papers in his office, whensoever
required so to do by the committee, and that he and the other officers of the company make
promptly all such explanations as the committee may desire.
Resolved, that with a view to more convenient reference to the same, the use of the di¬
rectors' room, in the company's office, be placed at the disposal of the committee of the
bouse of delegates, for their use during their sittings.
Resolved, that the president communicate the foregoing proceedings to the committee.
Extract from tlie records.
WM. P. MUNFORD, Secretary.
[Doc. No. 70.]
13
House of Delegates, Jan. 6, 1853.
Hon. J. Y. Mason,
Pres't James River and Ka. Co.
Sir,
I am instructed by the committee of investigation into the affairs and manage¬
ment of the company over which you preside, to communicate to you the accompanying
resolution, and to inform you that a meeting of the committee will he held at the office of
the company this afternoon at 4 o'clock ; at which time and place they will he pleased to
hear from you such views and explanations in regard to the general management and
affairs of the company as you may think proper to bring before them. The committee
wish particularly to call your attention, first, to the practice which has prevailed of divert¬
ing funds from one of the company's heads of appropriation to another; and, second, to
the policy of using the revenues of the company for the purposes of construction instead
of applying them to meet the interest due upon its debt.
1 am, sir, very respectfully, yours,
THO. WALLACE,
Ch'm of Committee.
" Resolved, that a select committee of five he appointed to investigate the administration
and affairs of the James river and Kanawha company, to whom the communication of J.
Y. Mason, Esq., president of the said company, shall he referred, and that said committee
have power to send for persons and papers."'
14
[Doc. No. 70.]
Office James River and Kanawha Co.
January 6, 1853.
Sir,
I have received your communication of this day's date, with its enclosure. I
will be happy to meet the committee at the office of the company at the hour indicated, and
will take great pleasure in communicating the information and explanation suggested. I
have forborne to advert to any denunciation founded on my official acts or written com¬
munications made since the committee was appointed, because 1 have entire confidence
that they will fully investigate the matters involved, and that full justice will be done.
I have the honor to be.
With the highest respect,
Your ob't servant,
J. Y. MASON.
Thos. Wallace, Esq.
Ch'm Select Committee.
I
[Doc. No. 70.]
15
Office of the James River and Kanawha Co.
Richmond, January 17, 1853.
Sir,
' I reported to the board of directors the letter which you addressed to me on
the 6th instant, and informed them that I had complied with the request of the select com-
raitte^e by an oral explanation of the condition of the company's affairs, its manner of trans¬
acting its business, and especially on the subject of the two specific enquiries suggested in
your letter.
At the request of the board, I have the honor to submit this communication in writing
on the subject of which it treats, as presenting their views in a form less liable to misappre¬
hension than a verbal statement, in which many facts and accounts had to be referred to.
I respectfully request that you will be pleased to present it to the committee, and ask that
it be filed with their proceedings.
In your communication of the 6th of January, you suggest, for especial explanation,
two points of enquiry connected with the disbursements of money by the company, and to
those this communication is mainly directed. I repeat in the most emphatic manner the
assurance that the officers of the company are ready to meet and to aid in the strictest
scrutiny and most searching investigation of the affairs of the company, and content my¬
self with the verbal explanations already given as to any supposed discrepancies in the
arithmetical statements which have been submitted and published in the president's reports.
First, as to the practice of diverting funds from one head of appropriation to another.
In pursuing steadily, as the company has always done, the scheme of improvement
contemplated by its charter, it has frequently been obliged to apply to the legislature for
pecuniary aid, partly because the capital originally put in was utterly inadequate to the
great end to be accomplished, and sometimes because funds intended for the construction
of particular parts of the work and originally supposed to be sufficient for the purpose,
have been ascertained by the result to be insufficient.
The legislature has from the date of the charter until the present time, manifested, not
only by the charter itself, but by numerous acts and declarations since, the determined pur¬
pose to connect by this improvement the Tidewater with the waters of the Ohio, and to
have at least so much of the improvement as lies between Tidewater and Covington exe¬
cuted at all events, including the canal from Richmond to Lynchburg, thence to Buchanan,
and thence to Covington, the Southside and Rivanna connections, and the connection be¬
tween the Basin and Tidewater; and the company was expressly charged with the duty of
constructing the necessary'works. They are all integral parts of the same improvement,
and each is known to be essential to the complete success of the whole.*
At the first meeting of the stockholders under the charter, it was resolved, that the work
should proceed camtinuously, and not in detached parts along the line, beginning at Rich¬
mond, the head of Tide at the East, and going up the river westwardly ; provided only,
that while one part was still unfinished, preparations might be made for going on with ano¬
ther adjoining part, so that the work might progress without interruption, and each part
as finished be capable of use in connection with the company's other finished works ;t and
that resolution has received the sanction of the legislature.
The legislature has since, from time to time, in prosecution of this fixed policy, aided the
company by its loans and by the credit of the state, first to finish the canal to Lynchburg,
then to construct the second division to Buchanan, then to make the Southside and Rivanna
and Tidewater connections; and lastly, to commence the third division, by extending the
* See the ehnrter. Fectiona 22, 23, 24, 2,5, vol. 1 Companv'a Proceedings, pages 753-4, and esneciallv the act
of March t5ih, IfhO. er
tSeevol. l.u. 9,10,13.
16
[Doc. No. 70.]
company's water line to Covington, thus connecting the company's Eastern improvements
with the Kanawha turnpike road, which the state had constructed and transferred to the
company as a part of the state's stock subscription.
In every application which the company has made to the state for aid, it has freely dis¬
closed to the legislature the existing state of its affairs, and in good faith stated the purpose
for which the aid was asked. Besides this, at the annual meeting of the stockholders, full
reports and detailed statements of its condition, showing precisely the manner in which its
work has progressed, its revenues and the uses to which its money has been applied,'have
been made, published and laid before the stockholders, the Board of public works and the
legislature ; and thus possessed of full information, the legislature has granted the relief, and
generally stated the particular purpose for which its money or credit was loaned to the
company. But although when the aid was asked and granted, both parties, the company
and the legislature, intended its application to specified objects, the money arising from state
bonds loaned or from the company's bonds guaranteed by the state, became, when the
bonds were sold, the property of the company, was necessarily mingled with its other
funds, and became liable, under the laws of the state, in the opinion of the board, to make
good all its engagements and contracts, no matter on what part of the work.
The company considered itself bound however, in good faith, not only to endeavor to
execute the great general purpose of the work with all possible diligence and economy,
but also as far as practicable to devote each particular fund, which was furnished by aid of
the state, to the particular object which was intended to be accomplished by means of that
fund. Accordingly, though keeping but one account at the bank where all its money was
required to be deposited, the company has kept on its books separate accounts for each
distinct part of their improvement, so as to show the aggregate of money expended upon
it. But as since the year 1849, under direction of law, several distinct parts of the im¬
provement have been under construction at the same time, it was frequently convenient,
and in fact unavoidable, without leaving considerable sums to lie idle in bank, on which
interest was daily accruing to the holders of bonds by sale of which the money was raised,
and without suspending works, whose continuous progress and final completion was as
much desired by the state as by the company, and equally important to both, to use tempo¬
rarily for one purpose funds especially destined for another. Great losses to the company
would have been sustained by its failure to comply with its contracts upon any section of
the work, the contracts would have been violated by the company, law-suits commenced,
the value of past outlays destroyed, and probably at last, the very funds subjected by pro¬
cess of law to the payment of such claims which the company may have refused so to ap¬
ply from deference to the supposed wish of the legislature that they shoul<l be applied to
some other object.
These temporary loans from one fund to another have been always repaid to the credi¬
tor fund as soon as opportunity allowed, as an examination of the published accounts will
show. Thus, for example, of the sum of $157,148 14 borrowed from the fund applicable
to the Tidewater connection on or before the 30th September 1851, as shown by the ac¬
counts annexed to the 17th annual report, there remained due to that fund on the 30tb
September 1852, as shown by the accounts annexed to the 18th annual report, $ 60,827 84,
and on the 1st day of January instant, there was due $43,956 04.
The amounts so borrowed from the Tidewater connection fund, were used in aid of the
completion of the Southside and Rivanna connections, the speedy completion of which was
of vast importance to the revenues of the company, while the work on the Tidewater con¬
nection, from physical obstacles and obvious policy, was progressing slowly; and it will be
observed that these several works of connection were directed to be made by cotempora-
neous acts of the legislature, and were of kindred character.
The president and directors adopted this mode of applying the funds of the company,
aller due deliberation, under a couvictiou that they did not exceed their authority, and that
[Doc. No. 70.]
17
the best interests of the company and of the state, as creditor, surety and stockhoider, re¬
quired it. Without assuming any of the prerogatives of the legislature, they found that in
every year since 1839 the power has been exerted by the company, and that the facts of
such transfers had been annually stated, showing all the particulars, in the published official
reports and accompanying statements, and communicated, iii'the only mode prescribed by
law, to the stockholders, to the Board of public works and to the legislature. For conve¬
nient reference, a statement is herewith annexed, marked A, taken from these published
statements, showing the instances in which the power has been exerted.
No exception is known to have been taken to this mode of managing and applying the
funds of the company. On the contrary, the several acts of the legislature which gave aid
to the company were passed, it must be presumed, with a full knowledge of what was so
clearly staled, and no objection made. Two joint committeestof the senate and house of
delegates—one in 1843 and the other in 1845—examined the affairs of the company, and no
objection was suggested to this course of procedure.
It is true that the legislature has indicated that the proceeds of the loans or guarantee
auihorized were to be applied to specific objects, as in the act of 1850 guaranteeing the
company's bonds, to enable it to extend its water line to Covington ; but the circumstances
under which tiiese acts were severally passed, and the conditiou of the company in relation
to the slate, did not, in the opinion of the president and directors, forbid the course taken.
The company, under its charter, was capable of contracting, and in all respects subject,
in its government, to the provisions of the charter. The state was a large stockholder, had
granted the charter, and by its proxies, always present in the general meetings, exercised a
great if not controlling influence. The utmost legal effect which could be given to an act
of the legislature making a loan and prescribing conditions is that the company, in accept¬
ing the loan, agreed to the conditions. And then the question is, it is rcspectfuily submitted,
If a departure from the prescribed mode of application be made by the company, was it
consonant with the general interest of the state, judicious as a measure of policy, and pro¬
motive of tiie best interests of the company and of the state, as' a stockholder, surety and
creditor? If so, then it is believed that the proceeding will receive commendation instead
of censure. And the party who finds it necessary to make departure from the terms of the
agreement, and makes known such departure to the other party to the agreement, as it
occurs, without complaint, is fully justified in the conclusion that the course is approved.
I beg the indulgence of the committee in adverting to some facts which will illustrate the
principle and policy on which the board of directors have acted :
The works of the company were suspended in 1842. The capital stock was exhausted,
and a considerable debt was contracted ; the improvement was finished to Lynchburg, and
some progress was made in the construction of works, then unfinished, beyond that point.
From the date of the suspension to the year 1847 the legislature provided, in six different
instances, for the payment of interest on the company's debt for which the state wa.s bound.
By the act of March 1st, 1847, the legislature loaned to the company $1 230,000 to con¬
struct its improvement from Lynchburg to Buchanan, and at the same session authorized,
by acts, the company to borrow five hundred thousand dollars to make the several connec¬
tions. This last sum the legislature, by acts passed iu 1849, agreed to guarantee.
Now, whatever causes of dissatisfaction had previously existed, the president and direc¬
tors have regarded it as an authorized conclusion that, by these deliberate acts giving such
large pecuniary aid to the company, nothing then past in the history or acts of the company
was ever to be regarded in the future as a ground of complaint, or as a reason wiili the
legi.«lature for changing its organization, impairing its rights, or censuring its officers. The
practice of transfer frotn one head of appropriation to another had been frequent, was
known, must have been known, to the legislature, and had never been complained of, so
far as is shown by the records of the company or the state.
By the act of January 15th, 1850, a loan was made of $110,000, which was believed to
be sufficient to complete the second division, or the canal to Buchanan, and the application
3 .
18
[Doc. No. 70.]
for aid in carrying on its improvement to the Ohio, recommended in the 15th annual report
of November 1849, resulted in the passage of the act of March 15ih, 1850, which authorized
the state's guarantee to the company's bonds for three hundred and sixty thousand dollars
to enable the company to extend its water line from Buchanan to Covington. To show
the reasons for this application, I annex extracts from the report of the president and chief
engineer, marked B. which present the reasons of the stockholders in making the applica¬
tion, and which, being before the legislature when the act was considered and passed, ap¬
peared to the board conclusive to show the interest of the legislature, as it was that of the
company, to maintain and carry out the policy long established, of carrying on the work
continuously, so that each division should be completed and contribute to the business and
profit of connected works.
The 3d section of the act of January 20th, 1850, amending the charter of the Louisa
railroad company, made it necessary that the James river and Kanawha company should
locate its line of improvement in the valley of Jackson's river to Covington. This was
done, but delayed the issue of the bonds to bo guaranteed by the slate until the 9ih of
August 1851.
For reasons which were fully stated, the proceeds of the bonds loaned for the 2d division
proved inadequate. The causes were unforeseen and unavoidable; and as they occurred,
they were communicated in the published official communications of the company. When
these funds, amounting to ^1,346,000, appropriated for the 2d division, were exhausted,
the work unfini.shed and incapable of use or of income, contracts for labor and materials in
course of execution, but unfinished, with an annual charge of six per centum intere-t on
the entire outlay, for which the state was bound, and with an undoubted legal liability for
damages to the contractors for failure on the part of the company to comply with its con¬
tracts, the president and directors felt it to be their imperious duty to go on with the works
on the 2d division, and not abandon them at such ruinous consequences.
To meet the charge of completion from time to time, money intended to extend the
water line on the 3d division was applied to complete the second. Each instance of such
appropriation was fully slated in the annual communications of the president and officers
of the company with the stockholders, and sent to the Board of public works and the
legislature.
In this the company exercised a power which had been often exerted and never ques¬
tioned. They considered that they were faithfully carrying out the main intent of the
legislature and the declared approved and judicious policy of the con>pany to complete the
canal to Buchanan, and thereby make it productive of revenue as a means of paying in¬
terest, and thus promoted the best interests of the state and of the company. Because it
is obvious, that if they had complied literally with the provisions of the act of 1850, regard¬
less of the great leading object of its enactment, by expending the sum of $360,000 exclu¬
sively on the 3d division, it would have made but a short section, not exceeding ten miles
of canal, unconnected either east or west with a navigable canal, and which could not in
that detached condition have produced any revenue or subserved any public purpose, and
thus situated, I apprehend, would have been regarded as a monument of folly, leading to
just reproach on the board of directors. The interest on tlie whole amount was constantly
accnmulatrng, and no corresponding or compensating revenue was possible in the unfi¬
nished condition of the 2d division. The board of directors therefore submit, that no cen¬
sure can attach either to them or to the stockholders for breach of law or violation of faith
on the part of the company as a contracting party with the state.
In corroboration of the views here presented, the committee is respectfully referred to a
resolution adopted by the house of delegates on the 1st of February 1851, calling on the
president of the company for inforniation as to the causes of delay in the completion of
the 2d division, and to the report of the president made in reply,* as aíTording strong evi-
* See 16th Annual Report, p. 105.
[Doc. No. 70.]
19
dence of the urgent desire of the legislature that this work should be completed and made
productive of revenue, and available for the use of the public. This resolution, too, was
followed by raising a committee by the house of delegates to investigate the affairs of the
company, and resulted in no suggestion of a complaint of the acts of transfer, and in no
censure of the company or its officers.
In all that they have done in these matters, the board believe that they have acted in strict
conformity with the known and declared policy of the state and of the company, and most
obviously to the advantage of both. They have invariably published, for the information
of those interested, what they were doing ; and if regarded merely as an agent, and not as
a party to an agreement, the silence of their principal was a ratifícation of any departure
from instructions, however specific ; and can it be contended that the state occupied a more
controlling position than as principal, with power to instruct and direct the company as its
agent? If there be cause of blame, it must be, not that the funds have not been applied in
the order and to the purposes for which the state itself, acting by an intelligent aud disin¬
terested pgent, would have applied them, but that there has been want of economy or ac¬
tivity in their management; and to that question, as indeed to all others affecting the admi¬
nistration and welfare of the company, they invite the closest scrutiny of the investigating
committee.
■ The actual losses sustained by the contractors, with scarcely an exception, are strong evi¬
dence on this enquiry; and the reports made by Joseph Jackson, Esq., and by the commit¬
tee of stockholders, whose intelligence and high character are unquestionable, are conclusive
to show the actual application of the money to the objects stated in the accounts, and that
the payments are sustained by proper vouchers. The disbursements were made on works
authorized by the state, and were inteiided, and did in fact, increase tlie value of the pro¬
perty mortgaged to the state.
Secondly. As to the policy of using the annual income of the company from its works
in use for purposes of construction, instead of applying it to meet the interest upon its debts.
This has not been the policy or practice of the company. During the past fiscal year it
has been done, and the circumstances under which it was done seem to us to leave no
doubt that it was judicious, and had the approval of the stale as the mortgage creditor of
the company.
At the annual meeting of the stockholders, held in November 1851, the president, in his
annual report, informed them that the net income of the company had fallen short of
meeting the interest which fell due on the 1st day of July preceding, by the sum of $ 48,628
48 cents, and that a further deficit, in meeting the interest for the current fiscal year, of
fifty thousand dollars, was anticipated. The aggregate was ninety-eight thousand six hun¬
dred and twenty-eight dollars and forty-eight cents. That besides these deficiencies in
meeting its interest, there would be deficiencies, in meeting the cost of construction of the
2d division and the connections, of not less than two hundred and fifty thousand dollars;
and the report recommended an application to the legislature for a loan of three hundred
thousand dollars, which would enable the company to meet the semi-annual interest aud
defray the cost of c(»nstruction. The causes of the deficiency in paying the interest ob¬
viously resulted from the increasing amount of inlere.st on the money borrowed to con¬
struct these works, which became greater by the sale of each bond, aud was greate-'^t at the
moment of putting the improvements into use. The canse.s of the increased co-t of the
construction of the woiks were also fully explained. The joint committee of finance re¬
ported a bill making provision for adequate relief, but in its course through the hou.-e of
delegates the bill was amended so as to reduce the appropriation or sum hiancd to one
hundred aud twenty thousand dollars, to be applied to the payment of interest, which
wotild fall due on tlie 1st day of July 1852; and in that form it passed on the 5th day of
June 1852. So well assured did the president feel that adequate provision would be made
prior to the 1st day of January instant, that in his annual report made in October last he
20
[Doc. ,No. 70.]
estimated the expected loan of one hundred and eighty thousand dollars as a part of the
company's receipts during the present fiscal year.
The hoard of directors finding that its mortgage creditor had thus provided for the inter¬
est—to meet which its surplus income was pledged by its mortgages to the stale, a relief
given on a petition which had represented its wants on the score of interest as less than
the amour.t loaned, but urgent on account of deficiencies to pay the costs of construction
by a larger amount, which it was confidently believed from circumstances attending the
passage of the bill would be supplied—did not hesitate to use the income, no longer re¬
quired for interest, to pay liabilities for construction, which greatly enhanced the actual
and productive value of the property encumbered to the stale as its security. The com¬
mittee is referred to the ISih annual report, with its accompanying documents, and to the
company's petition to the legislature, to which the act of the 5th of June 1850 responded;
and attention is respectfully but earnestly invoked to the fact that these documents, which
were before the legislature when the company's petition was under consideration, showed
that, alihough the income of the company arising from its toils had fallen short of paying
the interest due on the 1st of July 1851, it had been in fact paid to the bondholders and to
the state, by borrowing the amount-from the fund for the Tidewater coiineciion ; and one
object of the petition was to enable the company to refund it. Now, as the company had
no income but from its productive works, whose net profits were pledged by the mort¬
gages to pay the interest, the board regarded the act of the 5th of June, giving the means
to pay interest, as a relief of the hypothecated fund, no longer wanted for that purpose;
and that this pledged fund was, with the assent of the mortgage creditor, to be applied to
the completion of the works and give increased value to the mortgaged subject; and as
there was no objection made to the fact of borrowing from the Tidewater connection fund
to pay interest, they concluded that it might be regarded fairly as a legislative sanction,
strongly sustaining their views on the first point of enquiry. They could not suppose that
the legislatuie intended that the unfinished works should be arrested in their unproductive
condition, or that the company, and ihiough il the state, should be deprived of the addi¬
tional revenue which their completion would insure. Nor could they suppose the state
intended that tlie surplus income arising from tolls, applicable under their agreements with
the state to the payment of interest, were to lie idle iii bank and withheld from the charges
on the company for completing its works when the object of the application to the legisla¬
ture representing the creditor was to obtain the means for that purpose, and the stale fur¬
nished those means to meet the primary charge on the income of the company—a charge
already satisfied by the ioaii made.
The second grand division of the canal and the Rivanna and Soulhside connections are
now completed so as to be used, with the exception of one bridge at New Canton, and the
revenues of the company have begun to feel tlie beneficent etfect of these measures. But
there is still one important work upon which much labor and money have been expended,
and which is now in such a condition that every consideration of expediency and of eco¬
nomy calls for its speedy completion. We allude to tlje Tidewater connection. That
important work has cost the company already about $000,000, including the original pur¬
chase of the dock, it.s enlargement and repair, land damages, the chains of lucks and basins
from the main basin of the canal to the dock, and labor and materials provided for the ship-
lock. The annual interest chargeable on this onliay is thirty-six thousand dollars, which is
now a dead charge on the reveinies of the company ; whereas, if completed, the annual pro¬
fit from its lolls is e.stimated at not less than fifty llnmsand dollars. Unfini.-^hed, it produces
nothing, besides the enormous inconvenience to ilie busines^s of the canal and of the com¬
munity, e.^pecially to the agricultural ami cotninercial interests, arid the great deterioration
of the walling and other works, if not speedily finished. The board do not feel justified
in abandoning such a work, unless they are relieved from all doubt as to the willies of the
legislature, and to pro.sectite the work they must apply the iucomeof the contpany. They
have not seen any reason tu change the views which they have already stated of the elVect
[Doc. No. 70.]
21
of the acts of the legislature on the subject. On the contrary, they hope and believe, in¬
deed they cannot doubt, that a timely appropriation of the necessary funds will be made by
the legislature to complete it, according to the memorial of the company now before the ge¬
neral assembly. And although the board admit that, by virtue of the terms of the loans of the
state to the company and the mortgages given to secure them, the state has a right to require
the whole net income of the company, if necessary, after providing for the repairs, support
and management of their canal and other works, and the administration of the company,
to be applied to the payment of the interest due to the state, for which the state is bound as
surety for the company, yet the board will feel it to be their duty to continue to act upon
their belief as above expressed of the wishes of the state, and cannot abandon the prose¬
cution of the work upon the dock in its present unfinished and exposed condition until
plainly instructed that such is the desire .and policy of the general assembly. To such wish,
when made known, they will defer and conform, whatever may be its effects on the affairs
of the company.
In conclusion, I earnestly call the attention of the committee to the following facts:
In 1842 the revenue of the company from its canal from Richmond to
Lynchburg was ..... 99,513 93
In 1852 the revenue from the canal from Richmond to Buchanan was - 269,210 81
Increase, nearly 170 per cent, ' - - - $169,696 88
In 1847, when the works were resumed, the debt of the company, over
and above the capital stock, was .... $2,268,645 53
The additional amount of debt contracted since, for which the state is
bound, is - - - - - - $2,326,000 00
With the means which constitute this last amount of debt the company has added to its
works :
1, The canal from Lynchburg to Buchanan,
2, The connection of the Rivanna river with the canal at Columbia,
3, The connections of the south side of James river with the canal at Cartersville, New
Canton, Bent Creek and Hardwicksville.
4, The works on the third division, on which had been expended to the 1st January inst.
$77,635 36, all of which is lost, if the work bo not extended westwardly,
5, Has made extensive and permanent repairs on the dams, locks and other works of the
canal between Richmond and Lynchburg,
6, And expended $ 9,782 86 on the surveys and geological examination of the summit
level, with a view to determine the practicability of passing the Alleghany mountain.
The aggregate expenditure on the four first named works is $2,288,422 63,
During the same period, that is, from the first of the fiscal year of 1847 to the 30lh of
September 1852, a period of six years, the company has paid an aggregate of interest, costs
of repairs and of administration, the sum of $1,610,570 65,
The statement marked C, hereto annexed, will give the particulars.
And its revenues have been the resources to meet this heavy charge, except the loan of
$120,000 under the act of the 5th June last, which is included in the aggregate of debt
above stated. The revenues of the company are increasing and the expenses diminishing.
The increased business and income from the Tidewater connection, when completed, from
the other connections, from the Virginia and Tennessee railroad, from the Slate river and
North river improvements, and from the revival of the iron interests, ought to leave no
doubt that the future pro.spects of the company, after passing through its pre.scnt tempo¬
rary embarrassments, justify us in strongly urging the improvements to the favor of the le¬
gislature; and we confidently submit to the candid judgment of the committee, that the re¬
sults already realized fully sustain the wisdom of the policy acted on by the company.
22
[Doc. No. 70.]
Deeply impressed with the importance of the work committed to their charge, justly ap¬
preciating the responsibilities of the company to the state, and constantly influenced by the
most earnest desire to secure to the improvement the favor of the legislature, without
whose confldence and approval all their efforts for the consummation of hopes long che¬
rished, and now stronger than ever, must be unavailing, the president and directors feel as¬
sured that the committee will perceive that they have had no desire or motive to evade or
disregard the laws of the state. Such a course, if intended, would have been characterized
by an infatuation as imbecile as impolitic.
I have the honor to be,
Respectfully, your ob't serv't,
J. Y. MASON,
President J. R. and K. Co. ^
Thomas Wallace, Esq., Chairman of the
• Select Committer of the House of Ddegates.
[Doc. No. 70.]
23
A.
STATEMENT
Of the Transfers of Balances from one Account to another, as exhibited in the
Annual Reports of the James River and Kanatcha Company.
1839, 5th Report, p. 577, revenue applied to new improvements,
1840, 6th " 687, Do. do.
1841, 7th " 53, Do. do.
1842, 8th " 150, defi'cy of revenue, deducted from do.
1843, 9th " 430, revenue applied to new improvements.
1844, 10th " 522, Do. do.
1845, 11th " 5 of app.. Do. do.
1846, 12th " 64, Do. do.
1847, 13th " 30, Do. do. -
1848, 14th " 70, rev. applied to con.st. of works 1st and 2d div. -
1849, 15th " 56, Do. tidew. con. and S. S. & R. con.
1850, 16th " 58, deficiency of revenue deducted from new imp'ts,
1851, 17th " 303, Do. 2d div. S. S. & Riv. con. de¬
ducted from 3d div. and Tidewater con.,
1852, 18th " 481, revenue and appropriations for the 3d division,
and for the Tidewater connection, applied to
the 2d and 4th div. and to the Southside and
Rivanna connections, . . -
$43,037 14
74,647 72
65,116 67
1,074 81
104,731 07
143,582 05
218,824 76
57,868 72
116,294 59
17,853 76
12,339 06
8,638 37
157.148 14
378,366 41
[Doc. No. 70.]
25
B.
Extract from the 15th Annual Report of the President to the Stoclcholders.
"The considerations presented by the chief engineer in favor of going on with the
work aliove Buchanan, as soon as the line is completed to that point, are entitled to great
weight. A suspension of the work for even one year would add considerably to the es-
pense of the extension. The laborers and mechanics now on the line, the implements
and machinery for heavy work could not be replaced without great delay and considerable
expense. Slave labor has been extensively used at good prices, and many of those who
were employed as laborers are acquiring useful knowledge in the preparation and use of
stone and other materials, and the company as well as the owners will be benefited if they
are not withdrawn and their places filled on the resumption with green and inexperienced
hands."
Extract from the Report of the Chief Engineer to the President and Directors,
November 20th, 1849.
"the PEOGRESS of the work beyond buchanan.
"The next step in the progress of the improvement embraces by common consent the
extension to Covington; and as far as I am acquainted with the views of the stockholders
and the opinion of the public, there is no difference of opinion as to the plan of this por¬
tion of the improvement. All agree that the water line should be carried to Covington.
"The only question therefore to be submitted to your consideration in relation to tliis
part of the line, is whether the time has arrived for an application to the legislature for the
means of prosecuting the work ?
" Without pretending to enter into the discussion, I will offer a few practical reasons
why I think it advisable to continue the work on without interruption:
"First. After the completion of the canal to Buchanan, of which there is but little
doubt, during the next year, we will have a large number of well trained mechanics, which
we have been laboring for three years to collect, who could be immediately transferred to
the extended works; but should they be disbanded by a suspension of operations at Bu¬
chanan, it will require a like or even a longer period to collect together a force so efficient.
The further removal of the line into the interior will increase the difficulty of mustering a
new force, and subject us to even greater delay than has been experienced in the prosecu¬
tion of the work between Lynchburg and Buchanan.
" Second!]/. The contractors now on the line, many of whom it is presumable would
take.contracts, are fully equipped with cranes, derricks and tools, which to them would be
fO much active capital in the commencement of new jobs, and which, together with the
profits it is hoped they will realize from their present contracts, would enable them to pro¬
secute their work with vigor and more profit to themselves and satisfaction to the
company.
26
[Doc. No. 70.]
" And lastly. The contractors now on the line would be enabled to lake the work
cheaper by about the difference in the first cost of their tools and machinery, and the
amount they would be worth if not employed on the extended work ; so that the cost of the
equipments of the contractors is in effect so much capital of the company that would be
lost by a suspension of the work. Many other reasons might be adduced to show why the
work should be pressed forward, but the limit I have prescribed to myself will not admit of
I their being brought forward here ; they will however, readily occur to those acquainted
with the long-deferred expectations of the public."
[Doc. No. 70.]
27
C.
Statement of Disbursements on account of Expenses and Repairs of Canal, Sala¬
ries of Agents on the Canal, General Adminisiration of the Company and
Interest, from the beginning of the fiscal year ending October 31st, 1847, to
September 3Qth, 1852.
For the year ending
Expenses and
repairs of cana!.
General Ad-
riiai.çtn-.tioii.
Salaries ef
Agriits
Interest.
Total
October 31, 1847,
$ 54419 82
3311 22
1C332 92
145393 08
22O047 04
1848,
61977 24
3521 02
17C29 88
137800 72
220928 86
1849,
50665 26
5484 59
17940 44
167962 22
242052 51
1850,
63530 47
5355 84
18943 59
184806 29
272642 19
September 30,1851,
47397 42
5701 03
14656 34
214193 30
281948 09
*1852,
81084 44
8338 06
2 4332 11
253646 75
372951 96
$ 1610570 65
*The expenses and repairs oí this year embrace ihe second dividen for the iirst time in use and the
Maidens' Adventoire dam.