Chap. 239.—JOINT RESOLUTION Directing the President and Di-
rectors of the Atlantic, Mississippi and Ohio Railroad Company to
Commence the Work on the Road to Cumberland Gap.

Approved April 29, 1874.

Whereas, the leading object of the act of the general as-
sembly ofeVirginia, authorizing the formation of the Virginig
and Kentucky railroad company, was to secure a connection
of our Virginia railway system with the railway system of
Kentucky at Cumberland Gap; and whereas, by the terms of
such act of assembly, a subscription on the part of the com-
monwealth for three-fifths of two millions five hundred thou-
sand dollars, equal to fifteen hundred thousand dollars, is au-
thorized, on the express condition, that it shall not be made,
in whole or in part, until the board of public works “shall
be satisfied that steps have been taken which shall insure the
construction of a railroad through the state of Kentucky, to
connect with said road at Cumberland Gap,” the legislature
thereby asserting that the state did not intend to contribute
of her means towards the construction of such work asa
local road, but for the purpose of effecting a connection of
her railway system with that of Kentucky; and’ whereas, it
appears that the said Atlantic, Mississippi and Ohio railroad
company have made every reasonable effort to secure the
guaranty of a connection of their road with the railway sys-
tem of Kentucky, pointing to Cumberland Gap, in conformity
with the design of the act of assembly, aforesaid; and
whereas, it further appears that the said Atlantic, Mississippi
and Ohio railroad company, did promptly institute the neces-
sary measures for building, and did negotiate successfully for
the necessary means to build the said road on that estimate
of its cost, which had been taken as sufficient for that pur-
pose, in making up and prescribing the amount of bonds
which the safd company was authorized by its charter to
issue, in order to cover the indebtedness of the Norfolk and
Petersburg, the Southside, and the Virginia and Tennessee
roads, consolidated into the Atlantic, Mississippi and Ohio
railroad company, and the cost of their repair, restoration
and equipment, and the construction of Said work to Cum-
berland Gap, as well; and whereas, it further appears that a
due proportion of the bonds so authorized to be issued, has
been set aside and is now held by the Atlantic, Mississippa
and Ohio railroad company, for the construction of the said
extension to Cumberland Gap; and whereas, it appears that
the cost of the construction of the said work, as ascertained,
upon the most eligible location of the said road, actually ex-
ceeds, by ‘about two and one-half millions of dollars, that ee- °
timated cost on which the undertaking was based; and
whereas, -unleas there be a diversion of bends appropriated
by the law to said other purposes, there remains no other re-,
source tor the supply, of such deficiency than the net reve-
nues of the Atlantic, Mississippi and Ohio railroad company's
completed road from Norfolk to Bristol, which revenues, as
it fully appears, are not sufficient to furnish any material part
of such deficiency; and whereas, it is shown, attractive as
may be the resources of the country local to the line of said
work, that they are not of sufficient magnitude to justify the
outlay of money such work would involve, and that the cost
of operating such work, based upon the service required to
accommodate the local business of such section, would largely
exceed the gross revenues of the same from the business of
such section, and entail a very heavy loss on the said com-
pany’ and whereas, to begin the construction of such work
efore that guaranty of a connection with the Kentucky sys-
tem of railroads at Cumberland Gap is rightly and definitely
assured, or before the net revenues of the Atlantic, Missis-
sippi and Ohio railroad company shall be sufficient to make
up the deficit required to complete the said work, would not
only be unwise and unauthorized, but at once would imperil
the very safety of the Atlantic, Mississippi and Ohio railroad
company, and of consequence endanger, if not destroy, the
value of the claim of the commonwealth against the Atlan-
tic, Mississippi and Ohio railroad company, for four millions
of dollars: therefore, be it
1. Resolved by the general assembly of Virginia, That the
conduct of the Atlantic, Mississippi and Ohio railroad com-
‘pany, in the premises, has been in conformity with the policy
of the general assembly in chartering the Virginia and Ken-
‘tucky railroad company, and in accordance with the obliga-
tions, purposes and spirit of its own charter; and that to re-
quire said company to undertake the extension of their road
to Cumberland Gap, except and until it can do 80 in accord-
ance with the design and policy of the legislature, as herein-
before recited, and with the reasonable assurance of a con-
nection with said Kentucky system of railroads at Cumber-
land Gap, would be unwise, and detrimental alike to the in-
terests of the state and said company, if not ruinous to both.
2. That said company is hereby directed and required not
to undertake to build said road, as and for a local road, and
-not until there is a sufficient guaranty and assurance of a
connection at said Cumberland Gap with said Kentucky sys- x
tem of railroads. __ a
3. That of the sufficiency of said guaranty and assurance B
of, or the building of said connection, on the part of the state 5
of Kentucky, or some of its railroad companies, the board of
public works of this state is hereby required to decide and
determine; and when, in the opinion of said board, the same
are sufficient, the said Atlantic, Mississippi and Ohio railroad
company is hereby required to commence the construction of ¥
the said extension to Cumberland Gap, and prosecute the =
same, with due regard to its means and capacity, and to the ti
satisfaction of said board of public works, and by routes
through the counties of Scott and Lee, without any deviation
from such counties, except upon the approval of the said
board of public works. |
4. If, at the expiration of the time prescribed in the char- 1
ter of the said Atlantic, Mississippi and Ohio railroad com- ¢
pany, for the completion of said extension or road, such '
gnaranty and assurance are not secured, the said Atlantic, o:
ississippi and Ohio railroad company shall return and deli-
ver over to the board of public works such assets of interests
as the state held in the Virginia and Kentucky railroad com-
pany i and shall grant to all stockholders of the Virginia and B
entucky railroad company, who may have transferred their 4
subscriptions to the capital stock of the said Atlantic, Missis-
sippi and Ohio railroad company, a release from their obliga-
tions on such account; and shall turn over to the said Vir- ¥
inia and Kentucky railréad company, when Seorganized as 4
ereinafter provided, such property, assets and records re- £
ceived by it of the Virginia and Kentucky railroad com- p
pany, subject to such outlay as it may have made on account .
of such extension, and in the payment of the debts of the
said Virginia and Kentucky railroad company, whereof the
board of public works shall determine; or if a majority of 8
such stockholders shall desire to withdraw from the Atlantic,
Mississippi and Ohio railroad company in the mean time,
then, and in that event, the said Atlantic, Mississippi and
Obio railroad company, shall execute such release and trans-
fer aforesaid. Such stockholders so released, and such as may
not have transferred their subscriptions to the Atlantic, Mis-
sissippi and Ohio railroad company, then and thereby bein
reinstated in all their rights, obligations, liabilities and pri-
vileges, as befere the act, approved June seventeenth, eigh-
teen hundred and seventy. And such stockholders of the x
Virginia and Kentucky railroad company shall, upon notice 4
to be given by the board of pablic works, in the newspapers
published in the counties of Lee, Scott, and Washington, and &
at the place designated, assemble and re-organize the Vir-
inia and Kentucky railroad company, as provided by the
e for the organization of railroad companies: provided, P
in the event the guaranty aforesaid shall not be so secured, x
the said Atlantic, Mississippi and Ohio railroad company
may employ its resources and such of-its own means as it
may have reserved for such extension or road to Cumberland
Gap, in aid of the construction of branch roads of any guage,
and in the extension by lease or otherwise, of its main line
west, and to the city of Richmond—all in such manner and
to such extent as may seem to the said company best for
its interest and the good of the state: provided, that no-
thing in this act shall be so construed as to impair the obli-
gations of the said Atlantic, Mississippi and Ohio railroad
company as by covenant and deed, made and dated the twenty-
second day of December, eighteen hundred and seventy, to
indemnify the atate against any. liability, by reason of her
conditional subscription to the Virginia and Kentucky rail-
road company, and to secure the poyment of the-four milliong
to be paid by the said Atlantic, Mississippi and Ohio railroad
company for claims and stocks sold the said company.