Chap. 109.—An ACT to ratify, confirm, and validate the action of the council of
the city of Danville, Virginia, in passing an ordinance on the 12th day of
November, 1901, providing for a special election on the 19th day of November,
1901, to take the sense of the qualitied voters of said city as to whether the city
of Danville should subscribe to the Mount Rogers and Eastern Railroad Com-
pany, and also all acts done thereunder.

Approved March 4, 1902.

Whereas, the council of the city of Danville passed on the twelfth day
of November, nineteen hundred and one, the following ordinance:

At a meeting of the city council held on the twelfth instant the follow-
ing ordinance, ordering an election to be held on the question of the city
making a subscription of two hundred and fifty thousand dollars, four
per centum bonds, to the Mount Rogers and Eastern Railroad Company,
was adopted :

Be it enacted by the council of the city of Danville, Virginia, as fol-
lows—namely:

$1. At the request and upon the motion of the Mount Rogers and
Eastern Railroad Company, by J. D. Perkins, its president, and Arthur
Meigs, its general manager, the sergeant of the city of Danville, and the
judges of election and other election officers of the said city, shall, after
due and proper notice thereof, open a poll in accordance with law at the
several regular voting precincts of said city of Danville, on Thursday,
the nineteenth day of December, nineteen hundred and one, and then and
there take the sense of the qualified voters of said city as to whether the
city of Danville shall subscribe to the preferred capital stock of the Mount
hogers and Eastern Railroad Company, an internal improvement com-
pany, chartered by the legislature of Virginia by an act in effect on the
eleventh of February, nineteen hundred and one, in the sum of two hun-
cred and fifty thousand dollars, to be paid in coupon bonds of the city
of Danville, at the par value thereof, due and payable in lawful money
of the United States at thirty years from the date thereof, with interest
thereon from their date, at the rate of four per centum per annum, pay-
able semi-annually, and as to whether said city shall rebate the city taxes
upon the property of said railroad company for the period of thirty years
from the date of the delivery of said bonds, but the said subscription and
rebate of taxes shall be upon and subject to the following terms and con-
ditions, as they are respectively applicable thereto—namelyv :

Sub-section A.—The Mount Rogers and Eastern Railroad Company
shall, on or before the first day of January, nineteen hundred and six,
build, construct, complete, equip, and put into operation an independent
standard gauge railroad from the Tennessee or Kentucky State line
through or touching the counties of Washington, Smyth, Gravson, Car-
roll, Floyd, Henry, and Pittsvlvania, and the city of Danville, and the
counties of Halifax, Lunenburg, and other counties, to some point or
points on tidewater at or in vicinity of the city of Norfolk, or the city of
Portsmouth, or after reaching the present Seaboard Air Line railway,
the said Mount Rogers and Eastern Railroad Company may, if it shall
so desire, reach tidewater over the tracks or railway of said Seaboard Air
Line Railway Company by means of a suitable traftie contract with said
last mentioned railway company, in lieu of its independent line of rail-
road from said Seaboard Air Line railway to tidewater.

Sub-section B.—The said Mount Rogers and Eastern Railroad Com-
pany, through and over its own lines aforesaid, and through and over
connecting freight and transportation lines at its western and eastern
termini, shall furnish, accord, and cuaranty to the city of Danville and
its citizens for all freight to and from the city of Danville, from and tv
its terminus at or in the vicinity of the cities of Norfolk and Portsmouth,
or coming or going through said cities, or either of them, and from and
to its western terminus on the Tennessee or Kentucky State line, and
from and to all points west thereof, rates of freight that are as low as any
freight rates from and to the same points enjoved by the citizens of any
other Virginia city that, in respect to freight rates, is now upon what is
known as the Virginia city basis of freight rates.

Sub-section (.—The said bonds of the citv of Danville shall not fe
executed or delivered until the provisions of the foregoing sub-section A
have been fully complied with, and until the freight rates provided for in
sub-section B shall have been fully established, and the said city of Nan-
ville and its citizens are in the enjovment thereof, and the said bonds
shall bear date as of the date of their delivery.

Sub-section D.—The said bonds shall contain upon their face as dis-
tinct conditions of their validity, foree, and effect that the said Mount.
Rogers and Eastern Railroad Company. through and over its own lines
aforesaid, and through and over connecting freight and transportation
lines at its western and eastern termini. shall for ten vears furnish, ac-
cord, and guaranty to the city of Danville and its citizens for all freight
to and from the city of Danville, from and to its terminus at or in the
vicinity of the cities of Norfolk and Portsmouth, or coming or going
through such cities, or either of them. and from and to its western term'-
nus on the Tennessee or Kentucky State line, and from and to all points
west thereof, rates of freight that are as low as any freight rates from and
to the same points enjoyed by the eitizens of any citv in Virginia that.
In respect to freight rates, is new upon what is known as the Virginia city
basis of freight rates: and should the said Mount Rogers and Eastern
Railroad Company, by its own act. fail in this, then the said bonds and
all matured Interest COUPONS Toerean shall thereupon become and he
absolutely vord and of no binding force or etfeer: provided, however, that
In ease it shall be claimed by the eitv of Danville or anv citizen thereof
that this condition has been violated by the act of the Mount Rogers and
Rastern Ratlroad Company, the said city of Danville shall immediately
nority the sd railroad COMPANY therea’ in writing, and if the same be
conceded Ty sate company amd not reetined within thirty days from the
oe OF stu h motive, the suid bonds and all unmatured coupons thereon
shall he and become vid and of no Sorce or eect: hut if the said railroad
COMPANY shall deny that said comcE ton has been violated by its act, the
question as te Whether or net sad condition has been so violated shall be
submitted anid determined bv arbitrators, one of whom shall be selected
by the ety of Danville and one ly said railroad company, and if the
irbitrators so selected cannot agrec, they shall select a third arbitrator,
ind a majority of the arbitrators shall determine the question, and any
award hereunder shall be in writing and binding upon the parties hereto,
ind the costs of such arbitration shall be paid bv the party against whom
the question is decided, and if the award is that the condition has been
lolated by the act of said railroad company, the said railroad company
hall rectify the same within thirty days from the date of said award,
ind failing so to do, the said bonds and unmatured interest coupons shall
thereupon be and become absolutely void and of no force or effect.

And provided, further, that in case of the refusal or failure at anv
‘ime of any connecting line or lines beyond any terminus of the Mount
Rogers and Eastern Railroad Company to accord to said Mount Rogers
ind Eastern Railroad Company, without the consent or concurrence of
aid Mount Rogers and astern Railroad Company, the same freight rates
hat are accorded to other railroads operating in Virginia, so as to hinder
or delay the Mount Rogers and Eastern Railroad Company from furnish-
ng and according to the citizens of Danville the aforesaid freight rates,
the said Mount Rogers and Eastern Railroad Company shall be allowed a
reasonable time, not to exceed five years, within which to obtain from
uch connecting line or lines discriminating against it such rates and
facilities, or otherwise to establish such rates and facilities as will enable
‘aid Mount Rogers and Eastern Railroad Company to carry out and per-
form its aforesaid contract with the city of Danville and its citizens, but
the suspension of the guaranteed rates aforesaid shall not diminish the
period of time during which the city of Danville and its citizens shall be
ntitled to the guaranteed rates aforesaid, it being understood and agreed
that the city of Danville and its citizens shall enjoy the benefit of the
guaranteed rates aforesaid for the full time of ten years in the aggregate
as a part of the consideration for the said bonds, and for the full period
of twenty years additional as a part consideration for the rebate of taxes
herein provided for; and it is further distinctly provided that any such
delay or suspension caused by the action of a connecting line shall sus-
pend and wholly relieve and exempt the city of Danville from the pay-
ment of interest accruing on said bonds for the period covered by such
delay or suspension, but shall not invalidate and render void the said
bonds as to the principal unless the said Mount Rogers and Eastern
Railroad Company, after the lapse of the five years hereinbefore specified.
shall fail to furnish and provide the aforesaid freight rates guaranteed to
the citv of Danville and its citizens; and in case of such failure, after the
lapse of five years, said bonds shall, both as to principal and interest
thereupon accruing after the breach, become and be null, void, and of no
effect, and the coupons to said bonds shall be subjected to the aforesaid
conditions by appropriate reference thercto in the face of the coupons;
and it is further provided that the city of Danville shall not be entitled
to demand and collect any interest that it shall have paid, or to refusc
the payment of interest that may have matured, upon said bonds during
the compliance of the said Mount Rogers and Eastern Railroad Com-
pany with the foregoing conditions, although the said bonds may there-
after have become null and void.
Sub-section E.—The said Mount Rogers and Eastern Railroad Com-
pany shall establish and maintain division machine and repair shops 1n
the city of Danville, and the establishing and maintaining of said shops
in the city of Danville, and the furnishing, according, and guaranteeinz
of the aforesaid freight rates provided for in the foregoing sub-section
to the city of Danville and its citizens for thirty years in the aggregate
shall be a condition, upon the compliance with which from year to year.
and not otherwise, the said Mount Rogers and Eastern Railroad Compan:
shall be entitled to claim and receive annually the said rebate of taxes
from the said city of Danville for said thirtv vears in the aggregate, the
purpose being to rebate said taxes for any year that the condition 1s com-
plied with.

Sub-section F.—The said subscription of two hundred and fifty thou-
sand dollars to said railroad company shall be subject to the action lv
the legislature of Virginia in respect to the enlargement of said city>
debt limit necessary to such subscription, and if the said subscription i
voted at the election herein provided for, the said city of Danville.
through its council, shall promptly apply to the general assembly of tl
State of Virginia for such legislation as mav be necessary to authoriz:
the subscription aforesaid.

Sub-section G.—If the actual construction of said railroad is not t
gun in good faith and substantially within the year nineteen hundre:
and two, then the said subscription and rebate taxes shall be null ar:
void.

§ 2. Both the questions of subscription and of the rebate of taxes shall
be submitted to the vote of the qualified voters of the city of Danville on
the day fixed therefor as herein aforesaid, and the said cleetion shall t
held in all respects in conformity to law.

The duly appointed judges of election for the city of Danville, afte
taking an oath faithfully to discharge the duty assigned to them, shal!
open the polls at the usual voting places in said city at sunrise of sai!
day and close the same at sunset of said day, and shall conduct such elee-
tion and close the polls in such manner as is provided by law in other
elections. And at said election each qualified voter who shall approve
such subscription shall deposit a ticket or ballot whereon shall be writte:
or printed the words, “For Subscription”; and each voter who shal:
oppose such subscription shall deposit 1 ticket or ballot whereon shall le
written or printed the words, “Against Subscription”; and at said elec-
tion cach qualified voter who shall approve such rebate of taxes shall
deposit a ticket or ballot whercon shall be written or printed the word:
“For Rebate of Taxes”; and cach voter who shall oppose such rebate ¢:
taxes shall deposit a ticket or ballot whercon shall be written or printed
the words, “Against Rehate of Taxes”; and each ballot shall be endorse!
with the name of the voter, which shall be inspected by the officer >
officers conducting the election at the respective voting places. Th:
judges of election at the several voting places shall, immediately after the
«losing of the polls at each of said places, count the ballots depositet.
and shall within two days after said election make return to the president
of the council of the citv of Danville of the number of votes cast for and
he number of votes cast against “Subscription,” and of the number of
otes cast for and the number of votes cast against “Rebate of Taxes,”
ind shall return and deposit with the clerk of said council, in separate
ealed packages, the ballots for and against subscription and the ballots
‘or and against rebate of taxes, to be by the said council of the city
f Danville and the president of said council further proceeded with in
iccordance with law; but to carry said election in favor of said subscrip-
ion, it shall be approved by two-thirds of the qualified voters of said
‘ity voting at such election, which two-thirds shall include a majority of
the qualified registered voters owning real estate in said city, and the
juestion of rebate of taxes shall be determined in the same way.

§ 3. All the expenses of said election hereunder shall be paid by the
Mount Rogers and Eastern Railroad Company, and the said company
shall for that purpose deposit with the treasurer of the said city the sum
f one hundred and fifty dollars before the notices of said election shall
he given, and any part of said deposit not necessary to defray the said
-xpenses shall be returned to said railroad company.

§ 4. This ordinance shall be in force from its enactment.

A true copy—tTeste:
ROBERT BRYDON,
Clerk of Council.

And whereas the election so ordered by said ordinance of the twelfth
day of November, nineteen hundred and one, was duly held thereunder
on the nineteenth day of December, nineteen hundred and one, and at
said election it was determined by the qualified voters of the city of Dan-
ville, Virginia, that the subscription of two hundred and fifty thousand
dollars to the Mount Rogers and Eastern Railroad Company should be
made by the city, and bonds of the said city issued therefor, upon the
terms and conditions set forth in said ordinance of the twelfth day of
November, nineteen hundred and one; and,

Whereas, at the time of the adoption of the said ordinance the pro-
posed subscription of two hundred and fifty thousand dollars was in ex-
cess of the debt limit of said city as provided by its charter; and,

Whereas, the said charter has been amended by the present legislature
extending the debt limit of said city to the extent of two hundred and
fifty thousand dollars, in order to enable said city to make the subscrip-
tion to the Mount Rogers and Eastern Railroad Company, and to issue
the bonds therefor, upon the terms and conditions of the said ordinance
of the twelfth day of November, nineteen hundred and one, and as deter-
mined by the election held thereunder on the nineteenth day of Decem-
ber, nineteen hundred and one, said two hundred and fifty thousand dol-
lars to be used for the purposes of said subscription, and for none other,
by an act approved on the........ day of.............04. , nineteen
hundred and two: therefore,

1. Be it enacted by the general assembly of Virginia, That the said
ordinance passed by the council of the city of Danville on the twelfth
day of November, nineteen hundred and one, to take the sense of the qual-
ified voters of the city of Danville as to whether the city of Danville
should subscribe to the preferred capital stock of the Mount Rogers and
lvastern Railroad Company upon the terms, stipulations, and conditions
set forth in said ordinance, the election held thereunder by the officers
of election on the nineteenth day of December, nineteen hundred and one,
and all other acts done thereunder, be, and the same are hereby, ratified,
confirmed, and validated in all particulars.

2. This act shall be in force from its passage.