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Court Approves Permanent ImprovementsIn 1899, after several years of being in the red, the directors of the Kishacoquillas Valley Railroad explained to the stockholders that the railroad was originally built for local convenience and not profit. This raised the dander in several notable stockholders, primarily Samuel Watts.Watts was the president and principal supporter of the railroad in 1892. During his term, Watts didn't see eye-to-eye with some directors on certain matters, especially those concerning the location of the railroad terminal. During the preliminary surveys Watts wanted the road to end a half-mile (0.8 kilometers) out of Belleville, but the majority of the directors decided it would be best to build into the middle of town. They went ahead and appropriated the necessary land under right of eminent domain, much of which belonged to Watts himself! Soon after, Watts resigned the office of president and sued the railroad. In 1897 he won the case for land and damages. For the next few years the KV continued to make little profit and paid no dividends. By 1900, Watts decided that this was no way to run a railroad, and made his move to win absolute control over the company. With morale at such a low ebb, he gained the backing of several director friends and easily formed a dissident group comprising of John A. Campbell, G.B. Brindle, A.C. Henderson, and Jacob Y. Zook. These five men quickly began to buy up KV stock from other unhappy stockholders in a strategy to replace management at the annual election of officers, to be held on June 9,1900. Watts swelled his original purchase of 420 shares to 1,050 shares, thus remaining the single largest stockholder. Combined with his friends' holdings, he controlled the majority of shares then issued. Two months before the election, however, during a meeting of the KV directors at which Watts was not present, it was decided to sell 870 shares of unissued stock to a friend of management, engineer F.F. Whittekin. The alleged purpose of this transaction was to purchase a new locomotive and a passenger coach, and to finish construction on wyes at both ends of the road. This additional stock gave management a majority of shares, which would enable it to control the election.
On Monday, June 25, the Watts faction faced off against the defendants, Wm. B. Maclay, J. Milton Campbell, J.H. Peachey, Henry S. Wilson, Solomon Z. Hartzler, Dr. John P. Getter, and W.J. Hayes. Getter was the general manager and Hayes the president of the railroad. About 50 people from Belleville attended court in Lewistown that day and heard a number of witnesses from both sides. This time the court action fell in favor of KV management. On Saturday, August 18, the jury handed down its decision. Judge Bailey went into the merits of the case. He agreed that a new locomotive and coach were required. He went on to say that the railroad could not be considered complete until facilities for turning its locomotives at both ends were provided, and that it was "not only within the power but the duty of the directors, when there is not sufficient funds in treasury, to provide the funds to prevent the road from falling into decay and disuse." Therefore the Whittekin subscription was not made for the mere purpose of controlling the election. Whittekin bought the stock and, as foreseen, acted in concert with management, thereby controlling the election in its favor. Work began immediately on fixing up the railroad with money obtained from his subscription. Within two years, turning facilities were constructed in Belleville and Reedsville. In 1900, a brand-new 4-4-0 locomotive (engine No.3) was bought for $8,750 from the Baldwin Locomotive Works of Philadelphia. The management, however, held off buying a new coach until 1908, when combine No.3 was built for $6,285 by the Harlan & Hollingsworth Co. of Wilmington, Del. |
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