Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-01-10
INTERNAL IMPROVEMENT.
JAMES RIVER AND kANAWHA COMPANY
ANNUAL REPORT.

V. flAN ron RAISING ruE ADDITIONAL CarirAL
OF rhf COMPANY, WIN RrrEnENoF TO THE
CHARACTER AND ADVANTAGES or rpr LINZ.
| Upon the great ana interesting question OF the
best manner OF raising the additional capital of the
Company, beg leave to suggest to the stockholders
What upon much reflection upon the subject, have
always regarded Ms the most advisable course. The
outline OF the plan which would venture to recon-
mend, Is an immediate application to the Legislature
Ion subscription on the part Of the State of three
hhs OF the proposed additional capital OF six mil
hons of dollars; and Tor authority TO be given To
the Company 10 subscribe on its part, tho other
two-6ilhs of this additional capital, and to borrow the
amout oi the subscription upon the credit OF the cor
porate funds; with the condition annexed that 40
soon rs the selling pricc OF the stock sha have
cached lis par value, the Company shall be under
an obligation TO sell number of shares cquiva-
lent TO the number subscribed, and 10 apply the
proceeds Of the sale TO the reimbursement OF the
loan.
II the sanction OF the stockholders and the State
sh uld be gwen this measure, | have no doubt
that the loan could be negotiated IN Europe NJ m
interest not exceeding 3 per cent, aud the plan
would he successful aud highly advantageous IN u
Their ic'pecls-1hs convection has been strongly
continued by the approval OF the Board OF Drec-
tors and by that of many of the STOCKHOLDERS with
whom have convetsed upon the subject, and among
The number, the distinguished President of the Bank
oil Nneinia, whose opinion is entitled 10 the higest
respect So decided, indeed, was tie opinion OF
Doctor Brockenbrongh, lha, spon being informed by
myself of communications coming from respeeta-
BILE German gentlemen residing IN this country aud
encouraging an application abroad, he undertook nj
my particular request TO open ne rot iaon Tor this
object, andl IN daily expectation of favorable re-
suit.
1t is scarcely To he appfehcnded that the concur
renee OF the State would be Withheld from this plan
as is incredible that the Legislature will now a
bandon The work. and its impossible to devise
economical terms.
am appr'sed that this method Of raising the add.
lional capital will be opposed by some upon the
ground OF ITS supposed injustice tn the present
stockholders by Withdrawing from the future divi-
dcnds upon Their stock But with all due respect
beg leave To remark that the objection seems
10 sptin' rom an imperfect conception of the
lure and operation OF the plan for it be rero-
iected, that II the loan be managed "a that the
payment OF interest shall commence ar the period
AT winch the money borrowed shall be mveNed, die
stockholders Of the Company will have dividend ac-
erung upon their proper proportion Of the new stock,
10 set of against then ,a,eabo part Of the interest of
the debt. This differ nee would probably be incon-
siderable, andcouh scarcely be weighed against the
greet appreciation in the price OF The old stock
winch would mlalbly result from the passage Of the
law.
Thcfc can be no well founded charge of MUS.
tee against the plan here proposed; because, the
original subscribers were distinctly informed. thai
would be called INTO requlstion, Il an immediate
obianrd.
Ia my Address to the citizens of Richmond, in
the month Of December, 1884 upon the occasion
OF the memorable subscription then made by the
city, tho following passage is to be found IN re-
ference to the company's future financial means
" Bun, lei the improbable superstition be INDUCED,
that the remaining capital of $780, 90, could not
be raised by a new subscription of stock, aud that
he company, like the Schuylklll Navigation aud the
Delaware aud Raran companies, should be com.
Had I'm
with orwlthout specific pledge OF its tolls as guar
antee for the interest aud principal Of the debt there
cannot be reasonable doubt Of the requisite legis
atIve sanction 10 purposes so obviously cxpedieni
and proper; in which event, the above stated in-
come OF 81 O09 800, might be divided and appropr-
aied as follows:
" For dividend at 6 per cent. TO the stock
holders, $i9e00o
E." For the payment of the annuity to the
old James River company $1,000
" or sinking fund TO pay the interest
and l1icipa debt. 100000
= For keeping the works in rcpa, and other
annual charges 900
81 900 800"
The address from which this passage Is extracted
printed IN pamphlet from, and communicated TO
the members Of both Houses of Assembly; wa ex
tensvely circulated among the citizens of Rich
mond, and given TO the public through the papers Of
the day
Is there just ground for duobt dIstrasi rs to
the final success Of the great enerprze itself, OF
which the plan of subscription now brought
forward is intended to he auxiliary measure
Perhaps may be alleged, SAID oil the State IL
self during the State system of management in the
winter of 1898 that the estimates have been greatly
exceeded and that better at iecede from
unsuccessful and runous scheme.
The estimates which were put forth in the outset
of our line OF improvement related TO the time OF lis
execution, the cost OF IFS constructions and 10 the
probable profits 10 accrue upon the stock. In regard
10 the progress OF the work, it must be admitted,
that if the whole field OF thecompany's ahors is to be
taken into view. there Is yet ground whatever
for disappointment or complaint. Twelve years are al
lowed for The exccuriono of the work. and ii the pre-
sent scheme of subscription should prevail, the
whole improvement may be completed to the Ohio
river BY the yerr $40. that is say, in TWO yearsl
less than the prerlod precrbcdb by the charter p's
There is every reason to believe that the ca.ai VIII
be finished Lynchburg, ~ the course r. next an
tunu. and, should this out to be me iact ana
due allowance be made iof the gHiefe"ce ID Inc ai
mansions and the character ~ 'he TWO "oihs' the
n,oo,ess oC our imn,ovcno-twill undoubtedly have
exceeded that of the E'fe canal.
In ,ccard ia the excess of the expenditures over
the original esl.naiss, which upon the line OF the
canalmns pc admitted to be considerable il is proper
that SHOULD renind he stockholders OF The material
facts and circumstances which possibly may have
caped their recollection.
Ia The coulse of three years which elapsed be-
tween the grant Of the chatter and the contamination
of the subscription, two estimates Of the probable
cos, OF the work were made by myself; the one AT
the session Of 1882 Inhibited in pamphlet ent
lied A SYNOPSIS Of the James River aud kanawha
Inproyement; the other. in the pamphlet already
ferred to. entitled an address 10 the Citizens Of