Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1844-01-23

Tie following statement is entitled TO attention, as
welt from the importance of the subject as from the
n.e liiyence of is source We respectfully recommend
II 10 he consideration Of the Legislature
COMMUNICATED.
RICHMOND, FREDERICKSBURG & POTOMAC R. ROAD
fh, capital stock of the Richmond, ksburg
and Potomac Railroad Company consists OF 100000
o. old stock (of which the State holds 1878 2OO) and
Of $4,000 Of new stock held entirely by individuals
The whol. Of the old stock has been pad up, and
S21 900 OF the stick this last, with the rxceP-
of the first requsiiion Of $40 per shnre, bearing
interest under resolution CT the stockholders al the
FAVE Of SIX per &c mum per annum.
The holders OF the stock being at the same time,
generally holders Of the old stock, are unable to meet
iufther reuustons the new stock, until dividends
can be pad on the old stock-and, as the Company
funded debt of S390,000, besides floating debt
oil Sl33000 aggregate debt OF So23,oO0-they
obliged TO apply their net. income (whicn IS Sou
900 per annum, alter the payment of expenses and IN
teres 20 the liquidation OF these debts until they can
be provided for IN some other way, than from the dv
dend fund
The company believe that declaring dividend Of
their nett earnings, payable in stock long as It
cannot De paid IN money, would have the effect Of rais
Ing their stock to par, and enabling them to convert
their debts into stock This they propose 10 do in the
of the STATE, by issuing To the Board Of Public
Works the amount OF the State proportion of each d
vdeni stock. and in the of the individual
stockholders, by calling in instruments the new
stock, for equal aggregate amount with that which
IS declared the old stock. Thus for instance, seven
per dividends the old stock (Which it is
mag hereaf;e! be decared) would amount 1924 800,
the proportion 9th. whole stock held by individuals,
10 500 1876; and 1t is proposed, II the bill before the
Legislature should become law TO call IN, account
OF the stock held by individuals, (S300,G00D ten
per cent annually, or $50 600. An amendment pro-
posed by Mr.. Taaerro of Franklin this being
done by providing, that "the Board of Public Works
" snail receive new stock in payment Of the Common.
wealhs proportion of any dividend only far it
shall appear by the certificate of the Treasurer of
the company, that corresponding amount has been
called for the passage Of this act and paid in
" On the stock held by indiyduas.'
Under these circumstances, it seems to be clear If
Inc measure is TO be to the advantage of the indv
daal stockholders, that it must be least equally
81 10 the State. Ii the effect of it should be
uc2a'ed by the Directors, 10 raise the stock of the
company par, and to enable them TO l;Quidate
It debts by converting them into stock the old stock
Of The Commonwealth, 1925 a00O worth but
s'S'y hve cents in the dollar, increased in value
hiy per cent on its present price, and both the Com
monweath and individual Stockholders will after
wards receive their dividends in money, instead of
stock If on tue other hand the Board Of Directors
should be disappointed in this expectation, then, the
only effect OF The measure, will be TO increase the
State interest in the Company by giving 10 her new
sock, bearing SIX per cent interest, payable seman-
heaiy, on 80 per cent. OF the amount, and which
now commands 80 in the MARKET when, other wise she
can receive nothing.
Tue proposition IS submitted by the Company to The
legislature, as measure of mutual interest TO the
State and private stockholders, the adoption Of which
must equally benefit whilst its rejection equally
inlnfe both 1t is which, if the Company consist
ea entirely Of private stockholders, would probably be
unanimously concufred in, but which, the State being
Ss'ocKhnder, cannot, Of course be adopted without
n'f consent 1t is submitted TO the consideration Of
M Legislature in the las! annual report Of the Board
o. Public Works, who "rcmark in addition that owing
% The favorable position Of this improvement, it IS
SSpd nf adu ptano ~,
wan ensure 10 it high state of prosperity, as soon as
shall hsve overcome the principal difficulties which
nave assa'led it. in common with mos. other improve
tens OF the same nature, for several years past"