Richmond daily Whig. [volume] (Richmond, Va.) 1842-1861, 1845-01-03

under the ccnveuSa founded on careful review of tbs
finances OF toe comrsny, u. loan To that amount, al
that period, would place attain. in such position that
the from the works wculd ihencelorwad M, ct
all current charges upon it, The legislature in granting
the loan thus applied Cor, revoked the states
900 Ut the loan authorized by the of The 23i
March. is39,-thus, in evt, Looming the company only
100. while required the pledge Of the compan,
resources To be IN the shape Of mortgage OF all its proper
~ and improvements.
This relief. though differing materially from iha, which
had been prayed for gladly accepted the Of
oxieatng the company from the moe, ionidably Difficult
ties which has had encounter Nevertheless all
subsequent experience has but increased the regret the
directory that had not pleased tie legislature grant
loan without deprt,ing the company Ut portion OF its
former which included in the upon
which the application for relief based. That the
SlO0OOo Of bonds thus Withdrawn woad have
mat amount OF the present dehcit. or. now'in hand,
would reduce IL by the amount, Is not To be
doubted. But this is all. Those bonds at the
time could have been freely used either IN hberatng
the ccmpany's income from the incubus OF the poet
notes, IN facilitating financial scarcely less
beneficial. This would have paced the compsny po-
si'cn Ut decided advantage compared With actual
In consequence o the revocation, deprived, was OF
The use OF the bonds in meeting engagements based upon
,hem and crippled. by the paraysng effect on
its credit produced by the mortgage the State The i
numcrabe instances which the large an add
ton 10 the comoanys available would have
losses in financial need scarcely be adveed
To. IL Is equally obvious that the ability (which this fund
would have Shorded) To take prompt and efficient
sures Tor the completion and protection OF the would
have prevented large p,nurcs rendered necessary by
adaptations and injuries from treshss, well material
losses OF income BY long Of the navigation OF
the canal IL - Rot, IN opinion, exuavasant say
that those losses and additional in
amount the whole loan o the for which the
company Is indebted TO the State. Should opinion be
correct, the conclusion inevitable that the full mea
OF relief asked for by the directory the memorial
above advericd had been accorded by the legislature
the company would this time be only from its
Gb to the State t"r the loan Of interest money, IA
situation to meet It's pressing Liabilities The LIST January
next
material also TO draw the attention OF the s,ockhcd
to the character Of the liabilities. which iu
mediate provision Is necessary. With this vi.w deem il
proper To quote from the seventh annual report page 2
what was said the subject of similar Liabilities IN De-
cember, lSil. The passage is follows 1T is propcr
remind the stockholders that in consequence OF the
notes being received payment OF dues the CON-
pany, and OF the unavoidable discount upon Them nearly
the whole revenue OF the company for the last years
being paid a deprecated medium il could not be rem
dered available Tor the purpose OF meeting the
upon iis debs and that the directory queny
driven TO the necessity of procuring funds for the purpose by
negotiating loans. This, possibly may have induced the
public supp that the capital OF the company has
diverted TO vt such interest But the stock
holders will lind, by investigating the financial statements
the aud preceding that such has been
the fact inasmuch tine borrowed and applied To
the payment of interest the hand has fallen short
the nett applied on the other To the
uon OF the works"
have quoted tins passage 70. the purpose Of stating
that the same remarks applicable the cCmpanys
liabilities. Since the period when the report from
which they taken communicated. ard before the
entertainments of the canal raised the line has been
swept by three Of the disastrous freshcs which have
occurred IN the OF the last half
nation of OF the company will shew that max
ing allowance for the extraordinary expenditures rendered
by C disasters, the income of the works has
always been sufficient the annual charges upon
them, aud the interest debt OF the company.
IL appears then, that all the liabilities o the company
have bcen incurred IN the prosecution OF the works IN
restoring them from the effects OF desoatng floods which
likely again effect the canal. All these liabili-
ties then, truth aud reality under the description
OF principal debt, and ought be provided for like any
other acquisition OF capital invested in the prosecution of
the improvement
Under view of the SUBJECT invite the attention Of
time, make permanent provision for all these liabilities
by 81" application 10 the legislature for authority
issue bonds 10. their amount, at long credit, with
guarantee OF the annexed charging the income of
the dock the ncrrs such portion OF the bonds NAV be
necessary meet the purchase money of tina; work and TO
the general income c company, the reupon resi-
due. This cauied into effect, viii We the
company from all present diicu and endorsements
smuCh the Il tine wors will then charr
ed only with the annua, cNpeIs ard repair, he an
nus Interest Gcbi Of the company slightly hy
the interest o the proposed loan. while the surpus
would constitute auguno nung fund whSh might be,n
Piled immg diairy - the prosecution 81 the works IL -
10 be presumed that upon pr per Of the ibjec
the Legislature will tie prudence aud propreiy ut this
course especially IL would ensure the company ample
Of guarding the state against any a. in
convenience ol It's liabilities for the interest
debt OF the company.
therefore recommend TO the Stockholders the inme.
daie presentation oi memorial the legislature asking
the passage Of authorizing the ptopusod measure
AL which Is most respectfully submitted by
JOSEPH Z. CABELI. Prssid.nL