Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1845-01-10

in the actual. compared with the anticipated
state of the Company This aggregate Oh defl-
cheney, however, can be very satisfactorily ex-
planned BY the following circumstances sn1se-
auently occurring, which were not foreseen "heh
the estimate was made
Isl. The falling short OF the actual tolls Oh inc
year from the amount then anticipated.
2nd. The excess of the outstanding liabilities
of the Company over and above the amount an
ticpated-lhe difficulty of exactly estimating,
which has been adyered 10 in former part OIL
the report.
3rd. The unforeseen expenditures which it was
found necessary to make on the line OF the i'm
provement during the past year, for additional
works, for reconstructicns and Improvements OF
existing works, and for extraordinary repairs oc-
casioned by unusual disasters; which expendl-
lures could not be embraced in the estimate OF
the expenses of the canal and OF the general adj
miniStralion.
4th. The excess OF the insament of the
States loan of interest money required TO be paid,
over the amount proposed, in the estimate 10 be
paid.
The estimate, therefore, is justified BY the cir
cumslanceS under which il was made, although
subsequent events, unforeseen al the time, have
brought about far different result.
Ii now remains 10 exhibit the present financial
difficulties of the Company, and 10 suggest mea-
surcs of relief
On the lst OF January next, there will fall due
six months interest on the guaranteed bonds and
on the Commonwealth loan of State stock, and
six months annuity to the stockholders of the old
James River Company, amounting TO about
$4,000 dollars; which, with the deficiency of 6S,
600 dollars heretofore stated, makes an aggregate
OF 10000 of liabilities 10 be provided for, and
which The Company has not in hand the means
of discharging. This aggregate Of liabilities i'm
mediaely pressing, includes only the first install
ment, or third OF the States loan OF interest
money, which fell due on The lst OF July last,
and does not include the other two nstalmenls
one Of which will become dine on the LIST Of
! July next and the other al the same date in the
year following. Nor does it embrace The three
| ins,amenlS oil The purchase money of the Rich
mond Dock, which are already due, nor the re-
naming instalments which will fall due in JULY
1915.
| Before proceed 10 recommend measures OF re-
lief beg leave in reference 10 that portion OF The
liabilities above stalled as demanding more i'm
mediate provision, amounting TO Sl260O0, 10 re-
mind The stockholders that in the month of Februa-
rs, 1872, The Directory applied to the Legislature
for a loan Of ;s2250000 OF Stale stock on Il pledge
Of The Companys resources. This application
was made under the conviction, founded on
careful review Of the finances OF The Company,
that loan TO that amount, at that period, would
place lis affairs in such position that the income
from the work would lhencelorwanl meet all cur
rent charges upon it. The Legislature, in grant
I ing The loan thus applied for revoked the States
| guarantee upon 100000 dollars Of The loan an
lhorizcd BY the act Of ,3l March, lS39-,hus, in
effect leaning the Company only 100000 dollars.
while il required The pledge Of The Companys
resources 10 he in The shape of a mortgage of alI
lis property and Improvements
The relief though differing materially from
that which had been prayed for, was gladly ac.
copied as the means OF extricatng The company
from the formidable difficulties which il has ever
had TO encounter. Nevertheless all subsequent,
experience has but increased the regret of the di-
reclory that il had no, pleased the Legislature 10
grant The loan without depriving the company Of
portion OF It's former resources, which was in
cll,lcd in The estimate upon which The application
for relief was based. That The 10000 dollars OF
| bonds thus withdrawn would have prevented that
amount oithc present deficit or, il now in hand,
would reduce il by the same amount, is not 10 he
bombed Butthis isnot all. These bonds at the time
could have been freely used either in lberalng The
eompany's income from The incubus OF The post
notes. or in facilitating financial arrangements
scarcely less beneficial. This would have placed
the company ia n position Of decided advantage
compared with lis actual stale in consequence OF
Inc revocation, deprived, as il was, Of the use OF
the bonds in meeting engagements based upon
them, and crippled, moreover, by The paraysing
efect on its credit produced by the mortgage TO
the State. The innuncrablc instances in which
the use OF 50 large an addition 10 The companys
available means would have prevented losses in f.
nancial ARA ncements, need scarcely BIZ adyeItci
10. 1t is equally obvious that The ability (Which
This fund would have aliorded) TO take promp
and efficient measures for the completion aud
protection Of the works would have prevented
LARGE pyDEnIiftrps rendered. hv tho iii
lapidationS and injuries from lrcshcS, as we'll as
material losses Of income by long suspensions OF
the navigation Of the canal. Ii is not, in nv
opinion exrava@an 10 say, that those losses and
additional expenditures have equa He'd in amount
The whole loan Oi the interest money for which
The company is indebted Ia the Stale. Should
this opinion lie correct the conclusion is incvi-
table that il the full measure OF relief asked for
by the directory in the memorial above adveited
10, had been accorded by The Legislature, the COM
pany would at this time be not only free from lis
debt TO The Stale for the loan of interest money
but in a situation TO meet its pressing liabilities
on the Isl January next.
II is material also TO draw the attention OF the
stockholders 10 the true character Of the liabilities
10 meet which immediate provision is necessary.
With this view, deem it proper 10 quote from
the seventh annual report (page2D what was
said on the subject OF similar liabilities i'm Decem-
at is proper to remind the stockholders, that in
consequence Of the post notes being received in
payment OF dues 10 the company, and of the una
voidabe discount upon them, nearly the whole
revenue of the company for the last two years be
ing paid in deprecated medium, il could not be
rendered available for The purpose OF meeting the
interest, upon lis debts; and that the directory
was consequently driven 10 the necessity OF
procuring funds for The purpose, by nego.
iiating loans. This, possibly, may have Induced
the public 10 suppose that the capital OF The com
pany has been diverted 10 the payment Of such
interest. But The stockholders will find by in
vestigatin2 the financial statements Of the present
and preceding years, that such has not been the
fact, inasmuch aS The amount borrowed and APP
piled 10 the payment vi interest," on the one hand,
has fallen short oflhe nett revenue applied, ON the
other, 10 the construction Of the works"
have quoted This passage for The purpose Of
stating that the same remarks are applicable TO
the company's present liabilities. Since the pc
Rod when the report from which they are taken
was communicated, and before The entertainments
Of The canal were raised, the line has been swept
by three of the most disastrous freshes which have
occurred in the course OF the last half century
An examination OF The accounts OF the company
will show, that making allowance for The exiraorli-
nary expenditures rendered necessary by these
disasters the income OF the works has always
been sufficient TO meet the annual charges upon
them, and the interest debt Of the company.
It appears, then, that all the liabilities the
company have been incurred in the prosecution
of the works or in restoring them from The et-
feels Of drsolating nous which arc not likely
again 10 affect the canal. All these liabilities
then, come in truth and reality under The de-
scription of principal debt and ought 10 be pro-
vided for like any other acquisition ofcapal in
vested in the prosecution Of the improvement.
Under this view Of The subject, invite the at
iention OF The stockholders 10 The propreiy, RI nrc
deavoEins at this time to mlat'Gy means Of an ap
VISION ior ne Legislature for authority 10 issue
Bonds for their amount, at long credit, with the
guarantee oftle State annexed, charging 10 the
income of the dock the interest on such portion
of the bonds as may be necessary 10 meet the pur-