The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1849-07-28
n APPENDIX,
10 Tho Ay"uai Repcu # Ne Directors Of Il
CaRnsttieii and Pds -umEsie Rirers

Cunnsefieia and Pas tnEsir Rirers
Rdiirodd Company.
fAncr the Annual Meeting had been holden
thc President received n letter OF inquiry from
n stakeholder, to which the following reply
was ,undci md, Cor the Indignation of others
not at the mectingit has been printed ns m
Appendix to the Annual Report df the Drce.
tors. About three. fourths of The stock was
represented at the meeting, aud the measures
adopted gave gcncral.sgiisiaction Many oi
The stockholders would undoubtedly have l,l,.
Vda cash dividend, but looking to the ultimate
good 10 result from tho measures adopted ihcy.
youef1lly, and,yrry rhccffully sunrtiUued the
recommendation ~ t'.- 81. 4-,,.i'.,-
Enron
Sr. JouSsHrRr, JrLr ~; Isda
Mn WiLLIAA CuLn;-- Dear Sr.---I have
received your letter Of The 10th instant IN
which you call ia question the justice and e.
quity of the vote at the late meeting of Stock.
holders Of the Passumpsie Rail Road. rcqueG.
tng the Directors To make stock dividend q.
puiValcnt TO the interest due to Stockholders
aud the FIRST years earnings
HOu speak Of "Npproprinting the earnings
ITO uses different from what was expected aud
promised" and you ask that the corporation
should "naiutniB its honor and integrity by
redrrmiug Ill pledged,and than 90 ahead &c
Now, nv dear stAknowrng your usual can.
dor, must suppose you have used this Ian.
guagc under an entire m'saPPtoheRsioH of tho
facts and of the character Of the transaction
relrrred To. And | Think when you come 20
read the Directors report, and the record Of
.aEnreeLlingHnt the meeting of stockholdcrs,
you will your mistake and change your
views.
The tenor Of your letter indicates that YOU
suppose the dividend of stock instead of n cash
dividend 10 stockholders,is resorted TO for the
purpose of carrying the Road forward. Such
however is not the fact ......
lIy reference to the Directors Report you
wil see that for reasons therein stated, the
cost ofthe Road and furniture has cxoae ed
the amount Of capital stock, leaving a floating
debt AR zinst the Company.
The Road, as compared with other Roads ~
not un expensive one, and its earnings show
that there will be fair and certain profit upon
tire whole cost. Yet, with all the efforts ofthe
Directors to bring the cost within the amount
of the capital, owing to the causes aforesaid,
NC find ourselves in debt.
HNssia~es-+..s OF pa aug This dehI-TAe
Directors have borrowed money To keep il n
long, making personal sacri6cer 10 prptrrt the
interest of tile stockholders, but they cannot
long continue to do so, and the state of the
times is such that they caunot expect to get
new subscriptions for stock sufficient TO pay
the debt.
The debt is due from the Company, OF which
you memher. Tho Company should
make provisions TO pay it its "honor and in
tegrity" are at stake, and If it were to divide
the earnings fthe Road among its members
tieaving the debt unProvided for, the proceed.
ing could be regarded neither right nor honor
able.
The vote ofthc meeting authorized the Di.
t-rc,ots to maze a diU dend ofsiock 10 the share
holders for the purpose of enabling them to
apply Tie Hfst year 9 cummings tOwurds paying
the debt
Would you have advised to borrow money
at extrn rates of interest, thus increasing the
debit for the purpose of dividing II among the
stockholders? Or would you have advised 10
create new stock and force it upon the market
with the ccr.ainty OF dsprc eating the value
On we. tieRA2--- -------.------
aAis course would have been suicidal 10