The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1850-04-12


J. B. MICKLE, Ex'r.
mar as. 1850 25 w3m
TO THE STOCKHOLDERS OF THE SOUTH
!. CAROLINA RAILROAD COMPANY,
At the last meeting of the Board of Directors,
held on the Goth instant, the following resolu-
tons were adopted:
!" Resol-ed, That the exigencies of the Com
pany require that the remaining instalments up
on the existing shares shall be called in.
"Resoired, That the same Committee be au.
thorzed to arrange the details, and advertise the
calls, accompanied with an address to the Stock
holders explanatory of the advantages Of the
measure"
In obedience to these resolutions, we beg
leave to submit to you short statement of the
condition of your affairs and we hope it will
have the effect of convincing you that the call
ing in of the remaining instalments is measure
which, though demanded, it is true, by our me-
cessities, is supported equally by the soundest
considerations of policy; and we are the more
anxious to convince you of this, because we
earnestly desire united and spirited co-opera
ton on your part in the measure, as essential to
ilnpart efficiency to the administration of our
affairs, and sustain, by the confidence it will
imply in the enterprise, the market value of
your shares
The able report of your own Committee, sub
mitted through their Chairman, Mr.. Ravenel, at
the last Annual Convention, renders it unne
cessary for us to go into any details. 1t was
there shown that the aggregate debts of the
Company amounted on the 3lst Of December,
ls4s. to $685. ,5o7
We held certain securities &c. ofthe amount Of $4,000
ness to % - ~'''' s32ss,477
The improvements actually in progres, and in
contemplation will require further outlay
of tas per Dir. Rayenel's Reporp 636.OO0
pro.imate, Of . g. - ' s3,sl9,774
OF this sum there will be paid out of the pro-
ceeds of the iron sold to the Greenville Com
pany " 2io,OOO
Leaving finally debt, permanent and floating,
This is the difficulty with which we have to
contend. The Board caused an elaborate re.
port to be prepared and submitted to them by
this Committee; and though predetermined
against calling in the instalments, after a care
of that report, and patient inss
vestigation and discussion Of the subject in all
its bearings, their judgment became entirely
convinced that it was measure imperatively
demanded By the emergency, and strongly sus-
tanned by wisdom and prudence. We will en-
deayor to show you what the operation will be
upon your present condition and future pros
poets.
We have shown you that your debt is s37O2 All
al SIS oe''-''.- ~ 2,9lo,7so
sssl4,sa7
or the above debt we find about 2,733,2E
To be of permanent character, such rs
may be kept in existence without embarrass-
ment 10 the Company. The remainder, viz: 97o,25O
~. ssss 3,7o3,4n
We propose to pay by calling n the remaining
SOS per share on the 80, $40 shares as above.
Your capital will then consist Of 81 80 shares
at si00 s3.ss1, 900
And your permanent debt will be about 2,T9O00
In round numbers, ss,eoooOo
With these certain data before us, and with
the experience of the past to sustain us, fortified
by the views Of your own Committee, we have
made the following calculations respecting tho
future dividends.
We esfimats the average gross income at $1,0OoO 900
The current expenses NJ 45 per cent $450,0O0
The reserved fund for wear and tear of
I iron and machinery al IS per cent. 10000 100000
Leaving for the net, annual earning. 100000
70 pay per cent dividend and interest on &c..
e50,o 200 win require $4,000
: By this measure, then, we shall be enabled
to pay all pressing demands against the Com.
pany; fix definitely the extent of the debt to be
funded, and eventually discharged, by new is.
sue Of stock; complete all the improvements in
progress, and bring the capabilities of the Road
into full and efficient action; enter upon the
payment Of regular and certain dividends, and
give tho shares an appreciable and permanent
value. Relying upon the soundness of these
conclusions, the Board have instructed us, in an.
nouncing the call of the instalments, to apprise
you also of the confident expectation they ell
tertain that in July next they will commence,
and continue regularly, as they believe, the pay
ment of semi-annua dividends out of the ear.
nings Of the Company; and we are directed to
express the hope that this statement of your af
fairs will inspire you, as it has them, with re-
#newed confidence in the enterprise, and prevent
any sacrifice of the shares The moderation of
their views does not permit them to encourage
the expectation of larger dividends than per
cent but even the most prudent will readily ad
init that it is very far from unreasonable to ex.
n ~ n L