Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1853-10-27

in some instances been and are now below the two
last purchases in first cost: vet in view Of all The
circumstances. aud mainly the fact Of being eno.
bled 10 secure its coming forward at the period
desired, with regularity and with 20 little risk
your Board regard the purchases perhaps more
/ favorable To the interest of the company man
any subsequent period could have afforded
Dividend Account
our directions rs TO how dividend account
should be made up, by calculating Che dividend
ION the whole cost OF the road construction IN
eludedlup To the day on which such dividends are
declared, and the issuing convertible script bear
ing interests for such portion OF the nett prots ne
oossary 10 be withheld 10 pay interest on loans
and Ia provide "A sinking fund, seem, upon care
iul consideration, unnecessarily complicated ia
it operations and not iudicious or Politc IN lts
4 result. And Your Board, being awhrc ot your
! purpo.e and design.hasc deemed it advisable to
suspend any action ia regard thereto. and refer
the subject 10 You for further dclibcration.
The usual mode Of busng calculations upon
that part Of the road IN operati"n and dstrbu-
ting the profits thereof according Ia the subscrip-
ton OF stock. seems to be the simplest aud will
be the most satisfactory. This principle is alike
applicable 10 roads partly in operation and part-
/ Is IN progress, n to those completed.
Action was mninly suspended, however, be
eause Of that feature requiring "a dividend Of the
whole profits Of the road and the issuing script
for that portion necessary to be withhold for the
+ The ihlHft operation anu progress Oh Illf Ihh'l
which your Bonrd regard Objectionable; and,upon
reflection, they believe you will heartily concur
with them.
liy declaring dividend of all the nett proiits,you
will at once perceive there would Ice NO authority
for creating and holding in reserve fund for con
fheeneies thai might arise and which could not
otherwise bn we'll provided for. At any rate,
with well proportional contingent Fund, much
Inconvenience would he avoided, and the Board of
Directors be enabled to observe more uniformity
IN the dividends declared, which could not fail 20
cNcrt happy influence in regulating the value
Of The stock
1t Is certninly desirable, and is the earnest
wish of the Board of Directors, To make return
IL the stockholders at the earliest period possible
but j. the ~oundcst policy not to do until
positive benefit will be the result. A paper dyi-
dend Is III principle compound operation too
unwieldlY for individuals, and certainly moro de
strnetRe IL joint stock Companies: II has its orr
yin III difficulty which increases at every advance
Nothing can be more detrimental to the credit
Of Company than the paying of dividends with
out IA due aud legitimate regard TO-, an ample
provision for, il habtlcs--po-itiyc and cOutin-
gent. No policy Is more scrutiuIzcd IN the
money market aud premature dividends ARE fully
tahen into consideration in the price of stock and
more particularly the securities.
In the opinion OF your Board, the true basis
/ upon which Nil turns 10 stockholders should be-
made, II out oi such portion OF the nett prot, "a
my renan alter paying the interest on money
eeifo"ed' providing the necessary and required
SINKING iuao'oh9 nay nP "siu' 9"'n "'""m"' a. ",o!
- ''@'i IT - ''ifif ''' GNU" S'"''rs' nv '"'
can and should be expected rs n dividend. such
Is Justly due and should be paid in money rs
- o''''' il"9''9' u' l'"'N ], l.
ID rate oi interest 10 the Company is avoid
cd and lite oou,rrtib, :fHtHr" retained by
hold
~ ''9 - IN '''N''S. |," NV. N',' "'''''"
~ no, ,o'i'h"'' p'I "'''o'"" !S l"''rN
s''i''''' u. - ''I'',"" wv use ~ w. ''' NV
~ @"' i''"''f Wv "N' '"'''''"" ~
e9a'''''' ol'H ~ ,n' S"pl'o '"''r'S"
- ~ ~ ~ ''',' f'''' '',' V'"'t' 81" ''E'N
mum M i''s'" e'' .u.P''" T'V'h ~ tue ""p".
- '''' ''' a "o' i'''"u' VI uo"'"7' "n'" i''
grouse yen aE3sn'" ~ " provision 10 'A"oEWsh
IN '''uf' Nv d. ''' ''nN'"E V"" ''""''7
u, '''',s' u" W. I""'' ,"'" WI" ''' N,u'N We
'''''s'' il"n mummy ''VVoII "' ""''",''
f''i' - - ~ '''i'"', '''' ''"' S",''' "''
'o'h' 81 a'Niafn" 'oi9'''l" you" ''h'i"I at pleas
utsi
,'ou. gu 9'S't |" I'''.n INIT P''"'" "l inc
IL II P'on's Ni".n YOU" pour" !, '""u'"U0 !" "'
pun oul ~ oIla'I0-' ana III ne" Oh S''u pay
il''''' ol'''' 'uo' ioe'e ne i-'"," n''i'S' n'"'
lug s'''l'' ''' '''' '"' SION " ''' ''''.
i''He' =" '''ir'H '''''H' '""' '''S"'"' Piul"''-
'i','i' "' ''' '''''"l''" ','' ,''',''''' an" '.
- - III ''l,"''f' """'" wv '''' S"u" ~ u "
s''' ~ l''''''' 5'''N "''' ''N"'''" 10 I" '"S'
h''aa= rom any o'h'f source
Branches
\ survey Of the Branch 10 the Salt Works and
/ Plaster Banks IN Washington and SmNthc couu-
tie has, IN obedience to your wishes, been mudc
during the past ycar-thc details of which YOU
viii find fully set forth in the Chief Engineer
NH a a