Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1853-01-21

Ia command a further private sub'rr. .oa'
have been shown 10 our complete satisfaction
H. large eaptll has been expended IN Work
likely II be profitable. fhaf becomes the OASIS
Of credit; and capitalists according 10 their
C,itb N is returns, will provide the money up.
on the bonds toaa fde issued for lis compile
ZION Thus, it is contemplated thai the \ lr
onia aud Tennessee Company npJu the exPen-
diture offben three millions Of capital en-. &c
ROTATE at far rates the loans needed 10 iihsh
H. But in such d Transaction there IS Pfoba-
biliry Of iBcuring t. I count upou Their bonds;
aud 10 avoid his, the ioan "a e" g. ~ pre-
ference q the Sale
The whole process Is natural and rrasona-
BILE. Tbe private stockholders and the State.
are partners in the york; the social assets are
consumed In the construction; no others can be
persuaded 10 bring their means INTO the part
urrsh.p Tire enterprise IS unfinished the most
glorious prospects OF profit shut out and the
present credit Of the Company unayallng TO
raise money Al par; in such a condition, applI-
cation $ made h. the elder and larger partner,
who Is told substantially, "we, the individual
stockholdcr5, have raised the last flrihlng IN
our power; our work Is almost on The point of
rcmuncrang us; large profits are maniestly
IN store for US upon It's completion; we cannot
raise the amount fthe deficiency in our means
by our corporate bonds except at sacrifice;
but yoa lave lack Of ability; up)u any loan
you make The company you can realize IN the
sale Of your bonds and pocket, as your private
gain, premium Of ten or twelve per cent
we can abundantIy secure you for tins Ioan;-
you may Tits save the corporation, of which
yon are the largest share holder, from a consid.
cradle loss; and ensure 10 US all sufficient
proht on our common INVESTMENTS
Such an appeal, 1t seems to me, Is emf
ncntly reasonable, and difficult to be resisted
But let US reduce it to figures, and use the
Virginia an Tennessee Company for llluslra-
lion. Admit that that Company must borrow
Of The State as others 81 000,0 900 10 complete
It's work. II it sells its BONDS in market overt
II must incur in all probability a discount Of
ten per cent, which on that amount would
make 500 900, and threeiillhs of this amount
$50 600, would he borne by the State. But if
the State had sold her own bonds, she would
have realized premium of 100000, which,
added 10 her loss III the other case, would make
the actual advantage 10 her Off loan from her.
self over a loan from others, reach The i'm.
posing sum OF 100000 upon the bare negotia
ton. presume all will admit that this Com
pany, upon the completion OF its WORK, will
yield at least per cent on its outlay In It's
present Incomplete condition it is yelling a
per cent upon its COSTS and its able and trus
ty engineer anticipates finally some ten or
twelve per cent. The completion Of it can
certainly be accomplished with sufficient means
IN two years, at the end Of which time, we as
sumo the whole investment to be an interest
paying fund Bu. IN the meantime, take the
worst aspect oithe case, and say that the inter
est Of tie loan Of million, whcreverobtaned,
cannot be paid for the two years. This would
be loss 10 the Company of$l2O,0 600, (Which
the state would bear S72 900 being the rec
hlths But If the State make the loan, ner
premium would be 100000 which. deducted
from the amount of interest due and unpaid
@l20o00' leaves loss of $50, 900, which com
pared with the loss on the other contingency.
$4,000, makes clear gam to the State of
@32'0oO upon the oventofher granting the loan.
Here then, IN this simple calculation is prcsen-
tea powerful nduccment for the State TO
make The loan rather than permit the Company
to hawk lis bones at shameful discount in the
market.
W e are denied the pleasure of continuing
these extracts. 1t is difficult to see how the
reasoning Of Mr. Rives can be answered, or &c.
sisted