The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1854-03-25
THE nIvrDENps.

''Henflco, THAT 4ie NY iuGtse =
the Central Road to the old stockholders, was
founded upon principle adopted and beiiev
ed to be just, by Internal Improvements Com
panies generally. We will simply refer 70
few. The Richmond and Fredericksb'g Com
pany, in applying it's profits to the extension
Of ;tsI road. granted the old stockholders their
dividends upon these profits. in scrip or
stock, we forget which; but either amounts
to the same thing, and is an acknowledgment
of the principle. Taking up the annual re.
ports of the Danville, and the Lynchburg
and Tennessee Companies, we find it com
pletely sustained by those Companies. At
their last annual meeting the Danville Com
pany adopted the following resolution: 5
Resolred, As the entire means of the Company
are for the present required TO complete the road
that II would beinexpedient now to declare divt
dend, notwithstanding the profits which have &C.
crued would authorize dividend Of five per cent,
and that an account of the annual profits hitherto,
and as the same shall hereafter accrue and be in
vested in the works OF the Company, be so kept as
that the same may be apportoned hereafter among
the Stockholders, according to the dates of the re-
QUESTIONS upon their stock. 4-fft SEEK s-s--
This is most explicit, and entirely sustains
tAO posftiodc VI tuS SOueAdA 1bVdO, oO laA 40
the example of contemporary Improvement
company can. The Lynchburg and Tennes-
see Company, at their last annual meeting.
took the same ground on this subject. They
came to the following determination
"Resolued That while it is not judicious at this
time to declare any dividend according to the re-
QUESTIONS of the 4th resolution of the last meeting
OF the stockholders, yet is declared that hereafter
when the company shall be in condition to de-
clare dividends, such discrimination shall be made
in favor of the stockholders now existing would
be made fthe dividends were now and hereafter
declared according to said resolution, and in order
to enable the said discrimination to be made, the
nett profits arising from the receipts of the road
during the the last year and for future years until
the road shall be completed to the Tennessee Line
be held as sinking or reserved fund" -s
Other companies might be quoted, but
these will suffice. The principle of award
ing dividends with respect to the periods Of
subscriptions of stock, is clearly aeknow-
lodged, and the accounts are ordered to be so
kept, as that when the companies have COM
pleted their roads, the dividends shall be 50
apportioned as that the old stockholders shall
receive precisely achot they acoald hare re
ceiued had diridends been declared mp0n the
arorking part Of the line each gear.
What has the Central Road done! 1t has
settled at once with the stockholders, by Civ
ing them scrip mot money for their divi-
dends, with long time to run. This seems
even more business like than the proceeding
of the other companies, which assume the
obligation to do the same thing at some flu
ture day, and leave the matter unsettled until
that day. The 10 per cent. dividend thus IL
quidated, it must be remembered, was not a
dividend on last years business, but divi-
dend upon the profits on the working part of
the line for some two years and half.
We think that the worthy gentleman who
is the author of the pieces signed "Hen-
| rico" is altogether in error IN making his
complaint against the company on this
ground, a cause for opposing the subscrip-
| ton by the city. He thinks we do not ques-
| ton for a moment, that the measure was
| wrong but that should not cause stoppage
of the work. Such an objection, if good
! must stop nearly every Improvement in the
| State. Besides, the Legislature has complete
control over the matter, and can prohibit the
declaration of dividends until the road is com.
pleted if it deems it proper to do so; but we
doubt whether the Legislature itself can pre-
vent ultimately discrimination by which the
stock would receive dividends in proportion
to the time of its subscription, and the pay
| ments upon it.
With regard to the keeping Of the books of
the company, that is a matter proper for the
deliberation and settlement of the stockhoId-
ers A difference of opinion on that point.
when it is not complained that a dollar is
not fully and entirely accounted for, ought not
to be made an argument against the subscrip
ton. We see no reason whatever why If
should.
We trust the intelligent gentleman alluded
to will reconsider his views on this subject,
and content himself with reference of them
to a meeting of the stockholders, who are
the proper persons to consider and dispose of
them. ...--. ~. l-.