Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-12-21
For me EMq"ircr.
EARNINGS OF VIRGINIA RAIL ROADS.

In the unfinished state Of many uf tie RAJ! Roads
in Vrnia, this time whei II Is difficult I" raiec
none; upon any kind of securities, i: Is question al
great interest to determine how the nett earnings Of
compauy shall be appropriated. This question ac-
qures greater Importance and - Involved III more
difficulty, III those cases where schemes pro-
posed in connection with the urgna! works that are
IN operation end stock is proposed Ia be created,
rs the case with nearly every road in the State pro-
| baby, without exception, viz:
The Orange and Alexandria Company are maxim.
au extensions from Charlottesville t" Lynchburg,
der II charter authorizing specific amount OF new
stock for the purpose, part of which l. subscribed.
The Mnnnssa Gap Company are in like manner
tending their ruad TO Harrisonburg, aud propose To
extend to Salem.
The Cc.ltral Rail Road Company have already
made several ncw sections. with stock authorized for
the specific purpose, but without raising II sufficient
amount, and are now proposing the short track TO
Charlottesville.
The Richmond and Fredericksburg Company ex-
tended their road To AcIua Creek, after they were i'll
operation, to Fredericksburg.
The Dunvilic Company are proposing branch to
connect with the Virginia and Tennessee road.
In all these cases what Is the most polite and the
most equitable disposition oi the mott earnings at
these roads, enhnring III the enterprises, after
II portion the whole of the original road had been
bmilt by funds raised TOR and applied to the road the
working .! which realized the n-tt earnings Ought
the nett profits 10 be first d"idcd AMONG the old
stock hOldrra, Ia whom they evidently belong AMI
raise BY loan other funds for the enterprse,wen
the new stock is insufficient! Or, should the cash
fund in hand belonging to the old stockholders be up
propriat.ri the nil vt the enterprise! and il
so applied ought il not ~ be regarded lonI from
the Ch stakeholder, a. b. {. and d., ami made to
the general cUnccrn and made payable latter COM
plou Of the cntrrprI-c) out Of the funds OF tn"
old and new, which have then become company!
Ii is very evident, III the present condition Cf
tie money market, with much TO be done 10 most OF
roads. either III completing OF cquipping them
properly, or bUth that these works mist remain
finished for time to come, unless the old stock
holders will consent to apply the nett profits t" their
prosecutions o.. II prosecuted, Il must he done by
raising funds by the gale oi b"r!s NJ ren! sAcr,r2.
Whilst there is some difference Of opinion 10 the
policy and propricy OF dcdcatmy the nett profits III
the old stut khuldes In The prosecution nr Improvement
oil the work. with reference iu the value III the stock,
Instead of making cgsh dividends and borrowing other
funds for thnt purpose, it seems To me that the gem
eral interests OF all concerned would be best promo
ted by adopting rs settled practice, the appropria
ton n all nr profits Ia whatever uec, in connnc
ton with the original work, that may be- necessary
for its perfection, whether it be for rqupping l,.
road Inprovin. extending il, and let III"
appropriated be regarded as loan from The present
old stockholders To he paid by the Company after
tho maturity nl its dcs IN This has been pur
sued by the Richmond, Fredericksburg and Potomac
and the Central Rail Kond Companies, md the in
teniun of doing has been indicated by the Orange
aud Alexandria, Danvillc and Virginia and Tcnnes-
SEQ Companies
The Richmond Fredericksburg ind Potomac Conn
pany, a- appears By their la1 report, have issued
Lonlr, in lieu of cash dividends, mich ! suppose is
Appropriated tn reaying their track or building
their road from Fredericksburg to Aqua Creek,
S3Ei,o12 CO..
The Vrgnin Central Rail Road Company as ap.
peurs by their last report has bonds solie ur divi.
bends, S2IS1iS 81, which is in lieu Of profits applied,
TO mid i'll making up the deficiency OF the capital for
the extension Of the road. This seems to be the po-
Icy Of Of The Northern ra road companies -
The Baltimore and Ohiu Road would not have beef,
built, but iur this having been adopted. The
Baltimore Sun OF the 18th inst. states "'lhc Clrve.
land Painvile md Ashtahula Rail Road has declared
| Il j per cent srni.annual dividend md Reserved 10
per cent. or S2uOU0D for the second track between
Erie and Cleveland which will bsrepresented in full,
| in scrip. and distributed to the Stockholders
Il it not far better TO do thus than pay to the oil!
Stockholders tho nett fund, and replace i; by loan
from the capitalist. Mt the present deprecated value
OF bunds The value Of the old stock in the market
might he something greatrr if cash dividends were
puid, but It i'll sooner acquire permanent value by
| pushing the work TO comp lction.
| The new stakeholder makes good bargain though
excluded from participation i'll the dividend. Tue Sec
ton of road for which lie subscribed is thus sooner
brought into profitable Use, and he gets the benefit Of
a loan from the old stakeholder ut par whilst the
capilaist would not have taken loan without do
handing discount OF ~ to 80 per cent. OHIO.