Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1858-04-14
Central Railroad.
April "A, 1855

A letter from Col. Fontalne, IN reply TO
our remarks in the Spectator" of the Oath
ult, is Published in this paper. We have as
little disposition as the Directors of the Cen
trail Railroad to. carry on "a newspaper discus
sion about the regulation of their tariff for
treights," but feel called upon to say few words
on the subject of this communication. Col.
Fontane states that it will be twenty-six years
before the debts of the Company are paid, and
thinks if we had been apprized of the fact we
would not have recommended that the stock
holders should wait so long without dividends,
True, the Company cannot be required to pay
their last coupon bonds till the year 1884, but
what is to prevent their using o part or the
whole, of the clear profits of the Road in pur-
chasing the bonds before that date? These
bonds are now selling in the market at dis
count of thirty per cent, and we are aware OF
no reason why the Company may not avail it
self of the low price as well as any other pur-
chaser. Many of the bonds were paid to con-
tractors at so or $50, and they would no doubt
be glad to return them and get the money
Upon this point, however, We quote from q
communication, written by highly intelligent
farmer of this country, and published in the
Spectator" of the 31st ult. 1t will be seen
that the entire debt may, with proper manage
ment, even without purchasing any of the bonds
at the reduced price, be paid an nine, Instead o.
taoenty-Si1 gears:
"Again, the net income derived from this
road is 100000. The Board state that $780,
900 will pay interest, which leaves for other
purposes 5000, 900, and this sum invested an
nually, from 1st of July next, until 1st July
1862 years-asa sinking fund, will pay off the
entire debt OF the Central Railroad, if it should
be two million dollars, and, of course after that
date, leave the entire net revenue to be divi-
ded as cash dividends. This view affords an
other demonstration of the inadequate price
charged both for passengers and tonnage
Col. Fontaine states also that we 'are not cor.
recty informed in supposing that only spectators
in.the stock desire dividends" "Some of the
stock of original subscribers" he says, sis now
in the hands of the widow and orphan, who
need the interest on the investment" Itwould
be strange indeed if some of the original sub
scribersh had not died and left their Railroad
in the hands of widows and orphans" but
we venture to say that not one of them took
stock as an Investment" or with any view to
dividends for themselves or their heirs. But as
the Directors are so careful of the interests o.
the "widow and orphan we take the liberty o.
suggesting to them again the propriety of redu-
cling the very high salaries paid to the officers o.
the Company, with the hope that part of the
money thus saved viii sooner or later find its
way into the pockets of the unfortunate classes
alluded to.
We need not affirm that we are actuated by
no feeling of hostility to the Central Railroad
The improvement is too intimately connected
with the business and prosperity of this region
of country to permit any such sentiment on our
part. Butwe are satisfied, from the Reports of the
President and Directors, that the present charges
are high enough, if not too high, nd that any in
crease is a suicidal policy. The Railroad does
not now command the trade and travel for a
greater distance than fifteen miles on each side
of the line, and we see a Stage Company adyer-
Using to carry passengers from Staunton to Bal
timore at about the same price charged by the
Railroad from Stanton to Richmond.