Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1858-03-31
For The Spectator.
Yireinia Central Railroad.

The object of COL F's. letter is to place before
the public'the reasons which influenced the Board
in their recent resolution authorizing an increase
in the tariff of tolls upon the Central road; and
is in response to the "severe animadversions" the
Board have been subjected to by the Press along
| its line, which, COL F. says, have not only been
"personally unknd to the Directors, but have
misled to their loss, the uniformed patrons OF
the road, and injured the innocent Stockhold-
ers." have not seen the "animadversons" OF
other papers, but there has nothing appeared in
the Spectator" either 'severe or unkind," nor
in any degree calculated to "mislead the unln-
formed" or injure the innocent"
The people have too deep an interest in the
Central Railroad-it comes home too feelingly
to their pockets and interests-for them to allow
its management to pass without scrutiny or ex'
animation; and when the Board undertake, ex-
cept for the most satisfactory reasons, to add to
the burdens of the producing classes by an in
creased tariff of tolls, they must expect "severe
animadversion;" for everycent added to the cost
of sending the products of the country to market
deducts just that much from the price the pro-
ducers would otherwise receive; and prices are,
at present, one would think, sufficiently depress-
ed without any aid from the Railroads.
take this occasion to say that l am actuated
by no unkind feelings towards the Board, and
certainly have no intention of injuring or mis-
leading any one. Ny intention, however, is
briefly, but plainly, to examine the reason assign
ed by Col. F. for the recent action of the Board.
1t is found in the following resolution adopted
by Convention of Railroad Companies con-
vened in Richmond on the 9Th of December last:
"Rssolpea, That the result Of existing expert
ence in the operations OF our various lines OF
Railroad in Virginia, demonstrates conclusively
that the present rates of charge both upon pas
sengers and tonnage are inadequate in price, in
view of the immense facilities afforded by them
and the heavy cost incurred in their construc-
ton, equipment and current working expenses,
that the same ought to be increased in sum
sufficient to pay the cost of transportation, to
provide for annual depreciation of equipment,
and repairs of road and to return to the stock
holders such profits upon their capital as are
legitimately derived from investments elsewhere,
the effect of which would operate to give addi-
tional credit to their securities, enhance the val
ne of their stock and afford more stability to
our whole system of internal Improvement"
1t is not my design to enter into discussion
of the general propositions contained in this res
olution, farther than to remark that if the gene
raj principle had been openly and boldly avowed
ID 4. oto in
that the rate of charges was to have no Other
| limit than an amount that would pay large
portion of the cost of construction keep the roat
and equipment in repair, pay high salaries t.
! officers and employees, and in addition afford tt
3 the stockholders las large profits upon theil
capital as are legitimately derived from invest
ments elsewhere" there never would have beer
dollar subscribed by individuals or corporations
to the stock of Railroad in the State. The
controlling consideration with individuals il
taking stock in our Railroads, was to secure
greater facilities for getting to market, and te
lessen the cost of transportation; and to these
J means they looked for q remuneration for the
money they invested.
will now examine this resolution in the light
of the last annual report of the President anc
Directors of the Central Road This report was
made to the Stockholders at their meeting II
November last, only two weeks before the as
sembliug of the Convention which adopted the
{ resolution. The resolution, it will be seen, de
clares that experience demonstrates conclusive
4 ly that the present rates of charge both upon
passengers and tonnage are inadequate in price.
Let US see how the condition of the Central
Road demonstrates" this fact
The Directory say the future gross income Of
the road will reach the sum of $600,00O,a and one
half that sum will be sufficient for expenses.
which will leave 80 per cent. of the receipts, OF
$1,000 as clear profits, which is 6 per cent
upon five millions, the cost of the road to Jack
sons river.
This certainly furnishes marvellously "con'
! elusive demonstration" that the present prices o.
, transportation are inadequate.
The Stockholders must indeed be Unsuitable il
thew are not satisfied with receiving 6 per cent
upon their investment. But it may be said this
: does not 90 into the pockets of the Stookhold
: ers. Let us examine that for an instant. They
own q work costing and worth i've millions o.
dollars, of which they have paid bnt three mil
lions, and the income is consequently absorb
ed in payment of their debts, which is the same
thing as putting it into their pockets.
But again. this report of the Board proposes
to pay out of the net income dividend Of OF
or per cent, to pay the interest on debt O.
near two millions to set aside annually as 6
, sinking fund the sum of $4,000, and nearly
$4,000 as O surplus for contingencies. DC
these facts furnish conclusive demonstration
) that the tolls are inadequate
; Again, the net income derived from this road
is 100000. The Board state that 500, 900 will
paw interest, which leaves for other purposes
100000, and this sum invested annually, from
1st July next, until 1st July 1875 years-a'
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 divided as cash divi
dends. This view affords another "demonstra
ton" of the inadequate price charged "both fol
passengers and tonnage"
The idea that a Railroad that has cost but
S. 600, 600 is doing its transportation at an mad
eouate price. when its income is sufficient to pay
: ali its current expenses and Gquidate in egh
wears debt of two millions, appears to me te
be entirely unsound.
hope l may be allowed to say at this point
that consider this scheme for sinking fund {
much more judicious one than that proposed BY
the Board in their last report. The plan OF thu
Directory would in 30 years pay not more thai
one-third of the debt of the company, whilst thi'
scheme will in eight years pay it to the utter
most farthing."
The estimate, placed by the Railroad Conyen
ton of Dec. Sth on Mr. Chas. Eett's letter on the
subject of "Rail investments" is shown by the
fact that they published and distributed it along
, with their proceedings. This letter is an emf
nenty able and lucid exposition of the principles
that should govern and control in arranging {
| tor;ff of TOLLS for Railroad The first genera
principle which Mr.. Z. lays down is, that the
tariff for each road should be CHASED on direc
and careful investigation of the conditions of it