Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1866-12-01

from Baltimore to Lynchburg here we nave
the shortest line, not requiring transnlpuenI
or change OF cars, and free from lEsulance VI
other charges incident to water transpoItatlVIh.
Can any good reason be advanced wv why Tue
Orange and Alexandria Railroad Company,
should not appropriate this trade, to which It's
road is entitled by virtue Of its location and
direct line, i it can be carried at proper rates
and made to yield profit?
The CITY of Alexandria has no right to 90
iect because if the treig ht should not be Drough1
over this line it will undoubtedly pass ID !nroueh
bv wav of Norfolk. The State OF Virginia
cannot be practically interested 10 the mere
question of transit by one route, or the o'nef.
1t is not claimed that this business at present
could be made to stop at either Alexandra or at
Norfolk. If the tariff Of charges tor through
freights should be so framed as to discriminate
ag0tnst the cities OF the State 1t is conceded
there would be good ground OF complaint In
arranging these charges upon through 1felsnts
the Board Of Directors have been care1ui 10
avoid, not only improper Discrimination against
the city Of Alexandria, but have aHordeo us
interests ample protection, and gwen It inc
fill advantage Of it's location. All tonnage
Going through pays its full rates pro rata tor
the additional distance involved. The facilities
of through freighting enure to the benefit OF
the back country, and is OF advantage indirect
" to the terminal cities, as the business gained
assists in paying the expenses OF running
trains and thereby cheapcnlng the cost OF
their local transportation. .oo
Of the above mentioned bonds, $3.50 OOO
| have been Hypothetical to secure certain tenn
| porary loans. In addition to the bonds re-
| ferred to- there remains Of tho capital stock
authorized by the charter, not subscribed or
| issued shares 10 the amount OF 1858, 35O -
| There is also balance, held on stock sub.
scriptons of former contractors forfeited to the
| Company, of sl3,7l500 The sum of $685.
0S4. 10 is also due from delinquent stockholders,
from which something may be realized here
after, by collections and sales
| The financial condition Of the Company has
engaged the anxious consideration OF the
| Board OF Directors from the COMMENCEMENT OF
their administration Of its affairs They have
| been fully impressed with the Importance OF
making some provision for the payment OF the
| temporary debt, ard OF satisfying the large
| class Of creditors holding the over due coupons
| for interest accrued on their mortgage bonds
| It vas also very desirable to resume the pay
ment of interest, as it fell due on these securl-
tics, at the earliest practical period. Although
| the effort has been made to make loan OF
far it has been without success. In the dis
turbed political state of the country, and with
out a irst-cass security to offer as collateral,
| it has not been in the power of the Beard to
effect that object. The only alternative lett,
was to loci, TO some practical plan by which
the deb; of the Company could De judlclousIy
funded But in doing this, it was necessary
as a preliminary measure, 10 quiet the claims
OF parties holding the coupon bonds secured
under the first mortgage executed by the Com
pany. The principal OF these bonds $500, 0OO.-
| % became due and payable on lsJ November
! 1866, and unless an extension could be had on
their payment it would have been an act OF
superiority to arrange With other, classes OF
| subsequent creditors. In order therefore to
remove this difficulty from their path, the
Board submitted proposals TO the lSt mortgage
| bond-holder5, by which they agreed on part OF
| the Company, to fund the overdue coupons On
lst November 1866, and to pay seven per cent
| interest per annum semi-annual!y thereafter on
| the amount so funded and to resume pay
ment OF interest on the principal amount on
the lst of May next in consideration OF The
said bond holders agreeing to Withhold collection
OF their debt until LIST hay 1873 The large
mass Ct lst mortgage bond-ho!ders have al
| ready accepted the arrangement. and little
| doubt is now entertained CT its final adoption.
! AS soon as this arrangement is consummated,
| further negotiations will be instituted to fund
| the coupons due on the subsequent mortgages,
and 10 resume payment OF accrung interest at
as early Il period as the means OF the Company
will allow. The Board are aware that some
Impotence naturally exists on this point with
parties holding overdue coupons. these cred
| itors must however besr in mind the exlgenclcs
Of the Company, and conccdc the injury which
resume payment of interest. AS regards the
other temporary liabilities OF the Company not
| secured by mortgage, it is apparent that the
annual nett earnings Of the Company will not
be sufficient for their payment in any very
short time, and that some scheme Of funding,
where parties cannot wait, will have to be re-
sorted to in their case also. This Class OF debt
incurred mainly for purchases Of supplies, and
for maintaining and operating the road, baS
strong claims tor early and liberal adjustment.
Ifa sufficient loan could be made it would best
acco mplish the purpose, but as that does not
seem to be at present practicable the Board
| can see 10 better feasible plan than to fund
these obligations, either in the mortgage bonds
now held by The Company, or in the shares OF
stock which can be issued out Of the remaining
unexpcnded capital authorized by law. The
latter plan would probably best suit the con-
dition Of the Company, and authority might be
given by the stockholders to appropriate the
stock to this object upon such terms as would
be fair and equitable.
The financial condition Of the Company.
though at present embarrassed, is promising of
future favorable results.
Taking the existing business as basis Of
calculation if the Company can only get time it
will demonstrate its ample ability hereafter to
meet all it's obligations, 1t is within the limits
Of present scale of receipts to assume, that the
road will tor next year yield gross income of
$50, 600 per month, Or 100000 for the year.
Estimate expenses on present scale at $500
per mooth-this leaves nett balance Of
S24O0O0 for current wants. 1t is probable
that the earnings Of the road will exceed the
amount estimated, while it must aforementioned
that the expenses do not expand with the
receipts in the same ratio 1t will cost as
much to do q business of 900 Der month";