Bristol news. [volume] (Bristol, Va. & Tenn.) 1867-189?, 1871-05-26

lations required to be taken, as TO have
suspended, for the time, any organized
effort for the further absorption of
shares held in the old companies. 1t
is matter, however, on which they
would congratulate you. and all the
varied interests so deeply involved in
the earliest consummatiOn of the con-
solidation in substance, as well as in
fact, OF the interests and affairs Of The
several roads, whose physical parts
make up an enterprise, than which
none in our State more concerns her
future, and promises earlier fruit and
greater results-that now, since the
corporation of Lynchburg has hau
time to consider this important SUBJ
iect, majority of shares, held in the
Virginia and TeuneSse Railroad by
others than the State, has been sub
scribed to the capital stock of your
Company.
The interest of the shareholder, to
merge his stock in the new corpora
ton is so manifest, that no fears exist
of hesitancy on the part of any so to
do, as such are approached and prop
erly advised in the premises, but this
is no longer any matter of immediate
concern in the proper organization of
the new Company, and to the futher-
ance of the important objects which il
is 10 accomplish.
The administration, so to sneak, has
now assumed control of the affairs and
entered upon the liquidation of the
old estates, in the common interest Of
the family, assuming the liabilities
and taking charge of the assets and
properties OF all, upon basis at once
equitable to the associates, and yet
preventative of the interests and claims
of such as may, from one cause or an
other, remain in their relation, as of
the particular branch of the family,
before such administration was enter
ed upon. In word. the affairs of
the several roads consolidated are now
conducted. although as to the husi-
ness of each in that sense distinct, I'M
der the name and authority Of the At
lantic, Mississippi & Ohio Railroad
Company.
Among the matters which are prop
or to be done, and of the first impor-
lance, with view to the great under
takings which are assumed on the part
of your Company, is the execution of
n mortgage authorized by the terms of
the 10th section of your charter, under
which. bonds are to he issued for OBJ
Pcts in that connection sufficiently set
forth; and while it is fully competent
for your President and Board of Direc-
tors to proceed with, and in fact to
consummate these purposes. it is pre-
ferred that their execution shall be.
IN,-. To
to this subject your attention is speci-
ally invited, and such action asked ut
YOUR hands as may be deemed CXpCdi-
ent in the premises.
The deed or mortgage, which IT is
proposed to execute, cOntemplates an
issue of fifteen millions of bonds. for
the security of which, property will
be taken under lien, whose value may
he fairly pnt at twenty-five millions Of
money, since it is estimated that the
line of railway, from Norfolk 20 Cum
berland Gap, to that point completed
and all the way fully restored and
equipped upon the basis Of first-class
work. numbering then $50 miles Of
single track and sidings. cannot in this
day he accomplished short of thatsUn.
This proposed liability, t3a~ hypo,h-
ecated upon the new condition of the
work, will cover its every pceaniary
obligation, save and except perhaps.
its undertaking with the State OF Eir-
ginia TO make payment OF four null
lions in her bonds or in money, ut the
option of your Company, in eight an
nual installments, beginning IN 1885.
This debt, for which you were to re-
ceive. and have now in possession, all
the claims and stocks held by the Com
monwealth against and in the four
several roads, by the terms of your
charter to be consolidated, amounting
in stocks alone, and outside of ell
claims, which are valuable in the sense
of their practical elimination from the
list of their liabilities, to the imposing
sumof A, 0G9 shares, is expressly made
by the act of incorporation and the
terms of the covenant, which has been
in furtherance of such act entered into
with the Board of Public Works on
her behalf, subordinate in every rela-
ton TO the fifteen million of bonds,
whose issue it is now proposed to
make.
That the property to be pledged for
the security of this debt is ample, but
a brief review of the more recent his
tory of the business of that portion of
the line, now in actual operation,
Norfolk to Bristol, will, we believe, be
sufficient to establish.
In the year Immediately preceding
the war, its gross revenue, when the
companies composing it were operated
under seperate organizations, amount
ed to 81 ,24l ,S62 Of, and for the fiscal
year first following the close of war,
to 5 ,054, 258 10 ;swhile the gross reve-
nue. of the same, for the fiscal year
which terminated September 30th.
1870, reached the sum of s ,925, 685 81,
showing an increase, since the war, OF
s 81 ,524 40, or So per cent.
The excess of revenue, over current
expenses, for the past year was, in
round figures, 5 $50, 900, and when we
allow this f1attering result credit for
the unnatural item of 5 l07 600 paid
during that year, for discounts on tenn
porary loans-a source of expense
which will of course disappear at once
upOn the negotiation of our bonds
we have, upon the business for such
period, a basis upon which an issue of
5 Il, 900, 900 OF per cent, bonds is JUS
titled, since the net income thus taken,
amounting to 1888, 900, would about
cover the demands of interest upon
that sum; yet, we would not desire TO
use such amount of these bonds at
once-indeed we could not employ the
proceeds for year or two to come. In
the meantime, that increase of traffic
which the past has developed, would
make the sLffieiency of to-day more
than abundant.
With basis of revenue and an in
crease of business, which such results
afford. and they may we'll DC taken