The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1874-03-27

Leaving the sum $50 40
as deficit Of the cash received which
should have been used exclusively in con-
structing the Virginia and Kentucky Dr.
vision, and improving the whole line from
Norfolk to Cumberland Gap.
III. The net revenue of the Atlantic,
Mississippi and Ohio railroad company for
the year ending Both September. 1873. was
1914 ,035.17, against which there was at
the same time reported the following ex-
penditures and losses see Treasurer's
Table, No. !, under head of Auxiliary
Accountsl:
1st-Interest....,... ......$ 756,sss 20
2d--Proft and loss.................... 740,197 80
3d-Executive expenses. ....... 1896 %
Total..................... ........$l,50 6.4s2 81
Showing a difference between net reve-
enue and actual expenditures, and losses
of $500, All. Ian amount corresponding
very closely with the increase of the float
ing debt during the same year, which was
1851 ,2O3.5l.
We have no information of the items
which make up the foregoing loss Of nearly
three quarters of million of dollars.
Whether it accrued from accidents and
misfortunes always liable to occur, or by
reason Of disappointments in settlements
with "banks, bankers, etc." with whom
the company had, on Both September
1872, especial deposits amounting to
81, 575 ,54106. we know not. Considering
it solely as an actual loss, recognized and
reported by the officers of the company, it
is fact tending to justify the apprehen-
sion that the company is not a safe
custodian Of the $3,500,000 Of bonds,
which the court should be asked to take
care of.
iii. The company has failed to pay its
interest due lst January, 1874, amounting
to $4,000. Its floating debt on the goth
December, 1878, amounted to 81 ,257 900,
having been increased after the Both Sep
TENDER preceding, by the sum of $685.
5S9.11. The embarrassments of the COM
pany are steadily increasing. In the re-.
port of the stockholders meeting, held
18th December, 1873, and in printed
circular dated December 10th, 1873, pub
lished by the company, soliciting five
years. indulgence for payment of the inter-
est in default, the company has avowed
| its purpose to use $1,097 900 of nnsold
gold bonds and 5000 tons old rails and
other assets for payment of its floating
debt.
Assuming that by arrangement with
! former holders of old bonds retired, the
company may have acquired the right to
subject to its uses $5G7, 900 of Atlantic,
| Mississippi and Ohio per cent unsold
gold bonds, released from the deposit made
| with Duncan, Sherman & Co., still there
will remain the amount of $3.50. 900 of the
unsold Atlantic, Mississippi AMI Ohio per
cent gold bonds of the $15, 900, 900 issue,
which the company avows its purpose to
| apply to the payment Of its floating debt,
manifest misappication of these funds
under the terms of the charter, which
| in effect, forbids the mingling or inter-
mixing of the $15,000,0 900 loan with the
| general funds of the corporation.
| ~. Account of LOSSES acknowledged
| and reported to stockholders:
Foryear ending 8oth September, 1871,
| Sec LIST, Annual Report-losses..... None.
| For year ending 30th September 1872.
Sec. I'd, Annual Report-losses....$ t3O,s0l 81
| For year ending 30th September, 1873,
| Sec. Sd, Annual Report-losses.". 74O,l97 g
Total losses in three years of pres
ent administrati l,27o.os9 8
i Tae reports of the company furnish ID
clue by which We can trace the items
this immense loss of more than million
and a Quarter of dollars. The state o
Virginia, as a second mortgage creditor, j
greatly interested insthe subject. 1t is sig
nificant fact that the deed of trust for tn
SIS, O0O. 900 loan was acknowledged on BOT
September, 1871, and that from and afte
that date, losses began to accrue. II it b
said that the 81 ,270, 99936 is the discour
on $5,47O 600 of bonds sold land the say
ing be true), then these results will follow
II lst. That the bonds actually sold hav
really Melted about n per cent.
I'd. That the cash deficit of 81, III, 63t
40 in the account Of construction, and er
| HANGED value of property" remains who'll
unexplained even by conjecture.
Sd. That other accounts in the thre
reports referred to become wholly unir
; telligible.
, For example:
LIST. In table one of report for the yef
ending Both September, 1872. just helo
9 the entry of the loss of $3.50, S0l.56 und'
, the side heads of "assets" there appear
Q this entry: ok" special deposits wit
y banks, bankers, &C., 81 ,575, 54l.06.
j I'd. The report for the year ending Sci
i TENDER 30th, 1878, when compared vii
1 the preceding report, shows that the urea
!. ury of the company during the year en-
/ ing 30th September, 1878, was chargeab
i with money derived from the followlr
d sources
q lst From increase Of floating debt.S 6Si, 2t3
l. Cd From difference in accounts OF
!, assets reported tor the year 1873
' at 81, 347 80716, and for the year
1873 at Sl,2l6,t20 S6..".... ll5z,Ioo
'u revenue 2l9s757
Total receipts for cash or equivalent
e for wear 1873, without tounting any
d money received from sale of bonds S3, 9o7,747
lie Against these receipts the treasury
n entitled according to the report to cre'
;, for expenditures as follows:
y LIST. For CURT expenses..$1 279.722 %
Is I'd. For interest..,".."... 7o6,SSo "
Sd Executive expenses. 1886 ~
ficit of.'......i ........ $l,s6l TAO
go II will be borne in mind that the FORE
inc statement takes no account of any n
100 new derived from sales of bonds, uni
M they have been so intermixed with !
W company's general funds as to have
30 their identity. 1t is impossible to acco.
an for the whole of this large apparent def
nT n I,nwf