The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-02-23
The RichIno nd and Danville Railroad
and Colonel Tom ScOti!-The Penn
SyIyouta central and What Not?

10 HS LIuttUS W Hc DtsPueIt'
Your paper Of d few days.ago contains
communication over the signature of can
other Citizen" which gives to the public
some valuable information. From the man.
ner in which this correspondent speaks OF
the Southern Security Company, the Penn
syIVania Central railroad. Colonel Tom Scott,
and the Richmond and Danville Railroad
Company, l should judge that he stands rery
near the management OF some or all OF these
corporations, and could tell Us great deal
more if he would. Above all things, should
like 10 see him convince capitalists Of the
truth of one assertion made-viz., THAT the
Richmond and Danville railroad (by the re.
cent action of the Pennsylvania CentraD has
been placed in the strongest financial posi-
ton of any railroad in the South with
the stock at IS and frst-mor,gase bonds at
So. What 4 speculation! Either our long
headed moneyed-Inen are ia the dark or
Another Citizen " has been wool-gatherins.
Possibly or fnanciers do not hold the
ddC0aceG ideas on the subject Of debt which
are held by the managers of the Richmond
and Danvlle railroad. Four years ago (1S7O)
these gentlemen, in their report to the
stockholders, say "For the first time since
the war the company's engagements with all
of its creditors private and public, indl-
vidual, State, and United States-haye been
met and discharged punctuslly throughout
the year. The result has been that
the credit, stability, and ultimate prosperity
of the company have been so far established
10 the olic confidence as to advance the
market value Of its securities to high stand
ard and its capital stock more than one hum
bred per cent. during the year."
thn inn ~ no
S344, 1852, which was 10 4l100 per cent. Of
the gross earnings. Year by year since that
time we have Oeen told of the improved con-
dLion and increased prosperity of the road,
until last year, when the net income amount
ed to 1925, 116.29, which was IS 45-1U0 per
cent. of Its gross income. How much the
debt and liabilities of the road had been in
creased during this period remain, yet to be
seen. We know that additional mortgages
have been placed upon the road, its property,
and income since that time amounting to
S7,50O,O00. Yet we are told that its finan-
clal condition is stronger than that of
any road in the South Nor does this
include any portions of the several millions
so generously released by the Pennsylvania
Railroad Company, as we are informed by
" Another Citizen" With this explanation
of the strong tiaancial condition Of the Rich.
mond and Danville Railroad Company, we
are enabled to understand what is meant
when, 10 speskiDg of the latter road being
gobbled up by the Southern Security Com
pany, "Another Glitter" eXcaims triumph.
antly: of this be raidiDg, give lis little
more of the same sort" From such stroke
III geueralShip as this "the lille man uith
The Dig hat would retire in shame and
confusion, and the private stockholders
who in ignorsace applauded Major Sullivan
would bold up their bands in horror and dis
may. According to the report of the presi-
dent and directors, the net income of the
road for the last three years has been
81 ,931 46; yet during this period the
debt OF ahe company has been more than dou.
Bile, as aekno wiedged by the president before
the last Eaeetiug of the stockholders. Will
&" Another Citzen" be kind enough to tell
US uchat has become Of all this money! fos'
sibly there have been some other rd,o'n9
parties down South besides the southern
Security Company. AZ:
We would like to know also how this
rrand corporation got possession OF Inc
States interest in ,sGr road. The stockhold-
,rs. at the called meedng August 3lst, 1870,
refused with great unanlmlty to sell their
,tock to any outside parties, and instructed
he Board 10 secure its permanent ownership
ror the benefit OF the private stockholders.
The manager ent, in their report of the 18th
Of December, 1871, communicated the infor-
nation that "the entire stock OF the State
sad been transferred, at the highest price at
ainable, to pricate parties, who, having be-
come Identified by large interests with the
nture fortunes of the. company, eau only
in common with the former private
the Strongest concern for its
prosperity, profit, and usefulness"
Would Another Citizen" have us to |
Understand that it was the intention Of the
lanagementto bamboozle the private stock
olders by calling the Southern Security
9nlIany "ptIfa.e rar!les 4 IEera Is