The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1881-06-19

Danville, kc., &c.
The meeting was called to order by Colo.
mel A. 8. Buriord, and on bis motion MIR.
III. f. G. Baskervill was invited to preside.
Mr.. r. Brooke, secretary OF the company,
acted as secretary Of the stockholders.
Colonel Buford moved that committee
be appointed to examine the proxies and
ascertain IL quorum be present. Agreed TO-.
The Chair appointed Messrs. r. ii. Maury,
James II. Dooiey, and John p. Branch.
The committee, through Mr.. Maury, re-
ported a quorum present-31, 1853 stockhold-
ers being present In person or by proxy.
The ATLANTA AND CHARLOTTE AIRLINE.
President Buford stated that the meeting
had been called, as was well known, for the
purpose OF considering the contract entered
| into by the Board Of Directors for the con-
| troll and operation OF the Atlanta and Char.
| lotte Airline railway. He then read the
| following report OF the Board touching that
subject:
| To the Stockholders Of the Richmond and
Danvihe Railroad Company;
Gentlemen,-This meeting has been
called pursuant 10 an order Of the Board OF
Directors for the purpose OF submitting for
your consideration and action the contract
entered into on the 26th Of March last be-
tween this company and the Atlanta and
Charlotte Airline Railway Company by
which this company acquires under the
terms and stipulations set forth in said con-
tract the control, use, and operation OF the
Atlanta and Charlotte Air Line railway. A
copy OF said contract as executed on the
above.named date, and now in force, is
herewith submitted for your full informa-
tion. Its terms and sipulations In detail
need not herein be set forth.
| The importance OF the contract TO all
parties concerned, and the magnitude OF
the interests involved will justify, however,
some brief record OF the circumstances and
considerations under and upon which 1t has
been entered into, as well as the results and
occurrences which have subsequently trans.
pired.
THE CHARACTER OF THE AIRLINE RAILROAD,
and its relations to your properties from its
inception and through the period OF its
construction, as well as its history since
fully opened up to traffic, are all familiar to
the stockholders OF this company for years
past. It's value as q connection has long
been duly estimated, as evinced by the
large contributions in financial and moral
support extended to it from the earliest in
ceptlon OF the work in 1868 down 10 the
present period. 1t has been fully opened
2GG miles in length, fairly equipped, and,
with several tributary branches built under
lis auspices, is now, and for sometime past
has been, in successful operation. The
towns, cities, and sections OF country which
| it accommodates are among the most thrifty
and prosperous Of our southern States, and
| the indications are that the bealthful growth
OF the prosperous business throughout that
region is TO increase for an indefinite term
and 10 an indefinite extent. BY y
THE TERMS OF THE CONTRACT
submitted this company becomes the con-
trolling operator OF the whole Airline
railway and property, without limitation as
| to time, so long as it shall faithfully perform
the covenants and stipulations OH this CON-
pany's part entered into.
| The important obligations entered into
on the part OF this company are the pay
ment Of the interest on the mortgage and
| income bonds OF the Airline Railway Com
pany, amounting in the aggregate TO the
sum OF S362,500, payable baf-yearly, and
the payment OF per cent. per annum on
the capital stock OF 81, 100000 OF said com.
pany. payable in like manner, half-yearly !;
the first payment thereon to commence on
the first day OF March. 1882. In addition
to this the company is to maintain the pro-
perty in as good condition as when re-
| ceived, and is also TO eXpend for ten years
from the date OF the contract 100000 per
annum on the property in betterments, OF
which $4,000 per annum is stipulated to
be in steel rails for the main line. These
betterments were considered as indispensa-
bly, eQuisite during that period to PUT and
maintain the property in that high standard
OF efficiency required to do the traffic offer
ing and at its command. As
SECURITY FOR THE FULFlLMENT OF THESE
sTIPULATIONs,
this company undertakes to place and main-
tain In trust securities OF the value OF
$500, 900, which may be withdrawn at any
time after five years, ii during that period
this company shall have duly performed its
obligations under the contract.
For TIE year previous 10 the acquisition
OF the road, as stated, its revenues, with
inadequate equipment and facilities, ap-
proximated the amount requisite to pay the
charges thus assumed, and for the five
months last past, including the two during
which it has been under our control, the
revenues show an increase OF SS4.11O,
or about a per cent. over those OF
the corresponding months OF the pre-
vions year; and assuming the continuance
OF an average activity OF business In the
southern States, il is not doubted that the
net earnings on that line alone will very
soon, IL not for the first year, fully meet the
payment which you have stipulated 10 make
for its use. 1t need hardly be added that
the control OF line OF such extent, pro-
ductiyeness, and importance Of connections
will add largely to the connection business
10 be received on your main line between
Richmond and Charlotte. The Board OF
Directors therefore submit with entire con-
fdence their action In this behalf for your
approval upon
ITS MERITS As A JUDIcI0Us AND PROFITABLE
TRANSACTION.
Circumstances. however, had arisen
which created all urgent necessity for some
decisive movement in regard 10 this pro.
perty on the part OF your company.
For months prior to the negotiation Of
this contract II had become an open secret
that the Baltimore and Ohio Railroad CON-
paDy, through its Virginia Midland branch,
was seeking TO effect some combination OF
property or other equivalent alliance with
the Airline road, through proposed ex-
tension from Danville south, by which this
valuable connection OF your line was to be
wrested from its Legitimate association and
diverted to another and competitive channel.
This state OF things, 1t was thought, rem
dered it proper for your Board OF Directors
TO take the responsibility Of action prompt
ly as they did In the negotiation and con-
clusion OF the agreement submitted. 1t is
very clear, we think, that the natural and
profitable association, as well for the Air
Line road as for the line OF this company,.is
that which has been made under this agree