Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-06-01
PETERSBURG ROAD.
MEETING OF THE STOCKHOLDERS HELD
YESTERDAY.
The Lease Proposition Vigorously Opposed
and Abandoned for the Present
at Least.

road Company met al the Byrd-Street station
yesterday morning at II O'Clock and spent
nearly two hours discussing The proposition
TO lease the line to the Wilmington and We'll
don Railroad Company.
Major Frederick Scott, who represented
about three fourths OF the stock, heartily
favored the scheme, but his sentiments were
echoed by none OF the stockholders who
formed The minority, aud therefore the lease
was not effected
THIS MEETING.
A called meeting OF the stockholders was
held in Petersburg on the 2Sth OF April. at
which Major Scott offered a resolution au-
thorzlng the Board OF Directors to make
the lease, and accompanying the resolution
was q deed setting forth the conditions OF
the contract iDto which he proposed that
the company should enter.
Major Scott then explained why he
thought II advisable that The stockholders
should accept this offer, and finding that be
stood alone on his motion the meeting was
adjourned until yesterday In order that
those interested might look more fully into
the matter.
Yesterday there were twenty-tbree gentle.
men present. Among these were NessrS.
Il. b. MuuiOrd, Frederick Scott, John J..
I
DayenrOrt, Charles Ellis, George w. War
rcn, Powha,an Ellis, Alexander Hamilton,
Warwick, Wortbam, Allison, Lucke, Crump,
Haxall, aud several others.
Mir. Alexander Hamilton, OF Petersburg,
presided, with Mr.. N. ". Warrington. the
secretary OF the company. ut bis post. Major
Scott aud p. Il. Muniord, Esq, were ap>
pointed a committee on proxies, and soon
reported that there were represented In per-
son 80 shares entitled 10 1874 votes. and by
proxy l0,5S6 shares entitled 10 2,jl3 votes.
THE PROPOSITION.
II being ascertained that there was a quo
rum present the meeting was declared ready
for business, aud SlajOr Scott read bis reso-
lntion and several OF the most important
sections OF the proposed lease. lie stated
that II the gentlemen present felt favorable
TO the scheme he was willing, after adopting
the lease, to have 1t printed and circulated
among the stockholders for careful inspec-
ton, and to have it dnally ratified at future
meeting. TIE lease "a proposed was for
ninety.nne years. and had In 4 an extension
clause which amounted 10 n perpetual lease.
The lessees were 10 be obligated for the
payment oi the interest on all OF the mort.
gage debt and for the payment and renewal
OF all bonds maturing; also, to pay IN an
nual rental Of per cent, or $50, 900. and to
maintain the road in ~ good condition as u
Is in at present. The rent Is to be paid semi
annually the lat OF July and lst OF January.
why IT SHOULD De ACCEPTED.
Major Scott in the course Of his remarks
said that in hls opinion the revenues Of the
road Cor the next ten years would rot pay A
dividend OF per cent. after meeting Ieces-
sary expenses for Improvements, extern
,ions, &C., which he thought would have to
be made. Another reason why he thought
IL wise 10 make The lease was that the VIII
mington aud Weldon could get much
cheaper route for their north-bound freight
than over this line; that while this route
costs them Sl50,0O per anrum they can get
more direct one for about $4,000.
Major Scott spoke at some length and was
quite often interrupted by questions relating
TO the venture, its effect, &c.
Messrs. Davenport, Williams, and others
: expressed their opposition to the scheme,
: and in this position they were backed by all
: present The prevalent idea was that the
lease, il made, should be for a shorter PEI
riod, and that a. least per cent should be
realized. Some questioned the practical
: bllly OF leasing the road at all, aud
the Younger Mr.. Williams made a
statement to the effect that the revenues for
e the first seven months Of the present fiscal
year have been sudi i,ient 10 meet the fixed
expenses and reasonable extra ones for the
entire wear, and that the receipts during The
, remaining five months, which II Is estimated
; will be at least $4,000, will go to the stock
: holders.
3 REJECTED.
Mlior Scott said while he held the proxies
for three fourths Of the stock he did not pro-
? pose TO force the adoption OF the proposition,
L 81, of,r NJ ~ n
2 w0uld let the minority, should ils vote be
, ANYTHING like unanimous, decide the ques'
l tiou. Alter prolonged discussion the vote
was taken, resulting In a negative vote oi
$50 shares. There being no quorum voting
the matter fell through.
NOT so LIBERAL.
Major Scott had pressed the case strongly,
but the other gentlemen who were not Sc
much interested in the road desiring 10
- make the lease could not be made to look al
=. il in the light that he did. He said that
such action as he had iu.t taken was without
precedent IN the history Of railroad affairs,
He had never before known parties holding
the msjoritV of stock to bow to the Will OF
the minority.
Mr.. Williams arose and SAID he did not
coustrue this as such generous action. lie
could not see how parties situated rs scott
and associates were could, with any concern
for etiquette or propriety, do otherwise.
The Junior Mr.. Williams said he was nc
LAWYER, but he did not believe that In this OF
any similar case the mpiority could force the
minority 10 terms. for be did not think I
was the spl!it OF our law that when owners
of one enterprise who hold controlling in
t.re,t in another, and desire 10 gain posses
sion OF It really for the benefit OF the first
named. they can force the minority holders
TO accept their terms.
ANOTHER PROPOSITION.
While the matter was pending the ques
ton was asked Mr. scott whether or not ;
gentleman had offered 10 lease The road fol
= fiyc or six years to pay per cent. on IT.
capital stock. He replied that DR.. Wits
- who il a retired Richmond physician anc
welLknOwn capitalist, had said something tC
this effect to Mr.. Branch, but thai
!, no such proposition bad been submitted
a. some thought 1t would be. DR.. Willis it
this interview with Mr.. Branch and Ia one
, had soon aiterward with Mr. John l.. VIII
liams is reported as having said that h'
would take the road on the terms named, pro
= yided that he be made president and that tb'
connecting lines deal fairly with him. Malot
Scott said that IL per cent. could be gottet
he did not want his proposition to be ac
ccpted.
Speaking for the two connecting line
n Major scott said that they would treat DR.
Willis fairly, but his idea OF what was rish
might differ from what DIR. Willis wonl'
EXPECT. The sentiment OF the meeting
seemed 10 be somewhat favorable 10 such
proposition IA this, but the opinion was eX
pressed that per cent. should be realized
At one time il was suggested that commit
n tee be appointed to inquire into the expe
i diency Of leasing the line, but this was aban
e dOned.
EACH STARE VOTE.
= Colonel Palmer offered resolution, whle
was sdopted. accepting the section OF ID
new Code which provides that In stockhold
ers' meetiugs Of all railroad companies eae
share Of stock shall be entitled 10 vote.
Adjourned.
The Peiershnrg road runs from Peters