The Daily times. [volume] (Richmond, Va.) 1886-1889, 1888-04-16


Directors they made continual offers 10
secure peace and harmony in South Car
Olina, and it is not their fault il such
peace and harmony did not result.
The insinUatiOn, too, that the parties in
control of the Georgia Company are de
sirOus Of selling their stock TO the Ter
minal Company is untrue The truth is
that advances were made on the part OF
some Of the Terminal directors 10 pur-
chase the Georgia Company stock, and
these advances were rejected The con
troll of the Georgia Company Is not for
sale
THE BOARDS OF lss, AND lsss
Let US now examine the attempt OF the
presen' Board 10 escape responsibility for
their acts by claiming that they are anew
Board who only came into control on De-
cember 3lst last.
The following is the constitution Of tie
two Boards in parallel columns. Here
follows the list of officers and directors
II appears from The above that thirteen
members OF the old Board are also mem
hers of the new Board, AMI If there could
be anything cOmical in the situation SD
serious, IL is 10 see Messrs Seolt.Thom4s-
Brice Stonc-L -Lauterbach of ihe new Board
iwitting Messrs Scott-THomas Bricc.
Stone -Laulerbach OF the old Board for
spending 100000 more per anuum on
salaries than WAS necessary, and Mc-srs
Sco,t-Thomas Bricc-Stonc laulcfMch of
the new Board silly limiting thar Mc-srs.
Scou-Thomas Brice Stone Lauterback of
the old Board were NOS wise to cXpcnd
so large an amount on the various prop
critics Oi the system as t0 involve the
Richmond * Dtnyillc Railroad Company
in floating debt of S633 800, and to DE
clare, i'm all seriousness, as though they
believed it themselves, that Mcssrs Scott
Bficc-Stone Lauterhich of the new Board
cannot be expected 10 provide for the
dividend which was declared v Mcs-r,
Scott-Thomas -Brice Stone Lauterbach oi
the old Board.
PURCHASE OF DASylLLE STOCK.
Coming now to the figures presented
I'm the statement, we know that The same
skillful hand which was at work when
TIE Danyillc stock was bought hy th
Terminal at 230 is labOrinr again. At
that time appeared lcfore MS a dazzling
display of figures OF the most persuasive
character. We heard nothing of floating
debt then il was all cash and assets a.,
good a. cash in the treasury amounting
tO more than five million of dollars.
Where these assets have wandered 90
and why there should bee a floating delt
of SG32 500 The circular does NOT Say, and
we are al loss to know whether tO ap-
.1rrf to f.rfT.
Laulerbach of the ola Board, or Me,srs.
ScOtt-Thomas-B -Bricc- Stonc-LauleIba,h OF
the new Board for information.
At the time the Terminal Company
made this purchase. moreover, the state
ment was current That this road was in %
magnificent condition and that 10 could
easily earn ten, fifteen per cent on its
stock without counting income from the
assets IN the treasury After the stock
had been bought and Mr Scott and his
friends came back into the Terminal and
Danyille Boards, IL was tOnnd ihat the
railroad was in anything but em1gnltcent
condition, that among other things ,6.
600 tons of new steel rails were required 4.
and 10 pass single paltry dividend OF
three per cent in the sixteen months
which have elapsed since the purchase, is
all that this great property could do. In
view of this fact we would suggest TO the
stockholders the probability that The
earnings of % 3.l0 per cent. on the stock,
held out by the circular may not be
available al the next dividend day. unless
the stockholders take charge OF their
property g..
Coming now TO
THE FIGURE OF TIE EAST TENNESSEE,
We are met by the very unsatisfactory re-
suit that with AN increase OF $j4O,OOO in
the gross earnings for the seven months
from July lst, 1887 90 January Isl, 1858, or
nearly Is per cent this shows but So
147S 81 in the net And we are Informed
that when the East Tennessee Board was
convened last January AT the instan e of
Mr Sully, for the purpose OF declaring a
? per cent. dividend in order to meet the
payment of the interest on the col
lateral trust bonds, that Board adjourned
without declaring the dividend ON the
ground that there was no money in the
treasury.
And this brings Us TO the consideration
of the vital point Of the
PASSING OF THE DIVIDENDS.
The Terminal Company has no earnings
of its own, il has an income derived only
from the operation Of the lines in its sys-
TEN The principal sources of This in
come are $4,000 shares of the Danyille
stock. and 81, 900 shares of the East Ten
nessee first preferred, and if no income is
derived from these properties it must
incur floating debt and eventually de-
fault on lis own obligations
The passing of the Danyille and East
Tennessee dividends is, therefore, OF the
grayest concern 10 the Terminal And
AS a matter OF fact. when the Terminal
Board declared a dividend ON its pre-
ferred stock last December, il al the same
meeting instructed the Danyille Board "a
declare dividend on the Danyille stock
both Boards being practically tEe ssmC
persons, and both resolutions PASSING
unanimously, the Terminal company had
actually provided the means to meet the
dividend on its preferred stock.
Subsequently The Terminal Board, a.
We are informed, rescinded the insiruc
ton 10 the Danyillc Board, with ute
disregard OF their own action though wei
knowing that such recisiOn left then
no ready means to pay the dividend de