Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-06-01

ceiyed ono dollar OF return upon their ln-
yestment. The attempted Reputation OF this
contract compelled The Southern Improve
ment Company to cease further operations,
and they have not up TO this date made any
further improvements.
Ninth. The Mdtter Of the Leased Linss.
These leases were all made In lSeG and are
not properly a subject OF present CRITICISM,
but as they were in all cases save one made lor
net earnings only, and as the operation BY the
Danyille Company as the lessee COMPANY mas
resulted In large economies and greatly I'M
proved organization, II seems difficult 10 un-
derstasd how any valid criticism could lGs'iy
be made. In the single case OF the Nlrginm
Midland Company the lease provided ior tue
nayment by the Danville Company OF the IN
terest upon the outstanding per cent. gene
raj mortgage bonds OF the Virginia Midland
Companv. That feature was incorporated,
as already explained, as creating large value
for the Terminal Company aud as a price
paid for sundry securities purchased from
the Terminal Company at the sale made IN
1886. That obligation was assumed by tbe
Danylle Company 10 create value by use OF
its credit and was without detriment to the
Terminal Company and did succeed In iuihl-
ing the purpose intended. As TO the advances
made 10 the lessor companies the present
board has followed the policy inaugurated
and maintained by its predecessor 6olrGs'
No obligation Is entailed by the leases 10
make these advances. but IL can scarcely De
doubted that the preservation Of the unity oi
the system which is secured thereby more
than justified making them.
JcnH. The Matter Of the Purchase Of the
Ninoriiu stock OF the AsheyiHe ana SpdT-
t1nturg Railroad.
Tnis stock was purchased at fair price
from individual stockholders. who were not
directors Of the Terminal Company or any
OF its associated companies, and had so isr as
know no interest therein. aud the purchase
was considered an essential step. in order 10
enable the Terminal Company, without or'u-
cism or interference, to manage and Improve
the property of that company, which greatly
needed Improvement. AS the result OF thls
policy the earnings Of the company have
nearly doubled since the purchase was made
II must also be borne In mind that the
Georgia Central Company bad extended as
faras spartanburg, and in the event OF any
complication arising Affecting the AsheylHe
and Spsrtanburg the possession OF bare
mgiority of the stock might have put IN
ieopardy the tenure OF the Terminal COM
pspy.
EleYfufb. me .HtttJ VI Htt Ettc w Htp
MARKET Of 29,534 SHARES Of Richmond Ter
minql Stock.
At tho time OF this sale, which was all
thorlzed By the Executive Committee and
unaulmonsly approved by the board. the
Dauville and Terminal and the associated
cOnpanics were largely IN debt owing 10
increased construction and improvement Gu-
ring 1887. As is conceded by the questions
a stringent money market prevailed. Ot
tho available assets Of the Danylle
Company $500 600 OF the Terminals
q per cent. bonds were tied up Awaiting
the completion OF the conversion Of the MI
pority Danville stock. or the proceeds OF
tbe sale of Terminal stock Sij0,0G0 uGs paid
into the Danville treasury for those bonds,
the balance being used in the purchase
in the open market OF like bonds. The sale
OF Terminal stock was most iudlciousy man
AGED, and has resulted in reducing the fixed
charges OF the Terminal Company 10 the eX-
tent II about $4,000 per annum, all the
bond, purchased having been cancelled.
9trcith. The Matter Of The Land SyRdi-
cate.
II Is true that Messrs. Thomas and Drice
and others are interested I'm coal lands IN
Fast Tennessee. and that the result Of the
matters referred 10 under this bend has been
that the East Tennessee and Richmond Ter
minal systems have secured the entire coal
output of the East Tennessee mines, taking
/; away from the Cincinnati Southern and
other lines. thereby giving TO the East Ten
ne,see and Terminal systems business which
they otherwise would not have had.
Tkirfeenh. The Matter othe los ot sS2i.-
Col So .iutGed r. Have Been Ndde0Q Speculd-
ton fGr account Of NE Ieymia1l Company
6v d C0mmihee ot Us Directors in 1882.
This matter has been fully inqnire into by
q special committee appointed for the pur-
pose; the transaction Is ono which took
place nearly six years $50. Upon being sub
mittcd 70 the stockholders OF the company at
their regular annual meeting In Docemher
1852, after the transactions In question had
been fully closed it was by the unanimous
vote Of sli the stockholders present et the
meeting (nearly the whole OF the eaplal
stock being reprcsented) fully rallied
md approved. It was subsequently
Investigated by a committee appointed
from board OF directors not in accord with
the board at whose instance the transaction
had taken plsce, but no action was deemed
Advisable by that committee.
Your directors refer to report now on
file. an examination OF which will, we be-.
board that in view Of the action Of the stock
holders and all the circumstances surround
ing the case the policy which has been msln-
tanned In respect to this matter for the last
SIX years hos been proper policy.
II may not be amiss 10 make two addition
al ObseryaliOns;
|. Except the protests OF President Sully
specially noted in the questions and on the
single occasion Of the appointment Of the
committee 10 purchase The East Tennessee
stock when Mr. Rice objected, the policy OF
the board during 1881 was heartily con-
CURED in bv every member, and every mat
ter referred 10 In the questions which then
took place was unanimously approved OF by
every member Of the board, Including
Messrs. Rice and Lehman, and by It's presi-
dent. and the objection Of Mr.. Rice was
only directed 10 the extent Of the purchase,
he coinciding in the proprety OF acquiring
the m4jorty OF the Tennessee stock, but hot
OF more than a majority.
>. It has been announced a. proper doc
trine that The directors Of railroad compl-
MES should not be interested in .beir stcnri'
ties. and criticism l. made because the d.
rectors Of tins board have large holdings OF
the securities Of the companies forming lhe
Terminal system. We do rot coincide with
this view. We believe il 10 be impossible
successfully 10 initiate and conduct IN enter
prise IN whicl the public is expected to in
terest itself unless the directors snail them
selves show their fsith in the project or
business with the management OF which
they are intrusted by actual and substantial
investments in the property.
PRESIDENTS REPORT.
Mr.. L1uterbach presented and read the re-
port OF President !. II. Inman, OF the Ter
minal Company. who succeeded Mr.. suliy'
The report is sS follows:
The gross earnings from passenger bust
ness show large increase over the CORE
spending period Seven months and tbreC
weeks Of last year and on the Richmond
and Danyie system amounted 20 s2.C9J'60
The total gross earnings for toe above Pc
Rod seven months and three weeks were
Richmond and Danyille. t3,9A.iS Z:
Virginia Midland ......---...-...... l,Ll''2J "a
Charlotte, Colun bia and Augusta. tiasxo :,
Columbia and Greenyillo............ 4Cloo ;.
Western North arO!lna. 4.5,'oo O'
Total sSsto',..9. :.
Being an increase eof................. sfoaI' %
The gross earnings OF the East Tennessee
Virginia and GeorsIa Railroad Company foi
nine months we're s5,73l, S2l GA. being an IN
crease Of sS47. .92. and the net earnings iol
that period we're 81 $50. 1868.
The net surplus for seven months earned
n,nxfiln avstprn Va \.