The Daily times. [volume] (Richmond, Va.) 1886-1889, 1889-12-11
RICHMOND TERMINAL.
ANNUAL MEETING OF THE STOCK
HOLDERS.

Financial and General statistics-Reso-
buttons Adopted = Election OF the Board
OF DirectorG
the stockholders Of the Richmond and
West Point Terminal Company met yester-
day at u O'Clock at the company's ONCE.
Mr.. John =. Branch presided. General IT,
NJ. Logan and Mr.. Edward Lauterbach
represented the New York stockholders.
Major James II. Dooiey, Major Fred X.
Scott and Mr.. l.. d. Christian were present.
Mr. Iauterbach read the annual report OF
the president OF the company, John ii. w.
man. Following is the full text Of the re-
port.
During the past year your company has
materially strengthened IT'S position. Atten-
ton has been specially directed 10 unifying
/ The railroad system you control. simplifying
the classes Of your Indebtedness ana secur-
/ ing better and more HARMONIOUS MANAGE
| ment OF your properties. In every direction
YOUR company has made satisfactory progress.
| IL mas paid OFF the floating deDt incurred III
the purchase of the Ge oreia Company STOCK,
acquired 7.l3t shares OF the STOCK on tne
Richmond and Danville Railroad, taken up
| 50 400, 900 bonds Of the Georgia company,
| and acquired a sufficient number OF shares Oh
| the East Tennessee, firsinia ana 6eorgla
Railway Company TO give your company M,
practically q permanent control OF that
property.
| FIRST COLLATERAL MORTGAGE
on March 1. 1889. your company executed
| n mortgage deed to secure per cent. bonds
amounting in the aggregate 10 81 ,3Vo,oVp,
and payable twenty-five years after date. by
the terms OF the mortgage, bonds were
reserved for the following purposes
s.. 800, 600 TO retire the per cent. collateral
bonds due LIST day OF February, 1877 sl,OOo,-
900 10 retire the preferred STOCK OF your con-.
pany, which is secured by trust agreement
placing n majority Of the stock OF the klcn-
nond and Danyille Railroad Company I'm
| the hands of three trustees, subject 70 the
terms Of said agreement; s1:oOo,Ooo'0 re.he
which are first lien upon the 10000 shares
| of the stock Of the Central Railroad ana BANK
| Ing Company OF Georgia held by the georgia
Company; s2450.0oO TO acquire me ouislaiie-
| ing "a. 600 shares OF the stock OF the Central
| Railroad nad Banking Company OF GeoIglni
| 81 .7ts. 900 to acquire the 1920 shares OF the
first preferred stock OF the tast lehnessee.
Virginia and Georgia Railtoad Company
/ then OUTSTANDING S7390o0 TO acquire ne
| 1890 shares of the Richmond ana DanVlbe
stock then outstanding: Ssi3O0g untll the
| 81 300. 600 q per cent. collateral bonds had
been paid on or until your company had de-
posted with the Trust Company, subject 10
! the provisions Of said mortgage, additional
securities OF the market value OF 81 zoo ior
/ every DOflu NllUuluMns sOfV''s''V VI H'+'
bonds were sold TO pay of the then existing
| floating debt.
The object of this mortgage was to provide
/ the means, not only OF simplifying the
classes Of your Indebtedness, but also TO ac-
quire the control of the outstanding divi-
dend-paying stocks above mentioned. When
the plan of the mortgage is fully perfected,
| the bonds will be O first Hen, not only upon
all OF the securities set forth Ia the lists FUR
nlshed in the report OF the. treasurer, some
OF which are now primarily pledged TO the
underlying bonds specified, but the entife
net earnings OF the three great systems q
roads controlled by you VIII be placed be-
mind them. The percentage nj which bonds
can be issued for acquiring the stOclW men
| toned is such that the issue OF every add
tiOnai bond adds TO the value OF those al
ready issued, your company having pay
with other assets the difference be-
| tween the price AT which the stocks
are bought and the amount OF bonds allowed
10 be Issued against them. 10 Illustrates
| The shares OF the stock Of the Richmond and
Danvlle Railroad Company cost 81 $50 400
| but under the provision OF the mortgage only
| $4,000 bonds could be drawn against them,
| the difference of S973.i9O going equally TO
strengthen all the bonds outstanding. The
| report of the treasurer shows specifically the
| securities now pledged for the payment OF
these bonds. A reference To them ana 10
| the provisions Of the mortgage VIII snow
that these bonds should command. the faV-
Orable consideration of investors.
PURCHASE OF THE OUTSTANDING STOCK.
Animportant step In the direction OF unity
| ing the systems OF railroads controlled by
your company was taken I'm the purchase Of
| the outstanding stock of the Richmond ana
Danville Railroad Company. Your company
now owns all the stock OF this company eN-
cent $50 shares, and has not only complete
control OF the Richmond and Danville rail-
road Company, but receives nearly all OF us
net earnings.
BY the terms of the agreement under
which this property was reofgonlzed IN
1856. the first preferred stock had the rignt
to elect eight out of fifteen directors for nve
years from the date Of said reorganization,
or until two consecutive dividends OF D per
cent had been paid. IL became apparent
last year that the earnings OF this property
were such that the directors. IN justice
| TO the Junior securities, would find IL proper
10 pay the full per cent. dividends upon
| the first preferred stock. ana that the right
Of this stock 10 elect majority OF The
board would expire this fall IL was thought
wise, therefore 10 acquire such an owner
sup of the other classes of the stock Of that
company as would protect your cOmpany's
large holdings of The first preferred stock, and
give you controlling voice In the manage
ment OF the East Tennessee, Virginia and
Georgia Hallway. With this view your CON-
pany has acquired 1922 shares more of tae
first preferred stock In the manner stated IN
the treasurer's report. and such an amount
Of the common and second preferred stOckas
VIII insure your permanent control OF the
property.
GEORGIA COMPANY BONDS.
BY terms OF the contract for the purchase
OF the stock of the Georgia Company, your
company reserved the right 10 take up a
large amount of the Georgia Company bonds.
Ii has been deemed wise 10 exercise this OPP
ton, and your company now owns S3.129 Of
these bonds. The 10000 OF the stock Of the
Central Railroad and Banking Company, OF
Georgia, held by the Georgia Company Is
pledged for the payment of slOOO,OOO GeOT-
gia COMPANY bonds, which bonds are q lien
upon this stock prior 10 the lien of your con-
sOldated five per cent. bonds. by depOsiting
these bonds under the terms Of the CONSOLE
dated first collateral mortgage. your five per
cent. bonds become n first Hen upon these
10000 shares, and are thus given an addition
al value. 80
transactions of the year. your attention is
invited to the report of the treasurer Ii is
worthy OF note that your cash income during
the year exceeded Your annual fixed charges
by $3.50, sO69l, and that s13I $50 will be
added 10 this sum when the coupons on GER
lam bonds mentioned by your treasurer ac-
cruing the year are paid giving your COM
pany, IL is expected. will be materially in
creased in the future by interest on bonds
and dividends on stocks in your treasury not
now productive. Your board OF directors
feel that you care to be congratulated upon the
progress made during tine year and the OUT
look before your company. The physical
condition OF your properties have been
greatly improved, more rolling stock and
equipment has been bought, and the in
crease of business offering To your system is
great. As liberal ms has been the mere Sc OF
equipment, IL has not kept pace with the in
crease OF business, and from all of your lines
Of railroad comes the demand for more en-
gines and more ears.
Rival railroad Interests have seen nj TO at |
tack your company In the courts and before !
the Legislatures of several Of the tates |
through which your road runs. A full and |
free discussion Is all that is needed 10 con |
vince the people that your interest and theirs |
are Identical. and that profit can only come |
TO you thu ough The prosperity and develop |
ment of the country iraversed by your roads |
IL is the policy OF your company not only TO /
furnish 10 its patrons better and more efii- /
ciept service, but to pursue wise and lib |
eraI policy In developing the industrial re- /
sources OF the territory adjacent 10 your |
lines. II is confidently asserted that no in
strument Of progress yet devised will con-
tribute as much 10 the prosperity OF the |
south as the system Of roads brought togeth-
er by your company.
NEW LINES OF RAILROAD.
Many Of the roads now projected In the
South are necessarily al some point feeders
for your system, and should be encouraged.
Even those which parallel a part OF your
lines, will feed your system at other points.
and the increase In business arising from INC