New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-24
financial.
Louisville & Nashville
Railroad Company.
so AND So EXCHANGE PLACE.


NETWORK CITY September %. 1889
" meeting OF the Directors Of the Louisville and Nash
willie Railroad Company this day held In the city % -
York the President read 10 the Board fofVa
ton recommending the issue OF further common 'A
the amount OF $4,000, COO and the sale hereoi Oh s
terms as the BOARD OF Directors shall direct the poccu
10 be used solely the purpose OF taking up the
ing issue Of $4,000 600 per Collateral Truss bo
and such other niercstbearng obligations OF inc 'oP
the Directors may approve d.
Resolved That the communication Of the President us'
read be spread at length upon the minutes as 'oNo"s
" To ne Board Of Directors Of TIE Lou'p'"e az"
Railroad Company ...,s
In January 1888 the London stockholders by then
circular addressed the Board Of Directors recohu1
that the surplus earnings Of tho property OF the Oop1
he usel In betterments that stock dividends DC pau ~
the place OF cash period Of three years from Jug
1881 These recommendations were approved oy 'ne
stockholders at special meeting held at LouisvlIe o NV
oI February 1888 and resolutions were passed 70 auto
c an additional 50 oO0O00 OF stock, TO be issucd ID pay
meat OF stock dividends; and four stock di'iueHu'
auountlnc DO s3112 500 in all, have been declared
"Bv the adoption OF this policy the Compahy-'S ~
IN me noson 10 use the surplus earnings to great au
vantage in making additions TO the property Nl'C",a
pavng for the with the common STOCK Oh wv N'"
pany at par. ,,., sb d,x.tdends
ho dcl,rc1 for the pas two years the Company "ouit
have been compiled borrow money oy t'e 'sou "
securities to pay for amounts used for caplta aeeoun
tho bundnc OF second tracks about hfty mics OF o
en-, ,o,e,.s NJ bridges ballast for tracks, the Duhans
Of now freight and passenger depos. the purchase " ~"
eounments ana other necessary heterm;ht7 all oi ~
will absorb the surplus revenue OF the Company ol wv
three years ending June 30, 1890. III inc ous'i'o ~,
The COMPANY remains as and there IS no reason
it should continue 20 be a. Pood a. ior p - an
ended # n hoped that the payment Of cash o''''nu =,
H. resumed after July l, 1890. 1t is only reasona"V
80, that the GOOD results derived from the wiss poll
which for six years ending June 80 lsoo' mas p'''
will by this time be fully felt .,,s
Tire application Of net revenue for the thfee y."
fro,n Julv 1884 TO 80 1887, enabled the Oonp'
-, cb,ngo the gauge OF It's road and all It's equipment
from 5.foot gauge to standard gauge OF icy
inches and to other beterments tic sVocn"0tg
receiving nothing to represent the amount @Xpehueu.
The three years from July J. 1887, TO June 80 1851 @
have received or wn receive, stock for the amount IN
pended on the bccrments made during that perol
Tbe best evidence the Of the pchcy pur'uc
viii he found by comparing the financial and physical COR
don Of the read now with the CONDITIONS cAs'iNo VA '
l, 1851 ,,,.s
Io put the property upon permanent casa dVlue'I.
having basis and that Will be Ju7' ana 'S
n the stockholders respectfully suggest that the proper
steps be taken capital stock by sl"ooooo
The same % be Issued and used only for the purpose OF
retiring and canceng:
list $4,000 600 six per cent Collateral Trust Mort
oaoe Bends Tn amount OF bords OUTSTANDING be-
inc 90 AG2 600 s59s 600 having redeemed ana can
ccled through the operation Of the Sinking Fund Thes"
bonds can all retired by the Of the Deed oil Trust
at i 10 by giving ninety days notice.
I'D BY retirement Of such other Understanding
obIicaticns as may be deemed greatest advantage
IT further recommend that the stock be disposed OF by
the Board Directors In such manner and at such terms
as they may deem best for the Interest OF the company
the same being offered pro rata TO the stockholders OF
the company and Of the proceeds being strictly
applied above provided
should these endatons be adopted ana the ne
rotations reach successful conclusion. there will be re-
ducton OF the fixed charges follows:
Interest $40 900 600 Collateral Trust Bonds at
per cent. 5000 600 In addition to this, the annual
Sinking Funds Of per cent the slo000o0O Collateral
Trust Bonds would be cancelled amounting to 100000,
and the remainder Of proceeds will in ike
tire further OBLIGATIONS. By taking up ~ the trust
bonds the charge IS reduced by 100000
and the sinkincfund charge by 100000 in all 500 900
Of reduction OF annual charges. which may be applied
dividends, in addition such further amount
will be gained by tho taking Of other interest
garng obligations The reduction by large an amount
Of charges will be beneficial to the credit OF the
Company.
by canccllnc the Trust MORTGAGE for the security
~ which the SOS 1Go70O Of collateral securities de-
posted In the United States Trust Company the securities
remain only subject second mortgage Of - 600 600
being the per tenfory adjustment mortgage which
be paid October l. 1894 and when this is paid
the s2s G27oO Of securities viii revert to the treasury
Of the Company
After seriously considering this whole subject and
after making and discardlng many plans. 1 Of the
opinion that the Company In is present credit. and with
the present favorable surroundings dispose OF SUM-
cieIt OF its capital stock effect these objects.
tx. NORTON, President
" Dated New-YoTk. September %. 1882
Resolved That the Board hereby recommend to the
shareholders Of the Louisville and Nashville Railroad Com
pany az the next annual meeting that the capital stock Of
the Company he increased by the issue OF $4,000 600 Of
stock and that the Board OF Directors be author
lied 70 dispose Of the In such and such
times and such terms they may deem best for hc
interest Of the Company provided the first offered
TO the stockholders Of the Company In proportion their
several holdings AMI further provided proceeds
thereof b" applied solely 20 the retirement by payment Of
The existing issue Of $l0.COO.OOO per Collateral
Trust Bonds the terms provided the Deed Of Trust
and Of such other OF the bearing obligations Of the
Company the directors may approve.
Resolved That in order prevent all misrepresentation
copy Of the above resolution be forwarded all
holders ~ record In the United immediately accom-
panied with notice that the subject Will brought be-
fore the annual meeting ho held Louisville Ky.
october next ana that copy Of the resolution with due
explanation DE- Transmitted London Amsterdam by
cable, that due notice may be given In cities.
The communication and copy Of the resolutions are
transmitted 10 you shareholder you may have
opportunity Of Withdrawing proxy in case you have
given ard you should desire or expressing your
Judgment shareholder the subject az the annual
meeting Of the shareholders, be held on the % day OF
october next, the city Of Louisville Kentucky al
whic- meeting the subec; will be submitted Respect.
fully yours,
Elk. NORTON, President.