The times. [volume] (Richmond, Va.) 1890-1903, 1895-03-01

..sl.t
The deficiency for the year was S5ls,5'-
in addition to which the company ha1
to meet maturing payments on car trusts
and other capital accounts, ana 10 TINS
end had 20 borrow additional sums OF
money. thus adding to its previous Hodl-
ing Indebtedness. so that on January
81. 1875. the floating debt or the ran
road company, including that or lhe
Roanoke Nanch!ne Works Uhe entire
stocks and bonds Of which corporation
are owned By the railroad company
amounted TO s.. OS. AS. represented by bills
PAYABLE secured by collateral belonging
10 the company, and the unpaid vouchers
taxes. uay-rolls and other current hdpl-
tiles. exclusive of Januasy accounts
amounted to SGj3.4j2.
During the preceding year-ls'5-lhe
deficiency was {g,7,333. During 1871 tie
company operated 1867 miles, Its lrelshJ
traffic amounting TO i09,oi TONS puV
during the past two years the company
operated 439 miles OF new lines through
sections of country I'm which mining
and other industrial enterprises had 10
be inaugurated and encouraged ana trat-
hc developed while full interest charges
on the cost OF construction OF the ne"
lines had TO be paid, ana, Tor the most
part. these lines were through noun
famous country. requiring numerous
bridges and tunnels. Ihelr consul uc''oH
was necessarily expensive, ana the IN
terest charges correspondingly heavy.
Rolling stock was purchased prior 10
1899 under car trust contracts, ana 10
meet the payments which have matured
from month 10 month has drawn serious
" upon the company resources EAti"-
sive of the sinking fund OF the etulp-
ment mortgage loan or lNoN' VIM"
amounts TO about $4,000 annually. the
of
trusts during the next eight years amount
10 nearly {5,3oGp.
The interest charges, rentals. car trust
payments and sinking funds payable
during 1895. aggregate about NWNVp
more than the net earnings OF 1884, ana 10y
reason of the inability OF the company
TO earn its fixed charges during the TWO
preceding years. and by the business
conditions generally prevailing, the COM
panys credit was 50 impaired ana the
market prices OF its securities so lnuch
affected. that the management or the
company were unable TO make the ne
cessary financial provision.
The finance committee sought the adj
vice Of John Crosby Brown, j. Kennedy
Tod. \. 4. II. Boissevain, {. sligo de
Pothonier and George Coppel, large Sc
curity holders, requesting them TO eN-
anime into the financial affairs or the
d
lions as they deem advisable In the IN
terosts OF the company and its security
holders.
These gentlemen. after examining the
books Of the company, submitted their
conclusions and recommendations on Fep-
ruary ith
They said. among other things: "In
or opinion the payment of principal ana
interest of car trusts constitutes one or
the chief causes Of the present embar-
rassment of the company The principal
of these car trusts amounts 10 8,iIi4bl,
| and natures i'm the next eight years. but.
for the most part, they can be paid OH
at the option Of the company at any time.
Assuming that the net earnings Tor 1870
will be equal to those OF 1884, the com
many will have 10 provide a further
amount of about 81. 200 10 meet interest
on bonds. principal Of car trusts ana
| sinking fund payments maturing during
that wear. and IL cannot be reasonably
fxDected that an increase of net earn
iugs will be realized during the year
| sufficient TO provide the amount required.
I'VE believe that IeOrs inizatlon OF
| the company's finances can probapy be
effected within a short time, OWING 10
the absence of complications in the posi-
! ton.
IN the present state OF the company
| credit IL is obviously impracticable to
| disrose of further issues Of its bonds or
stocks at satisfactory prices.
I'VE are, therefore, Of the opinion tnai
the situation can best DE met by makins
A reasonable reduction in the rate OF IN
terest on the more recent issues Of the
company's bonds giving compensation
therefor. and by assessing the preferred
and ordinary stocks 70 an amount sum.
Gent TO pay off the entire car trusts an
the floating debt
The board Of directors having notice OF
o., intention on the part of trustee
under several Of its principal MORTGAGES
to Gle 4 bin for the appointment OF re.
cciyer. determined that the interests OF
all concerned would be promoter py III
monument Of receiver. and the ap
uiiration was accordingly made.