Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1895-03-15
"Tu 1894, by .S5,SS,336;


"l'or 1893, Al ~. 105; for 1894,
i45,300, payment, to- sinking fund;
"For 1893, s35 ,4S5; for 1894,
el2O,049, less i'll on er.>ting leased
lines.
ain our opinion the ] nyment OF
principal and interest OF car trusts
constitutes one OF the chief causes
of the present cmbarr as,unent OF
tho Company. The pr in,'ipal OF
these car trusts amounts TO .3,414,-
464, and natures in the ne 1t eight
years, but, for the most ps. t, they
can be paid Off at tho option Of the
Company at any time.
"The floating debt of the Rail
road Company, Including thai vi
the Roanoke Machine Works (the
entire stock anil bonds of viii, ID
corporation are owned by the Rail
road Company, or the 31st day OF
January, 1898, amounted to 81
O0S, AS, represented by bills paya-
bic secured by collateral belonging
to the Company; and tho unpaid
vouchers, pay rolls, and other cur
rent liabilities, exclusive of Jana
~ accounts, amounted to 1868, 400.
"Assuming that tho ret earnings
for 1875 will be eqnal to those of
1894, tho Company will have to
provide a further amount of about
81 ,0O0,0U0 to meet interest OH
bonds, principal of car trusts, and
sinking fund payments maturing
during the year, and it cannot he
reasonably expected tFat an in
crease of net earnings will be real
lied during the year, sufficient to
provide the amount required.
ave believe that a reorganiza.
ton of the Company's finances can
probably be effected within "a short
time, owing to the absence OF com
plications in the position.
sin the present state OF the Com
pany's credit, it is obviously i'm.
practicable to dispose of further
issues Of it's bonds or stocks at
satisfactory prices.
"We arc, therefore, Of the opin.
ION that the situation can best be
met by making reasonable re.
duction III the rate Of interest on
the more recent issues Of tina Com.
pany's bonds giving compensation
thereior), and by assessing the pre-
ferred and ordinary stocks to On
amount sufficient to pay off the en-.
tire car trusts and the floating
debt. This would place the Com.
pany on q sound financial basis,
and by removing the main caueea
OF embarrassment give it time to
develop its business and recover
for the security holders the sacri
hce which they may temporarily
have to undergo.
"Acting on our best Judgment
and in what we believe to be the
interest Of tho owners of the prop
erty, We recommend that action
shall be taken BY tho Board Of Di
rectOrs to protect the interest Of
all concerned.
"Messrs. Price, WaterhOuse &
Co., public accountants, OF London
end Now York, will shortly have
completed their audit of the Rail
road Company's accounts to The
LIST of January, 1895, and upon re
ceipt of their report we recommend
} the prompt formation and oxen
ton Of plan of REIMBURSEMENT up
on the lines above indicated, st
that interest payments OH a revis
cd basic can be secured with as lit
tie delay as possible.
Very truly yours,
81. Kennedy Tod,
"Geo. Coppel,
&c. Sligo de Potlonier,
: "a. a. FL. Boissevain."
Acting upon the suggestions il
this report, receiver was asked
for by the shareholders of til,
road, and Messrs. Fink and Kim
: ball were appointed. The onl.
!. detriment to anyone intereste,
possible is loss of dividends for
time, the loss of interest OIL til
Company's bonds while the II
ownership obtains, and diminr
| ton Of the future rate Of interes