The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-09-27
The enlargement of the round house is

The enlargement of the round house is
| urged
President Bryan deals at length with
| the indebtedness of the road in the re-
port. He says;
THE floating debt of your company,
including loan of $4,000 negotiated
under resolution of your directors for
the purpose of more speedily supplying
the pressing wants of your Road than its
revenues would permit, was on the Both
of June last, the end of the fiscal year,
| s61S4o.95, of which $6,942.00 have been
i since paid.
THE bonded debt is still $4,000 upon
which the annual interest is $19, 800,
sum sufficient to pay more than one
| per cent on your entire capital stock Of
| 81, 500, 0O0
Your attention is called to the very
! grave fact that fl'c.l June, 1893 to Sep
TENDER, 1899, inclusive, there was paid in
dividends 1921, 504, and from June 80
| 1890 to March 81, 1901, including the
amount paid by President Washington
Bryan in 1885, 80, there was paid on ac-
count of interest s263, 25t making a to-
| tai of dividends and interest of $514 754
| Deduct from that amount, debt of 1925, coo
and you will perceive that the dividends
| and interest together paid during the
above period amount to $3.50, 754 in excess
Of the entire debt, which is still due ia
full, not one penny having been paid on
the principal
| IF your company was called upon to
raise sum equal to this excess, all
had to do so by the sale Of its stock it
would have to sell, at it's present mark
ct price, something over ~ per cent of it.
| Had the dividends been applied to the
/ payment of the debt it would long since
| have been liquidated, and he'd the excess
not been expended you would have had -
your treasury today a cash balance o.
over two hundred thousand dollars.
"An examination of the books show
under the heading of improvements, that
there was expended on your road from
June 80, 1890 to September, 1899 inclu-
sive, the sum of $142, 530.32, or an aver
age of $14 .253.03 per year, while the in
terest from 1888 and the dividends paid
| from 1893 to September, 1899, together,
averaged $45,429 per annum from 1898
/ to 1899.
| by those clamoring for dividends at
any cost and willing to pay them out of
money that should have been applied to
| the maintenance of the physical condition
| of the road the above may be considered
| good and wise management; but to
others less versed in such systems of
/ finance, it seems incomprehensible unless
they are founded upon the principle of
killing the goose that lays the egg.
| Had the money paid in dividends been
applied to the debt, it would have been
lViquidated long since and we would have
] found your property when we took charge
of it, not rotted out, but in good condi-
| tion and had the service now in exist
ence been put on, it would long ago have
been, as it is rapidly becoming, on a
sound dividend paying basis. and the ex
| penditure of the large sums of money
during the last two years required to
| put the road in condition to transact its
business would have been unnecessary,
and could have gone, as a legitimate divi-
dend, into the pockets of the stockhold-
ers.
! "We>submit as d plain business propo-
| sition, if the true interest of the road
and, necessarily, that of the owners OF
| the property, are to be subserved, that
! the debt ought to be refunded and grad
| udlly PAID OH ana the annual nXeQ charge
of $4,000 thereby reduced and eventually
| wiped out, and we believe, if the present
policy of rehablitating the road is con-
| tinued, that after the coming year its
revenues will not only be sufficient to
i begin the reduction of the debt but to
| pay fair dividend to the stockholders
/ also
THE payment of dividends, which, as
/ the dilapidated condition of the entire
/ property two years ago, and the small
| amounts as shown Ey the records TO have
i been expended for betterments during the
i Immediately proceeding eight or ten years
! clearly demonstrated was made at the
| expense of it's physical condition. by
| creating the unwarrantcd impression that
| your road was in fine order, we'll equip
ped and making money, causing the bonds
representing your debt of 1925 600 to adj
vance from par to % per cent above
par. thereby increasing your debt $Sf ,2o)
and making tho sum which you would