The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-19
Vifginia-CaroIina Co. Needs
More Working Capital.
INCREASE OF BUSINESS
A Statement by the President TO The Stockhold-
srs Gives in Detail the Reasons for
the Suspension Of the
Dividend.
(By the Associated Press.)

Richmond, Va, Aug. 1S.-The Virginia
Carolina Chemical Company directors de-
cided late this afternoon to pass the divi-
dend on the common stock. They issue
the following statement to the stockhold-
ers of the company:
To the stockholders of the Virginia
Carolina Chemical Company:
your board of directors desire to say
that for the year ending June IS, 1903,
the Virginia Carolina Chemical Company
actually sold and delivered $4,000 tons
oil fertilizer, being an increase of 26 per
cent over its business of the preceding
year In addition to this, they nanufac-
tured 100000 tons more of completed fer
tilizer which they were unable to deliver
because the railroads could not furnish
transportation This large increase III
business necessarily involved the use OF
more capital during the period between
the sale and delivery of the fertilizer
and the payment thereof by customers.
This additional capital has heretofore been
easily obtained through the discounting
OF the companys bills receivable of which,
OH July 18th, 1908, the company had on
hand over $6,000,000, averaging about ST.,
COO each, and over $2,OG0,00O of accounts
receivable convertible into bills. These
bills have always been considered the
choicest paper issued in the South, and
as SUCH have been readily available for
current funds. In the unusual financial
situation which existed this year, this
course OF business became impracticable
and it was accordingly necessary that
Il Il, Al.
sufficient additional cash capital to carry
its business over to the fall months
when its bills receivable are collected
Your company therefore applied to Messrs.
j. p. Morgan and Company. of New York.
who have organized a syndicate, includ
ing Messrs Blair and Company, the
First National Bank, the National City
Bank, the Morton Trust Company. the
National Park Bank and the Bank of
America, to advance to the company,
from time to time during the next twelve
months as required, amounts which, to-
gether with its other resources, your di-
rectors deem viii be amply sufficient for
all your company's needs. Such ad-
vances will be made upon the unsecured
notes OF your company; leaving your
company's assets in its treasury free for
thus indicating the high credit which it
enjoys among the leading bankers. Al
though the company now has more than
$500. 900 cash working capital, the busi-
ness offering each year has increased to
such an extent that your directors deem
it essential that some plan should be de-
vised for the permanent provision of ad-
d;tional cash working capital, so that
ha on
amount of money during certain months
OF the year may be avoided 1t is ex-
pected that, through the cooperation Of
the bankers above mentioned, some ade-
arate plan will be devised at an early
date to accomplish this purpose. In the
meantime. until such permanent arrange
ments shall have been completed, your
directors have thought it best. 10 suspend
the payment Of the dividend upon the
common stock.
(SignedD
"VIRGINIA-CARO CHEMICAL CO.,
"By s. T. MORGAN, President"
II is understood that w. B. Chisholm,
of Charleston, s. c., retires from the di-
rectorate and is succeeded by Edward
r Stotesbury. member of the firm OF
Messrs Drexel, Morgan & Company.
of Philadelphia, Pa.
Director F. B. Dancy, of Atlanta, also
retires. and is succeeded by Norman S.
Meldrum. president of the Securities Com
pany. of New York, New York city.
Messrs. E. T. Stotesbury, Samuel Spen-
Ger and Henry Walters form a new
Finance committee
The following directors were present at
today's meeting:
f. B. Addison. s. D. Crenshaw l.. A.
Carr A. r. Ellerson. S. T. Morgan, S. w.
Travers. Henry Walters, F. Whittle, E.
T. Stotesbury, and Norman s. Meldrum,
the last two lust elected Absent: j. B.
Duke and Samuel Spencer.