The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-02-08
Bills Offered in Senate
vitality Affecting r.,
r. & r. Railroad.
ROAD WILL PAY
TAXES TO STATE
Under Proposed Measure r., F..
& P. and Washington G South
ern Will Be Consolidated.
Antiquated Features of
Present Charter Be
Gotten Rid of

Bills offered IN the General Assembly
yesterday by Mr.. H. n. Wickhan, Of
Hanover chairman Of the Senate Com
nittee on Finance and Banks, will, II
eBncted into law, open tie way 10 the
long discussed merger OF the Richmond,
Fredericksburg and Potomac Railroad
with the Washington aud Southern nj
tito northern end. will make possible tne
surrender by the former Of its antiquated
charter which. while conferfing certhin
extraordinary privileges including exeiDp-
tion from taxation, alEo imposes certain
extraordinary restrictions, and, Incident
ally. VIII introduce II prospect for
thorough reorganization that will permit
the placing OF the stock upon a new and
vastly more productive basis.
Briefly stated the bills, OF which there
are three, all bearing the endorsement
al the treasury officials of the State OF
Virginia. one OF the largest OF the stock
holders Of tic Richmond, Fredericksburg
aud Potomac. have TWO important as
pccts--tlp. surrender Of the old state aid
charter with all lis exemptions and dis
g.Dilities and the rights of merger grant
ed under the uew act The surrender OF
the charter means that the Richmond,
Fredericksburg and Potomac will he
placed on an even footing with the other
railroads doing business ia Virginia. botn
as TO privileges and obligations. and viii
hereafter p9y into the State and county
and city Golfers each year total ~
sometliing approaching 5000. Provision
Is made in the new act, however. that
;ic road shall not be paraijelrd. As far
the merger, plans have not yet been per-
fected but though no one can positively
nssert with authority that the combine
'ion wiil occur. Il viii in the ordinary
course OF events como about within tue
,a.tt-
State Protested.
In eitller event. whether the Richmond,
Fredericksburg and Potomac Is simply
rtsoreaitzed under . new charter ot its
own or whether the two roads. already
Under one management. shall now unite
under one name and one act OF incor-
posation, the rights Of The state of Vir-
sinia are amply safpguarded Under the
reorganization. In whatever shape II
comes, the Commonwealth VIII receive
an allotment of stock IN the new corn
rany in precise proportion 10 It's present
holdings III the Richmond. F'redercks-
burg and Potomac. There is absolutely
nu suggestion Of sale oi these holdings
and an investment of the fund In other
securities. Iae states share of the stock,
llnw immensely valuable. will be simply
transferred from the old company to the
new. and VIII continue 10 produce reve-
nue as heretofore. AS a result of the
new plan. the dividends will probably
show large increases within q brief time,
In addition 10 this. the lump sum in
ta xea will be placed annually in the treas
iiry, The State thus has apparently all
10 gain and nothing 10 lose by the
change.
State Protected.
While tho State is in this way salts
fed. tile same cannot be said of the
otiier stockholders as 4 whole one OF
the largest of these, a prominent Rich
nond banker, yesterday expressed HIM
.cif in terms OF unqualified approval OF
Tic plan for n new charter. and another
whose holdings are about, as large and
mho Is also a prominent Richmond
banker. privately declared that he was
,pposed TO the entire movement. 1t Is
understood that one of the chief objects
% be accomplished by the change-if not
the real secret of the whole Inatter-is
The placing of the stock on more pro-
stablc, basis Under the old charter any
revenues in excess OF 10 per cent Would
nave To go 10 the State. Nine per cent
ss beiny paid now The earning capa-
,itv of the road is much greater. II the
reorganization is effected the dividends
viii, be greatly increased. probably be-
yond the 10 par cent. mark.
In this increase all teh stockholders
from selling out. therefore, the State
will probably see fit to cling fast to a
promising investment.
But an agitatng feature in the re-
organization so far as it touches the
merger plan concerns the additional
rover Ii will place in the hands of the
Pennsylvania Railroad, already a potent
factor In the affairs of the two roads.
!. 1t is u matter of common knowledge
that certain Richmond stockholders arc
rot anxious TO see the Pennsylvania
tighten its hold. and view in the possible
merger on cncroachment upon their OWL
position. Dissatisfaction with certain
recent movements by the Penn
sylvana has served to emphasize this
apprehension, The Pennsylvania is al
ready in practical control of the Rich
n,ond and Washington Railway, hold.
ing company for both the Richmond
fredericksburg and Potomac. and the
Washington and southern At present
the stock and dividend obligations of the
Richmond, fredericksburg and Potomac
are as follows:
Common stock..,,,..... 5.......... 81 00t
Guaranteed per cent. stock. 4Sll0t
Guaranteed 6 per cent stock. +. tl9,3Ol
Dividend obigatlons,..,.. ...... l072 O0l
Total. ......, ...,,.. ....,y.,.,..,. s3,Ss9,SOl
or tho above issue only the glaran-
teed stock and the common stock have
the voting privilege. 1T is to be noted
that the seven per cent, guaranteed
stock is practically u mortgage, while
still possessing the right to vote. The
real control Of the road, however, lies
with the common stock, OF which S9i7-
900 is owned by the Richmond and WASH
ingtoll Railway, which. as already stated
Is only d holding company organized to
operate tho Washington and Southern
and tho Richmond, fredericksburg and
Potomac, undersonc management
The Richmond and Washington Com
pany is owned by the six trunk lines
H f(Contiruied on Ninth paEe) @