The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-07
PLAN To ASSIST NOT
HINDER ] |: PRESIDENT.
Activity Of. G. & Q. Di.
arectors Long Urged
BY Mr.. Stevens.
NO REDUCTION
OF SALARIES
Stockholders Will Meet in Rich
n1ond con July 31st and Issue
S1o,ooo,ooo Of S Per Cent.
Bonds-All Extraordinary
Expenditures to
Be Stopped,
"I have no iden TINT my author
tt,. M President OF the Chesapenke
nnfi Ohio Railway Company has in
nny way been curtailel."

This Is the statement made byI
President George w. Stevens, OF the
Chesapeake and Ohio, yesterday on
his return from New York where he
and Mr.. Decatur Axtell, vice president
OF the road. had been In attendance
on a meeting OF the board OF directors.
Mr.. Stevens asserts that the rumors
to the effect that The policy ofFthe
chesapeake and Ohio would be changed
are erroneous. .aI
watching the situation.
The facts are that the road, like, ali
OF the great systems and business
corporations. are watching closely the
financial situation and taking steps
to guard against any money famine.
With this aim in view the ofhcta1s
OF the Chesapeake and Ohio have de-
'termined to cut down expenditures In
every direction and to stop all in-
absolutely necessary and for which
immediate payment can be made The
idea, Is to keep the expenses OF the
road within the earning capacity of
the road, and under no circumstances
to be forced to borrow at an exer-s
hitant rate money to pay for extraor-s
dlnary improvement The road. Mr.
Stevens says. is In splendid order, and
the qdebtssare small comparatively, but
II was found that s5,0o0.o00 was need
ed at once to pay these debts and to
retire certain notes falling due, so
IS 100000 was borrowed from Messrs.
Blair & Company and associates In New
York on notes at three years. and at
about the prevailing rate OF discount
This money will be used tospay the
debts ofsthe road and to retire all notes
coming due in the near future.
Will Issue Bonds.
I47s On ti1eFslst OF July a special rneet-
ing $nf the stockholders Of the Chess
npeake and Ohio Will be held I'm this
city. when X the directors will ask that
an issue OF sl0.Oo0ooo OF five
per cent bonds for, improvements and
| new equipment be authorized "A 2por-
|stion OF these bonds viii be used as
l3collateral for the loan referred to.
When asked II Mr.. Thomas F. Ryan
was In any way nterested In the deal,
Mr.. Stevens said thattas far as he knew
he wac not, and that he had no idea
that Mr.. Ryan was aware that The
loan had been made by Messrs. Blair
| & Company and their associates.
He added that the Chesapeake and
Ohio would gladly have placed the
notes in Richmond. but that no assur-
ance could be had that the banks
| here would discount them.
This same fact was true, he said
Of the plan to issue Z per cent. pre-
] 4SAA ca NcSuCh, with the Edi6 OF "n1Ch &c
retire the indebtedness. and indeed hi
had talked the matter over with local
bankers who. while willing to assis,
| In underwriting the issue, could not
insure Its success.
! Report Not True.
Regarding the ru.nor that his au
thorlty waa to Sbe curtailed, Mr.. Steven.
] stated that such was not the case. H,
said that It was only proper for thu
heads OF all corporations to have thu
active support OF their boards OF direc
tors and for long time he had urget
that the members of the board Of direc
i tors OF the Chesapeake and Ohio shoul,
4 come into close touch with the activ,
i management Of the system. With thi
4 Idea in view. at the meeting held. II
New York on Friday, at which ever,
director was present except Mr. Wick
ham and Mr.. Fowler, 1t was determined
/ that three directors of the road, to
4 gether with Mr.. Stevens and Mr. AK
tell, should form road committee
and that three other directors, to
i gether with Mr., Stevens and Mr.. Axtel]
should form a finance committee.
j This plan Is the same that Is ii
vogue in the Pennsylvania system. Th,
committees report to the board, which
acts as It sees proper on the recon-
4 mendation.
Il Nr. stevens thlnRs that instead o
being a hindrance. these committee
i will greatly facilitate the work of tn
road, and will aid In no small degre
the executive head. At the meetin
held on Friday. 1t was decided to sto
for the present all improvements. sue
as double-tracking, station buildin
and extensions. except about Ave mile
d OF double-tracking on the Peninsul
Division, near Lanexa. which lis nov
4 pra actically completed. When this SINAI
bit is finished the road from Rlchmon
4 to Newport News will be double
tracked about half the distance.
! No Cut in Salaries.
3 In West Virginia the Coal Rive
: Railroad, branch road to develo
{ lumber and coal properties will
q Continued on Fourth Page.)
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