The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-08-03


Stock $500. 4.562,0ls 90 ------- -
Total.... ----- sli,021.455 90
The reorganization committee is TO
receive its expenses and compensation
| not to exceed In the aggregate 2 per
cent of the s7..i2.0O0 par value of the
new bonds TO be Issued and disposed
of. and no member OF the committee Is
to be held legally responsible as guar
antecing the execution of the plan or
| any modification thereof.
| In order to get at the situation as IL
| now exists, expert accountants nave
prepared for the committee a complete
schedule of the existing obligations of
| the various companies,sand OF the earn
| Ing OF the property during the past
two years in order to show Its capacity
OF taking care OF the proposed Issue
OF stocks and bonds.
Earnings of Properties.
In the calendar year 1907 the Vir-
| ginia Passenger and Power Company,
which has bsorbed the Virginia Elec-
trical Railway and Development Com
| pany with Its power house ana CON
way Company, showed gross earnings
of $3.50 $3.50. with operating expenses
of st6s.769.25. making net profit from
operation of $3s4ts9p.ti Other income
| total net income to s393,5lo.94.
In this period the Insurance and rem
tai of lines cost s3,37s.72; taxes and II
censes. s1TsG9.10 interest on float
u
on car trust certificates. $4,000; max
ling n total deduction from income OF
s19,426.55, which leaves surplus ap-
lplicable to fixed charges OF s3i4.osA39:
| Fixed charges on the present basis OF
capitalization with the bonded debt and
accrued interest exceeded this annual
income last year. leaving defiett as
to the Virginia Passenger and Power
Company OF s162.2ll.9s.
| In the same calendar year the Rlch-
mond Passenger and Power Company
had gross earnings OF s!I, Sso.7g. with
operating expenses OF $591.19S.O3 AZ
cost OF rented lines, there is left
surplus applicable to fixed charges of
s145.043.47. Fixed charges on present
bonded debt, sinking fund and accrued
interest left a deficit for this company
l'of $104.266.13.
The Richmond Traction. Company is
shown to be q more paying property.
having gross earnings OF s476.643.75
liked charges, taxes, licenses and the
| interest on bonds. of s53,s25:36.
receivershlp earned during 1907, gross,
sa,O74742.5i, while the Operating ex-
penses were s1,s2s:ssl.el, leaving net
from operating s745,sso.so,, with other
5s35.91. making total net income OF
s7S0,416.5l Deductions are mado for
taxes and licenses, for insurance and
sl27,656o9; leaving a net surplus for
Of os0t ss5 aspP7Hfase'e : s1s nsou ',lAises
Messrs, Ford. Bacon and Davis; eX-
who have been employed to examine
v vol have reported 70 the commit.
tee on reorganization that the amount
| Of railway and lighting business done
lin Richmond compares favorable with wit;
other cities, while the rates for rail-
way, lighting and power service are
Hess than the usual charges for cities
as shown for 1906 and 1907 are held
Ito be sufficient for the proper opera
ton of the properties. Under the re-
ceivership large amounts have been zen
betterment which have been charged
to operating expenses.
What Experts Say.
j. G. White g. Co. engineering con-
a report on the properties. which agrees
substantially with that OF Ford Ba-
con and Davis. Both engineers submit
elaborate schedules of the estimated
Of the expenditures necessary for the
l replaoement, betterment and new con-
struotion in the next five years
In regard to the plan Of reorganiza-
tons Involved Messrsl White & Com
pany say; "We are OF the opinion that
! thef properties IN question:. IL reor-
! ganized in accordance with the plan
1 prepared by your, committee would
4 show Il substantial surplus over fixed
4 charges on the proposed bond issue
and on the new expenditures which
may reasonably be expected for the
next four and a half years.
opinion, after reviewing the situation
at greater length: 1--WE believe that the
proposed bonded debt to be issued at
the time OF reorganization of these
| servative bonded Indebtedness for
properties or this. class, comprising. as
~ does. considerable amount Of
l.and thus Representing q larger capital