The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-04


rumors from time to time that the
Virginia Railway and Power company
was about to absorb the Richmond
and Henrico Railway company, and
that overtures have been made by
both sides, but these have never ma
terialized, though the opinion was
freely expressed yesterday that the
older company will acquire the de-
funct lines at the sale ordered by the
Law and Equity court, which will be
asked by the counsel for the bond
holders as soon as the receivers have
submitted their report. The present
officers OF the Richmond and Hen
rico Railway company are: W. s.
Forbes president: John c. Hagan.
vice president. and Samuel L. Kelley.
general counsel.
Issue Official Statement.
President Forbes declined to dis
cuss the situation yesterday. but re-
ferred inquiries to the general coun-
sci. and Mr.. Kelley issued the follow
ing formal official statement on behalf
OF the road:
The Richmond and Henrico Rail-
way company is in default on inter-
est on Its bonds. and. in accordance
with the provisions Of the mortgage
or deed Of trust. the Union Trust
Company. Limited. which Is named
as trustee in the mortgage, has taken
possession of the property, upon di-
rection OF the bondholders: and. upon
motion OF the trustee. the Virginia
Trust company has been named by
the Law and Equity court of this city
as receiver.
These proceedings are not resist
ed by the railway company. since the
bondholders are clearly within their
legal rights, greatly as such action
is regretted by all OF the Richmond
stockholders.
'The prolonged efforts made to Sc
cure the money with which to build
the road and the many difficulties en-
countered are matters of history.
When our Canadian associates were
finally interested. we felt that ulti-
mate success was assured. as We knew
they could command practically un-
limited capital.
1T was realized. from the first, that
the road as constructed could hardly
be made to pay, at least for some
years: but 1t was then contemplated
that, with a franchise to sell light
and power and with the addition Of
more lines of connecting railway, es-
pecially line In the West End ter
ritory, we would have splendid
property-at once a source OF profit
to its owners and OF great value to the
| city.
Looked to Future.
mo expense was spared in con-
struction and equipment, and always
with a view to future development.
The building OF additional and con-
Meeting lines of street railway. al
ways considered important and al
ways intended, was rendered impera-
tive, X .he company was to live. be-
cause OF the terms OF the arbitration
award which compels the Richmond
and Henrico company to pay to the
Virginia Railway and Power COM
transferred to that company. while It
receives, in return but cent for
every passenger transferred to It. This
decision OF the arbitrators being
based Gas we think. unjustly) upon
the comparative mileage Of the two
companies. we hoped to alter by the
construction OF additional miles Of
track.
This terrible burden of transfer
payments to the rival company to-
getl1er with the fact that the Rich
mond and Henrico company waa
compelled to use the wires Of the Vir-
GINA Railway and Power company,
where the tracks are jointly used. and
to pay that company for the use OF
current Wnen IL nad current OF us Own
going to waste, greatly discouraged
our Canadian friends: but they were
| sustained by the hope OF being able
| to change these hard conditions by
securing from the city council addi-
tional franchise privileges.
Faced Many Hardships.
1.-THE long protracted. hard and fin
ally very close fight that was neces-
sary to secure the right to sell light
and power Though even then upon
very hard terms. and upon nothing
| like equal terms Wit the rival COM
pany) was further discouraging. a.
| Indicating the probable difnculty that
would be encountered in securing any
additional land to US. necessary priv
lileges. They still entertained, how
ever, the intention Of holding and de-
veioping the property: but this re-
] ceiyed ita 0nal and dAath hloSpaxsh~s