Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-12-17
R.,F. &P. RAILROAD
YIELDS TO DEMAND
Directors Vote Scrip Dividend
Of so Per Cent on Stock and
Dividend Obligation.
INCREASES YIELD TO HOLDERS
Income of State Sinking Fund
Will Be Enlarged From
$52,641 to $78,e62.
INCREASES YIELDTO HOLDERS

Iiy unanimous vote. the board Of
directors OF the Richmond. Fredcricks-
burg and Potomac Railroad Company,
In session IN New York yesterday, APP
proved the request Of the stockholders
committee. Of which Governor Henry
{. Stuart is chairman. that there shall
he issued scrip dividend of 80 per
cent on the stock and dividend obliga-
tiong OF the company.
In effect. this means that the stock
holders of the railroad. including the
State OF Virginia. will, provided the
present dividend policy OF paying
per cent per annum is maintained. re-
ccivc an increase OF 80 per cent in in
come from this source since dividends
will be paid on the forthcoming scrip
issue. In other words. "a holder Of
1000 worth OF stock. who has been
receiving 500 per year in dividends.
should in future receive sl35 per year.
Governor Stuart wired last night
from New York that the action taken
by the board OF directors was entirely
satisfactory to himself and to Second
Auditor Roosevelt Page. president OF
tho state Board Of Sinking Fund Com
m!ssioncrs, who accompanied the Gov
crnor 10 New York
INCREASED DIVIDEND
EFFECTIVE AFTER JANUARY :.
The board directed the president and
general counsel Of the company VIII
liam H. White and Eppa Hunton, .Ir..
10 take such steps as may legally be
necessary to give effect to the new de-
parturc. which Is effective after Jan
uary 3 1916.
II is understood that the meeting
was most harmonious. The request
FOR the issue Of dividend obligations
was presented by Governor Stuart as
chairman Of tic stockholders commit
tee. representing, with Second Auditor
Page. the interest OF the state in the
F'ilrond. II was based on the excel
lent financial condition Of the road
which liz one OF the best producers in
the country OF cash income. II was
believed by the stockholders that the
treasury OF the corporation would
easily bear the payment OF additional
dividends. and IL was agreed tina. this
payment had best take the form OF n
scrip dividend. which vii! bc paid in
dividend obligations like those now
outstanding upon the capital stock OF
the road. The 80 per cent of dividend
obligations w'ill not lac upon tho stock
alone. but will amount 10 30 per cent
OF the stock plus 80 per cent Of divi:.
dcnd obligations issued in previous
years.
STATE OWNS APPROXIMATELY
~ PER CENT OE' STOCK
The Commonwealth OF Virginia owns
approximately IS per cent OF the stock
of the Richmond fredericksburg .,nd
Potomac Railroad. acquired two gen
erations ago. when the road was
emerging from It's original status OF :,
stage line and becoming a rail
thoroughfarc between Richmond and
Washngton. When the State assisted
IN putting the enterprise on it's feet
none could forcscc the time when il
would be perhaps the most dcnscly
travelled and profitable piece Of rail
road in the United States.
As a result Of yesterdays action. Tie
sinking fund viii profit 10 the extent
OF approximately $4,000 annually Hy
law, the dividends on the stock OF the
railroad 20 TO ths fund which has been
founded To liquidate some day the
public debt. and This fund is used regu-
larly in buying in Virginia bonds and
retiring them. However interest is
still paid on these bonds into the sink
ing fund so that the effect is cumula-
tive, and more bonds can hc purchased
each year. The annual cost for in
tcrcst is not yet being reduced but
tho movement toward final payment
and cXt!nguishmcnt of the debt is thus
accelerated.
WILL. ASSIST STATE
IN RETIRING DEBT
The state owns 2.7J2 shares of COM
mon stock. with a present market value
of about S27j,oon, and dividend obliga-
tionS worth about $4,000 more. maxi
ing the value of the holdings approXi-
matcly s5Sj,0O0. The dividend of Q per
cent which the state has been realizing
in recent years amounts TO S52,64l,
which. il is expected. will hereafter be
increased to S7S,962.
The stockholders committee attend
ing the meeting of the directors yes.
terday. at II Broadway, New York, was
composed of Governor Stuart and Sec
ond Auditor Page, representing the
state; Eebcrt q. Leigh Jr Edmund
Strudwick, Edwin y. Palmer, James a.
Moncure and Langbourno NJ. Williams
The committee has been organized sew
cral months. and has held numerous
conferences.