Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-12-17
Directors to Vote Scrip Di-
vidend Of 50 Per Cent
on Stock, Etc
AN OLD CONTENTION
INCOME of State Sinking Fund, 1t is
announced, viii be Enlarged From
s52.G41 to s7S,s62.

Richmond, Dec. 17.-By unanimous
vote. the board Of directors OF the
Richmond, Fredericksburg ana 20
tomac Railroad Company, in ses-
sion in New York yesterday approx
ed the request of the stockholders
committee, to which Governor Hen
ry c. Stuart, is chairman, that there
shall be issued scrip dividend OF
30 per cent. on the stock and divld-
end obligations of the company.
In effect, this means that the
stockholders of the railroad. includ-
inc the State of Virginia, will, pro-
vidcd the present dividend policy OF
paying per cent. per annum Is
maintained, receive an increase OF
so per cent. in income from this
source, since dividends will be paid on
the Forthcoming scrip issue. In
other words, holder Of $1,000
worth of stock, who has been receiv-
ing 500 per year in dividends, should
in future receive $135 per year.
Governor Stuart wired last night
from New York that the action taken
by the board of directors was en-
tirely satisfactory to himself and to
Second Auditor Roosevelt Page, presi-
dent of the State Board of Sinking
Fund Commissioners, who accomp-
anied the Governor to New York,
The board directed the president
and geneta. counsel of the edri-
pany, William H. White and Eppa
Hunton, jr., to take such steps as
may legally be necessary to give eff
feet to the new departure, which is
effective after January 8, 1916.
1t is understood that the meeting
was most harmonious. The request
for the issue of dividend obligations
was presented by Governor Stuart.
as chairman of the stockholders
committee, representing, with Sec
ond Auditor Page, the interest Of the
State in the eirailroad, It.was based on
the, excellent financial condition OF
the road, which is. one of the, best
producers: in. the country of: cash in
come. 1t was believed by the stock
holders that the treasury of the cor
poration would easily bear the pay
ment of additional dividends, and it
was agreed that this payment had
hest take the form of a scrip divid-
dend, which will be paid in dividend
obligations like those now outstand-
ing upon. the; capital stock sof the
road. The 5O..:per; cent of dividend
obligations willEnot be upon the, stock
alone, but will amount to so per cent
of the stock plus: so per cent of divi-,
dend obligations issued in. previous
years. -
!. The commonwealth of Virginia
owns approximately rs per cent of
the stock of the Richmsond, Fred,
ericksburg and Potomac Railroad,
acquired two generations ago, when
the road was emerging from its ORR
ginal status of stage line and be-
coming rail thoroughfare between
Richmond and Washington. When the
State assisted in putting the enter
prise on its feet, none could foresee
the time when it would be perhaps
the most densely travelled and prof.
table piece of railroad in the United
States. =:
AS a result of yesterdays action,
the sinking fund will profit to the
extent of approximately $4,000 an,
nually. BY law, th> dividends on the
stock of the railroad go So the fund
which has been founded to lioulldate
some day the public debt, and this
fund is used regularly in buying in
Virginia bonds and retiring them.
However, interest is still paid on
! these honds into the sinking fund, so
that the J, effect is cumulative, and
more bonds can be purchased each
year. The annual cost for interest, not
yet being reduced, but the movement
toward final payment and eytin.
suishwe..s-t.f-tlhe~-aeht-i is tal.sas~sst'
cclerateh a., - 6
ThnaSfatasSnwus 2.752 shares O.