Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-10-11
WILL DELAY DIVIDEND
TO CONSERVE RESOURCE
Southern Railway Stockholm
Adopt Resolutions Approving
Policy Of Directors.
EARNING ABOVE q PER CE
Must First Solve Problem of Pcrn|
nent Financing OF Existing N
Future Capital Requirement
-Four Directors Arc Rc.Electndl


-Four Directors Arc Isc-Elected
Payment OF dividends nm tho
req STOCK OF the Southern Railw
"hlch mad been expected in some mn.
ters. VIII not he resumed until
roads problem Of permanent hinnnc,
| has been taken care of. This ma,
was evident Mt the twentv-th,-,
huai meeting of the stockholders. h
IN Richmond yesterday, when a reso
ton was adopted approving the mi,
OF the Southern's board OF d,rec,c
at the meeting several stockho,d
inquired az to the prospects for
Immediate resumption Of dividends
this stock. but after n general disc,
sion the resolution was passed !
proving the boards policy MS expre
cd In the following statement in
annual report:
THE income for the year haH
man! stockholders to expect an 4
mediate resumption of dividends mr.
the preferred stock. Mindful OF
just claims OF the stockholders
share In the company's prosperity.
they have been compelled to suffer
the periods of its adversely, ana mi
conscious of the fact that the nrof
red stock dividends are not cumulnti 4
the br1rd deems II proper to e1pr,
firm and deliberate conviction m
the interests of the stuckholdcrs Vi
be best served by continuing Mt Il
time the policy OF conservation OF
resources OF the company
Sny.yI. punnIE1t m.
PERMANENT FINANCE!
when. through the strengthening
those resources aud the solution
the problem of permanent financing
existing and future capital rcqul
lnents, the payment OF dividends {
be once again confidently resumed, s,
distribution should be reasonably
pccted to continue without inter-,
ton by periods of temporary busin,
depression. Tho board believes II
assurance Of stability Of INCOME
Of more real Importance to the stoo
holders than n dividend at this tim
II IL expected that at this mont
meeting OF the directors, to be h,
in New York on Friday. a plan will
considered for the roads fnanci,
This plan in II general way will pi
vide for the releasing OF the compa
from the restriction of it's devoid
mcnt and general mortgage. which I'll
It's the rate OF interest on bonds
sued hereunder 10 per cent I'll
probable that slightly higher I'd
of interest Will be offered holders
the outstanding development and mol
gage 1 per cent bonds to secure TIL
consent to this change.
on February l. the Southern has |;
100000 OF 61-2 per cent extended not
f,l Il ~ =,
cen, notes on March 2. The change
financing would be to provide Il bo1
which could he sold under cure
market conditions near par TO finar1
these maturing notes.
REPORT OF OFFICERS
Is GIVEN APPROvl
Formal approval was voted yestd
day ut the annual meeting to the
port If the nfiiccrs covering tho q
crations OF the company during q
fiscal year ended June 80. and I,
stockholders reelected for terms
three years j. Is. Branch. Of Richmor
Adrian lsclin, Jr., Charles Lanier a
Edmund -. Randolph, Of New Yoi
members of the board OF directors. Fl
lowing the custom inaugurated
President Fairfax Harrison in 1914. 4
meeting; was open to the public. a
there was large attendance of
dividual stockholders.
other problems OF the company.
Guiding the cost OF the Federal val
alton now in progress, the probable q
ditional labor cost due to the appliG
tion OF the Adamson law, and the M
financing plans came in for brief d.
cussion. Formal approval was vot
the action of the board In leasing q
Virginia and Southwestern and {
North Carolina Midland, which In q
future will he operated as an integ,
part of the Southern Railway.
Practically all OF the important
ficers of the Southern were In Rio
mond for the meeting. including,
addition to President Harrison, Fit
President Henry r. Spencer and Vid
President and General Manager z.
Coapnan. OF Washington; Vice-Pre'
dent r. G. Powell. of Cincinnati, a
Vice president Henry w. Miller. of y
lanta.
DESCRIPTION or WORK
IN FLOOD sECrIf
An interesting feature of the annu
report was n description OF the wo
OF restoration. following the destru
ton wrought by the floods last Ju
The damage TO the property OF I
company, without taking into consi
Grafton the loss Of traffic or the &C
OF dctourinE trains. Was estimated
approximately st,250,00O.
The annual report showed revenu
OF SG9.a97,GT5. or slightly less tn
the year ended June 80. 1914. viii
still marks the high record for ear
ings of the Southern.
Expenses for the year were so oc
trollcd that In the aggregate they We
actually less than in the previous ye
to the great advantage of the incol
over all charges. which grew to 5
245.103. or S2.215.73S more tnan TN 10
the last previous record In that
spect. The annual report said:
while this is n gratifying achieN
ment, II must be noted also that~t
net operating income. $2i,00A.005. viii
is the basis OF the results secured q
year. is equivalent OF Il return of OF
531 per cent on the investment I'm
railroad and equipment which pi
duced IT," The Southern has invest
s3o5.722.785
JUDGES DESIGNATED