The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-10-11
southern CONSERVES
ITS CASH RESOURCES
Will Not Resume Payment OF Divf-
dends on Preferred Until Capt.
tai Problems Solved.
FOUR DIRECTORS, WHOSE
TERMS EXPIRED, REFLECTED
John Kerr Branch, OF Richmond, One
of Men Who Remains On Directo-
rate of Premier Railroad System Of
South.

John Kerr Branch. Of Richmond,
Adrian Iselin. Jr.. Charles Lanier and
Edmund D. Randolph. Of New York.
were reelected directors OF the
Southern Railway Company for terms
of three years at the annual meeting
Of the stockholders yesterday morn
ing.
The report or operations for the
year ended June 80 as submitted by
the board was approved in open meet
ing by the large number OF individual
stockholders present. Particular dis
cussion was given to the subject OF
dividends on the preferred stock. re-
sulting In the passage OF resolution
approving the policy of the board
with respect to dividends as expressed
in the following statement in the an
nual report:
Policy OF Conservation.
The income for the year has led
many stockholders to expect an i'm
mediate resumption OF dividends upon
the preferred stock. Mindful of the
share In the company's prosperity as
they have been compelled to suffer
in the periods Of its adversely, and
fully conscious OF the fact that the
preferred stock dividends are not GU
mulative, the board deems 1t proper
to express a Arm and deliberate con-
vtction that the interests of the stock
holders will be best served by con-
tinuing at this time the policy Of con-
servation Of the resources of the COM
pany. When, through the strength
ening Of those resources and the So
luton of the problem OF permanent
financing OF existing and future capt.
tai requirements. the payment of divi-
dends can be once again confidently
resumed. such distribution should rea
sonably be expected to continue with
out interruption by periods OF tenn
porary depression. The board believes
that assurance Of stability of income
is OF more real Importance to the
stockholders than a dividend at this
time"
Other problems Of the company in
Guiding the cost Of the Federal valua-
ton now In progress. the probable
additional labor cost due to the ap-
plication Of the Adamson law. and the
new financing plans came in for brief
discussion. Formal approval was vot-
cd the action Of the board in leasing
the Virginia ana Southwestern and
the North Carolina Midland. which
will hereafter be operated rs an ip-
tegral part Of tho Southern Railway.
Practically all the important off,
GERS. OF the company were In Rich
mond for the meeting. including in
addition to President Harrison. Vice
President Henry b. Spencer and Vice.
President and General Manager E. II.
Coapman, of Washington; Vice-Presi-
dent T. c. Powell. of Cincinnati. and
Vice-President Henry W. Miller. of
Atlanta.
Describes Work of Restoration.
An interesting feature of the an
nual report was a description Of the
work OF restoration. following the de-
struction wrought by the July floods
The damage to the property of the
company. without taking into account
the loss OF traffic or the cost of de-
touring trains, was estimated at ap-
proximstely s1,250.000.
Great Prospcrity-SmaII Net Result.
Conditions under which the road
was operated during the year were
described in the annual report as fol-
lows:
The industrial characteristics OF
the year In the South have been re-
vival and expansion. The march of
progress, which was interrupted at the
outbreak OF the European war by the
depression in the price of cotton. the
South's chief staple. has been resumed.
This fact Is reflected in the revenues
Of Southern Railway Company. Dur
ing the months of July, August and
September. 1918, those revenues con-
tinued to be on the footing of the
conditions which obtained during the
previous year. but beginning with &C.
tober they swelled progressively until
they reached volume greater than
at any similar period in the history
OF the company. The result was that
(Continusd 6n sixtA Page.