Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-06
MAPP WANTS STATE
TO SELL ITS STOCK
Would Give Up Share in Rich
rond, Fredericksburg and
Potomac Railroad.
BILL Is BEING PREPARED
State Owns Fifteen Per Cent of
Corporation Run by Six
Railroads.
BILL is BEING PREPARED

The sale by tho state of its holdings
in the Richmond. Frederick sburg and
Potomac Railroad Company, and the
application Of the proceeds TO tho re-
uremcnt Of the public debt. is proposed
in bin now being prepared by Senator
g. Walter Mapp. of Accomac. which
viii bc introduced in the General AS
semhly this week.
The Commonwealth OWLS approxi-
matcly ] : per cent OF the stock Of this
road. acquired two generations ago.
when " was emerging from tho stage
coach status and developing as :. rail
thoroughfarc between Richmond and
WASHINGTON
Senator Mapp and his advisers have
figured out that If the State sells its
present holdings AT the market price, il
VIII realize q sufficient amount from
the sale 10 retire enough Of the Com
Inonwcalth's 3 per cent bond. TO effect
an annual saving to the state OF more
than $4,000 The common stock is
now quoted at about $50.
STATE DRAWS LARGE
INCOME FROM STOCK
The state owns 2.Tj2 shares Of COM
mon stock. with a par value OF $4,000,
and dividend obligations worth about
$4,000 more, making the par value
Of the Commemorative holdings about
$4,000. The dividend of ? per cent,
which the State has been realizing in
recent years. amounts TO S52.64l. With
the extra scrip dividend OF 90 per cent
on the stock and dividend obligations.
authorized by the company on Decem-
her lc. the income of the state from
It's holdings will be increased 10
s7S.oso, providing the present dividend
rate Is maintained.
Under the law. the dividend received
on tho stock owned by the State goes
10 the fund which has been created to
iiquidatc somo day the public debt
This fund Is used regularly in buying
in Virginia bonds and retiring them.
Interest continues TO be paid on the
bonds so bought in. so that the effect
is cumulative, and more bonds can be
purchased each year.
BELIEVE STATE COULD SAVE
LARGE SUM IN INTEREST
Those who have made "a study OF the
situation for the purpose OF framing
the bill 10 he introduced by Senator
Mapp make the assertion that the state
could sell its holdings on the open
market and invest the proceeds in it's
own 3 per cent bonds, in this manner
eliminating in interest $4,000 more
annually than il would receive in divi-
dends IL the railroad stock were held
The trainers Of the bill, il is stated
are also impressed with the dcsir-
ability OF removing the Richmond
Fredericksburg and Potomac Railroad
Of f,.,-
ence In former years the road en-
joycd material exemptions because Of
the States partial ownership. Several
years ago. however the road obtained
a new franchise. paying 10 the Com
monwealth alone about sl75.o6o IN back
taxes. besides large sums 10 the scpa-
rate counties, cities and towns. Under
the new charter. the Richmond. Fred
ericksburg and Potomac enjoys no
privileges not ACCORDED 10 other rail
roads in the state. and is in every
other respect on the same footing
MOORE DOUBTS WISDOM
OF SALE At THIS TIME
Auditor of Public Accounts c. Lee
Moore discussing the proposed bill,
last night expressed the opinion that
it was a matter which is deserving OF
The General Assembly ought 10 go
very slow with any movement looking
TO the sale of the States holdings in
this property" said Mr.. Moore. The
stock is very valuable and constantly
Increasing in value. and IL may he opcn
10 serious question whether the State
would be justified, from the standpoint
Of good business, in selling its stock
even at a very high price. In order to
be considered seriously at all. the stock
would have to he sold at a price which
will make possible the retirement Of
enough State bonds TO make the in
tercst OF these bonds equal TO the Q
per cent dividend which the common
stock pays
Even il the railroad stock could he
sold for more than three times its par
value. tho transaction would be of
doubtful profit In parting with It's
stock, the State loses all chance Of
matchmaking in another melon-cutting
like the one of last December, which
increased the States income from this
source 80 per cent at one swoop."
STOCK HAS IMMENSE
FUTURE Possibilities
one OF the leading stockholders in
the city last nlSnt caileu the pfopOSai
to sell the States Richmond, Fred :
erick sburg and Potomac stock n piece
NJ business which would be extremely
ill-adviscd on the part of the Com
monwealth. The state, he said, owned
I'm this stock property which is the
4!s,ost valuable of it's kind in the coun-
try. with future possibilities that can
not he estimated
In support of the sale of the States
holdings, it is urged that this railroad
would be deprived of even the remotest
claim on the States good offices. I'm
der present conditions, proposals look
ing to the expenditure OF Il large sum
of money for improvements arc fire.
Quently met with the objection that the
Commonwealth. as seventhpart owner,
would have to stand part of the eX-
pcnso. The divorce proposed by the
now bill would leave the State abso-
-