Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-04
Wants TO KNOW Who
IS TO PAY FOR DEFICIT
Williams Answers Argument of
Counsel as to Tidewater and
Western Railroad.
is STEADILY LOSING MONEY
Does Not Believe Increase in Freight
Rates Would Solve Situation, as
1t Would Merely Drive Business to
Standard Gauge Lines.

Langbourne NJ. Williams. president and
receiver for the Tidewater and West
ern Railroad. issued statement last
night In reply TO the arrangements
presented to the State CORPORATION
Commission by Haskins Hobson Will
liam NJ. Justis, Jr.. and others. repre-
senttng the counties through which the
road runs. and interested property
owners and shippers.
Mr. Williams said
~ large part OF the matter pre-
scented to the commission by Messrs.
Justis. Hobson and others IL based on
most erroneous ,hypotheses. The simple
facts are that during the past ten years
tho Tidewater and Western Railroad
shows total deficit of over $4,000 AS
the result Of the operation Of tho road.
or an average of over $1,000 per annum.
and In eight years we have paid over
$4,000 In taxes, and nothing to the
security holders.
For the twelve months ending De-
cember 81, 1915. our actual deficit was
Sl2.7s6. after 'crediting certain nom
collectible Items amounting to 54.l61.
SO that the actual deficit for the twelve
months ending December 81, 1915.
amounted TO SI6,94S.
Neither the State Legislature nor the
national government has appropriated
any money to cover deficits in opera
lion OF railroads. and while the State
anu natlonai governments nave put GER
tain burdens on railroads, they have
done little or nothing in recent years
to support or develop them.
OFFERED STOCKS TO
CITIZENS or COUNTIES
Before starting on our program OF
dissolution l offered all of the stocks
and bonds TO one more of the most
influential citizens OF Cumberland. Pow
hatRn and Chesterfield Counties. at
price less than so cents on the dollar
Of the estimated cost Of reproduction OF
the property, but our offers were not
accepted.
The State law giving us the right
TO dissolve and cease business is as
clear az day. and we have met all the
requirements OF the State law. reading
as follows:
Whenever all the stockholders
shall consent to a dissolution. no meet
ing or notice thereof shall be neccs-
sary; but on filing tho said consent in
the ONCE of the State Corporation
Commission the said commission shall
issue certificate of dissolution. and
the said corporation shall thercupon
stand dissolved. and the said board
shall proceed to settle up and adjust
the business and affairs Of the said
corporation. provided. however. that
such dissolution shall affect the
rights of any creditors Of said cor
poration existing At the time OF such
dissolution
III Chairman Garnctt. NJ the State
Corporation Commission, is making
most laboriou- cnor, to try to write
into the law that which is NOT In the
Law. ] think he will fail. When the
chairman Of q judicial body states. in
advance OF hearing unlawfully held.
that he had largely formulated his
opinion in advance. II is time for the
citizens at the bar to look elsewhere
for Justice.
III the road is making no money
on the business now being handled by
II. one IL justified in charging us
with making exorbitant rates, and II
there liz any one who can find any
proht that has accrued from tho or
GRAFTON OF the Underwater and Western
Railroad during the past thirty days
will be more than pleased 10 have
such demonstration made.
DENIES CHARGE OF
EXTRAVAGANT OPERATION
~ did not become interested in the
property until 1911, and before that
period and since then the operations
Of the road have been under the charge
o. Colonel T. NJ. Il. Talcot, who has
rendered most faithful, efficient and
economical service TO the stockhold-
ers and hondh olders and any charges
by the citizens OF the counties or their
attorney that there has been any e1-
travaEant operation during the past
ten years are wholly unfounded in
fact.
II should very much like 10 see the
citizsns of the counties buy the rail-
road at the attractive price which we
have offered II TO them and continue
the operation Of the railroad. but as
the trustee and Official OF the Tide
water and Western Railroad ! have
no right 70 take the money OF the
bondhclders and stockholders and or
crate the road at loss and at = heavy
cost 10 the security-holders for the
sole benefit Of the citizens OF the coun-
ties who are not responsible for any
of the deficits incurred
The general public. ] think docs
not comprehend the situation. The
Underwater and Western Railroad is a
narrow gauge line. and at few, IL
any points. is further than fifteen
miles from one of the standard gauge
roads, including the Chesapeake and
Ohio. Southern Railway, Norfolk and
Western Railroad. Atlantic Coast
Line Railway and Seaboard Air Line
Railway. and OF course, il the shipper
can load his goods standard
gauge road even at higher rate,
and a little more expense of hauling
he always seeks the standard gauge
road and thereby avoid the transfer
OF freight.
HIGHER FREIGHT RATES
WOULD NOT SAVE ROAD.
Some citizens have suggested that
We receive an increase in freight rates
Should this he granted and the rates
put materially higher, the very thing
that is expected to work our saliva
tion would work our ruin, for the
reason that the higher rates granted
TO US would drive the shippers to the
standard gauge. which would carry
goods al q cheaper rate.
The truth is. this road is an old
one, and has been weakened by sew
oral natuar ana unavoidable Develop
ments; the building OF new roads, en-
tering and crossing its territory: the
development OF the use Of automobiles;
the improvement Of the dirt roads, the
building of James River bridges enab-
ling the people in the territory for
merly tributary to us TO reach the
standard gauge roads.
we might have survived this if the
Federal and State commissioners had
permitted other natural and needed
developments to take their natural
course. AS it is. however. the stand
ard gauge roads have been prevented