Imágenes de páginas
PDF
EPUB
[blocks in formation]

Acquired without apparent costs through The Richmond and Danville Railroad Company's guaran. tee of the principal and interest of bonds issued by the companies named. Acquired through lease of Atlanta and Charlotte Air Line, credited to the profit and loss account.

Owing to the absence of the accounting records, the considerations given or received by The Richmond and Danville Railroad Company in the acquisition or disposition of investments in other companies could not be ascertained, except that the records reviewed disclosed that the company issued $1,000,000 par value of its capital stock in exchange for $5,000,000 par value of the capital stock of the Richmond and West Point Terminal Railway and Warehouse Company. The Richmond and Danville Railroad Company acquired a total investment of $7,510,000 par value of the capital stock of the above company, which company it controlled until about 1886 when the Richmond and West Point Terminal Railway and Warehouse Company acquired control of The Richmond and Danville Railroad Company and in that year The Richmond and Danville Railroad Company disposed of all of the above stock, but the records reviewed did not disclose the considerations involved.

The records reviewed disclosed that in disposing of $3,819,730 book value of investments, The Richmond and Danville Railroad Company realized a profit of $579,617.96, which amount was credited to the profit and loss account.

In addition to the foregoing tabular statement of investments acquired and held at the date of demise, the printed audit of the Richmond Terminal Reorganization Committee accounts to April 5, 1895, stated that this company acquired other securities at the time the property of The Richmond and Danville Railroad

Company was sold at foreclosure or at receiver's sale, of assets or from collateral loans, detailed as follows:

[blocks in formation]

Sinking funds.-The equipment-mortgage 5 per cent and 6 per cent bonds of The Richmond and Danville Railroad Company provided for the creation of a sinking fund for the retirement of the bonds issued thereunder, based on annual payments to the trustee of 4 per cent on all bonds issued under these mortgages. The report filed by the company with this commission for the year ended June 30, 1894, recorded an investment in sinking funds in the amount of $277,715, but the records reviewed did not disclose how this fund was created nor the considerations involved in its acquirement.

Investment in advances.-The report filed with this commission for the year ended June 30, 1894, did not include an investment in advances account. However, it recorded an amount of $8,891,247.62 under an account styled Due From Solvent Companies and Individuals. An examination of the available records of the various companies affiliated with The Richmond and Danville Railroad Company disclosed that those companies recorded amounts due The Richmond and Danville Railroad Company and its receivers aggregating $8,328,822.26; therefore of the $8,891,247.62 reported by The Richmond and Danville Railroad Company $8,328,822.26 has been classified, for the purpose of this report, as investment in advances, detailed as follows:

Atlanta and Charlotte Air Line----.

Charlotte, Columbia and Augusta Railroad Company.
The Columbia and Greenville Railroad Company.
The Georgia Pacific Railway Company----
High Point, Randleman, Asheboro and Southern_..
Lawrenceville Branch Railroad Company__
Northeastern Railroad Company (of Georgia).
Richmond and Mecklenburg..
Roswell Railroad Company.

State University Railroad..

The Virginia Midland Railway Company..
Western North Carolina Railroad Company..
Yadkin Railroad Company...

Total....

$1,297, 976. 98

216, 984. 79 614, 608. 34 3,995, 259. 77

65, 860. 48

12, 828. 44

45, 420.59

72, 048. 37

5, 871. 45

62, 790. 33 700, 044. 86 1, 179, 755. 29 59, 372. 57

8, 328, 822. 26

The available records also disclosed that The Richmond and Danville Railroad Company had made investments in advances to affiliated companies aggregating $203,876.39, which amount was charged off to the profit and loss account, due to the insolvency of the companies to whom the advances were made.

-

ATLANTIC, TENNESSEE AND OHIO RAILROAD COMPANY IN NORTH CAROLINAPREDECESSOR OF THE SOUTHERN, FORMERLY NAMED ATLANTIC, TENNESSEE AND OHIO RAILROAD COMPANY

No accounting records of the Atlantic, Tennessee and Ohio Railroad Company in North Carolina were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Certain information stated below was obtained from a report filed by the company with this commission for the year ended at June 30, 1894, from the available records of The Richmond and Danville Railroad Company and of the Southern, from returns made by the Southern and from other sources.

The Atlantic, Tennessee and Ohio Railroad Company in North Carolina was controlled on the date of demise by the Richmond and West Point Terminal Railway and Warehouse Company through ownership of a majority of the outstanding capital stock. The property was operated during its corporate existence as follows:

Name of company

Own organization.

Road dismantled in 1863, reconstructed and reopened for operation June 22, 1871.

Own organization..

Charlotte, Columbia and Augusta Railroad Company.
The Richmond and Danville Railroad Company.

Receivers of The Richmond and Danville Railroad Company..

[blocks in formation]
[ocr errors]

At date of its demise the Atlantic, Tennessee and Ohio Railroad Company in North Carolina owned about 45.29 miles of single-track, standard-gauge railroad, extending from Charlotte to Statesville, N. C., which was operated on that date by the receivers of The Richmond and Danville Railroad Company. This entire property was acquired by construction, completed in 1860.

The Atlantic, Tennessee and Ohio Railroad Company in North Carolina operated its property until some time in 1863, when the Confederate Government dismantled the railroad, as a military necessity, and used the rails in the construction of the Piedmont Railroad Company's property.

Under an act of the Legislature of the State of North Carolina, ratified February 3, 1869, the State issued to the Atlantic, Tennessee and Ohio Railroad Company in North Carolina $147,000 of its bonds, for the purpose of enabling the company to reconstruct its railroad. With this assistance the work of reconstruction was begun and on June 22, 1871, the railroad was again opened for operation.

Records of the Southern disclose that in acquiring the property of the Atlantic, Tennessee and Ohio Railroad Company in North Carolina it assumed $150,000 par value of that company's first-mortgage 6 per cent gold bonds, dated April 10, 1883, due April 10, 1913. It could not be determined from the records reviewed what considerations were received by the Atlantic, Tennessee and Ohio Railroad Company in North Carolina for these bonds when issued.

The company's annual report to this commission for the year ended June 30, 1894, records capital stock outstanding on that date of $400,000 par value and funded debt of $150,000 par value.

The investment in road and equipment of the Atlantic, Tennessee and Ohio Railroad Company in North Carolina, including land, is stated in its annual report to this commission for the year ended June 30, 1894, to be $617,609.09. The same report records investment in capital stock of the Atlantic, Danville and Ohio Railroad Company of $6,690.

THE RICHMOND, YORK RIVER AND CHESAPEAKE RAIL ROAD COMPANY-PREDECESSOR OF THE SOUTHERN

No accounting records of The Richmond, York River and Chesapeake Rail Road Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Certain data stated below was obtained from the company's report to this commission for the year ended June 30, 1894, from returns made by the Southern and from other sources.

On date of demise, The Richmond, York River and Chesapeake Rail Road Company owned about 39 miles of railroad, extending from Richmond eastwardly to West Point, all located in the State of Virginia. This property was operated by The Richmond, York River and Chesapeake Rail Road Company through its own organization from its acquirement on July 4, 1873, to July 9, 1881, when it was leased to The Richmond and Danville Railroad Company. The latter company and its receivers operated the property as a part of that company's system from July 9, 1889, to June 30, 1894.

The property, rights, and franchises of The Richmond, York River and Chesapeake Rail Road Company were sold and conveyed to the Southern by deed dated June 28, 1894, but the Southern did not begin operation of the property as a part of its own system until July 1, 1894, and the date of demise of The Richmond, York River and Chesapeake Rail Road Company is considered for accounting report purposes to have been June 30, 1894.

The total capital obligations of The Richmond, York River and Chesapeake Rail Road Company outstanding on the date of demise amounted to $1,397,500 par value, as shown by the company's report to this commission for the year ended June 30, 1894, of which $497,500 represents capital stock and $900,000 funded debt.

In its annual report for the year ended June 30, 1894, The Richmond, York River and Chesapeake Rail Road Company reported a profit and loss debit balance of $139,391.35. No further information relative to its corporate operations is obtainable.

In the same annual report, the investment in road and equipment, including land, is reported as $1,397,257.96. No analysis of this balance could be made owing to the lack of accounting records.

THE RICHMOND AND YORK RIVER RAILROAD COMPANY-PREDECESSOR OF THE RICHMOND, YORK RIVER AND CHESAPEAKE RAIL ROAD COMPANY

No accounting records of The Richmond and York River Railroad Company were obtained. Certain information stated below was obtained from returns made by the Southern and other sources.

On July 4, 1873, the date on which the property was finally disposed of, The Richmond and York River Railroad Company owned about 39 miles of railroad, extending from Richmond eastwardly to West Point, all located in the State of

Virginia. This mileage was operated by the company's own organization from the date of its completion, March 29, 1861, until it was wrecked during the Civil War, and from its reopening during the year 1867 until July 4, 1873. The property was acquired by construction. The entire mileage was completed and opened for operation on March 29, 1861, and was wrecked by Federal troops some time during the Civil War. The entire line was reconstructed and reopened

for operation during the year 1867.

The amount of capital obligations issued by the company incident to the original construction and the reconstruction of its railroad could not be ascertained, but it is stated that two mortgages were placed on the property, securing funded debt which is described as follows:

Eight per cent bonds dated January 1, 1857, and due January 1, 1877, were authorized in the par value of $500,000, of which a total of $400,000 par value were issued. $53,000 par value of this amount were reacquired and retired prior to the Civil War, leaving $347,000 par value outstanding on December 16, 1872, when the mortgage was foreclosed.

Eight per cent bonds dated January 1, 1866, and due January 1, 1886, were authorized in the par value of $647,000, of which $347,000 par value were to be issued only in exchange for a like par value of the bonds dated January 1, 1857, and $300,000 par value were to be issued for construction. Only the $800,000 par value last mentioned were issued, and these were all outstanding on December 16, 1872, when the mortgage was foreclosed.

It is also stated that three-fifths of the capital stock issued by The Richmond and York River Railroad Company under its original charter, amount not stated, was subscribed for by the State of Virginia as an aid to the construction of the railroad.

WASHINGTON, OHIO AND WESTERN RAILROAD COMPANY-PREDECESSOR OF THE SOUTHERN

INTRODUCTORY

No accounting records of the Washington, Ohio and Western Railroad Company were obtained. Certain information stated below was obtained from minute books of stockholders' and directors' meetings, a report filed with this commission for year ended June 30, 1894, returns made by the Southern, from the accounting records of the Southern, and from other sources. The Washington, Ohio and Western Railroad Company was controlled by the Richmond and West Point Terminal Railway and Warehouse Company, through ownership of a majority of the outstanding capital stock from about the year 1886, until in the reorganization of the Richmond and West Point Terminal Railway and Warehouse Company properties, control of the Washington, Ohio and Western Railroad Company was temporarily vested in the Richmond Terminal Reorganization Committee, pending the surrender of property to the Southern on July 1, 1894. The Washington, Ohio and Western Railroad Company operated its property from May 23, 1883, the date it acquired its original property, to October 30, 1886, on which date its property was leased to the Richmond and Danville Railroad Company. This company and its receivers continued to operate the property until the date of demise of the Washington, Ohio and Western Railroad Company. On date of demise the Washington, Ohio and Western Railroad Company owned about 50.12 miles of single-track, standard-gauge railroad, extending from Alexandria to Round Hill, Va., which was operated by the receivers of the Richmond and Danville Railroad Company.

The organization of the Washington, Ohio and Western Railroad Company was not perfected until June 12, 1883. Immediately thereafter the Washington,

115541°-32-37 VAL. REP.- -37

« AnteriorContinuar »