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<br />(] <br /> <br />TUESDAY <br /> <br />S ,,?~'S1.i3E:;~ 25, 1956 <br /> <br />Martinsvillc. On the other hand, if our franchis e ':.fore extend ed, we would sell <br />aclc'i tion21 bonds c'.nd oX'J221d our sys tern. Assuming tha.'c, no burdens orne res trictions are <br />attached to this extension, upon complc,tion of the finexlcing, we will immediately <br />reduce O1Ir rates. <br /> <br />An'/ suggestim:s you Ifla'T have to help us finJ the solution to this problem would be <br />m1Jch aplJrec:,etc!d. <br /> <br />S inc erely 'Tours, <br /> <br />SCUTH!n5TE:l.!Ir VEGL~IA <br /> <br />r'l ~ ,~, <br />u.i~'::) <br /> <br />COMP ANY <br /> <br />,,"-" <br /> <br />G. T. 'Nilliams, Jr. /s/ <br />Pres ident <br /> <br />THE Lnl'~ HIS UTL' ;TU CO:.i? AI'; Oii' Vnt GI NIA <br /> <br />Home Offic e <br />RICHMOND, VmGLLtJ~ <br /> <br />Januar:'l 19, 1956 <br /> <br />~i~ <br />:E:t: <br /> <br />j <br /> <br />Mr. c. T. Williams, President <br />SouthwesteY'n Vircinia Gas Conpany <br />Ear tinsvi He, Virginia <br /> <br />'Dear Mr. 'NilliaL1s: <br /> <br />I have been thinking over the conversations which we have had with respect to our <br />holdings of t.he bonds oC Southwestern Virginic' Gas Compeny ane.: Transmission Company <br />and your stC'~tement to me 'c,hatyour Compa'lY will probably have a further issue of <br />bonds to sell in the: near futuro in or del' to provi5o funos for fut,1Ir e expansion in <br />Larti nsvi lIe. <br /> <br />"{hile it is true that you have not offered the proposed new bonds for sale to our <br />comoany and vre have r;.ot di SCUSS(; d terms of your contemplated future financing, <br />nevert"ele.:;s, It..1.ink it is only fair to advise you th,:[. 'U1ere are trIO problems <br />which will have to be solved to our satisfc'ction before TiC would be interested in <br />looking at the prosJecti~vo financing. <br /> <br />Martit:sviL~e is the largest city wnich you serve, and we understand that the <br />franchise \'ihi,;h YOil hold there viill e:\:pire in 1959. Under the terms of the fran- <br />c'-1ise, the City my 2.cquire your pr01Jerty an, woul,,, bc corrT(lelled to pay you a sum <br />of mane,' which would more than satisfy the claims of ~(our creditors, but never- <br />theless, we vroulci not be interested in gain[; to the time, trouble cino e;~pense of <br />purchasin,c:; your bonds if tile:,. might be tal<:en a,ray froE', us in .:::uch " short period. <br />It woule' be e,3sent: al that a revr franc his 0 be secill~ed orella t the existinc fran- <br />chise be extended for a subs t2.ntial period. <br /> <br />The earnings record of your COmp2JlY for the past IrJC years is not gooo. VIe <br />apprecia Le that these losses Viere caused principally by change-over to nature.l <br />