The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1867-11-05
Sale OF the SteubenVnIe Railroad "a
Nice Piece OF FinnncIerIng.
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From The PitS6tr0h Dispdtch.
It has been already announced that
the Pittsburgh and SteubenvilIe Rail-
road will be offered at public auction
on the 9th inst, under an order from
court directing the sale Of the same.
There are very few, perhaps, outside
OF those Immediately interested, aware
of the immense loss which the sale of
the road Will entail on the stockholders
and the. holders of income bonds,
amounting in the aggregate to very
large sum. Originally, this road was
commenced by a company chartered
for the purpose, and, 1t will be recol-
lected, that the city and county made
liberal subscriptions TO the stock of the
same. The company, however, were
unable to finish the work and leased ii
to certain parties in New York, WHO
agreed 10 complete 1t, but they in turn
found themselves compelled to abandon
it, and IL was finally transferred to the
control OF the Western Transportation
Company, who agreed to finish II with
in year aud pay a certain per centage
of the gross earnings to the company,
reserving the remainder out of which
to operate the road, and meet the inter-
est ON the mortgage bonds which they
were authorized TO issue for its compile
ton.
This contract was made some five or
six years ago, and the bonds were
were TO issue them to the Western
transportation Company as the work
progressed; but this understanding, IL
is claimed, was violated, and the bonds
disposed of, though the work was not
even commenced for three or four years
afterwards. As Il matter of course, AS
the interest on the bonds became due,
it was allowed to accumulate. The
road was to have been finished in a
year, and the receipts, it was confident
ly expected, would have Ueen found
sufficient to meet not only all expenses,
this interest included, but also leave
something handsome for the old cred
lIors of the work, to whom income
bonds had been Issued, and for the
stock holders; but not having been
opened until few months ago, interest
TO the amount of 81, 500 600, if we are
rightly informed, had accumulated in
the meantime, anu it is for payment OF
this sum that the road is now to be
sold. The sale will wipe out every dol
lar of the original capital stock of the
company, $4,000, as well as the in
come bonds and various judgments OBJ
tanned against the road by other cred
itors, amounting in the aggregate to
several hundred thousand dollars.
OF course the stockholders, many Of
whom purchased recently, unuer the
idea that now as the road was finished
they must certainly realize handsomely
from their investment, are indignant,
and dGnounce the whole business as
the result of we'll laid scheme to Sc
cure the Pennsylvania Railroad the full
and com plete control OF the work, to
the exclusion of the stockholders and
other creditors. We understand that
Colonel Phillips, the able President of
the Allegheny Valley road, offered on
the part OF the stockholders to raise
$3.50. 900 of the back interest at once il n
sale were not forced, but his proposition
was rejected and the sale ordered to
proceed. The county has ajudgment
OF some $3.50, 900 against the company,
and, as il will be swept away by the
proposed sale, ii was thought the
commissioners might interfere to pro-
tect it; but they seem to have had
enough of railroad suits. and preferred
rather to let the matter go by default
than get into any more entanglinS aIll-
ances of the kind proposed.
The road is one of the most important
in the country, and will PROBABLY com
mand heavier traffic for its length
than any line in the State, SO that the
gentlemen who have manipulated the
matter SO cleverly and who no doubt
will be the purchasers on the 9th, are
likely to make "big thing" out of it,.
T Ae lob appears to have been nicely en-
gineered all through, and shows what
little chance honest men have when
they come into collision with the auto
Gratis who manage our great railroads,
or the sharp tinanciers who from time
to time they use for their purposes.