The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1870-06-30


At the meeting of the Board of Directors
OF the Western Maryland Roilroad, held
last week, a report was made, by a special
committee, upon the financial condition Of
the Company, and the subject was thorough.
ly discussed. II appears that the funded
debt Of the road is now abont 80, 100, 900.
The Company itself, however, has no means
TO pay any interest on any Indebtedness,
and it is supposed that the 81, 200, 900 which
ia to be provided by the aid Of the city, un.
der certain restrictions, will not more than
suffice to complete the work. In order then,
that the road may be free from embarrass.
ment, it is deemed indispensably necessary
that the interest upon outs landing bonds,
accrued and to accrue, until the completion
Of the road, say in January, 1879, should
be funded, in bonds bearing interest from
that date. By thus providing for all uapaid
interest, which is nee due and may Be due
up to January I, 1879, and by making this
debt debt pcscedeSt to aud protected by
the proposed eadorsereat Of bonds by the
city, the creditor will not oaly be secure,
but the road will be relieved and the Com.
pany enabled to 60 on at once and give out
its contracts. The amount thus to be fund
ed will be about $4,000, making the total
indebtedness of the Company as of January
l, 1878, 81, 500, 600, to which is to be added
the 81, zoo, 600 to be endorsed by the city.
II is manifestly very desirable that this ar.
rangement should be entered into by the
bondholders. Il will at once remove all
questions Of litigation between the road and
any creditors, and prevent any enbarrass.
ments, as all engagements viii be deferred
to period beyond the completion of the
road, when its revenues will be, it is hoped,
amply sufficient for all purposes.
A very important suggestion made by the
committee and adopted by the Board, was
that ''no contracts shall be made for the
endorsed bonds at any stipulated price"
In other words, contracts are to be made
for money. When they are payable, the
bonds are to be sold for their market value.
If contractors wish to speculate upon West.
ern Maryland bonds they can do so in open
market, and not by adding fifteen or twenty
per cent. to their bids, to guard against
tight money markets and other contingen
cies. We must recollect that, now that the
Of this road is assured, its en-
dorsed bonds have an intrinsic value of their
own, and are in reality better secured than
the boads of the city ITSELF Capitalists will
at once understand this and the bonds will
be taken as an investment. To apportion
them of TO spectators would relieve the
market for a short time, to GOOD it, per-
haps, most iuopportaaely. As it is the aid
which the city has givea, which gives i'm.
mediate value TO the bonds and, to some ex.
tent, ensures their future value, it would be
very unjust to the city to dispose of them in
any way which might prejudicialIy affect
the funded debt of the city itself, now
amounting to some $50, ZOO, 900, and about
to be largely increased by the issue ofbonds
for the improvement of Jones Falls, and
probably for the construction Of the yir.
ginia Valley Road. The credit of the city
stands now very fair, and it would be great
pity to damage ii in any way by over.fnan,
ciering. When the bonds are placed regu.
larry on the market they will command
their current value, and no amount of d.
plomacy on the part Of contractors can
make them sell for any more. The action
Of the Board is eminently wise, and we are
only too glad to see this determination to
dispose Of bonds in a manner which will
throw the contracts fairly open to all, and
be adeath.blow to the schemes Of rings
There is but one thing more now needed,
and that is to let out the road in short sec.
tons, so as to enable all responsible com.
petitors 10 come in and have fair chance.
each one having an opportunity of bidding
according to his means. This will ensure
economical construction and probably add.
tional despatch. Baltimore Gazette.