Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1873-05-09
ORANGE. AND iLEa NibsEA RAIL
ROAD BONDS.


road, due on the first Of the present month";
Mr.. Barbour President, on the 3O'll OF April
| issued the following circular, copy o which
was sent to all the holders of these bonds, cx-
! planning the reason why they were not paid at
maturity, which will satisfy all parties Interest
cd that the delinquency was not attributable to
any want of disposition on the part OF the man
| Augment of the company to meet Its obligations,
hut rather to causes beyond their control, and
which may cvcntuatc to the advantage OF those
who hold these obligations.
ALEXANDRIA, VA, April 80, 1873
III the Holders Of the First md 1hnr{ Mart
on0c Bou1s If the O,,myc und Ahsrunti,m
Ruiload Conqany:
The following communication has been de-
laycd to the present moment IN order to allow
the COMPANY as much time as possible to
make such arrangements as were practicable to
provide for its obligations falling duo on the
lst prOXlmo.
OF course, in view OF past and present under
takiuss, the Company could not expect To take
ND these bonds at maturity, except by the ne
eolialion Ut new Joan, and the strlngcncy
which has prevailed III the money market III
this country, aud its disturbed condition
in Europe for the past twelve months,
have prevented the successful accom-
plishmcnt OF this object, notwlthstaud-
lug that every effort has been made to
do 50. Apart from the above consideration
temnorary exceptional causes have existed to
cmbarrass the financial ability Of the Company,
and 10 divert its present and current resources
The Termination of the late civil war found its
railroad and rolling stock greatly damaged and
reduced in value, and neccssltatlng large out
'av Of capital for their renewal. The Manassas
Gap Railroad, an Important tributary, extend
ing from tie Trunk Line | II miles into the
Shenandoah Valley, had been destroyed by
military authority during the war, and It's re-
construction and completion to the town Of
Ilarrisonburg was assumed by the Company,
and executed at cost exceeding two millions
of dollars, and subsequently it became ncccs.
sarv, in order TO perfect its Southern conncc-
tons, and to develop the country, and
thereby create business for the original
line OF railway, To construct the cX'cn-
sion from Lynchburg to the town Of Dan
Vile aud The North Carolina border, distance
Of 90. miles Th3Sc enterprises have nrccsSari
Is ad,lcd to thC temporary tiaanca! burdens Ut
the Company, while the ultimate e!tGct must
tend 10 iucica>c the rccrlr;> al th& rna, ard
enhance largely the value rt tic inJrtga l'!o-
,crty In these operations the Coli:pa:.J has
received considerable aid !roui the Baltimore
anl ONO EoiroaI Company, Which hns bel-
slly assisted the Cumpany IN I'll is improve
meats. :, fact suggestive itself OF The 7alu2 soi
the pcrlialcHt Investments REFERRED 70. i!
course tile sufficient has not Yet clars3,,
Since the cotl~,ractou Of its Improve
unrt and cXtlr:iyns, nor laa ;hr rcstD-
ratiou vi pr,jspeFty i'll tic region 81
country through Which The road passes in Eir-
gilia been .,:yaucuU y4Un!, Il alIcC The WIZ 10
enable tue Company To realize the full, l"g!il-
mate returns Of it, operations; but there is every
prospect Of Il large rcnunCratlTe tra1'" being
DEVELOPED tJr the road III very early day.
The recent opening Of the Chesapeake and
OHIO kairoa! from ;sDrionsyI!lc to the West,
and the completion of the line to is Southern
terminus at Danvillc, the graduation and ma
soarv of which has been substantially accom-
plshcd, and tho track now ready for the rails,
must afford large increase Of business 10 the
Company In addition 10 these important Gle
ments OF traffic, and independent Of the ordI
nary agricultural products, the country i'll
| Virginia tributary to the railroad land OF
easy access to the rOaI) abounds in yaiu-
able and extensive beds OF iron ORES copper, as
bcstos, chaoiu marble, and white and red sand
stone Of superior quality for building purposes.
Some of these arc now being Developed and all
must in ti,lc secure the requisite capital to utal-
izc their values and create j large demand tor
TRANSPORTATION to market
In view Of the facts rccltcd, and Of the diff.
cuItics involved and after every practicable ei-
fort o make other suitable provision Tor It's OBJ
legations, now about to mature, has been re-
sorted to without success, the company respect
fully submits the following proposals to the
holders of the first and third mortgage bonds
for acceptance viz: TO receive, in lieu for
their present obligations, seven per ct. gold
bond of equal amount, guaranteed free of all
State and Federal taxes, with coupons payable
scmi-annually in New York, to run thirty
years from May /, 1873, being part OF an
issue of S., 100000, authorized by law, and
secured by first Mortgage upon 365 miles of
railroad, and its equipment, franchises, &c.
This issue of Bonds is intended to provide for
all the Mortgages of the Company as these
scvera.y mature, and its character as first
Mortgage security will be maintained by the
selection of proper Trustees to hold the orlgl-
nal obligations until all outstanding Bonds are
retired. The above proposal, it is respectfully
urged, ought to be satisfactory to both classes
of Bondhodcrs. If first Mortgage bond be
held, seven per cent. Gold Bond is offered
the holder in exchange for one yielding
six per cent interest, payable in currency,
and his present security retained until all
outstanding Mortgages are removed, and
the holder of third Mortgage Bond will
exchange for first Mortgage Bond, bear
ing substantially the same value in amount Of
interest paid, and fortified as in the other case
by having bis present bond held as security
The details of the plan will be arranged, when
accepted through the office Of the Company in
Alexandria. The Company has heretofore met
its interest with puuctuaty, and expects to
continue to pay the same as heretofore, in any
event.
After all that has been done in extending its
roads and developing resource of great future
Importance to the depressed interests of Vir-
GINA, and making valuable permanent improve
ments of its prosperity, the Company appeals
with more than usual confidence to public
liberality for acceptance Of the proposed ar
rangement. j. S. BARBOUR, President