Wilmington daily gazette., 1874-01-24
tina wilmington and Western Raii-
road--A Letter.

of his br0tneT-tu-.aw IL
rns wilmington anu Westsrn rail
W. road-1A Letter. 1.
10 Lsasis Thompson, Es9,
.psar Sir Your position as q prominent eiti-
,.o of this vicinity, an old personal friend OF my
o-n and one OF the friends OF the wilmington
and es.ern Railroad who took an interest In It's
;..spticu and progress induces me TO address TO
vou some views as connected with present sth'as'
and future prospects. -
The apparently unfortunate financial condition
Of the Company at this time, and the diherent
msthods proposed Tor ameeration. have been to
All the officers of the Company, the subject OF
mn,h ANXIOUS thought learn you are Bond.
holder to moderate amount, and am therefore
more free to say that it is upon the CONSCIENTIOUS
and lust minded holders of the securities OF the
Road, that We must rely to determine aud give
dirs,tion to the policy best calculated 10 remedy
existing unfavorable conditions
Before entering into comparison OF the pro- |
'posed methods, u briet retrospect may not be I'm |
snoper This Railroad projected by cittnehs OF
Wilmington, aided by country interests ncentns
ia construction, was calculated to hll want sup
allied by no other Road. The W. q W. grew |
asserr sdly popular in this GUY, an an EFFORT TO |
carry ont an Idea instructive in the minds OF her
taerch ants aud manu- utactuters, that westward
into region once closely connected with them
vss the right direction into which to exteud her
arms, and westward TO various connections with
lines rolling towards tide water was the best for
securing custom, freight aid travel. Amongst
the projectors, Wilmington numbered several ol
hsr most prominent citizens, to whom she owed,
and still owes, much of her enterprise, and many
of her most beautifylng and substantial improve
ueats The ". i W. WAS no wildcat specula-
finn but started oL solid basis to supply
legitimate need, anu 10 certain point ""S d
model OF success.
Its stock subscription OF Ss5o,0oo was eV cry
dollar of it bona f2eand was collected within less
than two-ftths of one per cent. The bonded
Is lAcG moi mi
roads claimed to be successful. 1he road was
mainly built and stocked for cash, without favor
ftsn without wo are well assured, fraudulent
expenditure of single dollar, and without The
oustomary ruinous sacrifice incurred upon roads
whose contractors and furnishers take their pay
largely in stock and bonds 1t was intended to
be financial success without even the too common
sacrifice of the Investments of the original stock
holders to be- in short, an honestly buit ralioad'
on an honest business basis.
The W, &W. Il. r. now stands before us a
property of much value. 1t occupies position
90 the South side of the Christiana River, that
in the future progress OF our city must prove
0f immense Importance. Inc loca! mining
manufacturing, agricultural and other inter
ests, are developing to make good the caicula
tions of its projectors, rs far as could be expec
ted. There qs no redt rIusetor failure, y tn
present difficulties are met aoHh promptneSs dnd
tSarage,
What then Is the present condition of af
fairs? What are the dangers to be avoid
Cd? and what are the remedies to be ap
Piled?
In plain terms the s249. 900 realized frou
stock subscriptions and the proceeds OF 5000,
900 Of bonds sold being sufficient to complete
and equip tho road, floating debt OF nea
fgO. 600 was necessarily raised bya portion
the Directors and Others to answer that pur
pese After getting int operation. the lacl
Of saffcient earnings, and the financial pani
eeuDined, occasloned default1 In the paymsn
of instalments of interest due, Oct. 1st, 1877;
and Jan. lat, 1874. and gives the bondholder
caase for just complaint.
Many OF the stockholders and perhaps ais
the smaller bondholders have not yet ciearl
understood the character OF the prupositlo
proceeding from conference OF the bono
holders. When large majority Of said COZ
ference of pondholders had determined 70 graz
adelsy Of IN years, In conformity with tn
almost unanimous commendatl0n OF the
committee, TO enable the road 70 complete n
Western Connections and make up It's bus
ness, . proposition for reorganization or u
following purp0rt, was sprung upon the col
ference, and hastily adopted, namely:
/, That the new organization have stoc
capital Of 100000, and bond capital {
S6oe, 600, to cover q line Of road extendir
from the Delaware River to Oxford, or
such other point as may hereafter be settle
e, That the First Mortgage Bondholde
surrender their bonds and past duo coupon
the bonds of the new company, at par, ~
2s per cent. in stock Of the new company,
par. 90.
g. That the floating debt creditors I
ceive, IN discharge Of their debt ana intere'
IS per cent. Of the stock OF the new compan
atpar:
i~That the present Stockholders recel
tor their present holding OF stock, 70 per Gel
In stock Of the new company, at par.
o. That Board of Directors be chosen, W
shall take the remaining assets OF bonds ar
stock, and apply so much OF them rs may
necessary to complete and equip the extensi
to Oxford, or to such other point as may
decided upon.
To understand the exact drift of this proI
stioo requires considerable analysis. Its nj
harsh feature may be found III the terms on
ed to the floating debt creditors, the eentlem
NEST Of whom, through q spirit Of laadlbls
terprise, first subscribed largely to the capi
stock, next gave their labor, credit and ini
ence to the work, and lastly, when the p
ceeds of the bonds were exhausted, and
work unfinished, lent from their PRIV
means, In some cases to injurious amounts,
save the concern rom total failure by n
completion. Morally, these persons sts
equal or superior to the Bondholders, Ia q
amlcable and equitable adjustment.
There Is now, say $249 900 Of stock, and W
600 Of bonds sold had the proposed re-org
laatlon taken effect after two instalments
Interest had fallen due, the present bondho
ers would have held about $3.50 900 worth
tue new bonds and about l29 900 worth OF
new stock, thus holding securities of
amount ss those they now hold.