The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1874-07-23
The Lake shore ana TusealawaS
Valley Railroad.


Valley Railroad.
From the Cleveland Leader. 0istl
It has been briefly stated in the Leader
and other city papers that the above
named railroad, in the affairs Of which
this city is more or less intimately inter.
ested, has failed to meet the interest on It's
bonds and has passed into the hands Of q
receiver. All this Is substantially true as
stated, but correct understanding Of the
affairs Of tho company will counteract
much Of the apprehenslons with regard
TO its future which have been expressed
since its present condition became known.
The following figures and facts may be
accepted as authentic. The total bonded
Indebtedness OF the Lake Shore d Tusca.
rawas Valley Railroad consists Of ~
100000 In first mortgage gold bonds,
payable In 23 years, and meantime bear.
Ing interest in gold at per cent; (e) q
second mortgage Of 100000 bearing 2
per cent In currency. OF this second
mortgage only o little more than 5000, 900
has been Issued, 60 that the interest &C.
count Of the company 10 2 per cent on
$4,000 900, or about $4,000 per month.
10 make the figure exact there should
be added the gold premium on such part
Of this interest as belongs to the first
mortgage bonds. The amount given Is,
however, sufficiently exact for our present
purpose.
The earnings OF the road, on the other
hand, had reached, Just before the panic
OF September last, an average Of $8S, 900
per month. Under careful, economical
management the road had been operated
Tor 90 per cent of lis earnings, leaving,
therefore, q surplus Of $4,000 per month,
more than enough TO take care Of its in
terest. During the summer Of last year
two prominent railway capitalists Of New
York had been here, gone over the line,
examined It's resources and expressed the
opinion that with competent equipment
and vigorous management II would soon
become one Of the most profitable rail-
ways Of It's length in the country. They
said to the President Of the road: "Go on
and complete your equipent, order all
the machinery you need, and we will
take your second mortgage bonds for
all your necessities" Thus assured,
the managers Of the company at once
contracted for machinery, and thereby
entered into obligations from which
they could not subsequently with
draw. In this condition the road en-
countered the panic Of last year. All
railway securities became unmsnSgeable,
and the New York capitalists declined
10 take the L. 8. s T. V. bonds. Not
only this, the earnings Of the road-so
largely dependent upon the coal and iron
tratflc-drOpped 10 $4,000 per month,
from which they have since gradually
recovered to $4,000 per month, only
$4,000 short Of the highest average before
the panic. This recovery has been almost
entirely due TO the development Of the
agricultural resources Of the country
along the line. The effect Of the revived
coal and iron traffic has yet 10 be included
in this account, but experienced Judges
familiar with all the circumstances arc
confident that from the 1st OF September
Hext the earnings Of the Tuscarawas Val.
ley road will be from $50, 900 to 10000
per month, certainly not less than $50, 900.
Meanwhile. however, the interest on the
first mortgage bonds has elapsed and the
road beeen thrown into the hands Of q re.
ceiver, E. B. Thomas, q well and favorably
known business man, for some time past
the partner Of Mayor Otis. Mr.. Thomas,
we are assured, will manage the road
economically and with careful regard for
the interests of its creditors and stock.
holders. II business revives as 1t prom
ises, there Is perfectly clear probability
that the road will work itself clear and
be restored TO its owners within a year.
We all remember that the Cleveland and
Pittsburgh road went through this same
process once, having been in the hands of
receiver for three years. It's real hbasis
was sound, however, and the G. & P.
after pulling itself out Of the mud, has
had It's stock watered and still pays s per
cent dividends. 1t must be remembered
that the past ten months have been per.
iod Of terrible trial to all American rail-
ways, particularly those dependent for
their business upon the traffic in coal and
iron. The Tuscarawas is simply one Of
ninety railway companies whose interest
is today overdue on bonds amounting to
grand total Of $959,295,G6s. That nine.
tcnths Of all these companies, including
the Tuscarswas, will pull through, and
in short time be on their feet sgain,
there is the fullest reason to believe