Wilmington daily gazette., 1874-01-24

The present stockholders, no interest being
counted to them, would have been put OIL
with about s6a.OO0 worth Of the new stock, in
fosting debt creditors with, say sa2, 500 worth
of stock In payment for $9l 900 worth of mon
ey advanced the company, and material fur
nished for finishing and equipping the road.
This shows plainly where the control OF the
stock and ownership of the road would have
been. after completing tho proposed arrange
ment; that is t129 900 worth of 1t in the hands
of the bondhOlders, and about $S4,S00 worth
of It in the hands OF the old nstockholders and
floating debt creditors; how the balance
(e3s6 .0VO) OF the proposed SGo0, 900 OF the new
stock was to have been sold and realized for
the extension of the road we are not told.-
Did the bondholders themselves, propose to
buy this stock?
Sheuld they incline to be so generous l
think our company will say this to them -
ssGentiemeu, you need not 10 into such heavy
Figures. Buy OF us one half that amount Of
stock, of which We have lots to sell buy of us
$f93 900 worth, and we can have the whole
line under contact in so days. grading, bridg-
1 Ing and track. with money to pay the contrac-
tors and can have the cara running TO Oxlord
In twelve months this will excuse you from
throwing away the 95 per cent. Of your pre-.
sent securities and ensure tho full yalne of the
whole
The stockholders acted wisely in declining to
| accept ssch proposition. ain my op IN ion, the
boncholders. Us whole, will act with equil Wiz
| dom IN rejecting the policy Of foreclosure.
| beg, therefore, you will consider patiently the
| reasons given for that opinion.
| First tnen, itIis not all probable, shouli u
forced sale now be brought about, that the road
| would sell for sam equal TO the amount OF the
bonds. probably not for 0ne Laf. Oat Of the
proceeds Of suon sale the Trustees are entitled
TO reesirs a remuneration of per cent, besides
the expenses, which will lie tfcult 10 estimate
Before the sale can take place the aohing debt
creditors will contend for their rights under the
mortgage, aud equity, with, AZ conceive, IAN
prospects cfsucces,, IN obtaining S9l 900 with
costs out of the property OF the company, aac
certainly involving great expense, litigation anc
delay, during which every interest oi the road
will severely suffer.
Under such CIRCUMSTANCES, ii is easy to con
ceive how small viii be the percentage nettet
, by any boudholaer on his securities
r 10 lhs policy Of extension, will be found th'
t key TO success and solution Of The whole problem
1 since il will largely increase the earaipss of tn
!, road, without proportionaly increasing the 10
J terest hearing debt or running expenses.
Ia future letter by your leave, propose l.
q produce statistics, and show more at large, thi
a plan OF extension, aud the reason Tor belieyin
it may be made successful, and that there
y ultimate safety in the adoption OF the proposi
IS ton made bv the stockholders, or aome other
q similar purport.
u You will note that iueing the late itnluiA
y - Revision, more than one hundred Railroads
- the United States have defauled in their inter
,s est, and yet but Two three. as We ere intort
Is have been met by this runiou4 method OF seItl
y ment. These were desperate oaaes, and II
to wisely considered by railroad meo, that only
IN cases utterly hopeless Of retrieving their iin1t
K cial condition, should auch extreme measures
d. pursued That our rcai is not in this hopele
condition | shall make fully appear in nv ne'
Il j.