The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1875-03-11
Proposition of the city of Baltimore
to Help Along the COnnelIsviilc
Railroad.

The councils Of the city OF Baltimore
are Just now considering proposition to
: sell some two millions and II half OF
Pittsburgh X Connell.ville,, Railroad bonds
held by II to the Baltimore X Ohio Rail
road Company for one million of dollars,
in order to further encourage those two
roud. AID lend Connellsvillc II helping
hand that j. much needed Just now. The
ordinance now in the Baltimore councils
provides for the sale of the interest of
/ the CITY in the second mortgage bonds
of the Pittsburgh u Conncllsvllle
Railroad to the Baltimore " ONO
Railroad Company for the sum Of one mil
I lion of dollars, to be paid in yearly in
stallments of $4,000 cach-the first
payment to be made on the lst Of July,
1876, with interest payable seml-an-
nuallv until the whole is liquidated. To
secure the payment Of the principal and
interest, a mortgage is to be executed to
the city OF all the real and personal estate
of the company. The second mortgage
now held by the city on the Pittsburgh
and Connellsvillc railroad amounts
ut this time to about S2,5O0,OOO,
of which between 100000 and
100000 consists of interest unpaid
and compound interest. All the city di-
rrctors in the council recommend the
sale to the Baltimore and Ohio company
Oh the terms proposed i'll the ordinance
| 1t is understood, moreover, that If this ar
rangement is perfected, the Baltimore
and Ohio company will proceed at once
to construct the Pittsburgh and Chicago
cutoff. whereby further saving in the
distance to the latter city Of ninety-one
miles will he effected; or, estimated by
the difference in grades: one hundred and
| thirteen miles.
The benefit of such action as the above
, to the ConncllSville road will be appar-
/ ent. when We give what President Cohen
ofthat road says:
The ConneiSvillc railroad is not
paving; she has first and second mott
/ gage bonds out and has not been able to
/ pay the interest on these bonds. The
baltimore and Ohio road have been furn-
ishing money largely to help the road
along-build it up and equip ii, but now
/ the Baltimore and Ohio road have de-
termned to advance no more money
]
better shape, and they make this
fair proposition to buy these first mort
gage bonds from the city of Baltimore on
the terms stated. They will then advance
more money to more completely equip
the Connelsville road, and they think
they can make the road pay its expenses
within year or two. They are willing
to take the risk anyhow, and in assuming
it will. of course, make themselves lla-
bic to pay the interest on the first mort
/ gage bonds, and will pay that interest as
/ it becomes due.
The city of Baltimore will. of course,
lose 10y this transaction, but Baltimore de-
rivcs great benefit from the Connells-
willie road, and will reap still greater adj
vantagrs rs the road gets in better shape.
/ The Baltimore and Ohio people therefore
think that Baltimore can stand what
seems to be loss, but what, is really
made up in the advantage the road is to
the city. The fact is. the Baltimore and
Ohio company want to get the financial
affairs of the Conncll>vill" road put into
ship shape.
As the case is now the b. n o. Com
pany won't invest any more money in
the ConnellSyillc road until the matter
is settled, because they fear that the
bondholdcrS, who want their interest,
may swoop down upon the road and take
il, and thus the b. ~ o. road will lose all
its money. But if this proposition Is ac
ceptrd, the b. " @. road will put the
Conncllsvillc road into such n shape that
it will likely pay, and then the interest
on the first mortgage bonds will be paid
promptly, and the Conncllsville will thus
be good financial basis. The b. X o.
road will pay the interest on the first
mortgage bonds, but they won't assume
it on the second in addition. They want
to get clear of one batch before they will
nut any more money into the road.