Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1877-08-11
SHEN. VAL. RAILROAD.

the following article upon a subject
which should deeply interest the people
of Jefferson:
Last week we briefly mentioned the
fact that arrangements looking to re-
sumption of work upon and an early
completion of the Shenandoah Valley
Railroad, were in process of consumma-
ton. There are conditions, however,
to be complied with before the work can
90 on, and we will endeavor to state
them, az they were given to US, as well
as point out the necessity that exists tor
a compliance with them on the part of
those holding claims against the rail
road company.
Mai, L. L. Boyce, vice-president of
the S. V. r. r. Co, has succeeded in
getting party of New York capitalists
and contractors interested in the COM
pletion of his road, and it will be seen,
on reading the extract given below,
from a letter received by him, that they
have promised to accomplish the
work referred to, provided settlement
is made with the company on the terms
desired, to-wit: That all those holding
claims against the railroad company
shall compromise the same by accept
ing an income bond for the amount so
issued as to constitute first lien on the
net earnings of the road. That these
income bonds will prove to be valuable
paper after the road is completed can
not be doubted, when We reflect that
the road will be encountered with mort
gage of only $4,000 per mile, the pay
ment of the interest on which would
take precedent of the income bonds
proposed to be issued. There is scarce
ly aroad in the country that is not mort
gagged to double the amount OF the sum
deemed necessary to complete the Shen.
Valley road. And here we will remark
as our readers well know, that we have
ever maintained that this road would
never be built as long as the old con
tract, which proposes to burden the
road with a mortgage of $4,000 per
mile, was in force. We were confident
that capitalists would not invest their
money in an enterprise that could prom
Use them no returns for the Investment,
and hence we argued that it was the du-
ty of the railroad company to break
with those whose hold upon it served to
check all future operations towards Its
construction. The arrangement now
about to be entered into commends the
bonds of the.company to capitalists as
good investment, as there is every rea-
son to believe that the road will be able
to pay morethan the interest on $4,000
per mile-the amount of mortgage call
ed for under the new contract.
The necessity for an adjustment Of the
outstanding claims against the railroad
company, before the parties az present
negotiating to construct the road Will
consent 10 undertake it, is fully mani
fest. Should they commence to deliv-
er the ties and iron to put the road in
running order, they are liable to be op-
posed by lawsuit at every step taken,
by sheriff serving an execution on what
ever material he may lay his hands TO
satisfy the claims held againts the rail
road. No business man will buy law
suit; and until some arrangement OF
this kind can be made with the present
creditors of the road they will never be
in better condition to realize their
claims than they are now, wnen it is i'm
possible for them to get dime towards
the payment of the same. The amount
of indebtedness of the railroad company
is, we are informed, about S55O,OOc.
Of this sum parties representing s5Oo,-
600 have agreed TO accept to that
amount the income bonds of the compa-
ny, based upon the net earnings OF the
road, and there now remains but So
900, held by various parties along the
route OF the road, to be adjusted on the
terms proposed. While most OF this
amount is in small sums, it is desirable
that every creditor of the railroad com
pany shall stand upon an equal footing,
and all shall share to the full extent OF
their claims the responsibility TO be in
Cured. While the road is lying in its
present condition there is no possible
chance for realizing copper, and there
cannot be a change in the present con
dition of its affairs as long as a sheriff
stands prepared to levy all execution on
whatever material is delivered to com
plete the work.
We have endeavored to make the
situation plain to our readers and to
those who have claims against the COM
pany, so that due consideration may be
given to the subject. The letter ad-
dressed to Maj. Boyce, vice-presldent OF
the railroad company, is dated July 10,
and recites-
That he meaning the head Of the firm
is ready at moments notice to commence
furnishing ties, rolling stock, &C., for
your road, and will put it in running Or
der at the earliest moment possible, when
ever YOU will close the road from all Its
incumbrance, as he has agreed with you,
so that he will have nc embarrasments or
difficulties after he commences operations.
And if necessary, we will assist you III
completing the road bed for ties and rail,
and take and help you to convert your
county bonds to pay for the same. we
think by using proper energy, your road
can be completed and put in running or
der(provided we have mild winter In
less than one year from to day. NOW we
think that you must see that since you
have succeeded in getting your Philadel-
phia matters arranged, and Scott ana oth-
ers are willing to take income bonds Tor
money advanced, that you should have no
difficulty in arranging the right of way
Az 70
due the line, with income bonds.
Then Won will have Your road complet-