The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1877-12-03
,rints. The bonds Of the SECOND mortgage

nave appreciated since June, 1910. IRON
: sirty-eight cents in the dollar to seventy
+ eight cents. The bonds OF the first
mortgage OF the Norfolk and Peters.
since June, 1876, from about eighty-Si1
cents in the dollar to about ninety cents.
Certain other Of the bonds secured on dyi-
sional roads have risen az much as thirty
cents in the dollar since June, 1876, when
the receivers took charge Of the consolidated
line. 1t is also true that there has been no
depreciation in market value during this
period OF any class OF bonds secured on the
divisional roads. The Court, therefore,
being aware OF these facts, does not con-
slider that it acts to the prejudice of any
party in interest in adopting any measure
tending to prevent and avoid the separate
sale OF any division OF the road in fore
closure OF divisional mortgages, whereby it
may ensure sale OF the line as an entirety.
It feels bound to pursue a policy looking
to the preservation OF the integrity Of the
road from Norfolk to Bristol by many con-
sderations.
If the line were broken into several parts
each would be comparatively valueless.
The experience Of all railroad management,
in this country and elsewhere, is that lines
of road broken into parts, under disiointed
management, cannot be conducted with
economy, efficiency, or success, and are in
competent to compete with rival lines for
the business OF the country. II the Attain
tic. Mississippi and Ohio railroad were
broken at Lynchburg in its ownership and
management the roads east OF that point.
having little travel, would be reduced in
their business to very dimnutive local
trade, and if sold with their feeble revenues
world, not pay the mortgages resting
upon them. If the road from Lynch
burg to Bristol were detached from
the line, in ownership and manage
ment, ri would cease to be part OF Il
great avenue for the heavy products OF
the western country, and would be depend
cnt for its chief resources upon travel and
light express freight, which it would carry
as part OF sorth and south line. Running
through moHntain region, - would speed
lily become under the heavy expenses eosl-
stantly necessary to maintain i rs feeble in
It's revenues ana resources AZ when it YVES
srst consolidated in management with the
roads to Norfolk.
AS a consolidated line of east and west
transportation for the trade OF the west
tllig line OF road hGs been growing in i'm
poIzance and pubicsonSideration sore ana
more each year ever since lis consolidation.
Western trade, the FIRST avenue oS outlet
for which was the Eric canal, and which,
afterwards, sought tie lines OF roGh con-
structcd parallel and Tnar to that WORT, has
been tending for several years to lires on
lower ,rtitudcs and Shorter routes. The
large business OF the Baltimore and ohio
road is Il striking eNempication OF this sem
dcncy. Che growing magnitude OF the
business of the Chesapeake and Ohio raill 5ad
is another" evidence CT the strong tendency
oi wcstcrrE trade to avoid frost and long
lines in favor Of more southern and Shorter
lines. The present great artl growing bust
ness OF the Atlantic. Mississippi and Ohio
road is further and conclusive proof that
western trade is seeking tis shortest lines
across the continent to the Atlantic ports
Whether western produce 7Hks to reach
the Atlantic acaboard from Memphis or st.
Louis, or Louisville, or Omaha, or Chicago,
the line OF the atlantic, Mississippi ana ONO
road presents The shortest, anG with some IN
considerable expenditure Oh parts not yet
COMPLETED car be made the mlcst eligible OF
all the great eat and west lines OF railway.
cxccpt, probably, that Of the Chesapeake
and Ohio road. Il hats the advantage OF
resting upon tyie-water in the east, near
the foot Of Chesapeake bay. whose outlet to
:he ocean is on the same latitude riS-d-rt$
with the straits OF Gibraltcr. ard OF term;-
mating at the INST safe port north OF the
dangerous Carolina coast. It's western ter
minus at Bristol is 4 cOnverglng point for
lines OF railroad coming up from all parts
Of the southern and southwestern states.
and from the Mississippi at Memphis and
st. Louis. With small expenditure i'll the
direction OF Cumberland Gap Dr. OF New
River, Bristol or Central Depot would be-
come the focus also of lines OF railway point
ing from Louisville, Cincinnati, Omaha, and
Chicago to the seabord. When saving OF
200 miles in distance is continually Of
fered to the trade Of a vast region OF coun-
try, local influences and artificial contri-
vances cannot, for any very long period OF
time, prevent it. from seeking the shorter
routes. The operating distance from Nor
folk BY sail vessels to Liverpool being only
500 miles, andte New York only 20 miles,
and by steamers to Liverpool only 1,OO0,
and to New Y rk only 125 miles. this ten
dency OF trade to find outlet TO the ocean by
way of Norfolls over the Atlantic, Missis-
sinni and Ohio road from beyond Bristol
must continually strengthen; unless, I'M
fortunately, the road should be broken into
parts.
The disinte grafton OF the lire OF the At
lantic, Mississippi and Ohio roHd at Lynch
burg would be fatal to It's yalle a3 an cast
and west avenue oi produce moving to
market from the Vest and Southwest, and |
OF merchandise returning to those regions
from the East. the North, and Europe. The
Virginia ara Tennessee division would de-.
generate into mere road ii rapid trans
D ortation ior light goods .hd passengers
between North and South. The Soutll-Sice
and the Norfolk and Petersburg divisions
would lose their present through trade from
the western and southwestern States, and
speedily degenerate INTO She unimportant
local works which they we're within the
memories OF persons not act OF matureG.age.
Paramount, however, 60 the mere 'pecu-
mary interests OF tho bondholdcrs and
shareholders in this limo OF road and its sew
eral divisions are the public Interests con-
nected with it. The Court is not uamind-
full u the fact that TIE Commonwealth OF
Virginia, in bcstowing an expenditure Of
scyen yor eight millions OF dollars upon the
roads constituting this line, intended them
to be more than local works and especially
intended that the Virginia and Tennessee
road should be more than part OF line
OF north and south transportation for
travel and lght ircights. This charac.
ter OF road was scarcely within the contclh-
plation OF the State. Her intention was TO
construct a line OF cast and west transpof-
tuition that would bring the staple products
OF the Northwest, the West, and Southwest
across her territory to her principal cities,
and at Richmond and Norfolk would place
her merchants in connection with the large
commercial operations OF the world. The
Court keeps constantlyin view this cardinal
policy of Virginia, and has every assurance
that the foreign bondholders are dsslrouS
to pursue, advance. secure, and render per
-,,x,,t +b;, policy 4 far rs 1T lies within