Smyrna times., 1879-08-13


OUR SMALL RAILRoADs.-The Pennsyl
vania & Delaware Railroad running from
Pomeroy, Chester county, Pa, to Delaware
City was sold yesterday at the Action rooms
of Mr.. Thomas & Co.. Philadelphia, under
q decree of the u. S. Circuit Court May
9th last. 1t sold for 81, 100000, the purcha.
ser being Mr.. Dell Nobitt. The build.
ing of this road was the result of utopian
scheme to transport coal from Pennsyl-
vania to the Delaware bay and thence by
water, and was a reckless enterprise from
the beginning. The road and equipments
costs $2,502 900, and with such a burden
upon its shoulders the company did not
attempt to run it. II was leased June 30th,
1873, to the Pennsylvania Railroad, but
last February this road gave up the lease,
since which time it has been run by the
Delaware Western road twice week. The
projectors of the road, with the exception
of VIM. Reybold, of Delaware City, were
citizens of Pennsylvania, and the greater
part of them Philadelphia capitalists.
The P. & u. r. B., says the Gazette, is now
about the only one of those smaller local
roads intesting the people of our State, that
has not already passed under the auc-
tioneer's hammer, in pursuance of Circuit
Court decree of foreclosure of mortgages. So
general has been this experience that it
seems to have been an ordeal through
which those roads, by the natural order of
things, were compelled to pass. Built
when times were good and prices of labor
and material were high, and having to
enter upon their existence in the midst of
q season when the country was full of
panics and failures, it is not at all surpris-
ing that the esti mates and calculations of
the projectors fell far short of expectation.
The lesson of railroad speculation that has
been taught the capitalists of Wilmington
has been bitter one; and unlike many
another moral painted by some other simi.
lar enterprise of that period.
For person to look over the list of roads
whose history in ultimate result is similar
to that of this road is to give him an idea
of the vast amount that must be lost in
this class Of roads before they can be
brought to anything approaching paying
basis. Its fate has been the fate of nearly
every road in the upper part of the PENN
sula.
The history of the Delaware and Yves
tern road from Wilmington to Landenburg
the capital for which came mainly from
Wilmington, Mill Creek and Christians
Hundreds is another example of the above.
This road struggled for four years anC
finally, over two years ago, was sold to VIM
Candy for the first mortgage bond, $500,0OO
Every one engaged in this enterprise los
heavily, the first President, J. T. Head, i
is said, 100000.
The downfall of the Wilmington anC
Reading was somewhat similar to that o
the above. After struggling for five year
it was sold to its first mortgage bond holder
for 100000. The stock of this road it nov
selling at 40 per cent. The Gazette has tn,
following in regard to the roads near us:
"The Kent County railroad ran from
Massey's, in Kent county, Md, to Chester
town, and connected at Masseys with til,
Townsend branch of the Delaware Railroad
and with the Smyrna and Delaware by roaC
running to Bombay Hook. 1t never hal
paid and was sold February 10th, 1877
when it was bought in by the bondholders
of which Jay Gould was one, and Col. Fred
Gerker became the lessee. Under tn
skillful management Of the lessee, who ha
also leased the Smyrna & Delaware Ba
road, it is doing better.
"The Maryland and Delaware Railroad
running fronn Clayton to Easton, Md, wa
chartered May 10th, 1854, and complete,
in 1857. 1t is just likely that high price
had more to do with the failure of thi
company than anything else. The cos
was 81, 100000; the capital stock, $50O,OOO
the first mortgage bonds $350,OO0; tn
second mortgage bonds $l50,000. Separat
DEGREES for the sale in Maryland and Dels
ware were granted and the road was sol
in two lots, December Goth, 1877, to tb
first mortgage bondholders for $4,000. ]
is known as the Maryland & Chesapeak
Railroad now.
"The Eastern Shore railroad, runnin
from Delmar TO Crisfed, and intended j
the first place to help in forming the Gres
North and South Air Line, by connectin
with steamers from Norfolk and conveyin
their passengers up the Peninsula to ii
north, fell through, practically speakin
as soon as it was completed. 1t was sol
last winter and the first mortgage bon,
holders bought it.
"Time may see all of these roads enio
ing prosperity but it will be many yea
before such a state of affairs comes
them. As natural event country cor
mences to improve as soon as a railros
runs through and it may be that the regioi
.d.4ccnt to the roads will become so bu
II. IS to bring them business that will
such an increase over what they do now
to make the deficiency of the receiT
compared with the expenses. This seer
the probable order of things, anyhow"
Our BANKING SYsTEM.-Tbe Associate