The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1880-07-20
From the Bellaire Tribune. 18th inst.
Bellaire & s. w. Railway.

Mr. EDITOR Being interested in the
success of the B & S W. Railway, l
beg to ask, through your paper, some
thing about its present financial condi-
lion.
There has been, within a few days,
submitted TO the Bellaire stockholders
(and, I suppose, to the other stockhold.
ers along the line), plan for the liq-
u!dation of the fl >ating debt of the
Company, and as there are some points
about that plan, which l do not quite
understand, perhaps you can clear my
doubts en- the subject; and possibly
President Mooney will explain for the
satisfaction of the stockholders.
l understand the floating debt to be
rising of $4,000 and the responsible
and paid.up stock about 1924, 900 Then,
to meet that floating debt, il the worst
comes to the worst, there would be re-
quired an assessment upon the stock of
about q per cent. or twenty-seven dol
lars on every hundred dollars Of stock
In matter of this kind a. no favoritism
can be shown it would be assessable
against all in the same ratio.
The programme now offered to the
stockholders is two-fold. One branch
covers the plan of syndicate by which
it is proposed to raise by subscription
$50, 900, for which cash or the bankable
notes of the subscribers must be given
which notes shall draw 8 per cent. in.
terest and mature Oct. l, 1881. For
these notes, or the cash, the Company
gives obligations carrying s per cent
interest, to mature Oct /, 1881 AS a
collateral security, the Company will de-
liver TO the members of the syndicate
second mortgage bonds at Is per cent
of their par value, which, in case OF de-
fault of payment, by the Company, Of
it's obligations maturing Oct l, 1881,
may be sold on ten days notice, at pub
lie auction, and the proceeds, as far as
they will 60, used first to pay expenses
then on account of the Company's
notes, and the residue, if any, to 60 to
the Company. I<s
But (and the engagements OF the syn
dictate are expressly in this condition)
the obligation to furnish cash or notes
to the Company. to the amount OF $780,
600, with which it is expected to liquid
ate $4,000 Of Indebtedness, is only
binding, provided the stockholders, who
do not contribute to the syndicate, shall
make donation of their stock to the
extent, in the aggregate, OF 100000.
II have stated the case properly, ]
wish to know: First-How it is that
$50, 900 will pay $4,000, for it is not
expressed in the papers in this case ?
Secondly-What becomes OF the claims
of the syndicate if the Company should
fail to pay its notes due Oct l, 1881,
and # rs per cent. Of second mortgage
bonds shall not be sufficient to meet the
notes? Thirdly-What kind Of guar
antee can be furnished to the stockhold-
ers, who release their stock, that they
shall not be called on tor additional
assessments Fourthly--Does not this
proposed argument put on the poorer
stockholders-those who have not means
to put into the syndicate, the whole
burden nf paying off the floating deb,
Of the Company ?-for it amounts TO
this, when the syndicate asks so heavy 9
bonus for its advance of $50, 900 as the
payment ofits whole advance and $780,.
600 worth of stock besides.
l trust that President Mooney, or
whoever is the responsible author OF
this plan, will take an early opportunity
to explain it's Characteristic.
& ENQUIRER.