The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-02-17
Sale of a Railroad.

4 ASoldNhO VI uliC COllSli QCllOil ColIBdllt
which is building that road, and U.
Boyce, Vice President of the Shenar IN
Valley Company, were parties to ar
to pay the State S500.0C 4or the
second mortgage debt of ST, 1000, 900 of the
Atlantic and Mississippi Road. There were
several bidders, one in the interest of the
foreign bondholders, another representing
a combination which Gen. Malone had
ing, and the other, Mr.. Clark, in be half of the
Shenandoah Valley Railroad Company and
other interests. The price paid is regarded
liberal, under all the circumstances, accord
ing to an estimate of the Dispatch about
$40, 100000 per mile ample to construct an
entire new line. The Dispatch justities the
estimate as follows: ''Under the sale made
on Thursday, the purchaser bought subject
to the divisional bonds, which were prior
lien and not yet due, and also undertook
to pay the State for its subject lien $500, 200,
and also is reported to have agreed to pay
unsecured claims amounting to nearly
$780, ZOO. At the time Of sale there was
formal notice given of other claims that
might be asserted. The exact figures are
not given, but sufficient to satisfy the in
quiries made. The amount of divisional
bonds is about s5,0O0,00O The sale on
Thursday under the consolidated mortgage
was $S,605, 900; to be paid the State $780,
600; other claims and liabilities, say $780,
aggregating these figures:
Divisional bonds. ............... $5,000,0 900
Consolidated mortgage. S.605, 900
To be paid the State. ......... 100000
Other claims and liabilities. 49,. 100000
$14,305, 900
Divide by 42O (number OF miles of road(
and it will be seen that the cost was, as
stated, over $4,000 per mile. 1t may be
said further that all of these divisional
bonds are and s per cents. and considera-
bly, above par. 1t should also be noted, on
the one hand, that there is fund in the
on the other, that the issuance of a pro-
portion of stock to the old holders will
more than represent this in the general
balance
1.-The Atlantic, Mississippi and Ohio rail
road is 400 miles long, Lynchburg being
the middle point. East of Lynchburg the
line passes through an unproductive coun-
try, and its local business emitting that. Of
Farmville and Petersburg, is of little value.
West of Lynchburg the line passes oyer the
Blue Ridge mountains and along the great
Valley through one of the most beautiful
and fertile districts in the world. The price
paid for the road is regarded by railroad
men as a liberal one. 1t is, in fact between,
$4,000 and $40 900 per mile, and it is said
that new and parallel road could be built
for less money. The line is largely Deepen
dent upon through business, and it is
threatened with diversion over the Rich
mond and Danville Railroad. Bidders were
timid on account of what they deemed
necessary arrangement with the roads west
of it, and to any other person or corpora
zion this was an obstacle. The revenues
for the last few years, however, indicate
that this is fair investment, and it is an
assuring fact that railroad under foreclo-
sure in Virginia, one half of which has lit
tie local business, has brought in cash over
100000 per mile.''
At Bristol the line connects with the East
Tennessee, Virginia and Georgia road, at
Lynchburg with the Virginia Midland and
Richmond and Allegheny, at Burkeville
with the Richmond ndDanville, at Peters
burg with the Richmond and Petersburg,
and at Norfolk with the sea.
The Shenandoah Valley Road will tap it
at Salem, and thus have a continuous con-
nection to the South and Southwest. and
form a trunk line for the northern outlet.
This will have very marked effect upon
Valley interests and will be followed by the
construction of lateral roads to draw to the
main line the rich freightage which every
where exists in the Valley of Virginia.
While Staunton is not reached by the trunk
line, the importance of this point in the
competition for freights will attract atten-
ton, and we would not be surprised if the
suggestion we made last week of the branch
road from here to Port Republic is not Ia
ken up, and reduced to tangible fact.
The growing business along the Chesapeake
and Ohio road west of Stanton, by reason
of the iron developments and manufac-
lures, and the large trade which centres
here from every direction, which would be
controlled by the transportation charges
that would be offered by these competing
lines, constitute strong reasons for the road
connecting this place at the nearest availa-
BILE point with the main stem. A line from
Staunton to Port Republic would pass
through a rich agricultural and pastural
region, and the advantages it would give to
travel in reaching the springs from the
North and going North from the West,
would assure remunerative business
from the day such a road would be COM
pleted.
The large sagacity and enlightened enter
prise which have thus far directed the man.
agement of the Shenandoah Valley company.
will, we are sure, be fully alive to such
project as we have indicated, and it would
not be a surprise to US, if, within twelve
months from this time, Staunton does not
have railroad leading to an intersection
with the Shenandoah road at or near Port
Republic.
Our usually correct and courteous cotempo-
rary of the Norfolk Ledger falls into a grievous
error when it states that John F. Lewis as
serts that the new President is in thorough
sympathy with the Mahonites, on the debt
question" Mr. Lewis has never made any
such statement. On the contrary Gen. Gar
field'sadvice is to ignore all questions that look
towards reputation in any form, and for the
Republicans of Virginia to give no counte-
nance to the reputation of the States honest
debt in any sense But there are other ques-