Savannah morning news. [volume] (Savannah) 1868-1887, 1882-10-19
THE RAILROAD COLLAPSE.
Facts About the Richmond and Dan.
vile Bubble, Which has Just Burst.


The Richmond and DanviIle proper is ONLY
l4O miles long, the line running between the
two cities which give to the road its name.
but with branches and owned and leased
lines 1t has 675 miles more, and controls
through its ownership OF a majority of the
stock In the Terminal Company 1,24S miles
more. Ia sll, the system-mansged by what
is generally known as the Clyde syndicate
embraces more than twenty-one hundred
miles OF road. Among its roads are the
Piedmont, from Danville to Greensboro, N.
q +; n, w. North Carolina, Greensboro to
Salem, N. G Richmond, York River and
Chesapeake, from West Point to Richmond:
North Carolina Railroad, from Goldsboro to
Charlotte, N. c.; Atlanta and Charlotte Air
Line Railway, from Charlotte to Atlanta,
Ca; Virginia Midland Railway, from Alex
andris, Va, to Dsnville, Va, with 163 miles
of branches; Western North Carolins; Char
lotte, Columbia and Augusta; Columb bia and
Greenville; Blue Ridge; Laurens; Ashville
and Spartanburg; Northeast, of Georgia,
and Knoxville and Augusta. The Rich
mond and West Point Terminal Company,
chartered by the Virginia Legislature in
March, 1850, was formed for the purpose of
acquiring roads not directly connected with
the Richmond and Danville Railroad Com
pany. The charter Of the latter company
debars 1t from owning stock in any but
connecting lines. The Terminal was speedily
organized the Richmond and Danville Com
pany proper subscribing to q majority of
the shares, and always maintaining its ma
1oritY control, whatever might be the in
crease In the capital of the Terminal Com
pany. Through 1t were secured nearly thir-
teen hundred miles Of the system. There
have been extra dividends and ''privIleges''
to subscribe to bonds and additional issues
OF stock distributed pro rata among the
shareholders for the time being, that to
a considerable extent account for the
dscline In the value of the securities of
both companies and their collateral
branches. For instance, the Terminal
Company started with a capital stock OF
$3,O00,0OO. OF this the Richmond and Dan
vile Railroad Company owned 81 $40, 900.
In January, 1882, the share capital was In
! eased to $5,000,O00, of which the Rich
mond and Danville held S2,55O,0OO In
May there was further advance to $15 ,000,-
600, OF which the Richmond and DanvilIe
holds 81 $40, ,000 1t will be seen that the
Terminal Company is, by the smallest frac-
| tion, just controlled by the Richmond and
| Danville Railroad Company, and that the
Terminal Company, while ostensibly the
| controller OF about 1900 miles of the
Virginia, Tennessee, North Carolina, South
| Carolina and Georgia roads, must look
to great extent to the Danvllle road prop
er for the fulfllment of its obligations.
| There is also a "Richmond aud Danville
Extension Company" with a capital stock
of $5.0O0,0O0, to which the Terminal Com
panY has Subscribed 81, $50, 900. There is
an innermost wheel within the inner wheel
1t turned, apparently upon projected road
from Atlanta to Texarksna, Texas, portions
of which have been completed. Among
the brokers yesterday evening the feeling
seemed to be that the bottom had been
reached. The cause of the decline was
variously attributed to undne expansion,
aud to watered stock and bonds primarily.
| The suddenness and extent of the col
lapse was ascribed to the fact that
large amount Of the stoeks-over ten thous-
and shares-was being carried on margin in
New York, and the owners were not fully
able to take care of it. The Virginia Mid
land road, one of those controlled by the
Richmond and Danville, was obtained by
the purchase Of majority Of shares from
the Baltimore and Ohio Railroad Company,
or shose very intimately connected with It.
The stock had been picked up here and
| there at very low fgures-some at as small
a price as 25 to so cents per share ($1O0)-
and 1t is generally believed that the Clyde
| syndicate paid par ($100) for it. Not long
| since sales were made at 49, Yesterday it
was not dealt in or quoted, though its in
trinsic value is believed to be close to par.