The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-03-31
IMPORTANT IF TRUE.
BIG RAILROAD SENSATION,
A Discovery By which, ItIu Claimed. Ii, State o.
0hIo eas Take Possession OF the Cleveland 4
Pittsburgh Railroad, Owing TO Ger.
tain Clause In IL Charts.

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come into the possession Of q very import
ant piece of information, which vitality
concerns the Cleveland & Pittsburgh rail
road company, which holds Its lease for
900 years, and which concerns still more
closely the taxpayers Of Ohio. The matter
will be brought to the attention OF the Leg
islature at au early date, and those who
have examined into the subject say that
the steps must inevitably be taken, which
shall result in great financial good to the
public.
Section 90 OF the charter Of the Cleye-
land & Pittsburgh road, granted by the
Legislature OF Ohio, on March "A, 1885, and
revised and amended March II, 1916, pro-
vides:
THE rATAL..cLAusE.
"That II the Legislature Of this State shall
after the expiration Of thirty-tive years
from the passage OF this act make provision
by law for the repayment to said company
OF the amount expended by them in the
the construction Of said railroad, and the
value OF the necessary permanent fixtures
thereto at tho time, with an addition OF 10
per cent thereon, together with the interest
on the cost OF the road, at the rate Of per
cent per annum, unless the dividends shall
have amounted TO Q per cent per annum,
OF which expenditures an accurate state
ment in writing, attested by the oaths or
aifirmations OF the officers OF said company,
shall be submitted to the General Assembly,
II required, then said road and fixtures
shall vest in and become the property oil
the State Of Ohio"
BETTER GET THR HORSE BEFORE BUILDING
THE STABLE.
The period OF thirty.fve years elapsed on
the 14th Of March, 1851. 1t now remains
for the Legislature to provide for sum
equal to the amount OF capital stock OF said
road, to.wlt: $lS,0s7 900 10; this being the
total amount expended by said company
for the construction Of said road. In this
total amount Is included the net annual
earnings OF the road up to the time the
same was leased to the Pennsylvania Rail-
road Company-on the 25th OF October,
1871. The total earnings for the year 1880,
OF this road, were $2,Si5,52l II: After
paying running expenses ior the same
period there remained net earning oil
ST. SID, 500 10. Out OF the net earnings the
lessee was obliged to pay, under the terms
OF it's lease, first, S7s8, ,795 to the stockhold.
srs; s345,6 80 wss paid as interest on
bonds; then portion OF the balance for
incidental expenses, leaving net profit to
the lessee, for the year, OF $l9i,92S q.
THE DUTY OF THE STATE.
The duty Of the State, in view OF these
facts, as outlined by those who have given
this matter attention, is in the following
direction: To provide the necessary means
TO return to the stockholders the amounts
OF their stock; which can be done by issu.
ing It's bonds say at 81 per cent per anuum,
the proceeds OF which would pay for the
stock; the bonds to run twenty or twenty
five wears. The difference between st per
cent (being the interest on the bonds) and
the interest received under the lease which
would accrue to the State, being per cent
guaranteed by the Pennsylvania Railroad
Company, would create q sinking fund.
which at the end OF twenty-five years would
nav of this Indebtedness assumed by the
State, and leave the taxpayers OF Ohio
to enjoy Sl,2lS000 per year forever
after. Under this arrangement the State
would assume no liability, as the seven
per cent is guaranteed, no matter what
may be the business Of the road, nor what
disaster OF management might overtake 1t.
The State received for the year named
500 900 in taxes, and in addition thereto
the lease provides $4,000 per annum
during It's existence to pay the expenses OF
the nominal officers OF said road, both OF
which sums going into the sinking fund
would augment it 10 that extent. No rights
can be disturbed by this taking Of posses.
sion, and no injury done to any one. The
State can enjoy the iruition Of It's agree
ment with the Cleveland 4 Pittsburgh
railroad company, and by Legislative action
the State may affirm the lease given by
the Cleveland & Pittsburgh Company.