Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-06-25
SHENANDOAH YALLEY R. r.
rh. BoneheIeeis Tr,ips to Resssan'se the
Cempany.
fRaffimore aup1

Cempany.
baltimore snn.l
Winthrop Davis and w. q. Mac
dowell, Of Philsdelphia; Frank p.
Clark, Of Baltimore, and j. w. Mary,
Jr., of Richmond, Va, committee
representing the general-mortgage bond
holders of the Shenandoah Valley rail-
road, have issued circular to that class
Of bondholders, Of which the following
is a copy:
"The undersigned committee, ap-
pointed at q recent meeting Of general
mortgage bondholders Of the Shenan-
doah Valley Railroad Company to pre-
pare, in connection with similar COM
mittee Of the first-mortgagc bondhold-
ers. scheme for the reorganization OF
the company, find it essential for your
protection that your interests be spe-
cially represented in the suits now pend
ing in Virginia, which have been insti-
tuted by your trustee, the Fidelity In
surance, Trust, and Safs-Deposit Com
pany of Philadelphia, and which suits,
in our judgment, must result in fore
closure Of the mortgaged premises un-
der one OF the other Of the two mort
Cages. Your committee, therefore,
earnestly recommend that you deposit
your bonds at once with the Fidelity
Insurance, Trust, and Sate-Deposit Com
pany Of Philadelphia, with whom all
necessary arrangements have been
made. That company will issue receipts
for bonds as received 6n such sums as
may be desiredl, and hold said bonds
subject to your order. To meet the
expenses incurred in your behalf, you
will please at the same time deposit
with the said trust company two dol
lars per bond, subject to the order Of
this committee. Your committee will
relax no effort to secure settlement
favorable to your interests, and are now
working with that view. Should they
succeed in securing such settlement
as they deem it to your interest TO ac-
cept, the same will be submitted for
your approval before you are committed
thereto"
The case comes up on July Goth at
the county-seat of Roanoke county, Va.
The Shenandoah Valley railroad runs
from Hagerstown, Nd, to Roanoke,
Va, a distance Of about $50 miles.
Trade from Baltimore goes south either
by the Coast Line, the Baltimore and
Ohio Valley Branch, the Richmond and
Danville system, or the Western Mary
land and Shenandoah Valley roads.
The Shenandoah Valley and its con-
Meeting roads form through route to
the south and southwest, and should the
foreclosure place it in the hands OF
those antagonistic to the interests
of Baltimore it would operate dis
adyantageously to the business Of this
city. The first mortgage amounts to
50, go, goo. and the second or general
mortgage to s4,055, 900. There is also
an income mortgage of s2,50O,O00'
The holders Of the first mortgage claim
that their bonds are first lien on the
whole road. The general mortgage
counsel, however, claims that the frs
is only mortgage or that part of the
road from Ilagerstown to Waynesboro'
while the general mortgage covers
the balance Of the road frou
Waynesboro' to Roanoke. Many
bonds are held here and many along
the line of road, but the majority arr
held in Philadelphia. The question o
foreclosure, as well as the question o
precedence of mortgages, or how muci
each covers, will come up when the cas-
is heard next month. Ii is thought tha
the representatives of the two classe
of bondholders, acting in cooperation
will purchase the road with their bonds
If by any possibility the road coul
be kept running in a way ia
vorable to Baltimore, it wOul
give the city fine southern
outlet. The Washington, Ohio an
Western is new road from Roun
Hill, Loudoun county, to Alexandra
Va. Only ten miles will have to b
completed from Round Hill to tap tn
Shenandoah Valley road, and then ther
would be an airline from Baltimore t
places in the Shenandoah Valley an
southwestern points. Mr.. Clark, G
Baltimore, who is one Of the commi,
tee, is also counsel for some of tn
general bOndholders.