The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1888-02-09
Chesapeake and Ohio Railroad.

1t is understood that the Chesapeake
and Ohio railroad management is to I'M
dergo a thorough reorganization. 1t IS
stated that President ingalls,. OF the
Cincinnati. Indianapolis, St. Louis and
Chicago system, will be General Manager
of the Chesapeake and Ohio, although he
will not sever his relations with his
present lines. A letter from New ork
to the Cincinnati Commercial Gazette, dated
the I'd, referring to the proposed re-organ-
iRation, says "the company has never yet
met its full charges, and President Hunt
ington does not mean to have any half way
work about the organization this time
His connection with the enterprise has
been more expensive to himself than to
anyone else. He was obliged to undertake
its management to protect advances he
had made to the company through Fisk "
Hatch, who had fuanciered it. He was
its heaviest creditor when it went into
bankruptcy in 1873, carrying Fisk x
Hatch with 1t, and since then he has
spent great deal of time, attention and
money in a vain endeavor to pull it
through to solvency." All the line from
Newport News to Cincinnati, will be ia
ken IN the reorganization. The extension
from Ashland 10 Cincinnati along the
Kentucky shore of the Ohio, will be com
pleted under the direction of Mr.. ingalls,,
if he comes to the company, which seems
to be pretty well assured. Work on this
new line has been slow, because of the
weather, but it can be completed within
year or less, if desirable. Mr. Huntington
says the road needs more equipments, and
we must extend the sidipgs and make the
road practically a double track by putting
in more sidings where it can be done with
due economy. That will require consider
able expenditure. Mr.. Huntington and his
associates who are largely interested III the
road, considered at first an independent re-
organization, but lately the matter has
been taken hold of 10y other capitalists
sand Mr.. Coster of the firm of DreXel,
Morgan & Co., has been for some time en-
gagged in perfecting d plan by which the
company should be finally relieved of the
pressure upon it and strengthened so that
its securities would have positive value.
Phe plan involves a consolidation of the
properties into new trunk line extend>
ing from the city of Cincinnati to tide
water at Newport News. the ext!nguish-
ment of all the liens now upon the prop
erty and the issue of entirely new securi-
ties.
The process of reorganization will ne
cesarily be slow, and there is no chance of
the receivership being terminated this year,
unless very unusual rapidity of corporate
action is obtained. 1t is understood that
the reorganization will be based upon the
formation of one company to acquire the
ownership of the Chesapeake and Ohio
Railway. of the terminal property at New
port News, the new line from Huntington
to Cincinnati and the Ohio River Bridge.
The ownership of these last two links,
upon which no securities have been issued,
will materially aid in formulating plan
by which securities can be issued free
from any prior liens. To do full justice
to all parties in interest will undoubtedly |
require most careful consideration, such |
as it has had for several weeks, but as there !