Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1888-08-23
c. K 0:ANDR. & A. LEASE
THE rw0 LINES TO UNITE ON TaE 1877
OF sEPTEMBER.
Circulars from New York Agents Giving in
Detail the Contract Between
the companits

No receiver is to be appointed FOR the
Chesapeake and Ohio railway in the
place Of the late General Wickham, and
the Richmond and Aileshany viii soon
be without such an official at tho head
OF It's management.
The matter Of the appointment Of
General Wickham's successor was some
time ago deferred until the lst OF Septem-
Der, and IL Is understood that when it
comes mp then il will be again post
poned, this time indefinitely. The object
Of this is 10 get tho affairs of both Of the
roads IN such shane that the two proper
tics can be taken out of the courts This,
il is thonRht, can bo accomplished by
October lst.
THE LEASE.
The following circulars, which contain
all OF the information concerning the
lease, and which will prove interesting
reading, especially to tailroad-men and
iiaanciers, were III the hands OF the
Richmoud brokers yesterday;
WALL sTRErT, NRw York,
AuEudt "a. tfo0s
Your committee has long realized that
the difficulty standing in the way OF
successful reorganization of the Rich
mond and Allegheny Railroad Company
was the lack OF business to warrant the
expectation TINT the interest upon the
new bonds would be met at maturity.
After several years experience it has
been demonstrated that tho local snd
such through business as the manage
ment by the most strenuous efforts could
bring upon the line was hardly sufficient
70 operate the road aud make the neces-
sary repairs without giving any return
upon the capital invested. Under these
circumstances II was evident that the
future OF the road depended entirely
upon the success of your committee IN
bringing the line into close and friendly
relations, under q common management,
with IA company or system controlling
the business which, If sent over the
Mchmond and Allegheny line. would
make it n paying property. After long
negotiation your committee he's made an
arrangement with the Reorganization
Committee o. the Chesapeake amt Ghlo
Railway Company which, while yaua-
ble one for the Chesapeake and Ohio.
is also evidently advantageous 10 the
holders of Richmond and Allegheny
securities. aud Will at once commend
itself to their approval and acceptance.
Messrs. DroXol, Morgan " Co. S circular,
herewith enclosed, explains the pro
posed arrangement. and security-holders
L., fttt inf
tion.
Your committee unanimously recon-
mend the acceptance Of TINS plan by all
sccurity-holders, for the following among
other reasons:
!. The new bonds will he secured by
a mortgage lieu upon all the property OF
the Richmond and Allcghauy kairCad
Company, which is their present se-
curity, aul iu addition, except the IN
come bords, will hc guaranteed 10y the
Chesapeake and Ohio Railway Company
or its successors, both as to principal
and interest
?. Entirely new traffic, not heretofore
reached OF attained, VIII be thrown upon
the Richmond and Allegbany Line to m
amount amply sufficient TO earn the in
terest on the new bonds. This trailic
which the Chesapeake and Ohio Com
pauy now-h1s and can send over your
line more promptly end at less cost than
in any other way, your committee be-
hcves will absolutely secure the prompt
payment at maturity Of all interest upon
the new bonds, and is IL itself better
security than any possible guarantee,
contract, or other obligation.
3. lie arrangement viii bo mutually
advantageous IN many ways, and pro-
ductivc Of such economics Ia admins
tration aud in the handling of the busi-
ness that it must improve the condition
ot all Richmond and Allegheny inte-
rests.
The committee advise all holders to
promptly deliver their Mercantile Trust
Company receipts to Messrs. Drexel,
Morgan & Co. under the terms OF then
circular. IRWIN DAVIS,
GEOEGE +. BAKER,
SMITH CLur,
JAMES T. CLoss0y,
CHARLES I. Cox.
Frances o. FRESCH,
Charles NJ. FRY,
JouN j. McCooK,
!. KENNEDY Ton,
Committee.