Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-02
A RESULT OF ooMPErIr1oN.

If the competition among the bidders is
sharp, as is anticipated, the road will bring
from 81, ,0O0, 900 to S4, SOC, 900. Newcombe &
Co. have already submitted plan of reor-
| ganization, and are endeavoring to secure
control of the various interests of the road.
The important features of the plan of re-
organization have just become known. It
is proposed BY Newcombe & Co. to make
the Scioto Valley Railway part of an extern
siye system. The plan proposes the issue of
ST., 900, 900 in securities for the purchase of
the Scloto Valley, the Cleveland, Akron and
Columbus Railway, and the Western New
York and Pennsylvania Railroad.
The object of this consolidation is Ito Sc
cure new cotton route from the South to
the East. The cotton fields will be reached
by the Kentucky Central Railroad from
Maysville, KY. From this point the pro-
posed route will be extended to Portsmouth,
on the Scioto Valley, where bridge will be
constructed over the Ohio river, VIA the
Chesapeake and Ohio Railroad.
QUITE A SCHEME.
The Cleveland, Akron and Columbus
Railway will form the line from Columbus
to Akron, and from this point connectin
line will be constructed to New Castle, Pa,
the western terminus of the Western New
York and Pennsylvania Railroad. At its
eastern terminus, Rochester, the Western
New York and Pennsylvania makes con-
nection with the New York Central. which
will complete the route to the East. A
scheme similar to this was undertaken by
New York capitalists two or three years
ago, and it was almost consummated when
disagreement arose over the terms of the
purchase of the Cleveland, Akron and Co.
lumbus Railway, and the project fell
through.
The deal had gone SO far that a contract
had been signed with the New York Cen
tral, and arrangements had been made for
the purchase of the Scioto Valley. It is
understood friendly terms have been estab-
lished by Newcombe & Co. with the
Cleveland, Akron and Columbus people and
that there are no serious obstacles in the way
of consummating the deal. Newcombe q
Co. s original plan proposed also the pur-
chase OF the Columbus, Lima and Milwau-
kee railway, as an outlet to the Northwest,
but it is understood there has been some dis
agreement with President Faurot, and he
has refused 10 further consider the terms
offered. The proposed system embraces
about 600 miles Of road.
THE FINANCIAL PLANS.
The plan of reorganization proposes the
capitalization of the Scioto Valley at 81, ,0O0,-
900 and limits the issue of bonds to $23, 900
per mile. The amount of bonds that may
be issued on roads additional to the Scloto |
Valley is limited to $19, 900 per mile. Just
how the reorganization scheme of New
combe & Co. has been received is not
known, though it is said to have met with |
favor and is likely to be successful.
1t is claimed by some that the Big Four |
is anxious to secure the Scioto Valley. It |
would be a valuable addition to that i'm
portsnt system giving them q line from
points on the Chesapeake and Ohio to
Northern Ohio, Detroit and points in the |
Northwest. 1t is understood the Pennsyl- |
vsnia Company is also considering the ad-
visibility OF adding the Scioto Valley to its
system and should both the Pennsyl-
Vania and Big Four want it there will be
an interesting contest for possession.