Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-12-16
SOLD JUST AS EXPECTED.

The Allegheny Valley Railroad Purchased
by the Pennsylvania Interests-The Bid
Was $4,000, 900, subject to an Indebted
ness of SEC, 900, ,0OO-Plans for Reorgan-
ization.
The programme in the Allegheny Valley
Railroad sale outlined in yesterdays DIS
PATCH was carried out to the letter. Mr..
p. A. B. Widener, the Philadelphia mill
ionaire, bought the railroad, its corporate
rights and franchises. Mr.. Widener, John
B. Jackson and r. D. Barclay represent the
stockholders, and it was for their account
which virtually means the Pennsylvania
Railroad-that MI. Widener purchased the
road. Messrs. Jackson, Barclay and
Widener the committee for whom the last
named gentleman did the bidding, repre-
sent SIS, O00, 900, which is the first mortgage,
and the second mortgage of $4,000 900 be-
longing to the Pennsylvania Railroad, the
latter company having about SIS, 900, 900 in
vested in the Valley.
AT noon yesterday, after reading the noti-
fcation of the sale, Auctioneer Bailey said
that he was ready to receive bids. "Ill
give you So, 000 900" said Mr. Widener and
in less time than it takes to tell it the road
was knocked down at that figure. With
the S26, ZOO, 900 Indebtedness the purchase
price as stated, is practically S29,OOO,O 600.
There were no other bidders, the representa-
tives of the Erie system failing to material
ize. After the sale Mr.. Widener said:
''Yes, it is our intention to make many
needed improvements, the character of
which cannot mention just now. I cannot
say whether there will be any change in the
officials of the road or not
W. Fl. Barnes, the receiver of the road,
said that he was satisfied with the price and
that it had been disposed of in Just the
manner he expected. While the directory
and list of officials would be entirely reor-
ganized he did not think the changes would
go further than that and not extend to those
employed. Among those in the courtroom
were John B. jackson, of Philadelphia,
and r. d. Barclay, members of the incom-
ing Bondholders' Committee; President
Roberts and General Superintendent Pugh,
of the Pennsylvania Railroad, Judge Logan,
of Philadelphia, attorney for the Pennsyl-
vania Railroad; w. j. Howard, W. E. Ell
kins, Philadelphia; Superintendent Pit
cairn, of the Pennsylvania Railroad; D. T.
Watson and George Shiras Ill, attorneys
for incoming bondholders, and George B.
Hill
Captain J. P. Green, Second Vice Presi-
dent OF the Pennsylvania road, was seen at
the Duquesne last evening. He said the
trouble with the Allegheny Valley has
been that all the profits were eaten up by
the heavy interest on the debt. The COM
pany paid ~ per cent, and he added that
the Pennsylvania couldn't stand this
The debt will now be bonded at 4
per cent, and the Captain thinks
in time the Valley will pay. Under Re-
ceiver Barnes the road did much better
than under the former management. The
Valley is in good condition, and doesn't
need to be improved to any great extent. 1t
runs through the same kind of territory
that the Philadelphia and Erie traverses,
and it took 20 years of careful nursing to
make this road pay. In this connection it
may be said that the Valley uses the West
ern New York and Philadelphia from Oil
City to Buffalo. In time this road will be
sold in the same way to the Pennsylvania.
r. D. Barclay, one of the members OF the
Purchasing Committee, reached the city
yesterday after the sale was over. He
registered at the Monongahela House. Mr..
Barclay said the road would now have to
work out its Indebtedness The S3.00O,O0O
bid was to pay off the stockholders.