The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1891-12-03

~ ~. lsOdio ShoSn "habAA hto ES'
into the consolidation with other lines
west OF Pittsburgh in June. 1890. The
committee into whose hands the matter
was placed, rs we'll rs the Council, are
in in q QuaSdary and ask time to de-
termine what course they will pursue
i'll the matter.
About 1852, to assist in the construc-
ton OF tho Stcubenvillc d Indiana rail
road, the city OF Steubenvillc issued
100000 worth OF bonds, bearing interest
at six per cent per annum, to pay for
1000 shares OF stock, each OF the par
value OF $50 The township OF Steubcn-
willie made similar issue Tor n similar
purpose. In 1865 the Stcubenyille Il
Indiana, the Holidays Cove and the
Pan Handle railroad companies were
consolidated or merged into one with
the Pittsburgh, Cincinnati & St. Louis
Hallway company, and Tor their shares
OF Stcubenville d Indiana stock each
received l,267 shares OF the new stock
OF the par value OF $50 each, or SOB, $50
OF stock Tor the 100000 originally paid
in.
BY testimony in the Shcrrard case it
was shown that the railroad was worth
in franchise improperly SIC, 095, sos 81,
leaving surplus over liabilities OF So
909,i7G 10. showing indisputably that
the Pittsburg. Cincinnati & st. Louis is
one OF the finest pieces OF railroad prop
ertv in America.
1t has been costly investment in
one way for the city oil Steubenville, rs
the city has never received q dividend
on its stock. The bonds issued for its
payment were not finally retired until
less than ten years ago. Including
principal and interest the city has paid
Tor its holding OF ,2G7 shares OF par
value OF S63,3350, at least S2225000 and
the township n like amount. In June
10, 1890, further consolidation was
made by which the Pittsburgh. Cincin-
natl Il st. Louis railway, the Chicago,
St. Louis Il Pittsburgh railway, the Gin
cinnati Il Richmond railway and the
Jacksonville, Madison 4 indianapolis
railway became the Pittsburg, Chicago,
Cincinnati & St.. Louis Railway Com
pany. 1t was held that the consolida-
ton was gross discrimination against
the earning capacity OF the old Pitts
buryh, Cincinnati 4 st. Louis railway.
\ number OF the minority stockholders
protested against the consolidation.
The statutes OF Ohio provide certain
manner in which consultations OF rail-
roads may be made and set forth how
the interests OF the minority stockhol-
ders may be protected. The city OF
S!eubenvillc was minority stakeholder
and cast its ! ,2G7 shares against the pro-
posed consolidation, ut the same time
filing a written protest against such
action in this manner and in the opin-
ion OF good legal authority fortified itself
10 demand OF the p. c. G. & St. L. Rail
way company the value OF its shares in
money after the manner prescribed by
the statutes and as it has been pursued
in the Shcrrard railway case.
Railway officials and their attorneys
hold that the city has not so fortified
itself, and that the only course left is to
convert the Pittsburgh, Cincinnati &
st. Louis railway stock into Pittsburgh,
Chicago, Cincinnati & st. Louis stock.
Three courses are open for the city
through its Council to pursue. 1t can
convert its 1867 shares OF Pittsburgh,
Cincinnati Il st. Louis railway stool;
into 633 shares OF par value OF 500
each in the consolidated company, with
a chance OF realizing an. annual divi-
dcnd OF probably 4 per cent, producing
an income OF 1852.
Or 1t can so convert the stock and sell
Mt from $50 to S65 at tho latter figure
realizing $il Jas.
Or it can take advantage OF tho stat
utes and bring suit against the Pitts.
burgh, Cincinnati & St. Louis railway
Tor the value OF its Stock. upon which a
late jury has already found a valuation
OF S65. Tho same valuation would
bring to the city $S2,255.
No course that tho city can pursue
will bring in the 100000 originally paid
in. 1t is thought by many tho best
course the city can pursue is to dispose
OF its railroad stock just as soon us it
can.