Evening journal., 1891-03-24
STATES OPPORTUNITY.
Why the Railroad Deal Should
be Ratified
MUCH ANXIETY IN THE PAST

MUCH ANXIETY In THE PAST
All Trouble WIN be Avoided Ia the
Future by Accepting the Fair Terms Of
the p W. & B. II X. Company, whose
Securities are Gunt-sdged.
'erhe plan suggested by the Delaware,
| Maryland and Virginia Railroad Company
for the lifting Of its debt aud favored by
the Legislative Committee, will, If
adopted, by the Legislature Of the State
! of Delaware, forever redouud to the
| credit Of the Democratic party and all
those who assisted in its consumna-
ton"
So spok e a prominent citizen Of this
sste last evening to an EVENING
JOURNAL reporter. The speaker is we'll
known Tor his wide ability and his deep
knowledge Of good ms th0ds Of fnancier-
ing, and it is only for the best OF reasons
that his name IS not mentioned. Continn
ing his remarks, lie said:
A 4icklish. Investment.
when the State Of Delaware loane d
to the Delaware, Maryland and Virginia
Railroad Company 5000, 600 to be devoted
to the building and maintenance of the
junction and Break water and the Break
water and Frankford branches, many
good finsnciers thought 1t was tickllsh
movement II was tieklsh Investment
on the part Of such a small state as
Delaware to & i've S600.00 for the build
ing of roads away down among the Sus-
sex sand kills, but the desire to
foster internal improvements overcame
the objections to making the loan After
this money was paid over and the mort
cages recorded the anxiety of those who
planned the deal began. Trouble has Al
ways arisen, where state or the United
States has advanced large sums to rail
road or other corporations. The Pacific
railway deals are startling proofs of this
statement. The National government
has no hope of realizing on the immense
sums it has loaned for the building Of
those roads.
Fine Terms Of settlement
"There has been enough trouble over
the mortgages which .he state holds
against the Delaware, Maryland and Vir
ginia Company to make anyone who has
followed the matte er closely, highly graft
fed at the settlement on such fine terms
as proposed by the Philadelphia, Will
mington and Baltimore Railroad Com
pany. Several times the state has
ordered the attorney general TO foreclose
on these mortgages ia default OF the pay
ment of interest Then a conference os
directors andscommittees would be called
and the matter would be adjusted for a
time. The default in interest on these
mortgages amounts to So, 600 which has
been forgiven by the state
| ttWh3la fhpca m nTf no rrpu rnraaffl in
their present condition, due and unpaid,
there is great danger of the final fore
closure Of the mortgages, and then the
state might have to buy the road and 60
into the railroad business to save itself.
Such action would put the state in an
awkward, because expensive, position.
lt would have road whose only advan
tsge is that it gives an outlet to the
w. 4 B. railroad, and whose great draw
hack is that without the main sem, Il
would be useless.
What the Proposition Means.
"Lst US consider what the proposition
of the PHILADELPHIA Wilmington and
Baltimore Railroad Company means.
It means that that company
pany will assume the debt Of the Della
ware. Maryland and Virginia Railroad
Company, paying in cash part of the debt
and guaranteeing the payment of tie
balance with interest The first impor
tant effect of the adoption of this propo
sition is the reduction Of the amount due
the state on the two mortgages from
$500, 600 to 1886, 600, for the railroad
company promises to pay ae2 900 on July
l, 1891 and $l72, 33S. 33 on November ! +,
1891.
While the speaker did not make the
statement it is timely at this point 70
draw attention to that portion Of State
Treasurer Herberts report referring to
the state per cent. bonds. The balanee
Of series B is payable July 1, 1891
amounting to $50, coo and series @,
$l65, 900 is redeemabls after July l, 1891
Both Of these liabilities may be liqui
dated by the money received from the
railroad company.
WIN Close Grand Chapter.
THAT reduction is not the only benefit
for the consummation OF the deal will
change the feeling of distrust at the
granting of such large loan as 5000, 600
to one of confidence at its great reduction
and the ample security remaining on the
balance. Ii the Legislature passes the
bill it will close a grand chapter in the
administration of the financial affairs of
the state by the Democratic
party do not mean that
the sole credit of the passage should be
attributed to the Democrats, for If 1t
we're a Republican Legislature the Re
publican party would have the credit of
taking the action while it had the power
Now that the Democrats are in the
majority they should accept the oppor
tunity to win new laurels by their work
for the states best interests.
Several Questions Answered.
TIE reporter showed the speaker the
following assertion printed in the Every
Evening last Saturday: "Some people
have not yet been able to figure out to
their satisfaction how it will profit the
state to exchange first mortgage, bear
ing 4 per cent. interest, on ample security,
for 3 per cent. bonds bearing no better
security and possibly not so good
His answer TO this was: st is simply
a question of which is the better, a first
mortgage bearing per cent. interest, on
which there is constant danger of fore