Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-12-15
NO FIGHT EXPECTED.
None but the Pennsylvania Likely
to Bid on the Valley Road.
MORTGAGE OWNERS HAVE CINCH.
Experts Say 1t Will Not Bring Very Much
Over $26,OOO,OOO.
GREAT CHANGES THAT ARE TO FOLLOW

Unless something should occur to prevent
ii, the Allegheny Valley road will be sold
to-day at noon by auction. An effort was
made Yesterday to find out if there will be
other bidders besides the purchasing com.
mittee appointed by the income bond hold.
ers and the Pennsylvania road. Secretary
and Treasurer Robinson said he had heard
of none, and he knew of nothing TO prevent
the sale. He thought it would be quiet
affair
John B. jackson and P. A. B. Widener,
of Philadelphia, and R. ID. Barclay were
named by the creditors, who agreed to the
reorganization, to look after the sale. They
represent SIS, ,O0O, 600 held by the income
bondholders, which is the first mortgage,
and the second mortgage of $40, 900, be-
longing to the Pennsylvania road. The
Pennsylvania people have a good slice in
the income bonds, and altogether they have
about SIS, 900, 600 invested in the Allegheny
Valley. They control the reorganization
company, and it will be Pennsylvania
purchase.
The committee holds the KEY to the stu
alton, for they have s26, 900. 600 of sn indebt-
edness to plank down in payment for the
property. If the Erie or other corpora
tions should be foolhardy enough to bid
they would have to 60 higher than S26, 900, :
600, for this sum is needed to secure the
credit.
No Lively Bidding Expected.
1t is generally conceded that the road
will be knocked off to the committee, and
MI. Jackson, or a representative, will do
the bidding. The road may be sold for a
song or some lively bidding may occur. No
other road in PIttsburg has such fine termi-
nal facilities. Mr.. Robinson said it would
take millions to duplicate the yards be-
tween Forty-third and Fifty-third streets.
The net earnings of the line at present are
nearly s., 900, 900, but the road needs to be
impro, ed and reorganized.
The plan of reorganization proposed bv
the combination of the Pennsylvania road
and the income bondholders has already
been outlined in this paper. The capital
stock of the Valley is now about S., 600, 900.
This amount will be increased to $50, 600, 900,
and bonds for $40, ,000, 5000, bearing 4 per
cent interest, will be issued 10 secure the
company's indebtedness. This would
virtually swell the capital stock to $50, 000,-
600, which is an enormous capitalization.
Three kinds of stock will be issued, first and
second preferred and the common. The
first two are limited to per cent dividend,
but the first preferred stock is accumula-
tive; that is, if the road earned
nothing the first year and 10 per
cent in the second, for example,
the first preferred stockholders would be
paid per cent, or dividends for two years,
the second preferred would receive 3 per
cent, and the common fellows would have
the balance. The second mortgage of the
Pennsylvania road will be secured by Sec
ond preferred stock, but this company will
have good share of the first preferred for
its income bond holdings
A Short Freight Route for the Pennsy.
The present officers of the road have been
assured from time to time that if the COM