Evening journal., 1891-03-14

Legislative aud Railroad Committees
Hold n Conference ON junction and
Breakwater mortgage-Fa Farmers Loan
aud Trust company Of New York Fore
close-@e5o, 900 involved win the state
Have to Go Into the Railroad Bust
ness james L. wolcott says the state
WIN Come Out All Right.
Stan Correspondence EVENING JOURNAL
DOVER, March / 3. The State Of Della
ware is in hole. This hole is formed
by the Junction and Bteakwater mort
gage for $4,000 Sic is now placed
where SIZE must either buy or sell. and
that is thing that is exercising the
fnanciers Of the state
The EVENING JOURNAL correspondent
reported the fact that close meeting
was held in the State House parlor. Wed
nesdsy night. but it was not until to day
that The gravity Of tho mortgage bust
ness was fully ascertalned
Tne junction and Break water railroad
mortgage was given May s. 1857 by John
w. Houston. @, G. Stockley, Benjamin
Burton, Hsrbeson Hickman. William F.
Causey, James s. Gibbons, Samuel Sin
clair John 5. Sutphen and Ephraim w.
Tyler on the one side, as directors of the
road, and the state of Delaware on the
other, They borrowed on internal i'm
provsment bonds $400, 600, under
| authority Of an ''act TO aid the Junction
and Breakwater Railroad Company in
the completion of their road and for other
purposes" passed at Dover March IA,
1865, and further supplement passed
February Is, 1866. This mortgage
| covered all property of the company from
Harrington ia Kent county to the term
mus at or near Leweston (Lewes). in
| Sussex county, distance Of about 3S &c
| miles, and does not cover the 5 So miles
of track from Lewes to Rehoboth which
was built since the mortgage was given
This was q first mortgage Gibbons.
Sinclair and Tyler were New Workers..
There was a stipulation that the loan
should not draw any interest for two
years. At the expiration of that time it
| was to draw per cent, the state re-
tanned $48, 600 as an interest guarantee
| The mortgage was recorded in both Kent
and Sussex counties to max itself good,
This mortgage became due and payable
January /. 1891
The state also took a mortgage on the
Frankfort and Breakwater road for
| $500, 600 This mortgage is not yet due
The two roads are operated under the
name OF the Delaware, MARYLAND and Vir
ginia railroad, and are controlled by the
Philadelphia, Wilmington and Baltimore
railroad.
A Fecond Mortgage Given.
The directors of the junction and
Breakwater railroad gave a second mort
gage to the Farmers Loan aud Trust
| Company Of New York for $3.50. 000
making the mortgaged indebtedness Of
the read $3.50, COO This second mort
gage is also due and the Farmers Loan
and Trust Company are proceeding OF
their mortgage.
Two weeks ago Sheriff Cole Of Ken
county, served notice on the directors OF
The part of the Loan and Trust Company
to this effect, as far as the eight miles d
road in Kent county is concerned, anC
Sheriff Robinson did the same thing in
regard to the thirty-two miles of track ii
Sussex county.
Directors Appoint n Committee.
This stirred the directors Of the roa
to action, and the state authorities as
we'll. They appointed a committee To
wait upon the joint committee of the
Legislature to see what could be done
They met in the parlor Wednesday
night for the purpose of devising plar
by which to secure the state against any
possible loss or the contingency of being
compelled to buy the railroad in the cas-
Of a sale A plan was hit upon by thesl
three committees by which the stat,
would he protected and the interest O
the stockholders preserved.
Just what this plan is Hon. James L
Wolcott, who is attorney for the com
mttee, refuses to disclose, but suffice Il
say that unless the railroad, II sold, will
bring enough to pay off both mortgages
the state win have to 60 into the rail
road business.
The first mortgage does not embrac,
| the franchise: but the second mortgage
held by the New York Trust Company
does II is rumored that in order TO gel
that franchise the state will assume this
second mortgage. embracing the fran
chise, and transfer both mortgages to tbs
| Pennsylvania railroad II the Pennsyl-
vania railroad refuses to buy and thl
state takes charge Of the road, 1t will
rob the main stem of the Delaware roaC
of one of its best feeders.
On the Breakwater & Frankfort roaS
there are eighteen stations, among then
being Dagsboro, Millsboro, frankfort
Selbyville, Berlin, Snow Hill and Frank
lin City.
On the Junction and Breakwater roa,
are Milford, Georgetown, Lewes an'
Rehoboth, and it is over this line iron
Harrington to Georgetown thst connec
ton with the Breakwater and Frank fore
railroad is made. The latter road ais
connects with the Baltimore and Eastern
Shore railroad, which runs to Ocean City
and there is no alternative, but for tn
Pennsylvania railroad TO buy. The Penn
sylvanis men say they do not want b,
road at that price, but they will doubt
less come to terms when the time comes
The b. o. Nay Step In.
Should the Pennsylvania railroad sacri
fee her interests and refuse to buy, thel
J will be the long wished-for opportunit,
of the Baltimore and Ohio railroad to ge
down the Peninsula. Delaware canno
with profit, operate a railroad 1t keep
the governor busy appointing men to rui
the ships of state, and If he has t,
appoint all conductors, brakemen, switch
men, ETC., South MuTderkill hundred will
soon go into mourning for her favorit'
, son, Robert j. Reynolds.
1t has been the desire of the Baltimore
and Ohio railroad ever since it built it
line from Baltimore 60 Philadelphia, t.