The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1893-03-02
A CONSERVATIVE INTERVIEW.
J. Allen Watts, ESQ.,, on the c.
&c O. Proposition.
In Favor of Additional Railroads IL They
Come on Proper Basis-Obiectlons to
the Income Bond PIan-Too Long u
Mortgage on Freight Business

i''f-o NPCi eOk Lux LIS OplulOu III regard
to tho building OF the Roanoke, Fin
castle and Clifton Forge railroad, said:
II suppose that every property. owner
in the town would like to sec addi-
tional railroads enter this place, pro-
viding those roads como properly, and
no ono can wonder at the merchants,
especially tho Wholesale merchants, de-
string new markets for their goods,
which would be opened TO them by the
building of 4 now road
Tho question, however, in every case
OF this kind is, whether the town would
be wise in accepting the proposition
made? Tho proposition made by tho
Chesapeake and Ohio Railroad Com.
pany will be found to be remarkable
one, IL it is examined carefully
The Chesapeake and Ohio Railroad
Com pany, which is one of the wealthiest,
strongest and most influential systems
OF railroad in the State, comes to the
third largest city in the State and makes
this propositions:
That it, the Chesapeake and Ohio
Railroad Company, will endeavor to
negotiate at par first-mortgage five per
cent. bonds Of the new road to an
amount, approximately, cf $500, 900 1t
does not undertake TO putup this money
ltSelI, nor does IL undertake to put up
any money itself, but simply to try to
sell bonds equal to one-hal of the cost
of the road. provided the other half of
the cost is raised by the city of Roanoke
and its friends; and provided further,
that it, tho Chesapeake and Ohio Rail
70 I'd Company, Shall be given tho entire
charge OF this road; and provided fur
ther that, at least, S2OO, 600 OF this bal.
ance shall be represented by Income
bonds to be used in paying ten per cent.
OF freight charges.
ut Is understood that its purpose is
also to ultimately CONVEX. tho stock of
u city into these income bonds. thus
really making $40, 0O0 OF income bonds
payable on freight.
When this appropriation is analysed
1t Will be seen that the Chesapeake ard
Ohio Rsiiway Company, practically
gives not enc red cent to get into this
place; that u is given tho absolute con-
troll of tho road and given in addition
absolute control OF all q the freight of
the city OF Roanoke from the east, west
and north for L period OF twenty years
or until S2,0U0O 00u or SO 600, 900 in
freight has been paid according as the
case may be.
al first blush, this income bond
business appears to be very fair offer,
but Il little examination will show that
1t is absolutely to the interest Of the
Chesapeake and Ohio Railway Com pany.
Ii only S200.G00 of these bonds are
issued it means $1,000, COO in freight
charges have TO be paid before they will
be exhausted and If $500 600 OF bonds are
issued that $3.50, 900 in freight charges
will have TO be paid before the said
bonds are exhausted. Tho freight has
TO be paid within twenty years and
paid on shipments beginning or ending
on tho line of tho Roanoke, Fincastlc
and Clifton Forge railroad
These income bonds arc obviously
of no value whatever, except to be used
In this way to pay freight. Tho result
will be that every subscriber to these
bonds will hasten 10 sell them 10 per.
sons who DO large amount of shipping.
They Will sell them at very much less
price than their face value. For in.
stance, the man who subscribed $500 10
get the road to Roanoke would feel him
self very well oil if, after getting the
road, he could sell his bonds IL, $3.50 10
some merchant.
The purchasers of these bonds would
nave to use Thorn in paying freight
within twenty years. The CONSEQUENCE
would be that every shipper in Roam
oke would buy these bonds at this large
depreciation; and the further con.
sequence would be that all of the
freight for the next twenty years would
be diverted from the Norfolk and West
tern Railroad Company to tho Chesa.
peake and Ohio Railroad Company and
that obviously is the object of tn Chesa
paakc and Ohio Railroad Company in
making tuch proposition
The Norfolk ana Western Railroad
COn1nlnV pynan6l in ri nf
noke from $4,000 to Si25, 900 per month
This branch tviZ. Roanoke, Fincastle
and Clifton Forge Railway Company
would be- somewhat similar to tho
branch Of the Virginia Midland Railroad
Company to Warrenton. suppose that
Roanoke would be tho end of tho d.
vision; that half OF the paople employed
on this branch would live, etc in Roa.
noke, and $1,000 or S., coo might be paid
out in the city per month.
II do not speak for tho Norfolk and
Western Railroad Company have no
authority TO do SO, aud do not pretend
therefore to predict what they will do,
CT what they will want to do: but any
business man can form a very good con
clusion OF what he would do when ne
thinks about the facts. And this is the
question, whether they would continue
to pay these enormous amounts Of
money out here every month. keep in
Employment thousands of men, if all of
the freight was diverted away from
them
81 think if another railroad comes to
this town, it ought to do something
itself AS have endeavcred to point
out above. tho Chesapeake and Ohio
Railroad Company makes no outlay,
and yet is TO receive all of tho benefits
insisting of tho control Of the road,