The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-02-07
ANOTHER ROAD IN THE SOUP.
THE NORFOLK AND WESTERN ~
THE HANDS OF RECEIY ERS.

the Wen Named by the NOurt-Ahe
Application for Receivershfp
Made by Two Trust Companies of
Philadelphia and the Holders Of
Large Amounts of the Roads Sc
curities.
I Richmond, Va, Feb. 6-Judge Con. sit
ting in the United States circuit court
here to-day, placed the Norfolk and West
ern railroad in the hands Of receivers, and
appointed as receivers f. J. Kimball and
Henry Fink. The suit was instituted by
the Fidelity Insurance Trust and Safe
Deposit Company of Philadelphia. and
Hnery Whelen. Henry Whelen, Jr..
/ Charles S. Wheleu. and J. Henry
Ewing. doing business as Town
send, Whelen & Co. and Henry E
Gerhard for themselves and other credi-
/ tors of the company.
The bill sets forth that the Philadelphia
corporations above named are trustees un-
/ DER the mortgage deeds of trust of the
Norfolk and Western as follows: The
/ general mortgage, New River division first
] mortgage, improvement and extension,
mortgage adjustment mortgage, and
Chnch Valley division mortgage. Under
/ these mortgage bonds to the amount OF
] AofdpVfevu nave Deen ISSUED. Aside from the
/ value OF the main line, the railroad COM
/ pany is large stockholder in the OLD
/ Dominion Steamship Company, the Roa-
/ noke Machine Works the Columbus Con-
/ necton Company, the Pocahontas Coal
! Company, the Virginia Company, the
/ Lynchburg and Durham railroad COM
/ pany, and the Roanoke and Southern Rail-
/ road Company
/ The action for receivers Is taken in view
/ or anticipated default Of interest upon
/ aoout SlLO0O,OOO of bonds. and the fact that
/ the current expenses amount to about
/ S0JOOO, and that there is a floating debt
upon the road of over Sl,OOO,OO0. The ora
tors state that they are informed and be-
/ heve that the properties of the company
are IN a good state of preservation and that
I the anairs have been skillfully managed
/ They attribute the present condition of It's
anairs 10 the depressed state of business
/ and urge that a receivership by which
the system may be kept intact would be
/ best for the company, the stockholders
ana the public. They lay stress upon the
adNisability Of Keeping in operation the
| Roanoke Machine Works, and some other
! enterprises in which the company is in
/ terested.
The defendants in their answer admit
all the allegations in the bill to be true
and unite in asking for the receivership
/ on the grounds cited by the complain
I ants. The company owes its employees
4 abouL 9duD,Veus
Roanoke, Va, Feb. 6-The Norfolk and
Western railroad officials at the general
offices in this city, were notified this after
noon OF the appointment of receivers at
Richmond, and that the road had been
| turned over to the receivers. They were
! instructed to proceed with the operation
as heretofore, and while II is not known
/ what viii be done, the opinion prevails
! among the officials in this city that no
] will ba e., 4,
| ing force.
/ As the city is the center of the system
| and the location of the general offices and
/ shops of the road, it is largely dependent
upon the Norfolk and Western railroad.
and there was much interest in the re-
ceivership manifested by the people here
The result Is by no means a surprise, and
| there is general disposition to accept it
cheerfuily 1t is not believed that any
Roanoke interest will be seriously affect
ed and that the result will ultimately be
beneficial, as it was well known that the
road would have to go through the usual
process of reorganization.
Philadelphia, Pa, Feb. 6.-The news Of
the appointment of receivers was re.
ceived in financial circles here shortly
before O'Clock this afternoon, and while
such denoument of the company's fnan-
cial difficulties had not been Immediately
expected, it cannot be said to have Gre
ated much surprise
For many months it has been well
known that the companys credit was dete-
riorating, and the steady depreciation
of the junior securities has pointed nm
falteringly to the one conclusion-a re.
ceivership.
Norfolk and Western shares have re-
Gently been quoted at the lowest prices
on record, the preferred stock selling be.
low IA and the common below A. The
Clinch Valley division bonds have also ie-
clined cons iderably in price, and the New
River division first mortgage per cents.
have brought as low as 95 Nevertheless.
II had not been openly reported that a
receivership was imminent, and in some
quarters it had been hoped that the diff
culties of the company had been tided
over.
The following statement was given ont
at the general offices of the company in
this city this afternoon: 'SThis action was
taken under the advice and al the recon-
mendation of holders and represen tatives
Of very large amounts of securities of the
company to whom the company had sub
mtted a full statement of its financial
condition and Of the anticipated payments
and receipts for the ensuing year The
property of the company is in excellent
condition, but owing to the great de-
preston In the coal and iron Industries
and the unprecedently low rates prevail
ig the net earnings of the company have
for the past two years been insufficient
to meet its fixed charges and this has SO
seriously affected the credit of the COM !
pany that it was thought impossible for
it to continue its operations without some |
readjustment of its liabilities. A full |
statement of the affairs Of the company |
will be issued in the course of a few days |
1.-The appointment of Mr.. Kimball was |
requested by the Fidelity Insurance Trust |
and Safe Deposit Company of PhiladeI- |
phia, the Girard Trust Company, by rep /
resentatives and holders of large amounts |
of securities of the company, and by |
the board Of directors, and Henry Fink |
was selected in view of his successful ad |
minstration, as receiver of the old At |
lantic Mississippi and Ohio railroad. |
which was the predecessor of the Nor |
folk and Western Railroad Company. In |
the interval Mr.. Fink also acted as re. |
ceiver of the East Tennessee, Virginia
and Georgia railroad, and the Memphis |
and Charleston railroad, and is thoroughly
familiar with the property, and the in |
dustrial interests of the section through
which the road runs"
Loss of the Cienfuegoes.