Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-16
PROPOSED RAILWAY DEAL
Offer to Be Made for Controlling interest
in Cincinnati Southern.
The Southern Railway Company to
Combine In the Purchase With
c., H. and ID.

1t Is understood that representatives of
the Southern Railway Company, in con-
junction with those of the Cincinnati, Ham
ilton and Dayton Railroad Company will
at an early date submit to the owners a
proposition for the purchase of the Gin
cinnati Southern railway which is the line
by which under special arrangement the
Southern reaches Cincinnati from Chatta-
nooga, Tenn.
In June 1895, joint proposition for the
purchase of the Cincinnati Southern rail-
way was submitted to the trustees of the
sinking fund of the city of Cincinnati, by
representatives Of the Southern Railway
Company and Of the Cincinnati, Hamilton
ana Dayton Railroad Company, each of
those representing one-half interest in
majority of the stock of the Cincinnati
New Orleans and Texas Pacific Railroad
Company, the lessee of the Cincinnati
Southern property.
The price offered was substantially as
folioWS: % $l9.OOO.UO in 4 per cent 100
year gold bonds, secured by a first mort
gage on the Cincinnati Southern property
CD ST. 100000 in cash, payable at the rate
OF 10000 for six years; CD the city of
Cincinnati to receive 10 per cent of all
gross earnings in the excess of $4,000, 900
per year after 1902, and "a guarantee to
expend for betterments to the property not
less than S2Jo,OUO per year for the first
eight years.
The Offer Approved.
This offer represented the full value of
the property and was approved and &C
cepted by the trustees of the city's sink
ing fund 1t was necessary, however, I'M
der the local laws to submit the propo-
sition to a popular vote of the city The
vote was taken August g. 1896 and re-
suited in the. rejection of the proposition
by bare majority of 33S out of total
vote of 3l,122. There is now no existing
legislation under which the property can
be either leased or sold
The Cincinnati Southern railroad, which
extends from Cincinnati to Chattanooga,
Tenn, a distance of about 3!S miles, was
built by the city of Cincinnati under the
direction of a board of five trustees ap-
pointed by the supreme court of Cincinnati
by virtue Of an act of the general assem-
bly, of Ohio, passed May !, 1869. and was
completed to Chattanooga February l.,
1880
The city of Cincinnati supplied the means
for construction by the issue of municipal
bonds, of which the following are now
outstanding: First series, July /, 1s72-1oO2,
interest per cent, 100000 issued. $685., 900;
second series. July l, 1S12-1902, interest 7.3
per cent. s9300,00O issued, $500 900; third
series, May L. 1S16-190G, interest per
cent. s3.9o,ooo issued. s3.1o4.ooo: fifth
series, November l, 1s7s-19os interest I
per cent, 100000 issued. $4,000; sixth
series, August /, 1s79-19O9, interest per
cent. slOOO,O0 issued, so, 600; seventh
series. July l, 1SS1-19l1, interest per cent,
$4,000 issued and outstanding; refunding
bonds. May 1, 1Ss1-1910, interest 5 per cent,
s1.154.OOO and July I. 1SS1-1911, interest /
per cent, $SS2, 1000. Total outstanding, $751;
10000; cost of road, SIS. 491 ,9Gi.46
Terms of Lease.
The Cincinnati Southern was. October 12,
1881, leased to the Cincinnati, New Orleans
and Texas Pacific Railway Company. for
twenty-five years, divided into five periods
of five years each, at a rental for the first
period of ssOO,OO per annum: for the sec
ond period, s.W0,DOO per annum: $1,OGO,NW
per annum for the third; $1.O90,OO0 for the
fourth period, which began October IL.
1896, and for the fifth and last period,
$1,250ED per annum, the lessee to pay,
in addition to the sums mentioned, $12,WO
yearly to defray the expenses of the board
of trustees of the railroad.
March 10. 1893, the Cincinnati, New Or
leans and Texas Pacific Railway Company
was placed in the hands of a receiver. In
May, 1895 controlling interest in the
capital stock was acquired, and is held,
jointly by the Southern Railway and the
Cincinnati. Hamilton and Dayton Railroad
Company.
The directors are NJ. d. Woodford s. NJ.
Felton, Lawrence Maxwell, NJ. E. ingalls,,
Briggs S. Cunningham of Cincinnati, Ohio;
Henry F. Shoemaker, Henry A. Taylor,
Samuel Spencer and Francis Lynde Stet-
son of New York. MIR. FELTON, Is presi-
dent of the board and receiver of the COM
pany.