The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1897-04-06
THE c. F. & Y. Y. RAILWAY.
JUDGE SIMONTON'S OPINION IN
FORECLOSURE PROCEEDINGS

in Twenty Days at FayetteviiIe-Eugens
8. Martin. Esq, and Clement Manly, Esq.
Appointed Commissioners to Make the
Sale.
Judge Charles II. Simonton, Of the
United States circuit court, sitting al
Charleston, S. c., on Wednesday, hand
ed down his opinion in the foreclosure
proceedings OF the Farmers Loan and
Trust Company, Of New York, VS.. the
Cape Fear and Yadkin Valley Railroad
Company, and issued his decree for
the sale OF the road.
JUD GE sIMONTON'S OPINION.
Judge 6imOnton's opinion and the de-
cree Of sale were filed yesterday with
Mr.. w. II. Shaw, clerk of the United
States district court for Eastern North
Carolina The opinion is as follows:
United States Of America, Eastern
District Of North Carolina. in the
Circuit Court. Fourth District, in
Equity. 1ne Partners Loan and
Trust Company, Trustee, VS.. the
Cape Fear and Yadkin Valley Rail-
way Company and others.
At a hearing OF thisc case in Asheville
a reference to q Special master was
ordered before entering q final decree.
The questions which call for solution
were, how should this railroad property
be sold? In divisions or as an entirety?
And If sold as an entirety, how shall
the proceeds Of sale be apportioned
among the several classes Of bonds
proved in the cause, in case a sum be
not realized sufficient in amount to pay
all expenses and the entire sum Sc
cured by liens? To aid the court in
reaching a conclusion, the special mas
ter was instructed to take testimony
and report facts proved before him.
/. What has been the relative earn
ing capacity OF these separate diViS-
ions for a period Of five years; that is
to say, what is the alu of the ag-
gregate of freight going over such di-
vision between it's termini and the
value Of it's passenger traffic, and what
are the necessary operating expenses?
2. What is the cost Of repair, Of it's
rOad-bed and track?
3. What is the comparative estimate
of the value of the respective divisions
by disinterested persons who have had
experience in railroads., furnishing such
estimate under oath under crOss-ex-
animation and giving the grounds for
the m
A. Any other facts bearing on this
- oSludl LII ItldllNt Ndluc.
Let he report contain only the facts
given in evidence, so that the court
can reach it's own conclusion.
The special master has held his
references, and aided by the ability
and industry Of counsel, has made a
very full and elaborate report. The
views of the parties who represent the
bonds upon the Divisions A, B and c.
have been fully heard and reported
with the testimony of experts. The
of the railroad for five years
have been produced, criticised and cor
rected. The various estimates of value
have been aid before the court. To
this investigation the holders of the
first consolidated mortgage here added
their aid. Every means Of attaining
a result, If a result can be had in
this way, have been exhausted.
The situation is this: The Cape Fear
and Yadkin Valley railroad, made up
of other smaller roads consolidated
with each other, has been constructed
in three trunk divisions. The whole
trunk line is covered by a mortgage
executed LIST June, 1896. At the date
Of this mortgage, a line of road was
in full and successful operation be-
tween Greensboro, through Fayette-
vile, N. c., to the South Carolina line.
This was known as the A division.
Another part Of the road was in pro-
cess of construction from Greensboro
to Mt. Airy, toward the Virginia line,
not yet completed. This was known as
Division B.. Yet another extension
was in contemplation, but not under
construction, from Fayetteville to Will
mington, known as Division G. The
mortgage covered the entire road, de-
Scribed as follows:
That certain railroad extending from
the city of Greensboro to Fayetteville,
and from Fayetteville to the boundary
line between the states Of North Car
Dina and South Carolina, where it in
tersects the same, and also that GER
tain line Of railroad extending from
Fayetteville aforesaid to Wilmington,
when the same shall be constructed,
and abs that certain line Of railroad
now being constructed, extending from
Greensboro aforesaid to the
line between the state Of North Caro-
lima n the state OF Virginia, at a
point near Mt. Airy. together with the
right Of way for said railroad, and also
all depots and station grounds n
buildings thereon, and alsO all shops,
engine houses, turntables, water sta
TONS, warehouses n lots. gravel pits,
store granaries, and other real estate
used in operating said road, or in con-
nection herewith
The bonds secured by this mortgage
were divided into series. A, B and G,
each series being the first lien on the
division bearing it's letter, and shar-
ing the second lien on each of the other
two divisions, with the series Of bonds
not bearing the first lien thereon. Be
sides these, certain branches were con-
Quoted as feeders to the main lines.
known as the Factory branch. the
Madison branch and the Granite ana
Furnace branches. None of these are
covered by the lien Of the mortgage OF
1886, but by the consolidated mortgage
of october /, 1889, as a first lien there
on. Besides these, the Cape Fear and
Yadkin Valley Railroad Company &C
ouired a lease for ninety-nine years
of the South Carolina Pacific Railroad
Company, a short line of road. but a
valuable feeder. This is part OF the
security of the mortgage OF 1890, ana
is shared by all the divisions. The
,roblo,,r are how shall all this prop