Evening star., 1897-04-07
BOTH WANT THE ROAD
Sale Of the Cape Fear and Yadkin Valley
Line.
The Southern and Seabonrd Are Re-
garded an sharp Competitors
for POssessfOn.

The decree of Judge Simonton of the
United States court at Wilmington. n. c.,
for the sale of the Cape Fear and fadkin
Valley railroad is likely. it is said. to pro-
duce a pretty warm contest between the
Southern and Seaboard Air Line when the
property is put up at auction, as IL will be,
en- day yet to be named.
The Cape Fear and Yadkin Valley has
been in the hands of Gen. John GIL of Bal
timore, receiver. for several years past.
and has been operated in the utmost har-
mony with the Southern railway system.
furnishing IT with a direct outlet at Will
mington, n. c., or the Atlantic coast The
Cape Fear and Yadkin Valley taps the
Southern at Greensboro 11S miles from
Wilmington. but extends almost 40 miles
further north, and has a branch line from
B.ntsvlle to Fayetteville, 81 miles.
The Seaboard Air Line already has line
from Charlotte, n. c.. to Wilmington, 1S1
miles, but the possession of the Cape Fear
and Yadkin Valley would enable them.
some believe, to shut the Southern out of a
direct route to Wilmington and compel the
latter to send all their freight and passen-
ger traffic to and from points on their main
line by the more circuitous one via Colds
boro. where the Southern already has
terminus.
A fight for the sale of the road has been
iE progress for some months between a
committee representing a number of New
York bondholders who. II was understood.
favored the Southern Railway Company as
the final purchaser. and a committee repre-
senting the Baltimore bondholders, who
have. 1t Is said. received an offer from the
Seaboard Air Line Company. The former
committee wanted the road sold in sections.
the Baltimore committee contended that tho
property should be dispo sed of as an en-
tirety, and the latter won in the lower
court.
The Lowest Bid Limited.
The decree provides that the entire sys-
TEN covered by all the mortgages shall be
sold as a single parcel, and that TO bid
shall De received for the property exclusive
OF the rolling stock and the interest in the
lease Of the South Carolina Pacific railroad
which does not equal the sum of S2,WU,s0.
The decree also provides that after the
payment Of expenses the proceeds shall be
distributed as follows: Fifty-five per cent TO
series IA bonds, 10 per cent to series 'B"
bonds, 10 4-1o per cent to series c. bonds
and 66-lo per cent to the branches. on the
property covered by the consolidated mort
sage.
The rolling stock is to be sold separately,
and also the interest in the South Carolina
| Pacific lease, and the rolling stock will he
divided as follows: Series "A" S12,0a0;
| series "B,' S6o.oo; series &C. s94, 600. The
lease of the South Carolina Pacific is an
asset of the entire road, and not of any
particular branch. The bonds are dis
tributed as follows: A division, lac miles in
| length. s1,!a0WU; b division, 40 miles in
| length. $l34oo0; c division, 81 miles in
| length. $50, 900.
Mr.. William III. Blackford. chairman of
the committee of Baltimore bondholders,
| in speaking of the result of the suit said !:
| Judge Simonton's decree has settled the
| point on which the whole fight prac-
| tcally made. that a road. consisting of
| several divisions, but built under one char
| ter. cannot be parceled out and sold by
| divisions. but that the sale must he made
| as whole, and the proceeds divided
| among the holders of the divisional bonds
| upon the basis of physical value as well
| as the earning capacity of the different
| divisions.
What In Likely to De Done.
Another authority said: ''WhiIe it is
| possible that the New York committee
| which endeavored to secure a separate s&le
| OF the A division. may take an appeal, It
| is not thought they will do so. III they do
| not, the Baltimore committee proposes to
| buy in the property at the public sale and
proceed with their plan of reorganization.
| 1t is alleged that a large majority of the
cast their lot with the Baltimore commit
| tee. including over one-third of the A
| bonds"
1t is stated that while the case has been
| pending the A bonds have sold consider
| ably higher than others owing tC the sup
1 position that they were more valuable, be-
| cause the division on which they are a
| mortgage lies between the Seaboard and
| Southern railways and it has been under
| stood for some time that President Spencer
| of the latter company was after II. IL has
| also beer said, as above mentioned, that
| the Seabcard people have already made an
| offer for the entire property.
Want" ads. in The Star pay because they
| bring answers.