Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-05-20
LEASE OF THE DELAWARE RAILROAD.

Full Meaning of the New Arrangement
with the r., w. q B.-stockhoIders VIII
Profit Thereby.
The p, w. & u. Railroad Co. 3 new
agreement in leasing tho Delaware rail
road for 80 years is now in operation,
and, according to President Il. u.
Warner of the latter company, With
whom representative OF The Gazette
had an interview Saturday morning, the
terms are decidedly advantageous to
the Delaware railroad stockholders, as
they will have an approximate adui-
tonal annual benefit OF Sl25, 600.
Under the old lease 6 per cent interest
on the capital stock. bonds and other
debts was guaranteed, and 10 addition
each company was TO receive half OF
the surplus above operating expenses.
Under the new lease, the r.. W. Il
B. Co. agrees to pay to the Delaware
Railroad Co. for its stockholders, Oh
January 1st and July LIST OF each year,
all of the surplus above the operating
expenses, taxes. &C., and the lessee III
| to furnish to the lessor monthly au-
count OF the gross earnings. revenue.
expenses and payments, SO that the
stockholders of the Delaware Railroad
| Co. will know at all times the exact
condition of affairs. The agreement
concerning interest on stock and bonds
has heen eliminated.
There is q provision in the new lease
whereby the Delaware Railroad Co. is
bound TO make all necessary extensions
in the way of sidings and additional
trackage.
The r., W. g. B. Co leases all of the
branch roads in connection with the
main line.
Mr.. Warner stated that the p, W. &
b. Railroad Co. owns 50 per cent OF
the capital stock of the Delaware road,
and that being the case there is every
inducement on the part of the lessee,
having interests in common With all
other stockholders, TO operate the Della.
ware road OF as advantageous limos as
possible, and the integrity of the man.
agement OF the H., W. & b. Co. is q
sufficient guarantee that the interests
of all concerned will be equally pro
tected.
The first lease was dated May lth,
1867, and was operative for period Of
81 years. On April 23d. ISIS. the least
was renewed until May 18th, 1897. OF
April Both. 1897, at meeting OF TIM
directors OF tie two companies the new
lease was executed, and at a meeting
nf tho stockholders held in Dover, oil
Thursday last, was ratified. The tern
specified for the new order Of thing
is 80 years.
During the past Is years the Della
ware Railroad Co. has paid TO the p.
W. & 3. Railroad Co. in the way q
obligations about s262, 000 and as bal
surplus 1881, SOL. h. Now the surplu
goes into the Delaware railroad treasur
for the stockholders.
The Delaware Railroad Co. has
sinking fund Of $500, 900 anG bonde
Indebtedness of $500, 600.
At about the time the fret lease wa
made the Delaware Railroad Co., nc
being in financial position to warrar
3 operating the road, and in constar
I need of money, deemed it advisable
lease the road, hence the agreement q
! to 6 per cent OF the stock and bonds
! money for improvements and half th
surplus.
. President Warner stated. that tn
o arrangement had been advantageor
, and that now the Delaware railroad
8 one of the best paying lines in Ii
y country. lie was elated over the ne
Q order Of things and the knowledge tn;
y the stockholders will be benefited.