Evening star., 1898-12-28
CONTENTION OVER RAILWAY
Rivalry for Control & the Cape Fear and
Yadkinlvallsy.
Sale at Auction to- Occur Tomorrow
New York and Baltimore In
terests Involved.


1t is expected that a war which has been
in progress for several years between the
Southern and Seaboard Air Line Railway
Companies will be terminated tomorrow.
For the period mentioned. both companies
have tried to secure control OF the Cane
Fear and Yadkin Valley railroad, and the
special masters, appointed by the court,
Will offer the property for sale at public
auction at Fayetteville, N. c. The property
will be sold tomorrow as a whole, to the
highest bidder. at not less than s2,0OO 900.
There Is much speculation as to which of
the rival committees-one representing New
York. the other Baltimore-which has
been examining it is going to buy the prop
erty. Up to the present time both commit
tees appear to be acting separately, and
II the property comes to a sale without
previous understanding, the representatives
Of the two factions will be on hand to bid
against each other. What will happen then
erty will be bid up to a price at which
either one or the other of the two pur-
chasers will consider it safe to let it go.
Amount Involved.
The New York interests. in order to get
their money back, will probably have to
bid we'll up to 100000 for the property,
and the Baltimore interests cannot afford
to let the property go for much under these
figures. 1t Is further expected that third
road Will endeavor to secure control of it.
The main line of the company runs be-
tween Wilmington, N. c., and Mount Airy
OF the same state, a distance Of about PAS
miles, The branch lines make the total
mileage about 342 miles. 1t traverses
valuable section of the Seaboard Air Line.
The road Is crossed by the Seaboard Air
Line, the Southern railway and the At
lantic Coast Line. Its route to Whining
ton would provide an excellent outlet for
any of those systems through Wilmington,
which is leading southern port. Hence
the ambition, 1t is said of each of the three
to become the owner of the main line of
the company.
The competition among the prospective
purchasers of the road has figured con-
spcuously in the history of recent litiga-
ton. They have indirectly been working
for the system, or part of it, ever since it
passed into the hands of Mr.. John Gill az
receiver That dates back as far as 1894.
Two months after the beginning of the re-
ceivershio the default the first mort
gage occurred AS a consequence legal
steps had to be taken to reduce the COM
pany to healthy basis.
ContestinE Factions.
In 1897 decree for the sale of the road
as whole was entered by the courts. This
decree was not put into immediate effect
by reason of the several contentious which
subsequently arose. There were some in
terests which insisted that the system
should be sold in parcels or divisions there
were others which as strenuously labored
to have 1t disposed of as set forth in the
decree. Hence the series of appeals upon
appeals which followed one after another
from court to court. 1.-The original order for
the sale as whole was finally confirmed.
One of the main reasons for contesting
the effort to secure sale by divisions was
because of the known purpose on the part
of some of the contemplated purchasers
to bid high on a part of the system and
secure that, allowing the balance not
wanted to become comparatively vaIueless.
That would probably have caused the sys-
tenn in the aggregate to sell below its esti-
mated worth.
The effort to play an important role in
the fate Of the road has been disclosed In
the activity on the part of those interested
to secure possession of certain series of
bonds, hoping thereby to gain a definite
control. But, as 1t is, those aspiring to the
ownership will have to await the ultimate
developments of Thursdays sale.
Since the road has been under the man.
agement Of Mr.. John Gill as receiver it has
been advanced, it is said, to an improved
state of efficiency. The business of the sys-
tenn has largely increased, as indicated by
the marked gains in the percentage of net
receipts. Besides that several hundred
thousand dollars have been expended in
augmenting the general facilities Of the
road, opening up possibilities for a further
enlargement of its aggregate business.