The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-12-30
COAST LINE GETS
The CAFE FEAR
-A ii
Bid the Other Roads TO a
Standstill
$3,11O,OOO THE PRICE PAID
SOUTHERN AND SEABOARD
WERE BOTH AFTER IT.
OUTCOME OF SALE A SURPRISE TO SOM
Possibility that the Southern and Coast Line
Had an Understanding as to Divis
ion of Road. VICE President
Andrews Saws not
Andrews Says not.

andrews Gays not
The Cape Fear and Yadkin Valley
Railroad is now the property of the
Atlantic Coast Line.
the price paid for it was So, 10000.
The sale of the Cape Fear and Ynd-
kin Valley Railroad. under foreclosure
proceedings, occurred yesterday at Fay
etteville and was watched with much
interest here and all over the State. for
the three great systems of railroads run
ming through North Carolina were bid
ders for the property.
The road was sold in its entirety by
Messrs T.. S. Martin and Clement Man
ly, masters in equity. Master Commits
sioner Martin acted as auctioneer, start
ing the bidding at noon. The court hay-
ing fixed the minimum bid at 100000,
the first bid was $2,100,000. Then it was
raised by $4,000, $4,000, $4,000, So
Uoo and $1,000 jumps until finally the
road was declared the property of the
Atlantic Coast Line.
Bidding was spirited and lasted for an
hour and a quarter President Samuel
Spencer represented the Southern Rail-
way; William H. Blackboard. the Sea-
board Air Line, and Harry Walters the
Atlantic Coast Line. The Philadelphia
and Reading Railroad did not bid as
was expected. Blackford retired at Il
bid of SO. 100000. Spencer stopped with
bid of $3,109.000 and Walters got the
road at S3,110000 Among the railroad
men at the sale Were General John Gill.
receiver of the road: Mr.. Il. j. ID. Gross,
of the counsel for the Baltimore COM
mittee, and Mr.. A. b. Turner, of New
York, counsel for the Farmers Loan and
Trust Company, which is the trustee
for the mortgages on the property: Pres
ident Samuel Spencer, of the Southern
Railway, and representatives of the
New York committee; Mr.. Harry Wal
tiers, president of The Atlantic Coast Line
Mr.. William III. Blackford. chairman OF
the Baltimore committee. President
Hoffman and Vice-President st. John,
of the Seaboard Air Line, and many
officials of the Cape Fear and Yadkin
Valley Railway
The outcome of the sale was great
surprise here, both to the successful bid
der and as to the price paid for the
property. Though it was stated in this
paper a week ago, on authority, that
the Atlantic Coast Line would be q
strong bidder, still there were plenty OF
reasons for believing that it could moi
afford to pay as much for the road as
the Baltimore bondholders who had al
ready entered into a long-term. 4-per
cent. lease contract with the Seaboard
Air Line. And even yesterday when il
was announced that the Atlantic Coas
Line had acquired the property the Sea
board people here found it hard to be
lieve.
Another incident going to show how
great a surprise the strong bidding OF
the Coast Line was, even to the higher
Seaboard officials and the Baltimore
committee, was the fact that meeting
of the directors of all the roads in the
Seaboard system had been called to mee
in Baltimore today to ratify the lease
Messrs. w. r. Tucker. j. b. Batchelol
and w. C. Stronach left here yesterday
morning to attend this meeting.
And in this connection it may he men
toned here that it was last night init
mated in railroad circles that the ques
ton of offering an upset bid would b.
considered at this meeting today. Thi'
will be discussed with the Baltimore
committee. To keep the sale Of yes
terday from being confirmed bid of So,
100000. or ten per cent. increase of thu
Coast Lines bid, must be offered ant
guaranteed.
1t is believed that the Baltimore com
mittee would hardly be willing to pa,
this much for the road, as the price pait
..l<s.sI all
property is worth to any road.
Col Andrews, first vicc-president o
the Southern Railway, said yesterda,
afternoon that he considered S3,110,00'
pretty good price for the Cape Fea
and Yadkin Valley Railroad.
This property has been tied up by liti
CATION for about FIVE years. Two inter
ests have been seeking to get control
and now a third interest has come il
and secured the property. The South
ern Railway Company has long beer
after one of the divisions of the roat
Fayetteville to Greensboro, while tn
Seaboard has all along been making al
offer to take thewhole property. Onl.
within the last few weeks was it know
that the Atlantic Coast Line would prob
ably make bid for the two. division
HOT .yWdnIeu Uy tHe CoulleIl' fAsOW II
4. neither the Coast Line nor the Southern
wanted the same parts of the road. bu
as the property under the order of tn
court had to ybe sold as a whole, tn
Southern and Atlantic Coast Line inter
ests could have combined their bids, o
at least had some understanding as 4
a division of the road after the sal
is confirmed by the court.
3 rs the Southern interested in tn
Coast, Lines purchase of the road?"
asked Col Andrews.
mo, think not" he replied.
II understand your road wants onl
the teville-Greensboro division. blu
to get it you would take all of the west
ern end of the road, from Mt. Airy t
Fayetteville?'
Eyes, we wanted the road and bid O