The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-03-23
WORK BEGINS .AT ONCE
RICHMOND, PETERSBURG AND
CAROLINA INJUNCTION.
STaANG LOSES HIS CASE AND PAYS COST
Cotton Rates Restored on the Seaboard. $l2,
100000 to be Paid by the Sea-
board Air Line for the
Florida Road.

There were two events in railroad cir
clcs yesterday of great interest TO North
Carolina.
One was the organization of the Black
Diamond Company at Cincinnati.
The other was the decision of the
Strang injunction case in favor of the
Richmond. Petersburg and Carolina
Railroad
This road runs from Richmond. Va,
TO Ridgeway, n. c.. and is now in pro-
cess of construction. The court refused
TO stop the work on it, by preventing
sale of its bonds pending the adjust
ment of contractors claim.
The Black Diamond Company, as al
ready stated in these columns, is backed
by wealthy English capitalists These
yesterday took formal and complete
charge of it, and work will begin at
once. The section of the road through
North Carolina will be built first: or TO
be more definite, the section of the road
from Clay, KY, to Port Royal s. c., a
part of which runs through North Car
DINA, will be the first part of the system
constructed. This link is $50 miles long
The directors of the Wilmington and
Weldon Railroad Company have de-
clared 49, per cent dividend on the GER
tifcates of Indebtedness of that com,
pany, payable after April 1st.
The Seaboard Air Line a few days ago
restored the cut of % cents per hun
drcd in cotton rates made some time ago
to Norfolk to meet the reduction of some
intermediate lines who had gone against
them. The former rate of 40 cents row
prevails. The advance is also general
with the South Atlantic port lines which
have gone back to their former rate Of
43 cents to south Atlantic ports.
I mis- may be said to end from prac-
teal standpoint one of the most interest
ing fights in rate circles that has ever
been waged.
1t was upon the assumption that some
intermediate lines were manipulating the
rates to the detriment of local bilyers
that the Seaboard went about its sweep
ing reduction. The south Atlantic port
lines made a similar reduction to south
Atlantic ports. in order to meet the first
cut to % cents by the Seaboard to Nor
folk. The Seaboard then made another
cut to 5 cents. This the south Atlantic
port lines did not meet.
n restoration of the rates that have
now gone into effect We're agreed lpon 1T
meeting of the freight men held some
weeks ago in Atlanta.
According TO Baltimore authority, an
underwriting syndicate has been formed
70 frrao fbf I.,I I. IL 4
Central and Peninsular railroad is
bought by interests in control of the
Georgia and Alabama railroad and the
Scaboard Air Line Those in the syndi-
cate include the Baltimore Trust and
Guarantee Company. Continental Trust
Company and the Mercantile Trust and
Deposit Company.
lt is understood that there will be need
cd 100000 to pay for the purchase of
the Florida Central and TO build 4 con-
Meeting line to join it with the Seaboard
system. The common stock of the Flor
ida Central amounts to S20.000,00O and
control of the property was secured by
the purchase of the majority holdings
of this stock and agreeing to take what
minority stock was offered
A plan is under consideration for the
combination of the Seaboard Air Line
properties and the Georgia and Alabama
and the Florida Central. 1t is said that
collateral trust mortgage is contem-
plated to carry out the financiering Of
this plan.
1t is limited that President Williams
may go to Europe in connection with
the financierins of the Seaboard sys-
TEN.
The Southern Railway. which has for
long time been so bitterly fighting the
Seaboard Air Line, has awoke TO find
another opponent at its doors. The
rivalry Of the Norfolk and Western il
unusually pronounced, it is said, and
will, sooner or later, affect earnings of
one line of the other considerably.