Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1899-05-20


be did not deny "that the party or
parties he represents might represent
some one of these systems" So we
are as much in the dark on this point
as we were before Mr.. Marion vouch-
safed his explanation.
But as TO who wants to buy York
county's stock makes little difference.
If the would.be purchaser will give a
positive guarantee of a standard gauge
road through to the coal fields of Ten
nessee, we believe that the York coun-
ty commissioners will sell out at a
pretty low figure; but until there is a
guarantee that the object of the in
tending purchasers is not merely to
choke off competition and leave this
section in worse shape with regard to
railroad facilities than at present, 1t is
probable that the price, not only Of
York county stock, but that held by
individuals in this locality, will rule
somewhat higher.
While, as we have said, we do not
know, we suspect in the present move
ment the hand of the Southern rail-
road. We will give our reasons for the
suspicion, and also some reasons why,
if this suspicion is correct, it does
not mean any good for this section.
1t will be remembered that the old
Chester and Lenoir road went to the
Richmond and Danville along with
the Charlotte, Columbia and Augusta,
and by the terms of the lease the
Richmond and Danville paid per
cent. interest on the mortgages of the
Narrow Gauge and II per cent. inter-
est on the stock. The Richmond and
Danville, under the terms of its con-
tract, completed the G. & l.. to Lenoir
by bonding it to the extent of SS7 900,
and continued to run it in such way
as to get rid of its competition on up
to the time when the former road be-
gan reorganization under the name OF
Southern. The Southern's re-organi-
za,ion scheme provided for the &C.
ceptance of the Chester and Lenoir-
stock, bonds and alias virtual gift
but although the road had been all
but wrecked, the stockholders declined
the arrangement, and that is how even
the present bondholders were enabled
to escape without being feeced out of
their holdings.
Although the $4,000 of bonds re-
ferred to above were held by the old
Richmond and Danville at the time
of its alleged Failure" they were not
accounted for in the reorganization
scheme. They really belonged to the
Chester and Lenoir under the terms of
the contract that had been made with
the Richmond and Danville but they
had been "hidden out" and. could not
be gotten at. Of course people inter-
ested in the Narrow Gauge saw
through the scheme at the time. They
foresaw that the object of holding
back these bonds was to steal the
Chester and Lenoir if possible; but
they were unable to help themselves.
The suspicious referred to were rea-
lized some time back, when the South
ern railroad suddenly presented past
due coupons from these bonds and de-
manded payment. The payment was
made, otherwise the Southern would
now again have control of the Narrow
Gauge, and the county commissioners
would not, few days ago, have had
the satisfaction of refusing "something
for nothing"
But a little more history. When
the Chester and Lenoir railroad came
back under the control of its stock
holders few years ago, its obligations
were represented by 3,454 shares of
stock of the par value of S10O each,
and $3.50, 900 in per cent. bonds. A
majority of the bondholders and stock
holders agreed upon a scheme of re-
organization under which the interest
on the bonds was reduced to 5 per
cent, the holdings of the stockholders
reduced one-half, and the boudholders
to get, in addition to their bonds, one
$50 share of stock for each 500 worth
of bonds held. This arrangement was
perfected with the cooperation Of all
the bondholders with the exception Of
the Southern's $4,000 and $4,000
additional that remained hostile.
At meeting of bondholders and
stockholders held at Hickory, N. c.,
in January, 1897, the reorganization OF
the Chester and Lenoir was completed
under the name of Carolina and North
Western, with an arrangement where