The times. [volume] (Richmond, Va.) 1890-1903, 1901-02-03
BIDS ASKED ON
STATES HOLDINGS
Advisability of the Sale
Under Discussion.
ACTION IS PROBABLE.
A Resolution Before the Finance
Committee.
THE TWO PENALTY BONDS.
Advantages Which Have Come to
tho Seaboard Syndicate by Rea-
son of the Legislation Of
Last w into Twill
Fight Any Change
ACTION IS PROBABLE.
THE TWO PENALTY BONDS,

The advertising columns OF The Times
this morning contain the advertisement
of the Sinking Fund Commissioners OIL
Virginia for sealed bids 'for the purchase
OF the 2752 shares of the common stock
and 1927 dividend obligations of the Itch
r1oond. Fredericksburg and Potomac
Railway Company held by the EState
This is in accordance with the require
ments of the act df March 3, 1900 author
izins the sale Of the States holdings. III
,his act it WIS made obligatory upon
the Sinking Fund Commissioners eleven
months from date to advertise for sealed
bids and upon failure to receive any
bids as high as 900, the corporatorS or lhe
washington and Richmond Air Lime hall
way Company are under bond ana pen
atty TO the amount of $oo,e9o 10 purchase
the States holdings for 200
The relation OF the Washington ana
Richmond Air Line Company 10 tne saie
of the States holdings is suggested py 'he
fact that the commissioners make NJ. S eA
cention OF this company in not requiring
~ ,the,n anv deposit of a. certified check
a1on~ with the bid, if they desire to make
a bid.
MAY NOT BE SOLD.
,1tbo,,ah the sinking fund COMMISSION
ers are proceeding to advertise Nor 'iie
sale OF the stock, it is still question: as
vet undecided, whether the state iioiu
ngs will actually be SOD. ne fesoA'i.ioi ,
of Mr.. Morris in the Senate mas neo
tba whole matter. and the end is not yet
~: 49, ,.oeo1,,tion was referred to the FL
r.nca Committee and again TO a SUD
,,if+aa and again to a Subcommittee
oorsistine, of CMessrs. Morris, falrinN ana
Eocleton. The subcommittee mas not up
~ +nfs time reported. and the matter VIZ
not come 1p in the Senate 'tor some Gays.
IT is a matter OF Interest IN coiiiieo.,on ..i
with the personnel of TINS supcoiiiiiItse n 80
that when on tepruaIS t;,1
WASHINGTON and Richmond Ar Lane Dill
,,,a 40 a vote in the Senate, MIR. Morris
,,a Mr. Esgieton voted for 1t, ana -Af.
-, 1.otaa against it. The vote was
Is to for the bill .aiao+.
rtis however, does not at all indicate
the prevailing sentiment Oh the .!ia,,. oeals
~ this time as conditions nave ei'ite4s
obanped since the act OF Alcoi pot
Uas nassed. The impression pre'S'is ~
some quarters that the 0eap'alo go
a7 tho laeislntion OF last winter 10 loice
use" r-eaa,.;rr ~ rsh,,rg road into a perma-
nant traffic arrangement, "hicii .lG '" "
80, r,,d guarantees shall always pe
~ s.or,l,o ae the arrangement IT hlaAea
80, i.s close ally, the Atlantic ooas'
! inc In this way the Se&poalo 'll.
40, thf, Coast Line operate 1tlelr u ailis
a,.ar ,the Fredericksburg ROAD on 'eli''' a
favorable to the one as TO 'iie , otIlsI, (.
tso,,oh the dTederalchsnuFs i"au
laraeIy controlled by ana pi.si ,.s.
mart OF the Coast Lime sSstoii ,;t1, the
l'at ,,oi, reasons for friendliness Win lhe
Seaboard advantage
-, i,s come to the Seaboard system
thro,,rh the legislation OF year aso' li"o
,,aan the fact that the addltlohai piea'ee
.hich came to the Seaboard pS ie'
i+c hcnc able to show charter anu So. -
| of yay TO Washington, very apprecianis
enhanced the marketable Saiue - 80
large block of $SOooo,Uoo oohoS Ni'e4 80.
;.,7od nv this road at the time OIL itS
nalia,tion. 1t was stated when the
t,ar was under discussion that the
;,,,,,l. charter without mile OF roao
actually built towards Washington "ouio
anhance the value of these bonds llFe
points probably. 4h
This enhancement in value Is none the
loss real though the actual hondS nave
not vet been issued, loan certificates be
ing for the present used III their place, as
the market value of the loan certificates
ond the collateral value of the unissued
bonds were both increased. This advance
in value was the direct result OF the new
charter and enabled the Seaboard to get
correspondingly larger loans for better
ments and new rolling stock for its sys-
tenn.
AS compared with the S40O0,00O which
this five per cent. advance would amount
TO the sl25OOO penalty for the failure to
build road is Insignificant.
TT STILL MEANS MUCH.
Those who take this view of the situa-
tion believe that the Seaboard could well
afford to pay S125000 for the advantages
which the Richmond and Washington
Air Line charter gave the Seaboard in
floating it's bonds and using them as col
lateral.
If it is true that the Seaboard bonds;
have never been placed the market
there is reason to believe that the syndi-
cate will use every effort to resist adverse
LEGISLATION on the part of the State and
hold on to their franchise until this is
effected.
While few believe that the Air Line will
ever be built there are evident reasons
stated above, why the Seaboard people
would vigorously resist any effort to take
away the franchise from them.
If the Legislature is to act. it must act
before the opening Of the bids on Feb
ruary 2lst There is reason to believe
that the question will preciptate one of
the hottest fights ever seen in the Legis-
lature.