New-York tribune., 1907-10-14
RAILROAD HAS TO QUIT.
Virginia & Southeastern, of the
Southern System, Suspends.
IBy Telegraph to The Tribune ]

Ashevie. n. c., Oct 13.-The Virginia &
Southwestern Railway. which was sold last
June to the Southern Railway for S1OOOOOOO
has suspended operations on account OF the new
rate law.
II is stated that the abandonment of this road
was made necessary by the failure of the South
ern to provide sufficient Improvement funds
with which to carry it
With the advent of hostile railroad legislation
in North Carolina and other Southern states
the subsequent litigation over the reduction or
passenger fares and the tumbing of railroad
stocks and bonds, it was announced that the
Southern Railway unable to market IFS %'V'-
100000 improvement bond issue at a reasonable
value, had determined to cut off much con-
templated new work and to abandon much
proposed double track. This policy of curtall-
ment has been pursued and much work along
the Southern system has been stopped
The Virginia & Southwestern Railway extends
from Appalachia. Va, to Mountain City, Tenn
1918 miles, Rexford to Buladeen. Tenn, IL miles,
Mount to Elizabeth, Tenn, I miles; total of lS9
miles 1t has been operated under contract with
the Louisville & Nashville from Appalachia to Nor
ton. eleven miles, and with the Norfolk & Western
Railway from Norton to Toms Creek, Va. eleven
miles The total length Of all lines operated on
June 80 1906, 16l miles.
The company was chartered January 49, 1899. to
take title the railroads of the South Atlantic &
Ohio Railway Company and the Bristol. Elizabeth
ton & North Carolina Railway Company. 1t is
controlled by the Southern Railway Company
through ownership of its entire capital stock
The rolling stock June go 1906, included TWEEN
ty-oue locomotives. seven passenger cars. two bag
1295 freight and thirty-ninc service
During the year ended June 30. 1906 trains
571,s26 miles. 1885 passengers car
ried and l2j0,607 Of freight moved. The earn
ings $1cl9S36, the operating expenses S6O9l
and the net earnings $400.96S. The following pay
ments made Interest on bonds. 100000; inter
est aud discount S559l S6s7; total. s5l.'S:
surplus. S2iS,55G
The general balance sheet on June So 1876
showed Capital stock. s2UNOO. funded debt. 81
""."o; vouchers and payrolls $S1,1S6; current liza
pilites, S632; income for year. $2s $50 bills pay
able $4,000; Louisville & Nashville Railroad doU-
bic tunnel interest account. 1920: car trust GER
tjhcate interest accrued. 2,l6a car trust certif-
Gates. Sa9t5" taxes. $-n174; total %.nIoSO. As an
offset there were these items Roadway and struct-
uros. S5s2.625, equipment. Sl727S3: stock OF gen.
eral material. e5l2o1; due from agents. individuals
and companies. Sl7765, cash on hand. $3,ol4: Sc
curites owned. $S,750, total, S.l14030
The funded debt consisted Of 10000 mortgage )
per cent loo-ycar gold bonds. due January /. ap3
interest January and JULY l; coupon bonds, Sl.eD
each. reGisterabIe as to principal only principal
ana interest guaranteed by the Virginia Iron. Coal
and Coke Company, secured by sirst mortgage on
the company's property. the trustee being the
Morton Trust Company New York City
The car trust certificates outstanding June 20,
1898. were in two issues follows: $50 80 * of 5
per cent coupon certificates. balance of S215.eO0
dated October !, Ia02 one certificate OF s. SO 81
payable monthly interest April l and October /.
and S@g3 80 Of per cent coupon certificates bal
of S375c0o dated May 10. 1905: one certificate
of s. so payable monthly. interest payable May 10
and November 10. The trustee Of both issues is
the Virginia Iron, Coal and Coke Company
The directors June 80. 1896. We're Grant B.
Schcy. L. !. Berwind. James Mcneil and Watson
B. Dckerman, of New York; Walton Ferguson
and Henry X. McHarg, Of Stamford Conn. and
John B. Newton. of Bristol Va. The officers were
Henry X McIIarg president; John r Newton
vice-president and general manager; J. w. cure,
secretary and treasurer. and Charles r. Colebrook
assistant secretary. The general offices are at
Bristol Va, and the New York office is at No. 10
Nau strccf.