Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1907-12-12
NURFOLK and SOUTHERN.
Light Is Breaking, and it Is Sincerely
Hoped the Highest AntiClpatiOnS
of the Management OF the
Norfolk and Southern
Will be Fully Re-
allied.

allied.
The Providence Or. l. Journal con-
tains the report of the temporary re-
ceivers of the Union Trust Company.
The report declares against perma-
nent receiver for the properties invUlv-
ed, and expresses the belief that if the
company can resume with depositors
trusttul of the outcome She capital
would be unimpaired, and that with a
discontinuance of the financial depress-
ion the patrons should realize at least
80 per cent on claims. The report also
shows the connection Of the Union
Trust Company with the Norfolk and
Southern Railway, from which the fol- |
lowing extract is made, and is of Pc
culiar interest to New bern and Eastern
North Carolina people;
1.-THE largest item ii any schedule is
the Norfolk and Southern Railway
Company carried at $2,O1l 600. The
condition of thistinves tment has called
for the careful consid Grafton and per-
haps radical action of the receivers, ,and
parties in interest have the right to the
fullest possible disclosure with refer
ence to it. 1t is an underwriting, so
ton was formed to acquire the stock
and securities of four railroads and
three lumber companies located in Vir-
ginia and North Carolina. It was esti-
mated that $16,O0O;0OO was required
for the purpose and for the develop
ment of the properties. That amount
was subscribed by some 200 underwrit-
ers, some Of whom paid their subscrip-
tions in full and some in installments,
the syndicate managers raising the un-
paid balance 10y loan. The Union
Trust Company paid in 81 100000 and
the Manufacturers Trust Company$1,-
coz, 600. giving the Union Trust Com
pany, after the merging of the two cor
porations O., 100000, and making it the
largest single underwater. For this
| pay yment it became entitled to receive
81 ,75O, 600 in bonds OF the new railroads,
$50 900 in preferred stock, and 81, ,OOO.-
600 in common stock, in all $3, $50, 900
OF securities, which are now in the
hands of the receivers. It is an unde-
sirable investment for trust company.
The properties were acquired and the
work Of extension has been going on.
The properties are undoubtedly valu-
able, the roads are in operation. they are
said to be earning their fixed charges,
and some of them earning more, and
the ex tensiWe tim ber lands are among
the best and the most available in the
country. The cost of the improve
the money is exhausted, the work of
extension has been stopped, and the
properties were threatened by the de-
mands of unpaid creditors. Almost
the first document which was brought
| to the attention of the receivers upon
their appointment was an urgent ap-
peal from the syndicate managers that
the underwriters subscribe in proper
ton to their holdings to at least $I,-
00O,O Of three-year collateral trust
notes to be secured by underlying Sc
curities of the chief railroads in the
~ oio equipment gage
bonds, as the only means of averting
certain loss, possible sacrifice of all
they had invested, and a threatened
receivership. The amount demanded
from the Union Trust Company was
SI25, 900.
II The receivers went to New York,
{ conferred with the other parties chief
E ly interested, and satisfied themselves
as far as was possible without actual
, ly seeing the properties of the inher-
} ent value of the enterprise, of the
: absolute necessity of raising further
money, and of the impossibility of do
ing this by the sale Of notes in the
market under present conditions, and
market under present conditions, and
further, that the notes to be purchased
by the underwriters were well secur-
!; ed. Upon their return they put the
matter before the court and obtained
authority to invest $125,O of the
funds in their possession in the pur-
chase of such collateral trust notes at
80 per cent of their face value, upon
receiving assurance that the Fl rst mil
lion dollars to be received from the
! sale of such notes should be used for
the relief of the railroad company from
j its pressing necessities. The purchase
of notes to the amount of $138, 1888 has
been made upon these terms, and some
500, 900 has already been assured to
the company with the promise of the
full amount required. The present dan