Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1909-12-11
THREE RAILWAYS
MERGED INTO ONE
The Frederick Railroad Company
Has Been Reorganized.
IT'S LINES TO BE EXTENDED
First Step In Formation of Big Trolley
System In Maryland and Pennsyi-
yania-Roard of Directors Elected
Capitalized at $1,5oo,ooo

System In Maryland and Pennsyi-
vania-Board of Directors Elected
Capitalized at $t,5oo,ooo.
The consolidation of the Frederick
and Middletown Railway Company,
the Washington, Frederick and Get
tysburg Railway Company and the
Jefferson and Braddock Heights Rail-
way Company was effected at joint
meeting of stockholders at Frederick,
when he three corporations were
merged into new company known as
the Frederick Railroad Company. The
meeting was held at the courthouse.
and the consolidation was made by
unanimous vote. Practically all the
stock of the Jefferson and Braddock
Heights Company and about two
thirds of that of the other two com
panies were represented.
The new company was capitalized
at $500, 900. of which $1,25J,000 Is
common stock and $250,000 is prefer
red The par value of the preferred
stock is $50 a share. A II the bonds
of the old companies were retired and
a new bend issue to the amount Of
$3.50, 900, covering the entire property,
was made.
On this basis the syndicate which
took the bonds OF the Washington,
Frederick and Gettysburg Company
will get out without loss. The Jeffer-
son and Braddock Heights Company
has $4,000 in bends outstanding,
which will be taken at considerably
below par. About one-third of these
bonds, however, will be retired in or
der to strengthen the securities.
New shares of stock will be ex-
changed for shares of the old conf
panies on basis of one new share for
two old ores OF the Frederick and Mid
dletoBn Company and one new share
fer three old ones of the Washington,
Frederick and Gettysburg Company
and Jefferson and Braddock Height
Company.
AL the bonds of the new company
are valued at par, the plan being 70
make the new bonds first class, with
ample cash equity behind them and
with interest on them assured from
the present earnings OF the roads.
The Frederick and Middletown Com
pany and its extenslons--the Jefferson
and Braddock Heights and the Myers
vile and Catochn Companies-have
operated under the name of the Fred
erick Interurban Railway, but no COM
pany of that name has ever been in
corporated.
The controlling interest in the
Myersyille and Catoctin Company,
line runs between Middletown and
Hagerstown, but it's line is operated
by the Frederick and Middletown Com
pany under lease which still has five
years to run, and no change will be
made by the consolidation.
The merger is expected to make
strong company. and those in control
expect to extend its lines when con-
ditions are ripe for extensions. The
first extension will probably be to
Brunswick. A line from Jefferson to
Brunswick has been surveyed and it is
said that the construction of this road
may be begun before long.
About seven miles OF road will have
to be built to reach Brunswick, and
the extension is expected 10 be q
much benefit to Frederick in a bust
ness way.
III s.N., re hA N gyTH M
Frederick and Gettysburg Railway is
also in view. This road is now in op-
GRAFTON between Frederick and Thur
mont. a distance If miles, as a
steam railway. II sextensi through
Emmitsburg to Gettysburg, Pa, IS
contemplated. At Gettysburg impor-
tant connections with lines in South
ern Pennsylvania are in sight which
may eventually connect Frederick
with York, Lancaster and Harrisburg
Parties from Waynesboro, repre-
senting trolley interests, attended the
meeting and it is understood that they
are ready to cooperate with the new
company at any time in the way Of
extensions.
1t Is almost certain that the Wash
ington, Frederick and Gettysburg line
will remain steam road Traffic
facilities with the Western Maryland
railroad at Thur.nont exist which will
necessarily keep the road steam line
The consultation is pleasing to
business interests OF Frederick 1t Is
looked upon as a step toward the con-