Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1909-12-02
ROADS ~ BE MERGED.

/
Railway Company with the Frederick &
Middletown Railway Company, the alb
sorption of the Jefferson and Braddock
Heights Railway Company is contempla-
Ted, has been disclosed by the sending of
notices to the stockholders Of the last
named company that meeting will be
leld on December 7th to consider the plan
Of consolidation. Meetings of the stock
holders of all three companies will be
,eld on that date to vote on the PROPOSE
ton 20 consolidate. The adoption of the
proposition is assured.
"The company which will be formed by
the merging of the three companies will
probably be called the Frederick Railway
Company, though the name has not yet
been determined upon. The Frederick
and Middletown Railway CompAny's line
from Frederick to Middletown and its
leased extensions the Jefferson and Brad
lock Heights Railway Company's line
from Braddock Heights to Jefferson, and
the Myersville and Catoctin Railway Com
oany's line from Middletown to Myers
yille--are now operated under the name
If the Frederick Interurban Railway,
out no company of that name has ever
oeen incorporated and the corporate title
# the parent company, the Frederick
md Middletown, has never been changed.
The controlling interest in the Myersville
md Catoctin Railway Company is held
~ Hagerstown parties, but its line is
.perated by the Frederick and Middle
own Company under lease which has
till four or five years to run, and no
hange in this respect will be made by
he consolidation.
Many of the details of the plan of con-
olidation are yet to be threshed out, but
he new company will probably have
equalization of 81, 800, 900, of which
l,25O,OOO will be common stock and
10000 preferred stock. The bonds of
Il three of the companies will be retired
nd new bonds will be issued covering the
ntire property. This bond issue, it is
aid, will be less than the total present
,onded indebtedness of the three COM
anies and will probably be between
.4OO, 900 and $5OO,OOO The new bonds
viii be exchanged for the bonds of the
Id companies on basis yet to be deter
aimed, but it is understood that the syn
Iicate which took the bonds of the w.,
=. & G. Railway Company will get enough
# the new bonds to let them out with
ut loss. The Washington, Frederick
and Gettysburg bonds were taken by the
syndicate at rs, but with the accumua-
led interest they would stand the syndi
late about 49, The Jefferson and Brad
lock Heights Railway Company has $75-
100 bonds outstanding, but these will be
aiken in at figure considerably below
ar. In the transac ton the bonds of the
lew company will be valued at par, the
dominant feature of the plan as propos-
ed being to make the new bonds first
class in every respect, with large cash
equity behind them, and with the inter-
EST VII Iuciil IlOIC Ihdl doouACd Aioh Vic
present earnings of the companies con-
solidated, without taking into considera
ton the increased traffic which the con-
solidation will necessarily promote. The
new bonds under the proposed plan can
not be issued for the purpose of building
extensions for over IS per cent of the
lost of such extensions.
1.-THE consolidation of these three cor
porations will make a strong company,
| and those who will control it count on be-
ing able to extend its lines, when condi-
tions are ripe for such extensions. The
first extension will probably be to Bruins
wick. A line from Jefferson to Bruins
wick was recently 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 expect
ed to be a profitable enterprise and of
much benefit to Frederick in business
way.
1.-THE extension of the Washington,
Frederick and Gettysburg Railway is also
in view. This road is now in operation
between Frederick and Thurmont, dis
lance of 16 miles, as steam railway.
Its extension through Emmitsburg to
Gettysburg, Pa, is contemplated. At
Gettysburg important connections with
existing lines would be"made. 1t is also
understood here that trolley line now
N operation between Hanover and Lit.
tlestown, Pa, may be extended to Get
tysburg If this is done, and the w., F.
& G. is converted into an electric rail-
way, Frederick will have trolley connec-
ton via Gettysburg, Hanover, York,
Lancaster, etc, through to Boston, Mass.
and other points in New England.
lowing to the heavy character of the
freight hauled by the w.. F. & G. Rail
way, it is thought that even should this
line be eventually electrified, steam W ould
still be used for freight purposes, the
company using possibly large electric
motor to pull the cars through Frederick
in order to comply with the city fran
chise.
THAT the consolidation of the Freder-
lex county lines will be but step toward
the consolidation of the lines in Freder-
lex and Washington counties and the
southern part of Pennsylvania and prob
ably others, forming big trolley system
operated by one corporation, is the opin=