Lexington gazette. [volume] (Lexington, Va.) 1871-1962, 1910-05-11
WILL SOUTHERN BUY?
Baltimore Anxious to Sell Her
Valley Railroad Stock
BETTER SERVICE TO FOLLOW
Will Dispose of Her Holdings at
Half Price

! hdll fIlCe
1t is speculative idea on the part
OF those VINO are not on the inside OF
anticipated changes in the railroad
world, and though the wish may
be parent to the thought. it may be
that Southern trains wall be running
from Lexington to Washington soon
erthan even the most hopeful expect.
The present railroad situation is
so we'll known to those who travel
this way, that even some pleasure
can be derived from the hope, for in
Valley several hundred miles long
served with three disconnected links
OF steel, where through railroad SER
vice could be best handled by the
one company, travel is uncertain.
The splendid equipment now be-
ing used by the Southern, together
with the greatly improved physical
condition of the road, makes the SER
vice from Harrisonburg to Wash
ington as good as can be found on any
branch line in the South, and If this
same service is extended through
Staunton TO Lexington the South
ern would put the track in proper
condition to handle faster trains on
the south end.
However the City of Baltimore ex-
poets to sell out its share of the Val
ley and this is what the Sun of that
city says:
Mayor Mahool, in an interview
Monday with City Councilman Heat
"ole, said that the proposed sale of
the city's stock in the Valley Rail
road Of Virginia has been submitted
to City Solicitor Poe and that some
definite action might be expected
later.
The Mayor said yesterday that DR..
Heatwole's report of this investiga-
ton of the conditions of the road, in
which the city now owns $1,000, 600
stock, has been accepted and as it is
sufficiently exhaustive further
statement from the Councilman
would not be expected.
We have not had time lately to
take this question up" the Mayor
said. We have been kept busy with
the other city business and the work
of preparing the city bills introduc-
ed in the Legislature. As soon as
Mr.. Poe finds the opportunity he
will probably have a conference W ith
the Baltimore and Ohio Railroad
officials as that road controls and
operates the Valley Railroad The
project has already been considered,
as my last message shows"
DR.. Hcatwole said yesterday The
best thing for the city to do is to
get what it can out of the railroad.
The 81, 10000 of stock the city sub
scribed when the road was built
has never paid a cent of dividends,
and as it is operated at a loss there
is not much possibility that it ever
will. What should be done is to
get the money out of the road before
it is all gone, and at this time. I
think the city would realize $500. 900
or $500, 900.
The reason it cannot pay now is
because it has no outlet, being dead
ended at Harrisonburg by the South
ern Railway and at Lexington by the
Chesapeake ard Ohio. If the road
were a part of either of these sys-
TENS it would pay, but with the pre-
sent methods OF a dividend never
will be paid.
"On the road now are first mort
gage bonds to the amount of $780,
600, and this requires every year
$40, 600 interests. Then there is an
accrued interest account of about halt
a million. The gross earnings of the
road now every year are 5000. 600
and the cost of operation is IS per
cent. of this amount. So it can be
seen that under present conditions
the road cannot be expected to
pay"
State Commissioner Koiner, after
n visit of several davc throu,h tbo