Evening journal., 1911-06-10

-- NiA'' o6O.i
for the property, suoh price being es-
tabhshed entirely on the earning
power OF the road. As a natter OF
taot they have admitted, what exery-
BODY knows, that this portion OF he
road has been the cause Of the down
fall OF the old Wilmington, New
CASTLE and Southern Railway Com
pany, which owned the whole road
from Wilmington to Delaware City.
and It is also fact that during the
receivership that portion OF the road
was operated every year at an annual
deficit OF about $4,000 In arriving AZ
} price which we would be willing to
Give for this property, We have taken
into account It's gross earnings and
what IL would cost 10 operate n after
a permanent road bed has been built
which road bed will involve the ex-
pendlture OF large sums OF money. A
permanent road bed Is necessary In
order to get operating costs down TO
a smaller figure, when such improve
ments have been made the road can
only then be operated for practically
its gross earnings as shown TO date.
which means that the road has no
net earning power whatsoever and
can be bought only on its value as a
feeder to our property. There is no
special disagreement between the two
parties as to It's value as a feeder.
the disagreement seems to lie IN the
fact that the officers OF the New Cas-
tie and Delaware City Traction Com
pany are not willing 10 allow for the
large expenditures that must be made
on the road to get il into a condition
that It can be operated for its gross
earnings The position OF the VIII
minEton Southern Traction Company
in this matter is simply this
I'VE have been always willing 10
buy, lease or furnish the owners OF
the New Castle and Delaware City
Traction Company facilities whereby
they may operate the road themselves,
but At all times We have declined 70
enter into any contract which would
compel US to lose money OF TO accept
the responsibility Of operating a line
from Wilmington to Delaware City for
the same returns as we could obtain
from operating a line from Whining
ton to New Castle only The officers Of
the New Castle and Delaware City
Traction Company say that they have
always been willing TO sell the road
for a price which was offered to them
BY the President OF this Company. In
making this statement / presume the
reference Is to some discussion which
took place over three years ago. AZ
that time the owr rs Of the bonds OF
the line 10 New Castle were involved
10 3 law suit in an effort to foreclose
their mortgage and either obtain cash
for the bonds OF the property. Lawyers
in the situation conceived the idea OF
consolidating the bond issue of botf
ends Of the property and selling the
road as a whole, thereby eyading &
long and tedious suit which they fore
saw would result In line with this, I
price was suggested to the then bono
holders committee handling the affair
OF the present New Castle and Della
ware City Traction Company s.ith th
idea Of seeing II they would accept
but instead Of accepting this pric
they named a price three-fourth
greater and no argument could In
duce them to reduce It.
The price that was suggested rep
resented the maximum which the in
terests I represented at that tim
could afford to give with the idea 0
evading a long and tedious lawsui
with great costs. loss Of interest ant
time. to say nothing OF vexations. Tha
was three years ago and the loss ha
accrued, and I believe that ! win b.
supported in the statement when / sa.
il is absurd to contend for that pric
now, having put US to great expensl
and having caused us a loss Of full.
three years IN time. The same idei
that prompted a return offer nearl,
three-fourths greater three years agl
Is the frame Of mind which Is prompt
ing the present action in an effort u
compel us to pay more than the prop
erty is worth at the present time
If the New Castle and Delawar
City Traction Company desire to dis
mantle the road and thereby los
money for its stockholders as well a
inconvenience the public. rather thai
make some reasonable arrangemen
for the continuance Of operation, It /
q condition which we very much re
Eret, but which We cannot control. W
shall continue the roao between Ne,
Castle and Wilmington. improve it a
rapidly as we can and give the YER
1rsf service POSSIBLE"