The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-05-10
UNDEVELOPEO COAL LAND
OWNED BY ONE RAIL ROAD
Chr"npenke and Ohio Considerably
Richer Than Some Stockholders
Were Aware or.
Eonrr-ErcIlr THOUSAND ACRES
Coni Lands In West Virginia That Will
Ere Long lie Worth Many Millions
of Dollars.

READERS of the annual report or
the Chesapeake and Ohio Railroad
Company" says a New York financial
If they overlook an undisclosed asset
OF that company. 1t is worth seVerai
millions dollars at the present. ana
more million dollars I'm the fu-
turc. II the coal fields of West Nir-
pinia only develop with the popuia-
ton Of the United States.
In the report referred to is an item
of $500 shares OF the Western Poca-
hontas Corporation, valued at S25o,0oo
In the statement of SECURITIES owned.
Elsewhere in the same report the com
pany Is recorded as a guhrantor OF
Western PocahontaS Corporation hrSt
MORTGAGE 4 IL per cent bonds. due
1916" TO the amount OF $T5O.000 In
all These Two items total $l.ooo.ooo'
and there Is nothing In the report 10
show what they represent.
What thrY represent is 10000 acres
of the best coal lands in the New River
distric: OF West Virginia. These lands
are unticvelopcd. The timber on them
has been sold OH the basis OF pay
mcnt of 100000 each year, Tor Pc
Rod of ten years. These payments
have been made regularly since the
agreement was made four years ago
and have 50 far been used 10 eXtin-
bonds by The Chesapeake anu ONO
Railroad.
Nrcpdy Paying Well >iereiy ns Tim
her Lands.
1t is not hard to see that TINS pay
merit. on any recognized actuarial
value. viii cxtinguish the capital IL
ability of the bonds and the S25o.opo
of stock. without development OF the
coal lands at ali. 1t will be noticed
that these coal lands. in the stock es-
innate OF $4,000. are taken At - an
acre. which. OF course. is absurd for
coal lands in that district. This 3d.
600 acres has been thoroughly tested.
and includes coal OF the highest quail
ity. and In probably workable seams
so many times exceeding IN Naluc me
modest capitalization shown IN the
C'hcsapcrkc and ohio report. that in
INC .,ror,tn. un OF the West Wight,
coal fields II Ia an asset worth mill
lions to Inc Chc.a leak. &nH ONO road
There is no attempt here to ignore
the restrictions OF the Federal ia" on
;he DEVELOPMENT OF sucn coal. ana
its carriave. by the railroad Sut IL
on. way or another, the railroad can
realize It's asset. one Northern gen
tlomnn owns 5000 uudcv.lopcd acres
in the same territory, ana he ~ con-
tented to pay taxes like the chcsn-
ucakc and Ohio. and let the property
mature. II there is un% question as
10 how the Chesapeake ana ohio is TO
meet the Sl-,000.o00 appropriated out
OF the earnings OF the next i've years
by additional sources OF income. here
is one Of the answers, and II is not the
only one.
$4,000 Acres for Practically Nothing.
In that pat of the kanawha coal
fields which Adults on the State of Ken
lucky, the Chesapeake and Ohio pos
sesscs s.0oc acres in the best Of thar
coal hearing district. which was re
ccived for practically nothing, as Il
bonus for creating an extension. and
is not even carried as an asset on It's
balance sheet. No attempt is made
here to estimate the value per acre Of
undevelopcd coal hclds In Eastern
kentucky. or In New River district OF
West Virginia. That is a question for
the hungry buyers of coal lands in
those districts TO decide.
At any rate. IL can he said that the
Chesapeake and Ohio has $4,000 acres
of the best coal lands in the most pro-
ductive and commercially available
districts OF its system. which II can
turn into cash. or capitalize In one
way or another. when IL sees fir. The
lands were acquired with Intelligence
and foresight. There are many ways
in which they can he developed. Blu.
there Is no way III which they can be
developed without contributing, in the