The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1915-11-25

The Seaboard Air Line railway will
be consolidated with the Carolina-At-
lantic and Western railway under the
corporate name of the Seaboard Air
Line Railway company. The Carolina
Atlantic and Western Railway is a re-
cent consolidation of the North and
South Carolina, Charleston Northern
and South Carolina railroads, operat-
ing total of 416 miles. The Carolina
Atlantic and Western railway recently
acquired the Georgetown and West
ern railroad, operating from Lanes to
Georgetown, s. c., and from Andrews
to the Pee Dee river, South Carolina,
distance of 70 miles. The Charleston
Northern railway is the line recently
completed, connecting the North and
South Carolina railroad with the city
OF Charleston, giving the Seaboard en-
trance into Charleston, and now be-
coming part Of the main line of the
consolidated system. The new termi-
nails at Charleston are admirable, both
as to location and facilities.
"The line will be extended from
Charleston to Savannah by the imme-.
diate construction of 85 miles Of rail-
road with a maximum grade of only
3-10 of 1 per cent. This new line will
also become part Of the main line of
the consolidated system.
This will give the Seaboard Air
Line Railway company-the new COM
pany growing out Of the consolidation
OF the aforementioned properties-a
low grade line from Hamlet, N. c., to
Savannah, Ga. By this new line the
Seaboard will reach Georgetown, s. c.,
Charleston, S. c., and Savannah; will
tap rich and fertile territory, highly
productive in cotton and tobacco; will
admit of the Seaboard's running time
to the South being shortened; will cre-
ate line with maximum grade of only
" of l per cent, as compared with ~
per cent-the maximum grade of the
present line to Sayannah-and will
permit the increase of the full train.
load 127R per cent. In effect, this
will give the Seaboard, through South
Carolina, from Hamlet, N c., to Sa-
vannah, Ga, two lines (the other lines
running via Columbia) each one self
supporting in its own territory. In this
way, also will be obviated the neces-
sity of doubie-tracking the Hamlet Co
lumbia line, where traffic is becoming
congested. The territory to be opened
up between Charleston and Savannah
is generally well adapted to the grow
ing of vegetables, corn, rice and sea
island cotton, and will put the Sea-
board Immediately into Charleston's
heaviest vegetable-producing section.
"The Seaboard Air Line Railway
company-the new company-will
have first and consolidated NOR gage
securing an authorized issue of $780,
100000 bonds, Of variable interest
rates and maturities. This mortgage
will be Immediately a first lien on the
416 miles Of main line track between
Hamlet and Savannah, via Charleston,
Lanes and Georgetown, S. c., located
on the Eamlet-C Columbia line, to Flor
ence, Boston, Sumter and Timmons-
vile, s. c. There will be pledged as
collateral under the new mortgage a
majority-$22.36 .361 ,000-of the out
standing refunding per cent bonds
OF the Seaboard Air Line railway.
There will be issued presently un-
der the new first and consolidated
mortgage S22,S93,000 per cent 30
year gold bonds. A part is to be used
in exchange for underlying bonds Of
constituent companies. The balance
has been sold, the proceeds to be
used for the construction of the new
line from Charleston to Savannah; for
the retirement of equipment trust OBJ
legations falling due during the year
ending June 80, 1916; for the retire
ment of the $6,000,000 3-year notes
due March 1, 1916; for the acquisition
IF certain new property, and for i'm.
provenients, betterments, ETC.
1T was believed to be to the best
interests of the property to make i'm
mediate arrangements for the near fl.
lure, "a well as for present financial
requirements. In the financing Of the
nations at war, interest rates have al
ready materially increased, necessitat.
ing the procuring of large amounts of
money for American enterprises on an
increasing interest basis"
Securities Already Advanced
AS outlined in the foregoing state.
ment by Mr.. Warfeld. it is pointed out
that under the new financial plans
and consolidation all classes of securi.
ties OF the Seaboard Air Line railway
would ebe greatly benefited, not only
the bonds of the railway and it's con.
stituent properties, but both issues of
preferred and common stock would be
made more valuable. That this Is gen.
orally recognized is evidenced by the
large increase in the market quota.
tions of the stocks, and all Seaboard
securities, resulting after the knowl.
edge on the part of the stockholders
OF the value to the securities under
the proposed financial arrangements
and as additional evidence of the man.
ner in which the plans have been re-