Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-03-07
PLAN OPERATION
OF ASHLAND LINE
Oliver ]. Sands and Other Rich
mond Men to Back
Road.
TO ISSUE MORTGAGE BONDS
Declared 100000 Is Required
to Control Trolley
Project.

In event the plans nov under con
sideration mature. the Richmond Ash
land traction line. which has been idle
Tor over year, will resume opera
tion at an early date
Announcement was made THURSDAY
afternoon by Oliver ]. Sands, president
OF the American Trust Company, that
plans are now under way for the pur-
chase of the property and right-of-
way from the Richmond and Chesa-
peake Bay Railroad Company and first
mortgage bonds will be issued and Of
Tered TO the general public. In this
manner il is planned to obtain $780,
coo with which to purchase the line
and rehabiiitate Il.
petersburg and Hope well line. has been
retained TO direct the operation.
n discussing the plan, AIr. Sands
~ is proposed 10 organize the Rich
mona Ashland Railway Company TO-
tne ne purpose Of purchasing the right of.
ana Chesapeake Bay Railway Com
pany. from Ashland 10 Lasurnum Sta
tSa tSeive and aiseanse onebaif 0f
put. the road into operation between
these points at the earliest possible
moment. mo The company will issue $500,
ooo OF common stock and $500, 900
swenty-year per cent gold bonds, with
interest payable semiannually. the
nrSt interest payment TO be made Jauu-
ary i, ls2p. and sold TO the subscriber
on hasis of 500 par value, of bonds.
ana 80 par value OF stock, TO be is
sued for each 800 in cash
AGREE TO ADVANCE FUNDS
FOR OPERATION OF ROAD
One hundred and fifty thousan nd
dollars OF the stock of the company is
TO be issued TO j. l.. Vaughan and his
associates, who will agree TO advance
such additional funds as may be nee
essary for the maintenance and oDera
t!on or the road during a period of five
years, and these stockholders will, IN
their individual capacity, guarantee to
operate- the road, and that they will
iurther guarantee to provide payment
the earnings of the road not be suffi-
cient for period of two years.
tund secured from tho sale of
bonds shall be used for corporate pur-
loses and requirements only. and the
subscribers 10 the bonds and stocks
herein shall have representation upon
the board of directors in the proper
tion that the stock held by them bears
ITO oHxf6e.0eo cash must be received he
fore any subscriptions are binding. AS
soon rs subscriptions to the sum of
$4,000 cash have been received. SO
per of such subscriptions shall
immed ly become due and payable
to the American Trust Company as
trustee. The said trustee will Issue
interim receipts for said payments and
upon the organization of the company
the remaining so per cent will be pay
able TO the trustee and the bonds and
RSock delivered. In the event the
organization OF the company is not
PERFECTED, and the property Is not pur-
chased within ninety days from this
date, then and In that event only, the
trustees shall return to the subscribers
the amounts paid"
OLIVER j. SANDS GIVES
OUT PUBLIC STATEMENT
Commenting on the project Thurs
day night, Mr.. Sands said: II want 1t
distinctly understood that the prepara-
ton OF this plan was at the request
OF citizens along the line. They will
now be given an opportunity to be-
como interested in the road. We have
assurances from railroad men OF
experience that 1t can be made to pay
providing it Is operated on an eco
nomical basis. The property will serve
as security for the 100000 bonds"
Under the plan proposed. means
OF transportation will be furnished to
well-populatcd district. The com
pany will operate the line for period
OF five years. in which time 1t is eN-
pected 1t will be established on a pay
ing basis Should it fail to meet the
expectations, it is estimated that the
property and equipment can be sold
for at least 90 per cent of the purcha sc
price, thus causing buyers of the bonds
to lose only half of the par value of
their holdings.
"It is planned to begin the opera
fact, as soon as matters can be shaped