Evening star., 1925-08-11
HELD BY RECEIVER
FOR R2D-YEAR PERIOD
One Railway, With S15,000,.
600 Capital, Awaiting Offer
of Consolidation.
BY j. c. ROYIE.
Special Dispatch to The Star.


NEW YORK, August 11.-There is
one railroad in the United States
which apparently is basing it's hopes
of future prosperity on being run over
by a consolidation. The Pittsburgh,
Shawmut and Northern road is cele-
bratlng this month the twentieth ami
Versary of its apparently perpetual re-
ceivership. Receivers may come and
receivers may go, but the receivership
seemingly is impregnably intrenched.
The capital stock of the company
amounts to $4,000, 900. The road.
with its leased lines and traffic rights.
is 2lO.53 miles long and was made up
of Il number of small farmers ="
roads. which began nowhere and end
ed anywhere, but when connected
formed a line from Wayland juno
ton, \. Y, to Brockwayville. Pa.
where connection is made with the
Pittsburgh and Shawmut road The
latter gives outlet East and West via
its connections.
Defaults Interest i'm 1905.
In 1905 the Pittsburgh, Shawmut
and Northern defaulted the interest
on its bond issues, one OF which ma
lures in 1949, and only a few bonds of
which are outstanding. The other,
amounting to S14,491 900 in refunding
first gold As, natures February /, 1852.
When interest was defaulted the
Central Union Trust Company of
New York applied for a receivership,
and Frank Sullivan Smith was ap-
pointed receiver. He held Office until his
death in November, 1920, and Henry s.
Hastings was appointed in his stead,
Hastings lived only until 1928. when
ID Dickson SupHpaGp6 N
office.
One of the curious features of the
receivership is that during all these
years that the railroad has been in
the hands of the courts, no serious
attempt has been made to form a
plan of reorganization, and no move
for the discharge of the receivership
has been promulgated.
AS the interest on the debt of the
company came due, receivers GER
tificates refunding the obligations
were issued with the consent of the
courts. These certificates have car
ried interest at the rate of per cent
and each refunding operation with its
addition of interest and fixed charges
has buried deeper the bonds of the
original funded debt.
Last Certificates in 1924.
The last issue of the receivers GER
:ificates was issued in June, 1924, and
mature in 1927. This issue takes up
all the issues of receivers certificates
hitherto outstanding. A bond hold
ers' committee was formed many
years ago for the protection of hold q
ers of the first mortgage 5s and the
refunding per cent bonds. Most of
the bonds of the holders represented
by the committee We're deposited un
der direction of the committee. The
committee, however, represents only
a minority of the bondholders, since
the maj ajority are pledged to the Pitts
burgh and Shawmut Railroad as col
lateral.
There is small doubt that the road
has potentialities If this We're not SO,
the holders surely would have taken
action ere this instead of being con-
tent to draw their interest on the OBJ
legations of the road. 1t owns the capi-
tai stock of the Clarion River Rail-
way Co, the Kersey Mining Co., the
Shawmut Mining Co.. the Shawmut
Commercial Co. and the Kersey Rail
way Co. The carrier intersects the
line of the Erie road and taps exten-
sive fields of bituminous coal.
Consolidation as Spur
The various plans of railroad con-
solidation have opened new vistas for
many carriers. In Pennsylvania the
projected building of the New York,
Pittsburgh and Chicago Railroad
backed by the estate of +. H. Harri-
man. has given warning of vigorous
competition among the Pennsylvania
roads 1t is possible that the Pitts
burgh Shawmut and Northern may
one day wake from its Rip Van Win
kle sleep and find itself with its re-
ta,.shi1n discha rnel