1907 - Rogers Coal Line Offered for Sale

[NW Mailing List]

What is meant by those rates quoted, such as 3 mills per ton?

Don Trettel



>From: NW Mailing List <nw-mailing-list at nwhs.org>

>Reply-To: NW Mailing List <nw-mailing-list at nwhs.org>

>To: nw-mailing-list at nwhs.org

>Subject: 1907 - Rogers Coal Line Offered for Sale

>Date: Mon, 05 Mar 2007 22:44:32 -0500

>

>New York Times - March 2, 1907

>

>ROGERS COAL LINE OFFERED FOR SALE

>

>To the Norfolk & Western Road Before the Recent Note Issue

>

>BUT THE ROAD WOULDN'T BUY IT

>

>It Thinks Now It Has Saddled the Standard Oil Man With a Fine Money

>Eater - Recent Note Issue Was a Surprise to Wall Street.

>

>    Control of the Tidewater railway, which is being built by H. H.

>Rogers from the West Virginia coal fields to the seaboard at Norfolk,

>was offered to the Norfolk and Western railway and refused by the

>management of that road. From what was learned of the offer yesterday

>it was made shortly before the recent sale of $10,000,000 of notes by

>the Tidewater Construction Company, which is to finance the

>completion of the road. It is understood, in fact, that the refusal

>of the Norfolk and Western to consider the purchase was the direct

>cause of this note issue, the announcement of which aroused so much

>surprise in Wall Street because of the high interest rate paid on the 

>notes.

>    While Chairman Fink, of the Norfolk and Western refused yesterday

>to discuss the offer of sale by the Tidewater railway, it was

>admitted in authoritative quarters that such an offer had been

>refused by the Norfolk and Western. The offer was refused not only as

>a matter of policy adopted by the road itself, soon after Mr. Rogers

>made known that he would parallel the Norfolk and Western from the

>West Virginia coal fields to the seaboard, but also on account of the

>provisions of the newly adopted Constitution of West Virginia,

>supplementing the Federal statutes prohibiting the acquisition of a

>parallel or competing line.

>    With the news of the offer by Mr, Rogers to sell to the Norfolk

>and Western the line which he has been building ostensibly to compete

>with that line and the Chesapeake and Ohio in the transportation of

>coal from West Virginia to the Atlantic, some interesting facts

>regarding the early stages of this enterprise were obtained yesterday.

>    Mr. Rogers, it is said, having acquired the large area of coal

>land which he now controls in the Kanawha and New River coal fields,

>opened negotiations with the Norfolk and Western for the

>transportation of this coal to tidewater. Those familiar with the

>negotiations said that Mr. Rogers wanted the coal carried at a rate

>of 3 mills per ton mile, or about half a mill per ton mile less than

>the Norfolk and Western's present rate.

>    Mr. Rogers, so it is said, was informed that his coal would be

>carried at the usual rate, but for no less. His rejoinder was "I

>shall build a road of my own to carry the coal to Tidewater."

>    The Norfolk and Western was...

>

>[illegible]

>

>...could afford to haul his coal more cheaply than would ever be

>possible on the Norfolk and Western. The Norfolk and Western, however

>preferred to see the new line built than to carry coal at a loss, and

>Mr. Rogers went ahead with the construction of his road.

>    It is the present understanding that after four years, during at

>least two of which work on the new line had been done on a large

>scale, Mr. Rogers tired of his undertaking sufficiently to offer to

>sell the line. Upon what terms Mr. Rogers was willing to sell could

>not be learned yesterday. It is known, however, that representatives

>of the Norfolk and Western were much surprised at the news that Mr.

>Rogers had borrowed $10,000,000 to continue the construction of the

>line. The inference had been drawn in Norfolk and Western circles

>that Mr. Rogers would prefer to rid himself of the undertaking upon

>anything like reasonable terms.

>    Having refused Mr. Rogers original proposition regarding the

>transportation of coal, the Norfolk and Western has consistently

>pursued the policy of leaving him to his own devices in the matter of

>this new coal line, believing that the Norfolk and Western had in the

>long run relatively little to fear as a result of his plan to have

>his coal carried to the seaboard for less than the Norfolk and

>Western was willing to take it for. In this attitude the Norfolk and

>Western was backed up by the Pennsylvania railroad, whose late

>president, A. J. Cassett, is said to have taken the position that it

>would be better for the Norfolk and Western in competition with the

>Tidewater railway to carry coal even at 2 mills per ton mile than to

>yield to Mr. Rogers proposal.

>    It is said that Mr. Rogers, who according to some of those who

>have followed the history of the Tidewater railway, undertook the

>enterprise out of pique, is now discovering that in an effort to get

>back at the Norfolk and Western he is forced, against his will, to

>spend more money than he had expected. The road is now not more than half 

>built.

>

>

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