1907 - Rogers Coal Line Offered for Sale

[NW Mailing List]

a mil or mill is a tenth of a cent.

----- Original Message ----- 
From: "NW Mailing List" <nw-mailing-list at nwhs.org>
To: <nw-mailing-list at nwhs.org>
Sent: Monday, March 05, 2007 11:11 PM
Subject: RE: 1907 - Rogers Coal Line Offered for Sale



> 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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