1907 - Is Tidewater An Elephant?

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Roanoke Times - September 20, 1907

IS TIDEWATER AN ELEPHANT?

Railway Officials Say Rogers' Project is More or Less Problematic

OIL MAGNATE HAS PUT OVER $40,000,000 IN IT

Forced to Dispose of Gilt Edge Securities to Get Cash With
   Which to Carry on Work of Building Line From Mountains
   to Sea -- Interesting Figures

  New York, Sept. 19. -- Reports have been current in Wall street for 
some time that H. H. Rogers, of the Standard Oil Company, had been 
heavily interested in the Tidewater railway project in Virginia and 
that he had lost heavily by the investment.
   The Evening Post says today that it can be stated positively that 
Mr. Rogers incurred a personal obligation in the Tidewater project 
much in excess of $40,000,000. The Post also says that the situation 
has been entirely cleared up.

  The Evening Post said:
   "Confirmation was obtained in Wall street today of reports to the 
effect that H. H. Rogers was heavily interested in the Tidewater 
railway project.
   "According to the stories previously circulated, upwards of forty 
per cent of Mr. Rogers' fortune has been involved in the Tidewater 
investment. It can be stated positively that the sum is much larger 
than the amount named, also that the situation has been entirely cleared up.
   "In order to meet the demands made upon him in connection with the 
construction of the railroad Mr. Rogers was forced to dispose of a 
large amount of investment stock at a sacrifice. During the recent 
decline in prices the vice-president of the Standard Oil Company sold 
gilt-edged stocks, such as Standard Oil, Consolidated Gas, Union 
Pacific and St. Paul.
   "Some five or six years ago, against the advice of his friends, 
Mr. Rogers started to build in West Virginia a low-grade road, which 
would parallel the Norfolk & Western. His object was to carry coal 
and lumber to tidewater. The line was to be 443 miles long. Only 125 
miles have been completed.
   "Only a few months ago, in order to raise $10,000,000 for the 
Tidewater road, Mr. Rogers issued his personal notes, secured by 
$20,000,000 first mortgage bonds, $10,000,000 stock and $10,000,000 
dividend or interest-paying collateral. These six per cent notes were 
endorsed by H. H. Rogers personally.
   "Railway officials who have watched the construction of the road 
with interest from the beginning, say that the project, even at this 
stage, is more or less problematic. It is confidently believed, 
however, that with the sacrifices already made in disposing of 
high-priced securities, Rogers is in a position to gain his end and 
see the mileage completed.
   "It was learned some months ago that the Standard Oil man and his 
associates had bought up all the available lumber and coal lands in 
West Virginia. These purchases amounted to thousands of acres and 
will in some future time supply the Tidewater road with traffic.
   "W. N. Page is president of the Tidewater railway. When completed, 
the road will extend from Deepwater, W. Va., on the Kanawha river to 
Sewall's Point, near Norfolk, Va. The authorized stock is 
$35,000,000. The first mortgage 5 per cent bonds, none of which has 
been placed on the market, are issuable as follows: $35,000,000 for 
the construction of the line from Deepwater to Sewall's Point, 442 
miles, single track. For each additional mile of single track on the 
main line $75,000 bonds may be issued; $50,000 a mile for branch 
lines and $50,000 for main line second track."

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Notice the papers spelling of Sewall's Point

- Ron Davis, Roger Link