N&W in 1904 -- Detroit Southern

[NW Mailing List]

Hi Sam:

The Detroit Southern eventually became the Detroit, Toledo and Ironton Railroad.

http://cg-tower.com/dti/

Eric at CG Tower

On Nov 28, 2007 10:03 AM, NW Mailing List <nw-mailing-list at nwhs.org> wrote:

>

>

> I'm curious about this railroad.  Where did it run and what became of it?

> Was it bought and absorbed by another road?  Or did it come out of

> bankruptcy and survive under another name?

>

> I'm sure the rumored sale to N&W didn't go through because N&W didn't get

> its lake outlet until it bought the Sandusky Line from Pennsy.  And C&O got

> its lake access by buying the Hocking Valley, although for years it had that

> big gap between the Ohio River and Columbus.

>

> Might it have formed the start of Henry Ford's DT&I?  But I think he built

> that entire road from scratch.

>

> Thanks,

>

> Sam Putney

>

> ----- Original Message -----

>

> From: NW Mailing List

> To: N&W Mailing 1List

> Sent: Tuesday, November 27, 2007 10:11 PM

> Subject: N&W in 1904 -- Detroit Southern

>

>

> NORFOLK & WESTERN MAY GET DETROIT SOUTHERN

>                                                     ------

> Favorable Opportunity to Secure Direct Outlet to the Lakes

>                                                     ------

>     As a result of the financial troubles which have thrown the Detroit

> Southern into the hands of receivers appointed by the courts, there is now a

> strong probability that the Norfolk and Western will acquire the road and

> use it as the basis of a line by which it may secure a direct route to the

> lakes.

>     The Norfolk and Western, as is well known in railway circles has for

> some time wanted a direct line to the lakes and leading railroad men now

> believe that the present difficulty of the Detroit Southern will furnish

> just the opportunity the management of the former road is seeking.

>     Secret and [blurred] action was taken Wednesday in the United States

> court at Ironton, Ohio, regarding the Detroit Southern railroad.

>     Upon the petition of bondholders and after a hearing in chambers Judge

> Thompson decided to throw the company into a receivership.

>     Samuel Hunt, president of the road, was selected by the court as

> receiver, Judge Doyle, of Toledo, appeared, as counsel for the railroad

> company, while Judge Judson Harmon was the legal representative of the

> trustees for the bondholders.  The financial condition of the company was

> set forth as agreed upon by counsel, and Judge Thompson promptly granted the

> application for a receiver so far as concerns the railroad property in Ohio,

> naming Mr. Hunt, who was acceptable to both sides, to take charge of

> affairs.

>     The proceedings were surrounded with secrecy, as it was necessary to

> take similar action to cover the company's property in Michigan.  This will

> be done at Detroit, when a like application will be made in the federal

> court of that district.   No doubt it will be granted.  Mr. Hunt will also

> be appointed receiver by the district Judge at Detroit.

>     There have been rumors for some time regarding the financial condition

> of the Detroit Southern.  It was the understanding that the company was

> barely keeping its head above the water.  The startling action of Wednesday

> was precipitated by the inability of the company to pay the interest on its

> bonded indebtedness, which fell due on June 1.  Efforts were made to arrange

> with the bondholders for concessions, and the withholding of extreme

> measures on the default, so that the road could continue in operation under

> the present management, and possibly straighten out its financial tangle in

> time.  Some of the bondholders were willing to accede to the request and

> hold action in abeyance, but others declined to agree to any concessions

> whatever.  Most of the bonds are held in New York and under a trust.

>

> Bluefield Daily Telegraph

> July 10, 1904

>

> [This is further proof that a newspaper reporter's speculation should not be

> taken as the historical outcome.]

>

> Gordon Hamilton

>

>  ________________________________

>

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