1908 - SOUTH AND WESTERN RAILROADS PLANS

[NW Mailing List]

Roanoke Times - March 18, 1908

SOUTH AND WESTERN RAILROADS PLANS

Company Increases its Capital Stock and Will
Make New Mortgage for $15,000,000

(New York Herald.)

   It is announced that the South and Western Railroad Company has filed 
papers at Nashville, Tenn., changing its name to the Carolina, Clinchfield 
and Ohio Railway Company, and increasing the capital stock from $7,000,000 
to $27,000,000, of which $15,000,000 is six per cent preferred and 
$12,000,000 common stock.
   The road will extend from Elkhorn, Ky., on the Chesapeake and Ohio, 
southerly, traversing the extensive coal lands of the Clinchfield Coal 
Corporation, to Spartanburg, S. C., on the Southern railway and the 
Atlantic Coast Line, a distance of about two hundred and eighty-five miles. 
Of this mileage there is now in operation sixty-seven and one-half miles 
from Johnson City, Tenn., to Altapass, N. C., and eight miles from Dante to 
Fink, Va.
   It is stated that construction is largely completed from Altapass to 
Basic, N. C., sixty-one miles, and from Fink, Va., to Johnson City, Tenn., 
seventy-eight miles. The road will develop the 283,000 acres of coal lands 
of the Clinchfield Coal Corporation, owned by the Cumberland Corporation, 
which also controls the railroad.
   It is stated that a new mortgage will be made to secure an issue of 
$15,000,000 bonds, of which a sufficient amount will be reserved to retire 
the bonds of the constituent companies. The bonds will be secured by a 
mortgage on the road from Dante, W. Va., to Spartanburg, 245 miles. The 
cost of the road to date, it is said, is about $18,000,000, the 
construction work through the Blue Ridge Mountains being very expensive.
   The Cumberland Corporation, which in 1906 pledged its stock ownership of 
the South and Western railroad, the Clinchfield Corporation, etc., to 
secure an issue of $15,000,000 six-year 5 per cent notes, has recently 
issued $3,000,000 one-year 6 per cent notes secured by pledge of the bonds 
of three constituent railroads of the South and Western Railroad Company. 
The new notes mature in February, 1909, but are subject to call on the 
first day of any month on ten-day's notice.

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- Ron Davis, Roger Link