FINANCE DOCKET No. 42981 SECURITIES OF WINSTON-SALEM TERMINAL-CO. Submitted September 17, 1924. Decided October 15, 1924 1. Authority granted to the Winston-Salem Terminal Company to issue not exceeding $3,000 of capital stock, consisting of 30 shares of the par value of $100 per share, and $800,000 first-mortgage 5 per cent gold bonds. 2. Authority granted to the Southern Railway Company, the Winston-Salem Southbound Railway Company, and the Norfolk & Western Railway Company, jointly and severally, to assume obligation and liability, as guarantors, in respect of the principal and interest on the bonds herein authorized to be issued. L. E. Jeffries for Winston-Salem Terminal Company and Southern Railway Company; Burton Craige for Winston-Salem Southbound Railway Company; and Theodore W. Reath for Norfolk & Western Railway Company. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Winston-Salem Terminal Company, a corporation organized for the purpose of engaging in interstate commerce, the Southern Railway Company, the Winston-Salem Southbound Railway Company, and the Norfolk & Western Railway Company, common carriers by railroad engaged in interstate commerce, have filed applications in which the Winston-Salem Terminal Company seeks authority to issue $3,000 of its capital stock and $800,000 of its firstmortgage 5 per cent gold bonds for the purpose of building a station and other terminal facilities, and the Southern Railway Company, the Winston-Salem Southbound Railway Company, and the Norfolk & Western Railway Company, seek authority, jointly and severally, to assume obligation and liability, as guarantors, in respect of the principal and interest of the bonds of the Winston-Salem Terminal Company. No objection to the granting of the authority sought has been presented to us. This report also embraces Finance Docket No. 4298 (Sub-Nos. 1, 2, and 3), Assumption of Obligation and Liability by Southern Ry., Winston-Salem Southbound Ry., and Norfolk & Western Ry. The Winston-Salem Terminal Company proposes to issue the capital stock and the bonds for the purpose of providing funds for the acquisition of the necessary land in the city of Winston-Salem, N. C., and for the construction thereon of a modern union passenger station and other terminal facilities for use by the Norfolk & Western Railway Company, the Southern Railway Company, and the Winston-Salem Southbound Railway Company in the handling of their passenger traffic at that point. A copy of the proposed agreement, covering the use of such facilities by the railroad companies, to be dated October 1, 1924, is filed with the application. The bonds will be issued under a first mortgage dated October 1, 1924, made by the Winston-Salem Terminal Company to the Farmers' Loan & Trust Company, of New York, trustee. They will be dated October 1, 1924, will bear interest at the rate of 5 per cent per annum, payable semiannually, and will mature April 1, 1966. The stock will be acquired by the three railroad companies at par. The bonds have been sold, subject to our authorization, to Clark, Dodge & Company, at par and accrued interest. We find that the proposed issue and sale of stock and bonds by the Winston-Salem Terminal Company and the proposed assumption of obligation and liability in respect of the bonds by the Southern Railway Company, the Winston-Salem Southbound Railway Company, and the Norfolk & Western Railway Company as aforesaid (a) are for a lawful object within their respective corporate purposes, and compatible with the public interest, which is necessary and appropriate for and consistent with the proper performance by them of service to the public as common carriers, and which will not impair their ability to perform that service, and (b) are reasonably necessary and appropriate for such purpose. An appropriate order will be entered. ORDER Entered October 15, 1924 Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof: It is ordered, That, for the purpose stated in the application and aforesaid report, the Winston-Salem Terminal Company be, and it is hereby, authorized to issue not exceeding (1) $3,000 of capital stock, consisting of 30 shares of the par value of $100 per share; said stock to be sold at not less than par; and (2) $800,000, principal amount, of first-mortgage 5 per cent gold bonds under and pursuant to, and to be secured by, a first mortgage to be dated October 1, 1924, to be made to the Farmers' Loan & Trust Company, of New York, trustee; said bonds to be dated October 1, 1924, to bear interest at the rate of 5 per cent per annum, payable semiannually, to mature April 1, 1966, and to be sold at not less than par and accrued interest. It is further ordered, That the Southern Railway Company, the Winston-Salem Southbound Railway Company, and the Norfolk & Western Railway Company, jointly and severally, be, and they are hereby, authorized to assume obligation and liability, as guarantors, in respect of the payment of the principal and interest of the bonds herein authorized to be issued by the Winston-Salem Terminal Company; said guaranty to be indorsed upon each bond substantially in the form submitted in the application. It is further ordered, That, except as herein authorized, said stock and bonds shall not be sold, pledged, repledged, or otherwise disposed of by the applicants, or any of them, unless and until so ordered by this commission. It is further ordered, That the applicants shall report concerning the matters herein involved in conformity with the commission's order dated July 22, 1924, respecting applications filed under section 20a of the interstate commerce act. And it is further ordered, That nothing herein shall be construed to imply any guaranty or obligation as to said stock, or dividends thereon, or as to said bonds, or interest thereon, on the part of the United States. 90 I. C. C. FINANCE DOCKET No. 4335 CENTRAL VERMONT EQUIPMENT TRUST, SERIES F Approved October 16, 1924 DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER AMENDATORY ORDER Upon further consideration and for good cause shown: It is ordered, That the first ordering paragraph of the commission's order herein entered October 6, 1924, be, and it is hereby, modified to read as follows: It is ordered, That, for the purpose of acquiring possession of, the right to use, and ultimately the title to the equipment described in the aforesaid report, the Central Vermont Railway Company be, and it is hereby, authorized to issue not exceeding $767,000 of Central Vermont Railway equipment-trust notes, series F, under and pursuant to, and to be secured by, an agreement of conditional sale and indenture of lease dated September 30, 1924, made by it with the American Car & Foundry Company and the American Exchange National Bank of New York City; said notes to be dated October 1, 1924, to be in the denomination of $1,000, payable to bearer, to bear interest at the rate of 5 per cent per annum, payable semiannually, and to mature in amounts and on the respective dates set forth in the application and aforesaid report; said notes to be delivered on an average basis of not to exceed 52 per cent per annum, or at not less than 98 per cent of par and accrued interest, in connection with the procurement of said equipment. It is further ordered, That, except as herein modified, the commission's order entered on October 6, 1924, shall remain in full force and effect 1 See 90 I. C. C. 749. FINANCE DOCKET NO. 4348 BONDS OF WHARTON & NORTHERN RAILROAD Submitted October 8, 1924. Decided October 15, 1924 Authority granted to extend the maturity date of $300,000 of applicant's Morris County Railroad Company first-mortgage bonds from September 1, 1925, to September 1, 1940. Charles MacVeagh and Charles S. Belsterling for applicant. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND POTTER BY DIVISION 4: The Wharton & Northern Railroad Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to extend for 15 years from September 1, 1925, at an interest rate of 6 per cent per annum, the maturity date of $300,000 of its Morris County Railroad Company first-mortgage 6 per cent gold bonds. No objection to the granting of the application has been presented to us. The applicant is a New Jersey corporation, formed December 7, 1905, by the consolidation of the Port Oram Railroad Company, the Hibernia Branch Railroad Company, the Morris County Connecting Railroad, and the Morris County Railroad Company. At the time of the consolidation the last-named company had outstanding $300,000 of first-mortgage bonds issued under a mortgage given on September 1, 1886, to the Central Trust Company (now Central Union Trust Company of New York). The bonds are dated September 1, 1886, bear interest at the rate of 6 per cent per annum, payable semiannually, and mature September 1, 1925. It appears that, by virtue of the merger of the Morris County Railroad Company into the applicant, these bonds became the direct obligation of the latter, which has presented evidence tending to show that it will not be in position to retire them at maturity. It is therefore proposed to extend the maturity of the bonds to September 1, 1940, with interest at the rate of 6 per cent per annum, payable semiannually as heretofore. To carry out this purpose the applicant will enter into an agreement to be dated October 1, 1924, |