North Western North Carolina Railroadgreenspun.com : LUSENET : Southern Railway : One Thread
The North Western North Carolina Railroad was organized in the late 1880's to establish a line from Greensboro, NC, to Mt. Airy and North Wilkesboro, NC. In 1891, the North Western North Caorlina Railroad gave a 99 year lease to the Richmond & Danville RR, which merged to form Southern Railway in 1894. The Yadkin Valley Railroad is the current short-line operator of the NWNCRR section. What happened at the end of the 99 year lease? Did the Richmond & Danville or the Southern ever acquire the reversionary interest or the stock of the NWNCRR? I am interested in the history of the railroad to North Wilkesboro, NC. I believe the current depot was constructed in 1912, after a fire destroyed the original wooden depot. If anyone has any information concerning the North Wilkesboro depot, please write me. I am especially interested in photographs of the depot in the period 1912-1930.
-- John Logsdon (email@example.com), January 01, 2001
At some point prior to March, 1892, the Richmond & Danville acquired a majority of stock in the North Western North Carolina, due to the fact its construction bonds were endorsed (underwritten) by the R&D, with the railroad itself as collateral. The value of the stock owned by the R&D at the time was $996,500.
The construction bonds were 6% First Mortgage bonds with a maturation date of 1938. The lease you mentioned was intended to be similar to the R&D's lease of the North Carolina Rail Road and the Atlanta & Charlotte Air Line; however, these roads were completed without assistance from the R&D with regard to their construction, and the R&D was unable to assert any ownership of the stock.
In any event, the great financial panic of the early 1890's swamped the Richmond & Danville (as it did most railroads in the country), and the company, along with all of those that the road controlled, were re-organized by J.P. Morgan interests as the Southern Railway in July, 1894, culminating a re-structuring that was over 2 years in the making. Many railroads were folded into the Southern Railway as a result, notably from your region, the Western NCRR (Salisbury to Asheville), the Atlantic, Tennessee, & Ohio (Chlt to Statesville), and the Statesville & Western (Statesville to Taylorsville).
The 6% bonds held in the hands of the public were exchanged ($1,333,000 originally) for Southern securities of 4% interest rate, but higher principle ($1,466,300 to the public), as well as Preferred Stock in the SR, amounting to $533,200.
Hope this helps,
Matt Bumgarner Hickory, NC
-- Matt Bumgarner (firstname.lastname@example.org), January 01, 2001.