1908 - To Complete Work

[NW Mailing List]

Roanoke Times - April 29, 1908

TO COMPLETE WORK

N. & W. May Borrow Money for That Purpose

   The announcement that the Norfolk & Western had made arrangements 
to borrow seven and a half million dollars will be received here with 
deepest interest. It will be particularly interesting in view of the 
fact that this money is, from all accounts, to be used for carrying 
out the plan of improvements which were started upon some time ago 
and which were temporarily suspended on account of the general 
business depression.
   A decision to borrow this large sum of money was reached, so it is 
stated, at a meeting of the board of directors, held on last Thursday 
in New York City.
   Instead of issuing bonds for the money, the Norfolk & Western will 
issue two year notes. It is understood that this plan was due to the 
fact that the bond market is in pretty bad shape and bonds of no 
corporation could be sold just now to any special advantage. The 
notes are for two years, and if the bond market improves, which will 
more than likely be the case before the expiration of the two years, 
bonds will be issued for the purpose of taking up the notes and retiring them.
   With the seven and a half million dollars, the Norfolk & Western 
will proceed to complete many important improvements, the chief of 
which is in the coal fields west of Elkhorn, where the road is being 
doubled tracked and straightened. This is a great improvement, and 
when completed will be of immense advantage to the road in handling 
the immense volume of business that passes over that section.
   The borrowing of this money and the proposed improvements will in 
all probability give work to hundreds of men who are now idle. This 
will mean much to people all along the line of the Norfolk & Western 
and will help many families to tide over hard times.
   The Daily Banker and Stockholder, a financial publication of New 
York, contained in its issue of last Saturday, the following 
statement in regard to the Norfolk & Western note issue:
   "Norfolk & Western offers through Guarantee Trust Company seven 
million five hundred thousand dollars of two year five per cent, 
notes, at 99 and interest."

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- Ron Davis, Roger Link