Railroads -- United States; Railroads -- United States -- Finance
The Richmond & Danville fell under the control of a group of
capitalists who already controlled the Atlantic Coast lines and held an
interest in the East Tennessee, and who now bought the 24,000 shares
of Danville stock still held by the Pennsylvania Railroad.[301] Like
its rival, it enlarged its system. It leased the Atlanta & Charlotte
Air Line in 1881,[302] with certain minor roads in the Carolinas and in
Georgia. In 1882, under the charter of the Georgia Pacific, it began
construction westward from Atlanta to the Mississippi. It did not
stretch out, as did the East Tennessee, but it secured a very complete
control of the territory between Richmond in the north and Augusta,
Savannah, and Atlanta in the south. In 1881, also, the Richmond &
Danville took a step destined to have important consequences. Since
it desired to acquire certain railroads, and since its charter
allowed it to hold stock in none but connecting lines, it caused to
be incorporated a so-called Richmond & West Point Terminal Railway
& Warehouse Company, with authority to acquire stocks and bonds of
railroad companies in North Carolina, South Carolina, Tennessee,
Kentucky, Georgia, Alabama, Mississippi, and other states. This
company increased its stock by October, 1881, to $3,000,000; of which
the Richmond & Danville then owned $1,510,000. The most important
acquisition which it made at the time was the Virginia Midland Railway,
from Alexandria, Virginia, to Danville; but other additions were to
follow.
The independent action of the Danville and East Tennessee companies
was followed by a new consolidation which reunited most of the lines
dominated by the old Security Company. In response to queries in
August, 1883, Mr. Calvin S. Brice admitted that a syndicate in which he
was interested had bought control of the Richmond & Danville.
“We have secured,” said he, “about 28,000 of the 50,000 shares of stock
issued by the Richmond & Danville Company. Our syndicate controls,
besides our new purchase, the East Tennessee, Virginia & Georgia
Railway and the Chesapeake & York River line of steamers that ply
between West Point, on the Chesapeake, and Baltimore, and has close
traffic arrangements with the Clyde steamers, which run between New
York and Philadelphia and all Southern points. Our purpose is to
confine all our railroad and steamship lines under one management, and
to equip and operate the system in the best possible manner.”[303]
Public-domain text, read in full here on John Shaqi.
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