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New Jersey Herald - September 6, 1962 issue
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Rail Link Group Working on Capitalization Plans
Sussex--Plans for capitalization and financing the
restoration of the 10 mile railroad link between Augusta and Sussex
Borough were pushed Tuesday at a meeting of the committee sponsoring
the project at the Farmers National Bank. The rail line was abandoned
last fall by the Lehigh and New England Railroad and a group of local
businessmen has launched a plan to reinstate it and operate the line
in conjunction with the Erie Lackawanna Railroad.
Lawrence Willson, chairman of the board of directors
of the Farmers National Bank and attorney with offices in New York,
is spearheading the drive. He has outlined a plan under which the rail
line can be restored to operating condition for a maximum of $286,000,
and the group will ask local banks to subscribe to the first mortgage
bonds for the major part of the cost. County residents will be asked
to buy upwards of $100,000 in common stock in the venture.
Pick Company Name
Willson said Tuesday that the committee working on
the plan had agreed to establish a corporation to be called Sussex County
Railway, Inc., and this week will consult with state officials and investing
companies on capitalization details and incorporation. At the same time,
he said he has received renewed assurances of cooperation from the spokesman
for the salvage companies which bought the rails and track equipment
from the Lehigh and New England.
A new element entered the picture this week, according
to Willson, when William Whitehead, president of the Black River and
Western Railroad, met with the committee and proposed an agreement under
which the Black River concern could use the line for amusement and sight-seeing
purposes. The Whitehead company owns old-style railroad rolling stock,
was balked in its effort to start operations in the Chester area, and
then turned to Sussex County in search of a rail line on which to operate
the amusement business.
Study Agreement
Willson said his committee has the proposed agreement
with the Black River company under advisement. It would involve a yearly
rental arrangement which would add to the income of Sussex County Railway,
he said.
Under the restoration plan as previously outlined,
the Augusta-Sussex link would tie in with the Erie Lackawanna at Augusta
and freight would be hauled over the line by the Erie Lackawanna. This
tie-in with the Erie Lackawanna, Willson has insisted, will prolong
the operating life of the EL and thus benefit the whole county.
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