New Berlin Branch of O. and W. Railway
May Be Sold and Eventually Discontinued
This 29.24 mile Section Reaching from
New Berlin Junction to Edmeston - Show Cause
Order is Issued by Judge Murry Hulbert to
Line Now in Process of Reorganization
NEW YORK (Special) Definite plans of the New York, Ontario and Western Railway Company to discontinued operation of its New Berlin branch and sell the property was revealed in United States District Court here yesterday in a show cause order signed by Judge Murray Hulbert. The line is in process of reorganization.
The order followed a petition by Frederic E. Lyford, trustee of the O. & W., for permission to sell the 29.24-mile section which runs from a point on the main line at New Berlin Junction in Chenango county to Edmeston in Otsego county.
Offer of $25,000 Received
Mr. Lyford told the court that he has an offer of the Unadilla Valley Railway Co. to purchase the branch under certain conditions for $25,000. The purchaser would operate it for five years at least.
The Unadilla company wants included in its purchase agreement an option to purchase, for an additional $2,000, a spur between the southerly end of the line and Sidney, N.Y., connecting with the Delaware & Hudson line.
The sale would include industrial track, yard track, sidings, and station and accessory buildings, but would not include motive power and rolling stock.
The trustee recommends the offer be accepted. He says the annual cost to the present owners of maintaining and operating the branch is $60,000. There is practically no out-bound traffic except for milk for New York. In February of this year there were 42 cars of miscellaneous products out-bound. The in-bound traffic is principally coal and fertilizers. There were 121 cars of those materials in February. The total gross income from the branch last year was $40,000, resulting in a loss of $20,000.
The so-called New Berlin branch from New Berlin Junction to the village of New Berlin, is owned by the O. and W. The remaining 6.85 miles belongs to the Wharton Valley Railway Co., a wholly-owned subsidiary.
Judge Hulbert signed an order to show cause on another matter brought up by Mr. Lyford. The trustee told the court that the line has received bills for taxes from the village of New Berlin, the county of Chenango and the county of Otsego which are “discriminatory, arbitrary and disproportionate.” He says the taxes sought for the period 1937 to 1941 total $38,717 and should be only $3,929. The village asked $3,651, he says, and is entitled to $71. Chenango county wants $29,196 and should get only $3,086, and Otsego county asks $5,869 and should get $768.