Atlantic and Yadkin Railway
Encyclopedia
The Atlantic and Yadkin Railway was a short line railroad within North Carolina
from 1899-1950. It ran from Mount Airy
southeast to Sanford
, primarily serving the Piedmont
region. Some of the rails are still in use as of 2006 as parts of the Yadkin Valley Railway.
(CF&YV) which ran from the Atlantic port of Wilmington, North Carolina
, all the way to Mount Airy with a significant branch to Bennettsville, South Carolina
.
The Atlantic and Yadkin Railway came into being when representatives of the Wilmington and Weldon Railroad
(soon to be reorganized as the Atlantic Coast Line Railroad
) outbid the Southern Railway
for the debt-ridden and bankrupt CF&YV in an 1899 auction. The Wilmington & Weldon Railroad (W&W) had a clause in its incorporation that required any railroad purchased by the W&W to be placed under the same corporate name. The W&W did not want to own the whole of the CF&YV, only that portion which competed directly with its own lines in southeast North Carolina. So the CF&YV was sold to the Southern Railway, where it was reorganized as a new company under the name Atlantic and Yadkin Railway (A&Y). The newly created A&Y then sold back the southern half of its lines from Sanford to Wilmington to the W&W. The northern half remained a wholly owned subsidiary of the Southern Railway.
The questionable legality of the transaction regarding the split of the CF&YV meant years of legal wrangling by angry investors and interested state citizens who saw the only "trunk" line from the western mountains to a North Carolina port split between two competitors. In 1924, the North Carolina Supreme Court
ruled that the sale and reorganization was legal. The Southern Railway wholly owned the A&Y, but kept it as an independent entity throughout the legal battles. The line was considered part of the Southern Railway until 1917, when the A&Y was allowed to run under its own name.
In 1924, the A&Y declared bankruptcy and was taken over by receivers. Receivership required a division of assets and separate operations from the Southern Railway. Eventually, the A&Y was returned to solvency.
The renewed profitability combined with the due date for the A&Y's $
1.5 million in bonds in the late 1940s led the Southern Railway management to decide to merge the line into its own Winston-Salem
Division. The Southern Railway paid the bonds and initiated a merger request. Despite some reservations by the merchants of Greensboro
regarding lack of competition for rail transport in that growing city, the Interstate Commerce Commission
approved the merger effective January 1, 1950. At that time, the Atlantic & Yadkin Railway company ceased to exist.
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
from 1899-1950. It ran from Mount Airy
Mount Airy, North Carolina
Mount Airy is a city in Surry County, North Carolina, United States. As of the 2010 census, the city population was 10,388.-History:Mount Airy was settled in the 1750s as a stagecoach stop on the road between Winston-Salem and Galax, Virginia. It was named for a nearby plantation...
southeast to Sanford
Sanford, North Carolina
Sanford is a city in Lee County, North Carolina, United States. The population was 23,220 at the 2000 census. It is the county seat of Lee County.-Geography:Sanford is located at ....
, primarily serving the Piedmont
Piedmont (United States)
The Piedmont is a plateau region located in the eastern United States between the Atlantic Coastal Plain and the main Appalachian Mountains, stretching from New Jersey in the north to central Alabama in the south. The Piedmont province is a physiographic province of the larger Appalachian division...
region. Some of the rails are still in use as of 2006 as parts of the Yadkin Valley Railway.
History
This railroad's short lifespan covered 1899 to 1950, but some of its rails were laid down in the 19th century as part of the Cape Fear and Yadkin Valley RailwayCape Fear and Yadkin Valley Railway
The Cape Fear and Yadkin Valley Railway was a Southeastern railroad that operated in the Carolinas immediately after Reconstruction.The Cape Fear and Yadkin Valley Railway was created in 1879 with the consolidation of the Western Railroad and the Mount Airy Railroad.The Cape Fear and Yadkin Valley...
(CF&YV) which ran from the Atlantic port of Wilmington, North Carolina
Wilmington, North Carolina
Wilmington is a port city in and is the county seat of New Hanover County, North Carolina, United States. The population is 106,476 according to the 2010 Census, making it the eighth most populous city in the state of North Carolina...
, all the way to Mount Airy with a significant branch to Bennettsville, South Carolina
Bennettsville, South Carolina
Bennettsville is a city in and the county seat of Marlboro County, South Carolina, United States. and home to the Bennettsville Historic District...
.
The Atlantic and Yadkin Railway came into being when representatives of the Wilmington and Weldon Railroad
Wilmington and Weldon Railroad
Originally chartered in 1835 as the Wilmington and Raleigh Railroad, the Wilmington and Weldon Railroad name began use in 1855. At the time of its 1840 completion, the line was the longest railroad in the world with 161.5 miles of track...
(soon to be reorganized as the Atlantic Coast Line Railroad
Atlantic Coast Line Railroad
The Atlantic Coast Line Railroad was an American railroad that existed between 1900 and 1967, when it merged with the Seaboard Air Line Railroad, its long-time rival, to form the Seaboard Coast Line Railroad...
) outbid the Southern Railway
Southern Railway (US)
The Southern Railway is a former United States railroad. It was the product of nearly 150 predecessor lines that were combined, reorganized and recombined beginning in the 1830s, formally becoming the Southern Railway in 1894...
for the debt-ridden and bankrupt CF&YV in an 1899 auction. The Wilmington & Weldon Railroad (W&W) had a clause in its incorporation that required any railroad purchased by the W&W to be placed under the same corporate name. The W&W did not want to own the whole of the CF&YV, only that portion which competed directly with its own lines in southeast North Carolina. So the CF&YV was sold to the Southern Railway, where it was reorganized as a new company under the name Atlantic and Yadkin Railway (A&Y). The newly created A&Y then sold back the southern half of its lines from Sanford to Wilmington to the W&W. The northern half remained a wholly owned subsidiary of the Southern Railway.
The questionable legality of the transaction regarding the split of the CF&YV meant years of legal wrangling by angry investors and interested state citizens who saw the only "trunk" line from the western mountains to a North Carolina port split between two competitors. In 1924, the North Carolina Supreme Court
North Carolina Supreme Court
The Supreme Court of North Carolina is the state's highest appellate court. Until the creation of the North Carolina Court of Appeals in the 1960s, it was the state's only appellate court. The Supreme Court consists of six associate justices and one chief justice, although the number of justices...
ruled that the sale and reorganization was legal. The Southern Railway wholly owned the A&Y, but kept it as an independent entity throughout the legal battles. The line was considered part of the Southern Railway until 1917, when the A&Y was allowed to run under its own name.
In 1924, the A&Y declared bankruptcy and was taken over by receivers. Receivership required a division of assets and separate operations from the Southern Railway. Eventually, the A&Y was returned to solvency.
The renewed profitability combined with the due date for the A&Y's $
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
1.5 million in bonds in the late 1940s led the Southern Railway management to decide to merge the line into its own Winston-Salem
Winston-Salem, North Carolina
Winston-Salem is a city in the U.S. state of North Carolina, with a 2010 population of 229,617. Winston-Salem is the county seat and largest city of Forsyth County and the fourth-largest city in the state. Winston-Salem is the second largest municipality in the Piedmont Triad region and is home to...
Division. The Southern Railway paid the bonds and initiated a merger request. Despite some reservations by the merchants of Greensboro
Greensboro, North Carolina
Greensboro is a city in the U.S. state of North Carolina. It is the third-largest city by population in North Carolina and the largest city in Guilford County and the surrounding Piedmont Triad metropolitan region. According to the 2010 U.S...
regarding lack of competition for rail transport in that growing city, the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
approved the merger effective January 1, 1950. At that time, the Atlantic & Yadkin Railway company ceased to exist.