The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-02-07
rh, re... of the South Carolina kali
road TO tho Central Railroad-A's Sef-
tain and Unavoidable Resuit.

When we said that the proposed lease OF
the South Carolina Railroad would result In
the sale of the road to satisfy the accruing
bond debt, we gave utterance to no magma
ry or forced conclusion. 1t will be Ger
tain, unavoidable result. 1t is said the en-
gagement of the lessee will be to pay divi-
dend OF four per eentum. How is it sup
posed that this can be done? It is said by
raising rates; that both roads, under one
control, can do so. But cannot the rates be
raised by agreement between the roads, as
we'll as by lease Of the one road to the
other? Surely 80. Why, then, are they not
raised? Is it not because the management
of the Central Road forces the reduction?
But if the Central Road now'forces the re-
duction, for what purpose will it in the
future, as lessee, increase these rates
Will the increase of rates on the South Caro-
lima Road bring business to Charleston!
Will it not certainly force it to Savannah
And il this is 30, will not the decrease OF
business carry with it, Of course, decrease
OF income? The business OF the Soutn
Carolina Road is thenceforth directed to
Savannah: the income of the South Carolina
Road is no longer adequate; the necessity
for keeping the engagement as to dividends
no longer exists, and the easy extrlcation
from that engagement is to allow the road
to be sold at the instance OF those who hold
the matured bonds.
All this seems to US so plair that we 10
not see how anycan doubt. 1t is not neces-
sary for us to say that the proposed lessees
of the South Carolina Road at this time
contemplate this result. 1t is sufficient for
US to say that, whether contemplated or not,
it must come as the necessary, unavoidable
result of the lease.
We suppose that the Directors OF the
South Carolina Road are at least as anxious
as could be the lessees Of that road to make
dividend for the stockholders. They have
felt that the condition OF the road up to this
time did not warrant it. What can the
lessees do with it that will make it's opera
tions more profitable, for they cannot lessen
the debt, and, therefore, the increase OF lts
profits can be the only source from which
they can perform their promises as to divi-
dends? Now, it is too absurd for belief that
they intend to promote the interests OF
stockholders OF this road, to their own detrl-
ment. They do not propose to take away
any business from the Central Railroad or
the City OF Savannah. Then we are carried
back to the increase OF rates; and we ale to
believe that business is to be secured to the
South Carolina Road by an increase OF its
rates. II such explanations can satisfy any
thinking stockholder, then all We can say is
that he is most easily satisfied person.
But in this ever recurring increase OF
rates, it is not remembered that to these
rates there is limit fixed in the charter OF
the road. These cannot be exceeded. And
IL rates are raised as high as these limits
expressed in the charter allow, We predict
that the loss OF business in consequence OF
the increase Of the rates would not make
the results OF business equal to what it is
now.
It may be that we shall be told all this
amounts to on announcement that the South
Carolina Railroad cannot, perhaps will
never, pay dividends. Farfro it. We be-
lieve that it will not be long before the pay.
ment Of dividends to it's stockholders will be
certain, and recompense them for the delays
which they have borne. We believe, more
over, that it will he only and so long as the
ownership and control OF the road is with
the people Of the State that the stockholder
will have his stock or receive bis dividends.
The real value OF the road is more fixed and
positive at this day than it has been since
the close of the war. And the proof OF this
is in the fact which has caused this express
sion OF our opinions-that the stock OF the
road is sought for BY capitalists in other
cities, and rival and competing road that
hitherto acted as II it ignored its existence,
now is sufficiently moved by its progress to
buy off it's opposition.
1t is to the great advantage OF our city,
as seaport, that, in the great trials OF the
last seven years, it has been able to main
tain ITSELF Take from it its control OF the
communications with those places from
which come commodities that are its eX-
ports, and you may as we'll I'll up it's chan
nels, and let it's docks and wharVes go to
utter decay. Whenever you can bring pro-
duce here as cheaply as to any other sea-
port, it will come. 1t is only when it does
come freely that we shall prosper, and it only
can assuredly so come when here we con-
troll the means OF communications, and
these means directed to the great end of re
storing to the city and Its people the success
aud prosperity Of former days.
We have expressed ourselves in relation
to this proposed lease in plain terms. We
feel that we are on the defensive. We have
the right to sound the alarm and arouse Our
people to the danger with which they are
threatened. We have not considered wheth-
er such a lease or any lease OF the South
Carolina Railroad can be made consistent
with its charter. Or that we do not pretend
to Judge. But we have seen in one State its
whola railroad interests absorbed by lease