The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-02-08
Our Stake In the Game.

Our stake In tnc UoAAANs
1t is perfectly well understood in savan'
nah that the proposed lease OF the Soutn
Carolina Railroad, by the Central hailroad
Ring, is tantamount to the commercial ruin
OF Charleston. A Charlestonian, now doing
business in Savannah, writes as follows 10
a merchant in this city:
ssWhat do you think of the editorial IN Mon
davis CHARLESTON NEWS? II IS aohat me
| ,oriter has expected The Georgia Central
Railroad o,ons the majority Of the stock OF the
South Carolina Railroad, and now submits
propositions to lease that road, guaranteeing
four per cent. on the stock. This will be pre-
| sented at the meeting of stockholders, and
| the Central Railroad and Its friends, having
majority of stock, will carry their point. All
the Charlestonians here are very much NOR
titled, and feel deeply for the future of Charles
ton. 1t Is true that have spoken to Mr. -,
in a laughing way, about Charleston, but,
when I see fatal stroke aimed at her pros
perity, feel my mothers blood tingle In my
veins, and would do anything in my power to
avert the fearful blow"
This plain talking comes home to each
and every one OF US. It shows what is
thought Of US, and what is feared for Us, in
the city which is to be made rich by our
desolation. We do not think, however, that
the Central Railroad Ring have control
ling interest in the stock OF the South Caro-
lima Railroad. They hope to carry their
point by dwelling upon the certainty and
comfort OF a guaranteed dividend. They
believe that the stockholders will accept
four per cent. dividend, as an equivalent Tor
the assured loss OF their stock In q few
wears, and for the certain destruction OF
the commercial life Of Charleston. The four
dollars a share may, at first, seem boon to-
those who are in need Of money, and who
have no direct interest ID our good or evil
fortune. But the object OF the proposed
lease is to divert from the South Carolina
Railroad its through business, which is the
backbone OF the income OF the road. AS
all railroad men know, this can be accom-
plished 10 very short time, under the pres
sure of high aud discriminating rates oil
freight. Once done, the Central Railroad
Ring will allow the South Carolina Railroad
to be sold out by any bondholders who
choose to bring suit, or, their lease ended,
thew will turn the road over to the stock
holders with nothing to depend on but
fraction OF its local trade, wholly insufficient
to pay even the interest upon the mortgage
debt. In either case, the stock is worthless.
A five years. lease, therefore, gives the
stockholder o total sum OF twenty dollars,
in yearly dividends, for the shares which are
now worth, in the market, thirty-seven or
forty dollars. That the effect OF leases is
pretty we'll understood, is Indicated by the
experience of the Macon and Western Rail-
road, to whose stockholders tie Central
Railroad guarantees dividend OF ten per
cent. When the lease was effected, the
price OF the stock OF the Macon and Western
Railroad was one hundred and twenty
three. It ia now one hundred and five, or
less. We undertake to say that, ii the
South Carolina Railroad be leased by the
Central Ring, the fall in the stock will be
far greater, in proportion, than in the case
OF the Macon and Western Road.
And il lease would result in total loss
Of the property of stockholders who have
no direct interest in the trade and progress
of Charleston, what must be ist effect upon
those who do business in, or with, this city !?
The extent Of the business brought to
Charleston by the South Carolina Railroad,
(omitting the receipts of grain is shown iu
the following table:
COMPARATIVE STATEMENT OF COTTON, LIVE STOCK
&C., BROUGHT TO CHARLESTON, BY TIE SOUTH
CAROLINA RAILROAD, FROM 1900 To leH, In
| elusive.