The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-02-12
.... p.IV.F = -
That mysterious Dividend'


How do the Ring propose to earn the
dividend Of four per cent, which they oher
10 guarantee upon the STOCK OF the South
Carolina Railroad Company? we know
that the road is carefully and adroitly man
aged. This is shown by the fact that, in the
face Of competition from all quarters, and
the loss OF business caused by the yellow
fever in Charleston, the falling of In income,
for 1871, is less than ten per cent, while
the falling OF i'd the income Of the Central
Railroad of Georgia, for the same period, Is
over twenty per cent. 1t is shown, further,
by the fact that up.to Friday last, the re-
ceipts OF cotton at Savannah show a de.
crease, as compared with 1901, of'Mirty-
t,co per cent, while at Charleston the de
crease is only seosateen per cent. How,
then, do the Ring propose to, accomplish
more than is accomplished by the present
management of the South Carolina Rail-
troad?.. They must either reduce the. .ex-
penses OF the road, or increase its income!
There isno other way. ai "sae..i
Unless the: puissant Ring can repudlate
the bonded debt, the current expenses Of
the road cannot be lessened in any material
degree. We must, therefore, look to an in-
icpease in the gross earnings. This can only
be had by augmenting the volume OF busi-
ness, or by obtaining a larger price for the
work now done. Upon the first point, it is
sufficient to say that, il the Ring can add to
the earnings OF the road, by extending its
business, the present management can do
even more. They have already beaten
Savannah in the race, and the acquisition OF
the Macon and Greenville Roads strengthens
their position, and enables them to draw
more business to Charleston than would be
drawn to it by Ring who, in all that they
do, are consulting the interests OF rival
city. Nor can the Ring add to their income,
as they propose, by advancing rates. The
Rim. would control the avenues to SaVan-
nah and Charleston, but they would have no
control over the interior or land lines. 1t is
the competition. between the interior lines
and the coast lines which reduces freights,
not the competition between Charleston and
Savannah. /. Let the Ring advance these
rates, and they will only drive their business
TO theinterior lines, which lines, be it under
stood, cannot compete with The South Caro-
lima Railroad at present rates of freight.
The Ring would strip Charleston Of its
through business, anc make up the loss, as
best they might, by fleeing the helpless mer-
chants and planters living along the road.
We are forced, then, to the conclusion
that the modest declarations Of the Ring
are only mesnt as q. screen TO their true pur-
pose, which is to ,tipe ou! Charleston, and
|tRrn to .Sd0annaA Tie achole through buSt.
ness Of the South Carolina Road. To- Fac
complish this the Ring can very well afford
to pay $4,000 or $3.50, ,Ooe a year. The
loss ef income on the Central Railroad Of
Georgia last year was about s4oo, 900; and the
results of 1872 promise to be worse This
is the secret Of the movement against the
South Carolina Railroad. And, as we have
before shown, the Ring could cause an ex-
tinction Of their lease, whenever trade was
fixed in the new channel, BY falling to pay
the maturing stond debt, and allowing the
road TO be sold out by the creditors. The
stock would be extinguished, and what
unnld hennme of That mysterious dividend