The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-02-15
The South Carolina Railroad.

1t is highly probable that the letter OF "a
sStockholder," printed in another column,
expresses opinions which are held by many
holders OF the stock Of the South Carolina
Railroad Company. They see that the road
has q large income, and they know that
tbey receive no dividends. Putting this
and that together, they leap to the coDclu-
sion that tho read is not managed in their
Interest, and that new board OF directors,
by a change OF policy, could increase the
net income 80 as to allow dividends to be
paid. The wild propositions Of Mr.. John d.
James, OF Atlanta, have, therefore, magi-
cal effect. A dividend OF six per cent. Ia
tempting prize to those who now receive
nothing, aud we shall be only too glad il
such a dividend can be secured. We be-
lieve, however, that Mr.. James cannot do
any more than the present management are
doing, and that, therefore, his circulars and
letters are mere talk, having no substantial
foundation.
"A Ssockholder'' says that the earnings
OF the road for the last seven years ore
considerably over seven million dollars,
and that the stockholders have only received
three dollars q share. This proves nothing;
unless it can be shown that the seven mil
lions OF money have been improperly spent,
or that, under other management, the earn
ings would have been larger. Neither
proposition can be established. The yearly
accounts, as submitted to The stockholders,
give the particulars OF the expenditure OF
every dollar, and these accounts have been
approved by the majority OF the stockhold-
ers. There Is heavy debt upon the road,
which must be provided for, and the rail-
road and steamship investments we're among
the means OF retaining, and extending, the
business OF the road. To say that road
ought to declare dividends because it has o
large income, is as wise as to say that be-
cause merchant does large business be
must, OF necessity, make heavy profit afteE
providing for his old debts and cost OF liv'
ing. Nor could the business OF the road have
been developed more rapidly. The wonder
is that the road should have increased it:
revenue, year by year, in the face OF new
lines OF travel aud active and uL3crupulous
opposition.
ga Stakeholder is utterly mistaken In
supposiug that what is called the manage
ment of the South Carolina Road sin the in
"terest of the City of Charleston and the
s.State OF South Carolina" is disadvantage
to the company. On the contrary, tha
policy is the only policy by which the roat
can live and prosper. The interests OF th'
City and State and Of the Railroad are il
harmony, not In conflict, with each other
Suppose, for instance, that the South Caro-
lima Railroad were managed in the intere5
Of Savannah or OF Wilrlington-would tha
benefit "a Stockholders 2: Fas iro@ I:
The business which now passes over tn
whole length of line would pass over only
part OF it, and the decrease OF income woult
naturally be proportionste to the decrease
OF mileage. This brings US back to Mr.
James. That gentleman says that he car
secure six per cent. dividend by leasing
the South Carolina Railroad to the Centra
Railroad OF Georgia. The Central Railroad
would have to provide for the interest on
the debt and for the working expenses, as
the present management have to do. A six
per cent. dividend would amount to about