Savannah morning news. [volume] (Savannah) 1868-1887, 1881-12-31


Corporation, the City of Savannah.
or the State of Georgia.
knowing the widespread interest now felt
in this community over the long talked of
plans Of General E P. Alexander and his
friends to secure increased dividends to the
stockholders of the Central Railroad Com
pany-based upon the earnings of that cor
poration and Of the Ocean Steamship Com
pany-we yesterday afternoon called upon
General Alexander, at the screven House,
for the purpose of obtaining from him such
information regarding his proposed pro-
gramme as he might see fit to give. We
found the General in fine humor, exceed
ingly pleasant and sffable, and not at all
dismayed at the prospective inhletion of an
interview.
Having made known the object of our
visit, aud requested the General to give us
as full statement as he might deem proper
Of his purposes, what he desired to accom-
plish, and how he proposed to eonsummate
his object, he replied:
am glad of an opportunity to correct
some OF the grossly false reports and accu-
sstions which have been circulated about
the wishes of those stockholders of the Cen
trail Railroad whom l represent. l cannot
believe that a single stockholder, who has
no personal motive, and is simply anxious
to see his stock and the property so man.
aged that its market price shall al ways re-
present its real value, viii for a moment
object TO what those stockholders wish
to do when their desires are
truthfully represented. Ia the limits
OF an interview can only state
what is proposed, and what is not proposed.
very sueeinctly, aud cannot enter upon
details and arguments as fully as would
be glad to do. Yet even a few plain words,
trust, will be sufficient to expose the false
assumptions OF our purposes. which have
been set up as men of straw to be demol-
ished by argument and inveetive, and thus
to arouse prejudice and opposition.
In the first place, then, l wish to say that
| do not represent any foreign corporation
in what / am endeavoTipg to do, or any
interest whatever antaRonistic, in the slight
est degree, to the commercial prosperity of
this State or city. represent only large
body OF stockholders in the Central Rail-
road, the msjority of them citizens of Geor.
gia, and stockholders according to their
means, many OF them for very many years.
In the next place we have never proposed
or desired, and do not now propose or de-
sire, any change whatever In the executive
officers of the company. No man in the
State knows their worth, their honesty,
their faithfulness, the high rank they have
won in their profession, and the skill and
devotion they have brought to the service
of the stockholders, better or appreciates
1t all more highly than l Go. l doubt II
many know it or appreciate It oDe-half IS
much, simply because | have had the CD
pOrtunity for many years of being In CON
stsnt contact with them, and knowing the
difficulties against which thev have had to
contend. Neither is it proposed or desired
now to interfere with their executive man
sgement in the slightest degree. They are
to be as untrsmmelled in this respect as
they have ever been.
And, in the next place, 1t Is not pro-
posed to load the company with one dollar
Of fixed charges. to embarrass it in times of
depression OF business, or to hamper its
credit 10 the slightest degree.
Nor in the last place is it proposed to
evsde anv legal obligation to the South
western r ailroad stockholders under the
lease OF that road to the Central but, on
the contrary, to provide for the settling
authOritatively of anv questions that may
arise and the giving them their legal dues
to the last cent.
These are the Objectionable measures we
have been falsely accused of having in
view, so far as have heard them.
| will proceed now TO state what our real
obi CTS sre, and to illustrate briefly the rea-
sons for them, giving some of the reasons
first.
In the first place, everyone will recognize
that any piece of properly sold 'thrown in"
with another piece of property never brings
its full value. A saddle "thrown in" IN the
sale of a horse is usually saddle given
away. A growing crop, or horses, mules,
plows, etc, sold with plantation seldom
add to the price of the plantation one-half
of their real value.
Now, the Central Railroad owns land,
wharves. docks, congresses and steamships,
of great present value, and of still greater
prospective value, but the only evidence of
ownership which the stcekhOlder has is in
his Central scrip, and consequently this
property Is ttthrown 10" when be sells the
latter. He esnnot sell such property sepa-
rately, and, like the saddle sold with the
horse, 1t is given away when the latter is
sold.
Now, we propose to take the saddle off
the horse, or to give a separate evidence of
ownership In the steamship and wharf prop
e'tv, for each stockholder to set his own
value upon, and to keep or sell as pleases
him best. It will not detract one dollar
from the remaining value OF his Central
Railroad stock, Cor that has never vet had
one dollar of dividend from the earnings of
this steamship property. or any other advan-
tage but what was Incidental 70 the control
of business by the steamship line, and all
of that will remain untouched.
But in doing this it is not proposed
either to embarrass the steamship COM
pany by placing fixed charges upon
#, or binding 1t to pay dividends when 1t
does not make them. We will be content
to get them when it does make them, and
win place the evidence of ownership in the
shape of an income bond, the principal pay
able only at the pleasure of the company
SHOULD It ever wish to retire them) and the
interest only when It Is earned. The COM
pany can then safely carry its own insur-
ance, as It does now, the only risk being
that If It should lose a steamer the holders
of these bonds might lose years interest.
But we believe that the present large
earnings Of this property, and it's
calls for more aud larger steamers,
will not only pay 6 per cent annually on
five millions of bonds, but will provide
handsome surplus besides. But whether It
does or no, the company will not be called
on to pay more than it makes from year to
year, after providing for whatever expenses
and contingencies may arise, or may be
deemed necessary to be provided for by the
board OF directors from time to time.
Aud this suggests another argument and
a very strong one to my mind for the issue
of such a security, instead OF allowing
AS has been S cgested by some
the steamship earnings TO go into
The Central Railroad treasury, and to be
paid out only as dividends on Central Rail-
road stock. Whenever there is a large
surplus OF money In treasury the tempta-
tion to spend It liOerslly in Improvements,
which are not absolu ely essential, and |
which yield little or no return to stock |
holders, becomes almost irresistible. Having |
some practical experience in such matters |
can speak from personal knowledge and |
Fine depots, extensive |
double tracks aud such conve-
Diences appeal strongly to the pride and |
comfort which any manager OF
railroad may legitimately feel and |
issire in the handling OF his busi- |
ness But the stockholders will derive /
he most income from their property, when |
10 counterbalance this natural tendency to /
20 ahead Of absolute necessity In our ex-
) anses, boards of directors and executive /
officers can be made to feel aud see plainly !
hat present money ont Of their stockholders
pockets must pay for ese1y convenience aud
,UeTy improvement.
Q-On what basis do you estimate the
property as worth five millions
IF dollarS
A.-On the basis of it's earning power
LAST year It earned over $500 600 net, after
layin0 all expenses aud applying st least
100 900, as l am iOformed by Mr.. Wadley,
o new wharves, docks, snd other additions
% it's property, which will increase its i'm