Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-19

AHgtEstG Chronicle.
For some time past rumors OF lease OF
the Georgia Railroad by the Central Rail
road and Banking Company Of Georgis
have been circulated. The idea is not s
new one. 1t has been aired in railroad cir
cles for years back, and the plan has been
favored even in the councils Of the Georgia
Railroad. One year ago, when the Cole com
bination was reaching out for Southern
roads, somewhat similar lease was limited
but in the tripartite arrangement which fol
lowed nothing more was heard Of 1t. Sew.
ersl years before, President Wadley made a
proposition to Judge King, looking to some
combination OF the Georgia Railroad with
the Central. It has always been faVorite
plan with Mr. Wadley. He was so convinced
OF the importance of such consolidation that
ne signihed his Willingness to surrender the
Presidency OF the new system to Judge
King, he himself continuing as Superin-
tendent. One year ago, he is said to have
wanted Gen. Alexander to take the COM
oined management OF the Georgia and Cen
tral Railroads, and now, we hear from ID
spired sources that he is willing to lease the
georgia Road, and yet continue Mr.. PhiniZy
REASONS FOR THE LEASE.
The present project having advanced far
enough in official circles to be termed a
negotiation" further concealment of the
plans and purposes of the proposed lease
would be unnecessary. Prominent officers
and directors in both boards favor the plan,
which seems only to be forbidden by a
clause in the charter of the Central Railroad
aud Banking Company, and which We may
see further on Is more Of hitch than an i'm
pediment. The reasons assigned for lease
Of the Georgia Railroad by the Central. aud
which received due consideration undoubt-
edly at the recent Savannah conference be-
tween Presidents Wadley and Phinizy. are
those Of self protection. Such indeed are
assigned The Louisville and Nashville
Railroad Is nomi1ally in compact with the
Central and Georgia r ilroads. That is.
written contracts were drawn up last year,
and the relations OF the companies are most
cordial now. But the Louisville and Nash
Vile is looking out for itself, and drains the
Western territory largely for its own ports
-Pensacola, Mobile and New Orleans, by
means OF It's Alabama and Mississippi sYs-
TENS OF railways. Again, the Richmond
and Danville Road has formed a mighty
combination with its North Carolina and
Virginia systems, controlling the Piedmont's
Airline; possibly soon the Atlanta and
Charlotte Air Line, and is drawing to Rich
mond, in a magnificent stretch, all ship
ments from the West and Southeast. In
another sweeping are Col. Cole, with his
East Tennessee, Virginia and Georgia Rail-
road connections, controls the great cotton,
wheat and tobacco fields from Memphis, to
pour them into Norfolk harbor, now becom-
ing port OF superb proportions. West
Point harbor, on the Virginia coast, is even
being built up by some railroad system
Thus, then, are all routes parallel with aud
cross cutting the Georgia and Central fribu-
taries hardening into great trunk lines,
drawing away from the State of Georgia and
the ports of Savannah, Charleston and Port
Royal much OF their legitimate tonnage of
freight. The Georgia aud Central Railroads
certainly control the shortest lines to deep
water from Western ports; but what avails
this If the Alabama, Mississippi, Virginia,
Tennessee and North Carolina systems, even
with longer bauls, draw away their tonnage?
Must the railroads of Georgia, ask Georgia
and Central Railway men, be entirely shut
out, by sitting idly down and seeing every
gateway closed and every section drained?
How, then, can Georgia and our South At
lantic ports be best protected? "By taking
care of what we have; by hitting our
forces, we combine our opportunities. Like
the great North Carolina and Virginia sys-
bCuy VIC uuoO CO4SOilQdbb uuu1T SlD0l6
management our superb Georgia routes,
and hold our owD with an iron hand. u
With the Georgia aud the Central Railroads
ana branches Under one management, the
friends of this scheme contend, ore policy,
without demoralizing division, will secure
freight rates from the West, increase our
tonnage for all time to come, and load
every steamer that leaves Savannah and
Charleston down to the gunwales with pro-
dFInn mob .
say they, as will result from a lease, our
South Atlantic ports, which are the near
and natural harbors of the West, will be
robbed OF their business by the forced COM
biRations of Alabama, Mississippi, or by the
artificial highways of Tennessee, North
Carolina and Virginia. bid such a union
of method and system in Georgia prevail, it
is the intention of those, now in power, to
increase the magnificent steamship facilities
of Savannah; to put on regular line from
Savannah to Charleston, thence to New
York, which would be run with Mr.. Quin-
tard's line; for the port of Charleston would
not be ignored by this proposed system.
POSSIBILITIES OF THE LEASE.
The supposition that the Georgia Railroad
and Banking Company cannot lease out
their line is altogether a mistake. Their
charter gives them the power to lease to any
one they may choose. The great difficulty
In the way just now, however, is the charter
of the Central Railroad, which does not al
low that corporation to lease any but con-
Meeting lines. The object of the law is to
permit them solely to control feeders to
their route, and obviously the Georgia Rail-
road is not a feeder to the Central The
Georgia and Central Railroads touch at
three points-Atlanta, Macon and Augusta
but at none of these places can it truthfully
be said that the Georgia is connecting
line of, or feeder to the Central Il lilroad.
Just how this point can be oVerridden does
not now appear. Were the Central in
duced to go before the Legislature to have
this provision changed, she would forfeit
other valuable franchises by amending her
charter.
The two companies, so far as the Chronicle
can judge, are favorable to the lease. Mr..
Wadley has been cherishing the scheme for
years. 1t is believed that his board Of
directors and stockholders are with
him. The President and Directors
of the Georgia Railroad are
hardly averse indeed, some of its
largest stockholders are loudest in the
merits of the plan. An eight per cent. div
idend guaranteed, whose seven per cent.
is VOW contingent upon business, would not
be lightly treated by the management or
easily put aside by its stockholders,
cents standard. Such a guarantee would
run Georgia Railroad stock up to $50 in q
short time; for the New York Central,
which pays eight per cent. contingent upon
business, fuctuates between 145 and 155.
"Who is to guarantee the guarantor?"
asked prominent director yesterday.
Another director, in the course Of the
day, remarked to the Chronicle that he
would accept a guarantee, pure and simple,
from the Central Railroad and Banking
Company, which he considered a safer and
stronger corporation than the Louisville and
Nashville, any day.
THE CITY OF AUGUSTA.
The most reasonable aud the most strenu-
Gus opposition to such lease comes from
the citizens of Augusta. To the assurance
of railroad men that guarantees of her pro-
lection In through and local rates will be
ample and imperative, our merchants, an
swer that such assurances are vain and such
guarantees are hollow. With the Central
In control of the Georgia Railway, Augusta,
which is proper and legitimate terminus
of the former now, would become way
station, PLACED at disadvantages from the
West, and Disseminated against for savan-
nah. Were such lease effected, the depots
of the Central and Georgia Railroads would
be combined in the city, all business done
by one agent, and doubtless the force OF
employees and operatives of one or the other
companies would be discontinued. Such
consolidation and retrenchment, indeed,
would be made ia Atlanta and Ia Macon,
for upon a cheapened service and unified
system OF management would depend the
success Of the lease proposed.
in the event, however, that the Central