The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1881-08-04

commenced from Atlanta as headquarters. I'll
| work on the various roads involving this va
/ expenditure is alrt adj begun and the none
| is provided The extent of this devclopmel
may be imagined when. it is stated that I'll
entire railroad system of Georgia, every mi
1 of road now built, cost very little more tina
| that now under contract at Atlanta. The
are, of course, many roads being built outsiC
of these contracts, carrying the total capit
sent in, and devoted to building new roa6
| in the els Mississippi South, to more tina
1886 100000.
SEcoND-The money already appropriate
| to building these new roads, vast as it is,
| for the most part devoted to main stems. T.
| feed and protect these stems, branches mus
be built which will involve more expendtur
| and consequent development. There are noN
organized two companies to build feeders t
the Georgia Pacific, and they claim to hay
the money ready to begin work as soon a
they obtain their charters. Col. Cole conten
plates building several branches to the mali
stem he is building for the Cincinnati an
Georgia line.
THIRD-The Investment of this vast capita
has taken from the hands of Southern holder
at advanced prices, millions of dollars WORT
OF railroad stocks and bonds, the money from
which will be put in real estate, factories, ant
other business. TO illustrate In this city on
gentleman cleared 100000 on the rise in Eas
Tennessee and Virginia stock when he sold t,
the Cincinnati and Georgia syndicate Anothe
cleared $40, 900, and still another $3.50, 600. Ii
Augusta and other Georgia cities millions
were cleared by the rise under sharp Northern
demand and manipulation of Geo rgia railroad
stock from IS to 1856, of Central from 80 to 1875
Memphis and Charleston from 40 to 50, ant
other local stocks in proportion. Large
amounts of these have been marketed to the
North at the high figures. and the sellers must
seek other investments or use Tor their money
This gives great impetus to local enter prises
and value.
FoURTH-The influx of this vast capital in
special railroad enterprises will bring capital
for incidental development. The men who
control the syndicates are interested in the
general growth of the country through which
these lines run, and they will add to the gen
eral confidence inspired by their investment
special advice to their friends. They will in
duce immigrants to settle along their roads,
encourage the opening ofmines and the estab-
lishment of factories and furnaces. The Louis
vile and Nashville Company has added thou
sands of dollars annually to its profits by aid
ing the building of furnaces along it's line. and
the Richmond and Danvile Company has
brought thousands of immigrants into Georgia
and the Carolinas by it's efficient immigration
bureau. New properties will be opened and
new opportunities offered by the new lines.
So much, then, briefly for the tremendous
Investments in railroad properties and the re-
suits that must come therefrom. 1t must not
be considered that this is the only channel
through which eastern and foreign capital is
pouring into the South and seeking southern
investment. On the contrary, there are other
enterprises of other character that attract cap
ltal in large enough amounts to justify special
mention, and that indicate smaller investments
OF great aggregate, though little separate, i'm
portance. For convenience sake these may be
divided into the following:
OTHER SOURCES OF PROSPERITY
FIRsT-Cotton manufacturing Investments.
In the past twelve months $1000,000 has
been invested by eastern subscribers in two
cotton factories at Augusta, Ga.-the Enter
prise and Sibley-w1th s., 100000 and $780,
200 capital, respectively, of which about one
third was taken South. A new mill-the
King-with 81 ,00O of which $250,OGO is
taken at Angus ia, has been organized, and
,he $750,O0O is being rapidly raised in the
North. At Atlanta cetton mill is being
Quilt by two firms, one ofCincinnati and one
ot Atlanta, which takes the entire stock. 1t
IS almost impossible to find any city in the
South in which there is not new factory
building or organizing, the usual plan being
hat local subscriptions are made for one-third
of the capital and the balance easily raised
1t the North. Without exception the facto
rles are prosperous, and where one is built it
IS an inducement for others.
SECoND-General enterprises of develop
nent. A well-known capitalist of New DIRK
went to Nashville last week to see whether or
not it would be safe to buy 100000 worth OF
bonds about to be put upon the Suwanee
Coal and Furnace Company. After investigat-
ng the property he bought-for a company
by telegraph and headed by him
'elt-the whole property which cost 81 $780,
300, and which will cost 81 100000 to develop
rs the company proposes. The capital sub
scribed is $3,O006OO This is sample of the
opportunities offered, and there are hundreds
ike it, simply waiting capital for improve
nent. Another gentleman has just sold for
BOO, 900 cash a half interest in Rising Fame
Furnace, which cost him two years ago,
P65, 0O0-which amount he has more than
1rawn out in dividends since he invested in it.
The company organized to drain the Ever
ylades in Florida by which an area larger
han the State of New Jersey will be brought
nto cultivation, has a capital of $5,000,000
md probably double that will be needed to fin
sh the work. The Bethlehem Steel Works
Company of Pennsylvania is arranging to in
vest $SOO00O at Birmingham, Ala, and the
rylers, OF New York, have put over $1,000
)0O at Admission, Ala, their latest investment
being cotton mill built entirely with their
own capital. These are but examples picked
It random to show the drift of capital The
building of the Georgia Pacific will open up the
most important coal and iron beds, extent and
variety and richness considered, that scan be
Ound on the American continent, and will
an era of development in the
branches of industry dependent ON these min
rails the like OF Which has not been seen in
he South.
CHEERING PROSPECTS FOR THE FARMERS.
THIRD-Capital for farmers There is but
me thing that has stood between the
southern farmers and unexampled pros
,erity, and that is the lack of capital
With which to operate. Taking hold of
he farms at the close of the war, stripped
md devastated, Impoverished and with
,ut labor or implements, forced to build or buy
they have felt the need of credit |
After the disasters of the plantation era, sue
,eeding the war, it has been impossible to use
'ural lands as basis of credit. The only |
;redit the southern farmer has had with which |
o buy fertilizers, supplies &c, has been the
light to run an account with a commission |
merchant to whom he would mortgage his |
and or crops. He could get no money advan-
,es, but simply supplies sold at time prices |
The Commissioner of Agriculture of Georgia /
declares in his official circular that the farmers
If Georgia have paid an average of fftv-four
,er cent advance on the cash price of their
lpplIes, fertilizers, &C., and gives as an exam
lie the fact that corn selling at SO cents com
handed SLIP on time, with crop lein or mort |
rage as security. The same is true of other
States. This terrible usury has kept the far
ners poor, and no bank or capitalist would |
end dollar on farm lands. The South suffer
ID measurably from the difficulty experienced
~ the West few years ago, when it's farms
we're mortgaged to small storekeepers, and
EASTERN capital went to its relief Capital to
oan on farm lands is just beginning !.
o come South. A firm representing
50, 100000, most of which is furnished by
! banking company of New York and the
Anglo American Mortgage Company Cimited) |
II London, opened an office in Atlanta a few
months ago and advertised that it will loan
money on farms for seven per cent. per an
lum. The demand for money is brisk, and
Is much as 100000 has been loaned in a
month. This firm which formerly operated
n the West, will be followed by others. In
New Orleans an English company, with prac-
ically unlimited capital, loaned 100000 at