Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-14

A Boom In the Market-Wha 10
Thought Of the Lease of Ia GeOf"
GEa.

n BVOUE hN AMG NAAA
Thought of the Lease Of the Geof-
gIa.
The information given in the kilograms
from Augusta to the MORNING NEWS, in
reference to the lease of the Georgia Rail
road by the South Carolina Railroad, Gre
ated considerable sensation, as 1t was not
exactly the denouement anticipated by the
prophets and knowing ones. The result,
however, was about the same, as 1t was vir-
tually a lease of the road by the Central,
Colonel Wadley being the leading spirit
in the movement. The effect IN the stock
was to cause a boom, and on the opening
of the market Central shot at once from
1917 to 1875, at which several sales were
effected, and remained firm at that figure
until about two o'clock, when there was a
break, and it dropped to l24, no
sales being made, however. In the
afternoon there was another advance, and
the market closed very strong at 127 bid and
128 asked. Georgia was strong throughout
the day and showed a rapid advance.
1t opened at 139 bid, 140 asked,
and closed firm at $50 bid, with no takers.
Augusta and Savannah. seven per cent
guaranteed, in the morning was quoted at
~ - AlA - oOhAAl AA4 WV 49,
and 12S asked. Southwestern seven per
cent guaranteed, opened at lis bid, 116
asked, and closed at III bid and 1loH
asked City of Savannah five per cents.
showed a slight rise for the day, opening at
Sc bid, S6H asked and closing at 81 bid, 81h
asked.
In regard to the railroad combination eff
fected at Augusta, the sentiment generally
seemed to be that it would prove equally
advantageous to the ports of Savannah
and Charleston.
As an evidence Of opinion on the subject,
we may mention that one prominent citizen,
who holds a number of shares of Central
and whe had been waiting for a good chance
to sell out at a profit, announced that he
had no stock ON the market and intended
to hold what he had as q permanent
investment. He was satisfied that under
this combination the company would pay a
handsome dividend and its business be
largely increased. This is only one instance,
but from general inquiry the opinion
that the lease would be productive Of great
results, and was undoubtedly to the inter
ests of the Central and Savannah, although
Charleston would also be largely benefited.
The impression prevailed among many
that there was something behind this, and
that the combination was only a part OF a
grand scheme of Jay Gould, who was work.
ing quietly through other parties. What
basis there is for such IN impress
sion does not appear, and from
what we learn from official
sources think the suppositions in this
respect are unfounded. The stiffeningsof
Central is also attributed to the reports in
reference to the issue Of dividend scrip Of
the Western Railroad of Alabama, which
seems to be generally believed, as has been
previously stated.
Last evening the expectation was that
Central would reach $50, possibly higher,
before the sun sets this day.
MEETING.
There will be a called meeting of the D.
rectory of the Central Railroad to-day. Col.
Wadley, with the Directors from Macon. At
lanta and elsewhere, and other railroad Off
cials, will arrive here from Augusta this
morning.
It is not ascertained definitely what is the
object of the meeting, but it is surmised to
have some connection with the late action In
Augusta, and it is not improbable that some
new features will be developed before the
visitors leave.
WHAT is THOUGHT IN AUGUSTA.
We clip the following extracts from an
account in the Augusta Chronicle, showing
how the lease Is regarded In that city:
President Phinizy stated that the rent of
the Georgia Railroad to the gentlemen
uhnlCd III u COubi AZ WOuAu DC IL EIGdb dQ-
vantage to Augusta and the stockholders of
the Georgia Railroad. The railroad shops
would be retained here and probably en-
larged. The lessees would begin to make
something for themselves out of the road
after awhile, though they probably could
not do it for the first two years. The meet
ing Of the stockholders in May would proba-
bly, be the last that would ever be held.
The stockholders would certainly be paid a
dividend OF 10 per cent. on their stock, and
this would gradually be increased as the
bonds were taken up and the interest thus
paid reduced. The stock, paying 10 per
cent, would be worth rs.
Mr.. Phinizy said it was 3 great mistake
to suppose that the action of the board had
to be ratified by the stockholders. The
directors were the corporatOrs, and could
act without reference to the stockholders,
who, in convention, were merely an ad-
visory council. If a majority of the stock
holders voted against the rent of the road
after the directors had made the contract,
that would not abrogate 1t.
Judge VIM. M. Reese said the new ar
rangement would be of immense advantage
to Charleston. A line of fine steamers be-
tween New York and that city would be at
once established. This was not a lease in
disguise to the Central Railroad. While
Moses Taylor owned between three and four
thousand shares in the Central Railroad,
MIR. Sloan did not have a share. When asked
where would the bank capital of the Geor-
gia Railroad Bank come from now, Judge
Reese said it did not require any capital.
1t would have Just as much to
back it now as it ever did. The annual pay
ment of 5000, 600 would be responsible, and
any creditor could sue the company and get
judgment which could be easily satisfied.
He believed the stock of the Georgia Rail
road was richly worth one hundred and fifty
as a ten per cent. stock. He believed that
the arrangement would work greatly to the
advantage of the Georgia Railroad stock
holders.
It was very probable that the South Caro-
lima and the Central Railroads would work
in harmony together, and that Charleston
and Savannah would be given equal advan-
tages.
The reasons for this lease were fully out
lined three weeks ago. Legal OBJ
structions placed themselves in the
way to a lease by the Central
Railroad, however, but the terms were re-
tanned and the plan shifted to another
quarter. Mr.. Wadley determined to go
over with the owners of the South Caro-
lima Railroad, and uniting with his
friends Taylor and Sloan, put
his plan into perfect form. How
completely this was done, the conditions
and agreements above recited prove, and
the President of the Central Railroad by
"tnlS most ingenious paradox" becomes
commander of the land and naval forces of
Georgia and Carolina. Since the day when
Gov. Joseph E. Brown seized Fort Pulaski
and captured the arsenal at Augusta; since
the time when Gen. Oglethorpe landed in
the tide waters of the Savannah, no man
has been more completely monarch of his
survey or master of the situation in the
South Atlantic than VIM. NJ. WadIey is Just
now.