Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-06
ROOM In STOCKS.
Rapid Advance I'm Georgia and Gem
trail.

From some unexplained cause the
stock market in this city has been greatly
excited for the past few days. Georgia COM
mon, which was quoted on Saturday at from
127 to 100, was, on Monday, quoted at from
40 to 1872, and yesterday it made a prodi-
gious leap, going up to 14O bid, 143 asked.
Central stock also shared in the general
excitement. On Monday It closed at from
lib to la, and yesterday the closing quota
lions were from 1872 to 120.
AS we have said, the cause Of this rapid
advance is not explained. 1t Is due to the
fact that large orders for the stocks of both
roads are on the market, though why they
should be in such demand just at this time
or why their great value has been so sud-
denly discovered no one can tell.
AS usual in such cases, all sorts of rumors
are af1oat, both in this city and Augusta, none
OF which can be traced to auy relia bic
source. In this connection, however, the
following from the Augusta Chronicle of
yesterday will prove interesting;
. "People are almost hold
ing their breath while the movement is pro-
crossing, uncertain what it means. Every
effort has been made by those seeking the
stock to get as much of 1t as possible. Every
oAdAC tudb ID OlAT6Q Is bdh6us anu bblll BU6
cry Is for more. Saturday night 500 shares
were sold at 131. The main question is, who
is buying the stocks' 1t is plain that the. Cen
trail Railroad is outside. The principal
theory Is that the Louisville and Nashville
Railroad, which has reached out until it
now embraces a vast railway system, is seek
ing to control the Georgia, and has set
about to accomplish this object in the same
way that it did with the Nashville
Qnd Choffonnnno hu h1yfpn anN,1ph ~ 49,
stock to get a controlling interest. In order
to do this, they must have a majority of the
stock, and a majority is q, 001 shares. 1t is
suspected that they began to buy very
quietly, and had obtained a large amount of
stock before anybody outside knew any
thing about it. 1t is certain that large
blocks of stock have been sold In Augusta
to parties in New York, and if, as is gener-
ally believed, these parties represent the
Louisville and Nashville Road, that corpora
ton has secured probably not less than IA, 900
shares in Augusta alone. How much has
been obtained in Atlanta and other
places, it is impossible to conjecture.
From the fact, however, that such high
prices are being paid now for stock, 1t is
supposed that the great Western company
has secured very nearly the requisite
amount, and is using every endeaVor to
obtain the balance. 1t will be remembered
that when the Louisville and Nashville de-
termined to get control of the Nashville and
Chattanooga, the stock of the latter rapidly
ran up from IS to 40, but as soon as the
Louisville and Nashville stopped buying,
the stock fell to rs, where 1t is now.
The demand made the high price. Whether
such would be the case with the Georgia
If the Louisville and Nashville obtained
control, can only be judged from analogy.
1t is not believed that if the Louisville and
Nashville controlled the Georgia it would
play an out and out grab game, and decline
to pay any dividend to the minority stock
holders. But it is believed that It would
expect to make something handsome out of
it, and would never pay more than a six
per cent. dividend OF the stock. In such a
case it would, as a matter OF course, take
its place with Other six per cents. In the
financial markets.
"There are other reports In regard TO the
stock which merit notice as well as the
more clearly defined supposition which..we
give above. 1t is said that a number of
parties, especially in Savannah, anticipat-
ing a rapid decline in the stock after the
lease exploded, sold short, and that they
are now buying stock to fill, and that as
there is great difficulty in obtaining 1t, the
market advances In response to the demand.
This is a good theory, and probably has
something to do with the high prices, but
it does not account for the large blocks Of
/ stock sold TO Sew York. 1t is evident that
those parties who did sell short have met
with considerable loss, but we do not be-
lieve that their efforts to fill at as low
figures as possible would have effected the
market to as great an extent as has resulted
from the movement now IN foot.
at is also said that the Clyde syndicate,
controlling the system of Associated Rail-
ways Of Virginia and the C~arolinas, and
which recently leased the Airline, is buy
ing up the stock of the Georgia, with a view
to obtaining control of it also. This view
has few supporters, as it is not known that
that combination Aas bought Q single
share In Augusta, while it is GER
tain that the Louisville and Nash
vile, or its representatives, has
purchased thousands of shares. The
Clyde combination now control the whole
OF the important roads In Carolina, except
the Northeastern, Savannah and Charleston
and the South Carolina Roads, which en-.
ables them, to a very large extent, to con-
troll the of South Carolina, which
they will naturally do In the interest of New
Cork, to which point their lines converge
from Charleston, Wilmington, Norfolk and
Richmond,
"We give all these reports and con1eetures
to our readers for what they are worth. 1t
is evident that somebody is buying up the
stock rapidly, and the most plausible theory
is that the Louisville and Nashville Railroad
is the purchGsor.N