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

cent. to the Central Railroad stockholders.
ana 80 per cent. to the Southwestern stock
holders 1t they are entitled to share In this
dividend ot the steamship company. l
tnink the 40 per cent. should be given the
central Railroad stockholders, and the
rights OF the Southwestern stockholders
should be determined by friendly pro-
ceeding in the courts. II It is decided In
their favor the 30 per cent. for them, having
been reserved, can be given to hem at once.
II they are not entitled to IL, the Central
Railroad stockholders could then divide
that, which would give them about 25 per
cent. more OF course any question OF
such serious importance, the board would
prefer 70 have decided In the courts to re-
lieve {. em Of any responsibility.
Q do you think the issue of the steam
ship company's bonds would diminish the
market value heretofore set upon Central
Railroad stock /?
i don't think 1t would in The slightest
degree, for the reason that the Central Rail-
road stockholders have never heretofore
received dollar from the earnings of the
steamship company, and neither the public
nor the stockholders have ever fully appre-
cisted the value of the wharf property,
congresses and steamers of that companv
They have not been looked on by the side of
the Central Railroad property as any more
than the saddle is usually to the horse, and
even the value of the road itself, | think
has never been fully appreciated by il. own
board OF directors. Two years ago they
were willing to lease it for and z per cent.
!t has, this year, paid 8 per cent, after
spending D per cent. in permanent improve
ment. and had considerable surplus besides,
all OF which was from the years earnings.
Q-Dl you think it could have paid a
larger dividend this yeary
Alt certainly could have paid larger
dividend, and. ought to have done so. I
think. II could have paid % per cent
more to Its stockholders without increasing
the dividends to the South western etock-
holders at all. urged strongly upon the
board to do that much at least, and think
they should every year strain poiut when
necessary to make the Central dividend at
least as high as it can be made without
increasing the dividend to the South
western stockholders. Otherwise the
Southwestern receives larger share of the
profits OF the company than they are en-
titled to receive under the lease contract
that is to say, under the lease contract the
Southwestern is entitled to elght-tenths of
the dividend pad the Central, but if the
Central receives less than so per cent. the
Southwestern stockholders receiving z per
cent. will receive more than their eight
tenths
Q-What dividend do you think the Cen
trail Railroad can safely continue to pay II
your programme is carried out?
A i think Central stock, on its own mer-
its, can pay easily S& per cent. per annum
base this on the present business of the
road, with an ordinarily economical man
agement. The road has on hand assets in
stocks and bonds OF other companies, ex-
Guiding the Steamship Company, fully equai
in value to it's whole bonded debt.
Q do you feel sanguine of your ability
r..
Al have every hope OF doing so. am
sure will succeed by very large majority
If the stockholders understand exactly what
Is wanted and will consult their manifest
interest. | have sometimes illustrated ex-
actly what l wanted to do by saying that
there is no means at present of giving the
earnings of the company TO the stockholders
except by dividends on the stock, ana that
dividends cannot be made larger than 10
per cent, which will only give them $780,
COO. Il is as II the stockholders owned a
COW, and only had pals enough to carry
home a certain amount of the milk,
and that amount a smaller one than the
cow has heretofore frequently given. am
now simply endeavOring to provide another
pail to bring home more milk whenever the
COW will give 1t. II it is not brought home
for the children the calf will get 1.-THE calf
in this case being extra fac lities, finer de-
pots, double tracks and such things, which
yield little or no income. l think the
stockholders will all approve this providing
pals to bring home more liberal supply
OF milk whenever the COW will yield 1t, and
so preventing the calf from getting more
than It's fair share.
This seemed to cover all the points of iu-
terest involved in the proposed programme
of General Alexander and the stockholders
whom be represents. So, thanking the
General for so freely and fully giving us the
information asked of him, the interview was
brought to a close.