Savannah morning news. [volume] (Savannah) 1868-1887, 1881-08-27

We printed yesterday a dispatch from
the Augusta NeaOs purporting to give an
outline of the transaction between Gen.
Gordon and the Georgia Pacific Railroad
Company, by which that company, for
the sum Of one hundred and fifty thou
sand dollars, obtains possession of the
charter of the Georgia Western and the
Alabama and Mississippi donations and
subscriptions to the projected Atlanta
and Greenville Road The Atlanta Con-
stitution of yesterday, in reference to
this subject, says:
CAS- this much has been published concern
ing the transactions of the GordonS, it may be
well to give all the main facts in the case.
when General Gordon, Major @. Gordon,
Mr.. w. s. Gordon and Governor A. H. Colquitt
determined to raise company to build road
from Atlanta to the Mississippi river. they had
three items on which to base their claims
First. An appropriation of $lOOOO0 cash
from Aberdeen and Columbus each, and
$4,000 from Monroe county in Mississippi,
aggregating SS50000.
Second. A large quantity of coal lands, very
much over one hundred thousand acres
which at the valuation of surrounding lands
$50 per acre. was worth from 80 000.0O0 to
the shape of grants, deliverable when the
road was finished
Third. Several important charters, includ-
ing the Georgia Western, on which they had a
clear profit of $500 000 counting the trade
with Colonel Cole-twO valuable charters and
property in Mississippi, and over 100 miles Of
the right of-way.
''These items of property and franchises,
briefly summed above, they determined to
value at 100000 cash This valuation was
reached after consultation with Mr. Jewett
and other gentlemen interested with them in
the organization of the Georgia Pacific Com
pany. On this basis-that the company should
take the property and pay the Gordons $780,
000-the Georgia Pacific Company was organ
lied Mr.. Jewett, Mr.. G. H. PhiniZy, General
Anderson, Senator Barnum and others taxing
large amounts and becoming directors. The
surveys of the new road were ordered. and
work commenced at both ends. All the stock
was taken, and more could have been sold.
"At this junctUre some gentlemen connected
with the Richmond and Danville Railroad
opened negotiations for a combination with
the Georgia Pacific Company. The Gordons
had sought the alliance with this road at first,
but it had refused to value their properties at
the price they set on them. They offered to
allow $3.50 900 for them. The Gordons asked
100000 After they had made up their COM
panY on this basis, the Richmond and Danville
500 600. '-e''U - 81 IL =" ''-' ''''
Seeing that two roads were about to be
built where one could do the work. the Cor
0OnS closed contract WIN Jne RICHMOND anu
Danville people. The terms of this contract
were that the Gordons should be paid $780,
in cash and allowed certain amount OF stock.
and that their properties should then be turned
over to the Georgia Psci1c'-composed of
Richmond and Danvile people and the Cor
dons and their aSsociates-and that General
Gordon should be President of the combined
company.
This trade was made months ago. In fact
it was made the day before the organization of
the Georgia Pacific was announced and the de
tails have been perfecting ever since. 1t was
also agreed that the contract for building the
road should be let to the Richmond and Dan
vile Extension Company This company has a
capital of S. cool 00 which is held by the Rich
mOnd and Danville people and by the Gordons
and their associates.
"The Richmond and DanvilIe Extension
Company has been arranging ever since to
take hold of its contract and finish it. Vari-
Gus delays were necessary, one OF which was
that the charter had to be slightly amended.
This consumed several weeks of waiting. At
last everything was arranged and the trans
fers made. The Richmond and Danville Ex-
tension Company is now in charge and will
push the building OF the road. When it is
built, it will be turned over to the Georgia
Pacific Railroad Company.
THE cash has been paid to General Gordon,
Messrs. E. G. and W. S. Gordon and Governor
COlquitt, and it was divided in about equal pro-
por' ions, and not as given by the NetCS CORES
pondent. The GOrdons and Governor COlquitt
own 81 100000 stock in the Richmond and Dan
vile Extension Company, which stock is now
held at premium in New York, with none Of
fered. They will have two and one-half times
this much stock in the Georgia Pacific.
General Gordon is President of the Georgia
Pacific and viii remain so. Major E. G. Gordon
is President Of the two roads belonging to the
company in Mississippi, the charters of which
extend from Birmingham to the Mississippi
river. Mr.. W s. Gordon is a director in the
Richmond and Danville Extension Company,
and is engaged in raising company to build
very important railroad extending from
Chattaheochee, Florida. to point of
connection on the Georgia Pacific. It
is unnecessary to say that this outcome makes
each of the four gentlemen interested rich
men in a large sense Of the word, and will re-
suit in giving Georgia. Alabama and Mississippi
badly needed line of road. 1t may be noted
here, as we are discussing the fortunes of men,
who are known all over the State, that the or
ganization of the Belmont coal mines belong
ing TO them-inaugurated by Major Gordon two
years since-gave each of them a handsome
competency.
The facts involved in the organization of
the Georgia Pacific were known to us months
ago, but we have published nothing concern
ing them for the reason that we feared some
of the details might miscarry and spoil the
trade. AS they have come to this happy issue,
however, they are now given to the public"