Savannah morning news. [volume] (Savannah) 1868-1887, 1881-03-30
THE CONFERENCE OF RAIL
ROAD OFFICIALS.
The Lease BubbIe-EOthing In 1t
Committee Appointed 10 APpraise
the Joint Property OF the Georgia
and Central.

The conference Of the committees Of the
Georgia and Central Railroads, concerning
which 50 much has been said and so many
rumors circulated, was brought to q close
Yesterday. The result was exactly
as predicted BY the MORNING
NEWS, and the statements made
in these columns regarding the reports of
q proposed lease Of the Georgia Railroad by
the Central were fully verified. 1t viii be
remembered that the assertion was made
that this conference was solely to
consider the division of the Western
Railroad Of Alabama, In accordance
with the agreement made at the time 1t
came Jointly under the control OF the two
roads. This road comprises the branches
from Columbus to Opelika, from West Point
to Opelika, and from Opelika to Montgom-
Montgomery to Selma, was leased
about one year ago to the Louis
vile and Nashville Road for the
term of five years, upon certain conditions
very favorable to both the Central and
Georgia roads, the owners. Circumstances
rendering division of the other lines, in
accordance with the original agreement,
duNlsaDle, the conference Wa6 calleU LOT
that purpose. The matter was very thor
oughly discussed at the meeting ON Monday
evening and Yesterday morning, and the re-
suit was the appointment Of committee,
consisting of Col. L. P. Grant, of the At
lanta and West Point Railroad, and Virgil
Powers, Esq, Commissioner Of the Ocean
Steamship Company, to appraise and value
the roads from Columbus to Opelika, and
from West Point to Opelika, with view
70 r{r-fD 10 DoHI, \
exclusive ownership OF the latter
and awarding the former to the Central,
the remainder of the line not under lease,
that is from Opelika TO Montgomery, to be
operated under joint management as here
tofore. This committee were instructed to
report as soon as they have completed their
labors and made valuation of the property.
After this matter was settled the meeting
informally entered into discussion Of the
lease of the Georgia Railroad, regarding
which there has been 80 much agitation In
the community. The directors of neither
company had any authority from their re-
specttve boards to consider this measure,
and the interchange of views on the subject
was entirely informal and unofficial. TWAS
well known to the gentlemen present that
both Colonel Wadley and Colonel Phinizy
mad Tor some time been out
spoken in their views as to the
advantage OF a combination of the two
roads under one management, and since the
project had been so generally discussed In
Augusta and Savannah among the stock
holders Of the Georgia and Central Rail-
roads, and there have been promul-
gated so many erroneous and unfounded
reports, the leading fi eials of the two
roads who were thus assembled concluded
to have friendly talk on the subject. We
have positive authority for the assertion,
however, that no proposition for the lease
OF the Georgia Road by the Central has
been made officially, and that there is not,
under the existing circumstances, any
immediate prospect of such over
lures being made. In fact, as
stated, the gentlemen present had
70 authority from their respective boards
of directors to enter into any negotiations
in the matter, and what was said was only
the expression of individual opinion.
While, as we understand it, the opinion of
the conference committee was that the
lease would be good thing not only for
Savannah but the State of Georgia, and
the guarantee of an eight per cent divi-
dend decidedly advantageous to the stock
holders Of the Georgia Railroad, yet al present
the measure was impracticRble, there being
a diversity OF opinion as regards the opera
tions of the law bearing upon the matter.
While some of the small stockholders of
both companies may be opposed to the pro-
posed lease, it is undoubtedly true that
those largely interested are in favor of
1t, regarding such an alliance as
calculated to benefit both corporations,
and inure to the material advantage of Au-
gusta, Savannah and the State. All, how
ever, that has been said regarding the lease
has been but the mere expression of the
opinion OF individual stockholders, and has
not had the sanction of "oficial utter
ance." Whatever the future may develop,
it is absolutely certain that at present there
is not the slightest prospect of the lease be-
ing effected. Indeed, nothing can be done
in the matter save by the unanimous vote
of the board of directors of both roads, and
a meeting will have to be called for that
purpose, and then the legal obstacles in the
way of such contamination will have to be
considered.
1t will be seen from the foregoing state
ments, which have the value Of authority
and authenticity, that this lease sensation
is but q bubble after all, at least for the
present, and the only effect of the numer-
GUS reports has been to excite the stock
market.
AS stated in a previous article we are
convinced that the sentiment among the
business community of Savannah is
largely in favor of the pro-
posed combination being made, and it
is hoped that notwithstanding the existing
difficulties it may yet be accomplished.
For the present, however, the public mind
may be at rest. The Central will continue
to manage its vast interests as heretofore,
and the Georgia Railroad will be run as far
as possible in unison with the Central and
to the interest of Georgia's great seaport
Savannah-the friendliest relations existing
between the two companies.
The committee from the Georgia Railroad
having completed, as far as practicable, the
object OF their visit, left for home last eve
ming by the Central Railroad train.