Savannah morning news. [volume] (Savannah) 1868-1887, 1881-12-16
The Proposed Watering Of Central
Railroad Stock.


workings of this movement, for it states
that the Louisville and Nashville Rail
road is not interested in the matter, but
that the move has been inauguTated by
certain holders of the stock who think
they ought to have larger dividends. It's
further distinctly asserted by the Chr0HI-
els that the movement is by no means
to be directed against Colonel Wadley
personally, but that, on the contrary, Its
originators would be violently opposed
to his being ouseed from the office Of
President of the great corporation, which
office he has so ably and acceptably
filled for so many years.
The proposed plan to secure the COW
eted dividends is as follows: The Ocean
Steamship Company is to be stocked to
the amount of half the capital stock of
the Central Railroad, and this stock is to
be divided out among the stockholders
of the road on basis of one to two
that is, every stakeholder owning two
shares of stock of the road is to re-
ceive one share of the stock Of the steam
ship company, or, in other words, he is
to receive a scrip dividend of 90 per
cent on his stock, which scrip is to bear
a certain rate of interest-possibly per
cent-and the future earnings of the
steamship company, instead of hereafter
being of benefit to the Central, are
mainly to be used for meeting this pro-
posed additional obligation.
We do not believe that such move
ment is wise, or that it will ever be
sustained by the bona tide holders of
Central Railroad stock. Our Augusta
contemporary, in its article, freely ad
mits that Mr.. Valleys n arrangement of
the affairs of the Central Road has
throughout been most prudent, and has
brought forth splendid results, despite
the Railroad Commission law and all
other hostile influences which have been
brought to bear against the interests OF
this great Georgia highway. 1t is plain,
therefore, that when he advocates the
necessity of a continuance of the present
policy in the management of the affairs
of his corporation he well knows that of
which he speaks, and TO go contrary to
his advice would certainly be a most
h5 zArdous experiment.
This must be apparent to everyone.
The road and the steamship company
have both prospered, it is true, but there
is evident need for all the good fortune
they have enjoyed. aud for all the money
they have accumulated. The present
era Of unprecedented business prosperity
may not always last. In the past,
seasons OF depression have inva-
riably followed seasons of activity, and
the same will most likely be the expert
ence of the future. But. besides the
precautions necessary to be taken to
guard against future business depression,
It must be remembered that there still
stands upon the statute books
of the State that unjust
Railway Commission law, constantly
threatening the vital interests of all our
railway lines, while, at this moment, a
new line, intended to be a formidable
rival to the Central throughout its entire
length, is being actively pushed to COM
pletion. To successfully meet all these
obstacles, hold its own and pay future
dividends, money, and great deal of it,
too, will be absolutely required, and this
is, doubtless, why Mr.. Wadley, with the
conservatism, prudence and foresight
which have always so eminentlY charac-
terized his administration, favors paying
good, though not extravagant, dividends
to his stockholders.
1t may be, as our contemporary states,
that this movement is not directed against
Mr.. Wadley personally. Certainly it is
very polite in those favoring it to give it
out that be will not be Ousted from his
position as President, since there is little
doubt that if such an idea were to get
abroad, the success of the plan to gobble
up the Ocean Steamship Company would
be effectually thwarted. But if the
move is successful it will virtually
amount to the same thing. 1t is hardly
to be presumed that Colonel Wadley,
after he has devoted years of his life to
placing the Central in its present sound
and enviable position, will, if specula-
tors and strangers-attracted by the
wealth he has accumulated and reserved
for the purpose of securing future pros
perity to the road and future divi-
dends to the stockbolders-can step in,
overturn his policy, revolutionize his
system of management and interfere
with his plans, consent longer to re-
main in office. And when the road is
deprived of the benefits of his wisdom,
sagacity and foresight it will be sad in
deed for holders of the stock as an in
vestment. The history of the St. Louis,
Nashville and Chattanooga Railroad, af
ter its purchase by the Louisville and
Nashville-when its stock was run up
from about 80 to 100, and then fell to
about 81, at which figure it rules to-
day-will be repeated.
When those who have invested their
means in Central stock as permanent
investment think of these facts, they will
hardly consent to any change in the pres
ent policy and management of the road.
The proposed move, if successful, would
doubtless prove a bonanza to the specu
lators, who would take advantage of the
temporary high prices to which the stock
would be carried, and, having disgOrg
ed, would make haste to stand from
under when the inevitable fall followed;
but it would prove in the end a serious
affair to those who hold the stock as an
investment. In a word, the proposed
movement would simply mean fight
between spectators and permanent in
vestOrs, and, if it is persisted in, we be-
lieve that, at this time at least, the latter
will win.
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