Savannah morning news. [volume] (Savannah) 1868-1887, 1881-07-28


chRsers.
CHARLESTON, July 27.-The sale of th,
South Carolina Railroad, which takes plac,
here to morrow, under decree in the United
States Court, marks an important epoch il
the history of one of the oldest railroads II
the United States. The road has an ex
ceedinglY interesting history, a brief re
sumo Of which will probably interest many
OF the readers of the MORNING NEWS II
this State as well as in Georgia. The origi-
aal charter Of the South Carolina Canal anG
Railroad Company was obtained from tn,
| Legislature Of South Carolina in 1927. the
books OF subscription being opened In Feb
ruary OF that year. The earliest projection
OF the road were Alexander Black, Tristan
Iupper, VIM. Aiken, Governor Bennett, an(
others, who organized the company fl
May, 1928. In those days the railroad wsl
thing Of the future, and the originators o.
the South Carolina Road were met on every
side with jeers and ridicule They did no
seem themselves to have any clear idea o.
the extent and scope of the project which
they were undertaking, and the fear of ridi
cule made them pursue their plans In Sc
cret. Ia February, 1929, they made an ex
pertinent; they built about one hundred anG
fifty feet Of railway track, very crude 1T was
in Wentworth street, and procured a four
wheel car, upon which they placed forty
seven bales of cotton. A mule was hitched
to the car, and drew the load with ease
This was revelation. 1t developed the
drawing capacities Of the mule to an extent
that had never been dreamed of before, and
inspired the conspirators with renewed
courage and hope. They began to en-
tertain the idea of running a
railroad between Charleston and Augusta
with mule power, and saw "millions In IT, -
Emooldened by this experiment, two
months later, one hundred and seventy
yards OF track was laid on Chisholm's
wharf, and upon this the rails (fat irony
were transported from the ship to the shore.
In June, 1873, meeting of the stockhold.
ers was held, and the directors were author
lzed 10 begin work on the road between
Charleston and Hamburg. At tais time the
company had received about five hundred
tons OF rails, and the Legislature OF the
State had advanced 100000 in the way of a
loan.
The railroad men, however, still expert
enced great opposition, and to avoid the
rldicule which the public were ready to
shower upon them, they stole quietly out of
the city TO Line street on the night of the
9,h OF January, 1880, and in the dark turned
the nrst sod of what is now
known as the South Carolina Raj
road. There was no parade, no fuss,
no silver shovel or plated barrow. The
work was begun IN the dead of night, and
In the fear of publicity and those might
laugh who won.
In the meantime public opinion differed
upon the subject of motive power TIE
original idea had been to use horse power
On the new railroad, but since the idea of a
railroad was first crystalliz adinew discoy-
cries had been made and the practicability
OF the application of steam power to rail
road locomOtiOn was engrossing public at
tention. On the 1st OF April, 1880. one
mile OF the iron track of the South Carolina
Railroad had been laid and the first train
was started over it. The train" consisted
OF cranky four wheel car, which carried
thirteen persons and three tons of freight.
IL was propelled by means OF a large SQUARE
SAIL which was rigged up on a mast, and
miles an hour. By the middle of June
following two and half miles of the track
had been laid and two steam LOCOMOTIVES
nad been purchased. In November, 1880,
the "Best Friend" the first steam locomo-
tive ever used in this country, made her ap-
pearance here, and in January, 1881, she
made a trip over eight miles of the new
railroad. In April, 1888, the road was fin
lsneo up 10 Midway, seventy-two miles, and
q W q rim 70 hoN
speed OF tweIv3 miles an hour.
ln 1886 the new road was a success. 1t
connected Charleston and Augusta,
and its shares were selling
at 20 per cent. premium. In 1912 the
Columbia branch was completed, and in the
following year the two roads were cousoli-
dated under the name OF the South Carolina
Railroad.
At the opening of the war in 1861 the
road was in excellent condition, aud had
been paying dividends. The close of tne
war, OF course, found it in an almost bank
lupt condition. An estimate of the los sss
IL had sustained by war and By wear and
tear placed the aggregate at 81, ,627 ll2.
besides which there was loss Of S3.6l9 900
IN bonds and stocks of the Confederate
States.
From the close of the war the road, 10
stead OF recovering from the losses it had
TURNER
aud further iu debt. The management uE-
der President w. j. Magrath was failure
The annual income was larger than It had
ever been before, but the expenses seemed
to 6aVe increased IN proportion. Ia June,
1873, the company defGulted in the payment
OF the interest on the second mortgage
bonds, and suit was instituted in the
UGited States Circuit Court looking to the
appointment OF a IT tceiver. The plaintiffs
w alvin i
oOndholders, who were represented by
Mitchell q Smith, attorneys of this city. At
that time the total interest-beating debt of
the road was $6,28S, lis A, aud the annual
interest required $406, l73 OIL. The case
was argued ia the court, and in ptember.
1910, an oldsr was granted by Judge Bond,
Of the United States Circuit Cour5, appoint
ing j. h. Fisher receiver of tine road. This
terminated the old regime, and the road
under the management OF the receiver
made splendid showing. In the meantime
the case was carried up to the Suore me
Court II the United States, and 10 Septem-
Der, lSSO, Chief Justice Waite signed de-
cr,e OF sale fixing tomorrow (tae % b. as
the day OF the sale Ia the meantime syn
dicate was forme for the purpose of pur-
chasing the road. The holders of the
second mortgage and non mortgage bonds.
aggregadng about S.. 1870, 900, were mainly
iEtCi OoSSOs lucy Cdl6Q OQ the SLOck-
holders, who responded to the amount
OF about IS, 600 900, and Purchasing com
mittee was organized with a view to buy
the road, reOrganize It, and run II for the
benefit of all concerned. II is probable that
this committee will purchase the road and
run 1t under the direction of Mr.. J. H.
Fisher, who is the receiver at present, and
who will probably be made the President Of
the new organization. 1t is thought that
the road will pay good dividends if it can
ever be rescued from the clutches of the
lawyers. The terms of the sale are 800. 900
cash, the balance to be paid before the sale
ls confirmed by the court. There will prob
ably be lively competition, but it seems
to be certain that the New York purchasing
committee will be the purchasers. 1t
is thought that the road will bring all the
way from 81 ,0C0, 600 to $6 600 ,O90, but these
are, OF course, only guesses. The highest
net earnings Of the road, not counting the
years Of the war, were $647, ,74l AZ, in 1869
Ulder the reorganization the new com
pany will issue five million dollars consoIt-
dated first mortgage bonds, one and a half
million second mortgage bonds, three mil
lion income bonds and five and a half mil
Lon In new stock, making an aggregate of
fifteen millions of bonds and stock. While
l. Is probable that the Charleston syndicate.
VINO hold S475, 600 in bonds as collaterals,
Will bid the road in, it seems to be under
STOOD That the New York purchasing COM
mlttee Will buy the road, as they are pre-
pared to give any price for it.
-kt-p-44-