The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1881-03-31
LEASE OF THE AIR LINE RAILROAD


The most important event that has
occurred in the railroad world in South
Carolina since tho sale of the Greenvilie
& Columbia Railroad to tho Clyde syn
dicate Of New York, was announced in
the Atlanta Constitution of last Tuesday.
The Richmond e. Danvile combination,
which is the Clyde Company, and the
Baltimore 6 Ohio Company, have each
for many months past had jealous eye
upon the Air Line road, and each of
them has been endeavoring to effect
lease of the road, but without avail! until
last Monday the contract was closed,
easing the coveted road to the former
Company upon the guarantee that they
will pay the interest upon the bonded
debt, and FIVE per cent. per annum upon
the stock Of tho Air Line Company.
Possession is to be given on the second
day Of April, and the leasors put up n
bonus of half million dollars as guar
antee of the faithful discharge of their
contract. After the leaae had been af-
fected, the Baltimore and Ohio Company
ofiared to duplicate The contract contract with a
provision for six per cent. instead OF i've
upon the stock Of the Air Line. They
were, however, too long In reaching their
conclusion, and their rivals have borne
of the prize. The Air Line is valuable
road. Four years ago it's bonds sold for
thirty cents on the dollar and its stock
was worthless, while now its bonds are
worth Sl.07, aud its stock sold on last
Saturday at 703 cents on tho dollar.
This 10 due to the wise and efficient man
agement OF Col. G. J. Foreacre, the Su.
perintendent of ttJ road, and to the
financial skill Of Mr.. Sibley, of New
York, It's President. The road has been
greatly improved, and is now in every
respect desirable property. The effect
of the lease will be very great in the
commerce of the up-country, and prob.
ably Of the whole State. The Clyde
combination NOW control the ~!:o!e Of
the important roads in the State, except
tho Northeastern, Savannah & Charles.
ton, and the South Carolins roads, which
enables them, to very large extent. to
control the commerce of South Carolina,
which they will naturally do in the in.
terest of New YorL, 10 which point their
lines converge from Charleston, Will
mington. Norfolk and Richmond.
The local effect of the lease will per-
haps be more perceptible than its gen
ernl result upon our commerce. It COM
pletely destroys the competition which
has existed at Seneca, Greenville, Spar
,anburg and Gafiney's, and placeA those
points in the handa of q monopoly,
which will deprive them of the advanta.
ges they have enjoyed over neighboring
towns, and cause them to compete upon
equal terms for the trade which they
may have. There is the entire absence
of motive for any Discrimination 10 favor
of these points by tho presen. lessees,
and 1t may be safely assumed that from
this time forward the Determinations
will cease. AS to the policy tc be pur-
sued by the managers of the combined
lines nothing is known, though there are
rumors ofan Intended increase Of freight
rates all around, while there is also re.
pore that still further reductions are to
be made. Which is correct will only be
shown hy time. though we apprehend
that no serious DETECTION of rates either
up or down will be adopted, except in
equalizing the rates by an increase at
points which may have been too low
heretofore ia consequence OF competi-
ton, which is now removed. From a
local standpoint, we regard the new
lease as a fortunate one, which will
greatly. benefit the business of Anderson
by pincing rs in rs good position as any
OF our neighbors for shipping or receiy-
ing freights. e'
IATsaIaRATIoN.