Savannah morning news. [volume] (Savannah) 1868-1887, 1881-12-28

the South western in ratio of eight to ten
without dollar contributed to the fund, in
law or In equity, by the shareholders of the
Southwestern Railroad. The mere state
ment of this matter Is sufficient to
mark the future line of duty for those who
have In custody the property of the Central
shareholders. It Is said that these scrip
dividends injure the value of the stock
and will ultimately ruin 1t hopelessly. II
there be anything to divide of real value |
deny the proposition. Suppose the stock
on the market worth $3.50 per share aud the
declaration of fifty per cent scrip dividend
carry the price to par; wherein has the
shareholder been iDjuredP As In the case
OF the last scrip dividend he is greatly bene-
flied, for his stock dividend remains the
same and In addition thereto he has his in
terest and scrip. Another advantage is
that by selling his scrip he can divide
his investment, while holding the same
number Of shares In the company, and with
greater economy to himself in interest. And
what is applicable to one shareholder can
be safely presumed of the whole body, and
by these reasonable and Just divisions our
people are made more inclined and better
able to hold their stock and keep the entire
profits from going into the hands of pur-
ehssers whose interests and ours, IN many
respects, lay as wide apart as the MONDAY
from the darkness.
1t is urged that these divisions might
excite the suspicious of the Railroad Com
mission and bring upon us reduced tariffs
of rates. This is, of course, upon
sion are pack of idiots,
who cannot appreciate that these divisions
are the results Of past accumulations and
properly enhancement, having nothing to
do with present tariffs. Iostead Of inviting
the opposition, it should induce the Com
mission to the framing of more liberal
tariffs, because their theory is to permit
railroads to net from to per cent on
amount of investment in construction and
equipment. As the matter now stands, we
are making from IA to Is per cent. on pro-
perty stocked at half its intrinsic worth.
1t is false exhibit, and places US at real
disadvantage with the Commissioners and
keeps the stock below its proper value,
causing loss to holders when forced to sell.
Again, II the property is divided the main
Incentive to outside capital in seeking to
control 1t is removed and the property re-
mains In the hands OF Georgians, and more
OF them will participate In and be benefited
by the division. II this matter of division
be delayed, granted, of course, that there
Is something to divide, larger holding of
the stock will become foreign to US and the
benefits 60 away from us with the future
control of this vast and important property.
That there may be In the
future a time or times when,
from the accumulation of interest
debentures and stock, 1t may be difficult and
even impossible to pay interest on deben-
lures and dividends on stock any one will
admit. These periods came upon the Cen
tral when she had small capital and no
debenture interest to pay. Cities. States
and nations GO through similar experiences.
But we have growing property, live In a
growing State, and 10 a country whose fu-
ture is still in its roseate dawn of develop
ment. Therefore, while fully recognizing
all these possibilities, we have a duty in the
living present no duty to the future should
deter US from discharging.
If the Central Is worth double nor In re-
ality to the shareholders on the books and in
good assets, that represented by the capital
stock charter inhibitions precudiDg the
issue OF more stock, shareholders should
have the value OF their properly fixed by
debenture scrip, that they may command
its full worth In the market.
1t Is charged upon those who favor this
course that they are fighting to destroy the
property OF the widow and orphan for the
benefit of the speculator. In all divisions
shareholders receive alike, be they widows,
orphans or worldly spectators, and as one
class is benefited so Is the other. The char
acter of the holdings of the stock has the
least OF anything to do with the question at
issue. The real question of the moment is
whether, II there be anything to divide, it
shall come now or be postponed only to en-
sure the increase of the outside holding and
with future division, ss I have already
said, the carrying Of the accumulation, II
any, and control to foreign hands.
Men OF the highest railroad knowledge
aud sterling worth have expressed She be-
lief that further division should be made
The shareholders are daily becoming more
inclined to this opinion, and the probability
is now that on the ID of January their bal
lots will cause such changes In the present
directory as will voice their conviction with
an emphasis not to be misunderstood,
For the present officers and Boaro OF Dr.
rectors have the highest personal regard.
aud give every one OF them the fullest credit
FOR the conscientious discharge OF duty. /
know and believe they have each one done
what they honestly believed was for the
pest. But differ from them for reasons
given. Between US the future can alone
determine. Anyhow, on election day
shall cast my small vote, and that os others
under Instructions, for just and full
DIVISION,