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

I
The most important event that has
occurred in the railroad world in South
Carolina since the sale of the Greenyille
& Columbia Railroad to the Clyde syn
dicate of-New York, was announced in
the Atlanta Consultation Of. last Tuesday.
The Richmond & Danville combination,
which is the Clyde Company, and the
Baltimore q Ohio Company, have each
for many months past had jealous eye
upon the Air Line road, and each of
then, has been endeavoring to effect q
lease of the road, but without avail! until
last Monday the contract was closed,
leasing the. coveted road to the former
{ Company upon the guarantee that they
viii pay the interest upon the bonded
debt, and fve per cent. per annum upon
the stock of the Air Line Company.
Possession is to be given on the second
day Of April, and the lessors put up
bonus of half million dollars as guar
antee Of the faithful discharge of their
contract. After the lease had been af-
fected, the Baltimore and Ohio Company
offered to duplicate the contract with q
provision for six per cent. instead Of Eve
upon the stock of the Air Line. They
were, however, too long III reaching their
conclusion, and their rivals have borne
of, the prize. The Air Line is a valuable
road. Four: years ago its bonds sold for
thirty cents on the dollar and its stock
was worthless, while now its bonds are
worth s1.07, and its stock sold on last
Saturday at g7oa cents on the dollar.
This is dne to the wise and efficient man
agement OF Col. G. J. Foreacre, the Su-
perintendent of the road, and to the
financial skill Of Mr.. sibiey, of New,
York, its President. The road has been
greatly improved, and is now in every
respect desirable property. The effect
of the lease will Il be very great in the
commerce of the up-country, and prob.
ably of the whole State. The Clyde
combination now control the whole Of
the, important roads in the State, except
the Northeastern, Savannah 4 Charles
ton, and the South Carolina 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 York, to 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.
eralresnlt upon our commerce. It COM
spletely destroys the competition which
has existed at Seneca, Greenville, Spar
tanburg and Gaffney's, and places those
points in the hands of monopoly,
which will deprive them Of the advanta-
ges theg>have enjoyed over neighboring
towns, and cause them to compete upon
equal terms for the trade which they
may Lave. There is the entire absence
ofmotiye for any discrimination in favor
Of these points by the present lessees,
and it may be safely assumed that from
this time forward the determinations
will cease. AS to the policy to be pur-
sued by the managers of the combined
lines nothing is known, though there are
rumors of an intended increase of freight
rates all around, while there is also q re-
port that still further reductions are to
be made. Which is correct will only be
shown by time, though we apprehend
that no serious DETECTION of rates either
up OF. down will be adopted, except in
equalizing the rates by an increase at
points which may have been too low
heretofore in consequence of competi.
ton, which is now removed. From
local standpoint, we regard the new
lease as fortunate one, which will
greatly. benefit the business of Anderson
by placing us in as good position as any
of our neighbors for shipping or receiy-
ing freights.