Savannah morning news. [volume] (Savannah) 1868-1887, 1881-05-12

road, In the Rome Railroad, and In the Port
Royal and Augusta Railway, and to vote
those stocks Is granted to the lessees,
The title to all the property remains in
the Georgia Railroad and Banking Compa-
nv. Besides the rental, the lessees pay aIT
taxes except the charter tax on net income,
and pay also the interest on the Western
Railroad of Alabama bonds.
The lessees are to keep and return the
property In nrst class condition.
The lessees indemnify the company
against all claims for damages on account
OF the use OF company's railroad. The les
sees deposit 81 ,OOO, 900 of bonds In value as
security Tor the performance of their under
taking, which deposit is not to be dimin-
isned IN amount, or impaired in value.
BESIDES other remedies and redress, the
company reserves the right to Tetake pos
session OF its property on the breach of any
OF the stfpulations Of the lease.
The company is to pay the principal and
interest OF all its bonds, except the interest
OF the bonds OF the Western Railroad of
Alabama.
The company retains for its own use its
banking building, privileges and business.
While the Board Of Directors conceive that
their first duty is to the stockholders, and
that they would have reason to be satisfied,
II the arrangement which they have made,
rebounds, as they believe 1t does, greatly to
the interest OF the stockholders, still
cation of feeling that tiEeAi the arrange range
ment is most fortunate for the cities,
towns, villages, and rural districts affected
by the Georgia Railroad. 1t has, in the
opinion OF the directors, both removed the
danger of having the traffic of the West
aud Northwest with the outer world d.
verted from this regien to Atlantic ports
north OF Georgia and Carolina, and has also
me rnh a rPFnu fnFx xOlN ofk -
this direction, for the parties to whom the
lease has been made are deeply interested In
conducting that traffic through the port of
Charleston.
Only the future can determine whether
this latter view of the advantages Of the
arrangement to this part of the country be
correct, but the present, the very present,
demonstrates the advantages of the arrange
ment for the stockholders themselves. To-
day, under the impulse of the lease, the
stock is higher than 1t has ever been In the
history OF the company or In the anticIpa.
tions Of the stockholders.
The directors are so we'll assured of the
soundness and advantages of the situation,
and that the annual rental, together with
the profits of the banking department, will
enable the company to meet the interest of
the cOmpaDy's bonds and provide a sinking
fund for the extinguishment of the princi-
pal, and leave sum sufficient to pay from
the present moment annual dividends of 10
per centum per annum, to be increased In
the future as the bonded debt is paid off,
that they declare 1t to be in their opinion
the true policy from this time forward to
pay It's stockholders quarterly dividends of
"a per cent.
Appended herewith is a statement of our
income and liabilities under the lease:
Rental. ..........................S .S60O,OC0
Interest bond Port Royal Com
press Company ................ 1000
Estimated net profit of bank,
after paying expense and taxes 25, ,000-627 900
The bonded debt, deducting S24,-
QUO maturing July !, 1881,
which we propose to pay, will
be 81. 598, ,0G0, upon which the
annual interest will be...... 161, $50
Dividends to stockholders 10 per
cent. per annum. ........... .420 000-581, $50
Balance for sinking fund. S45, 140
Respectfully submitted for the board.
Z. II. PHINIZY, President.
Mdu 5. 1881