Savannah morning news. [volume] (Savannah) 1868-1887, 1881-04-13

AUGUSTA, GA, April 12.-The Beard Of
Directors of the Georgia Railroad today
agreed to rent the Georgia Road and de-
Tendencies to the owners OF the South
Carolins, consisting of w. NJ Wadley, John
ID. Fisher, Moses Taylor, Samuel Sloan and
others, for the sum of six hundred thousand
dollars per annum, payable semi-annually,
the lease to date from April 1st, 1881.
The Georgia Road is to retain the bank
building and banking department, includ-
Ing all the cash on hand and $4,000 in
bonds of the Port Royal Compress and
Elevator, with all the real estate not essen
tial for railroad purposes The Georgia
Railroad is also to retain in its custody the
bonds and stocks Of other roads belonging
to the company, but the lessees are to have
the dividend and voting power of such
stocks and bonds. The Georgia Road is to
pay from the $500, 900 rental per annum the
Interest on the bonded indebtedness of its
own road, and of the Macon and Augusta
Railroad. The lessees are to pay interest
on the bonds of the Western Railroad OF
Alabama.
The terms of the contract require the
South Carolina Railroad Company to keep
the Georgia Railroad property in good con-
dition, subject to inspection at the pleasure
Of the lessons, and to return it In the same
condition as when received. The lessees
are not to cucumber the property with liens
of any sort, or to use it in violation OF the
terms of the Georgia Railroad charter The
lease is for ninety-nine years, aud the South
Carolina Road owners, as above named,
must deposit as guarantee for the contract
81, ,000,0 GOO in United States bonds, or other
bonds of like value, the title to all the
rolling stock now on hand or may be re
newed from time to time, to remain with
the Georgia Railroad.
This action was taken after full and free
discussion in the Georgia Railroad Board OF
Directors, the meeting continuing all day
until seven this evening. The full status OF
the railroad situation was taken IN and all
threatening dangers to the Georgia and Caro-
llnG Railroad system considered. Only one
vote in the Directory was cast in the mega
tive, all the Board being present except
Gen. Alexander, who is a Director, and he
telegraphed full approval.
BS the terms of the lease the organization
| tanned, President PhinizY says, and the an.
nual convention of the stockholders is to be
held in May as heretofore. The bank
will be in operation substantially as here
tofore. The rental allowed gives 10 per
cent. dividend to the Georgia Railroad
stockholders, and will probably allow, even
after paying the bonded interest, from the
$4,000 a sinking fund of forty thousand
dollars year.
President PhinizY said tonight that this
is a contract, not lease to the Central iu
disguise, although it will end in consolida-
tion with the Central. The prevailing i'm
preston, however, is that it is At all events,
Mr. WaGleY is perfectly satisfied, since the
Central could not lease the Georgia direct
lv. Mr.. Phinizy says this lease will build
up the South Atlantic ports, and enable
them to compete successfully with Norfolk,
Richmond aud all points East and North.
The lease Is in the interest of the Louis
vile and Nashville Road and the Central
Road of Georgia.
Geo. d. Thomas, OF Athens, attorney for
the Richmond and Danville Road, is in the
city this evening. He has completed the
contract for the purchase of the Northeast
ern Railroad of Georgia, the city of Athens
accepting the proposals Of the Richmond
aud Danville Road, which will, in all proba-
bility, beratifed by the voters of Athens, as
the sentiment there is unfayorable to the
Georgia Road controlling the Northeastern.
l. is rumored here to-day that Mr.. Wadley
may make a fight for the Northeastern for
his new system, and not surrender to Clyde
so easily.
The Danville Road offers to extend the
Northeastern to Tallulah Falls in sixteen
months. Rumor has it that the Danvile
Road is trying to purchase from the Geor-
gia Road the Atlanta and West Point Road
and the Western Alsbama Railroad, which,
with the Airline, will give them an un-
broken line almost to New Orleans, to
which point they are working.
Georgia and Central stocks are out of
sight to night
1t now transpires that Mr.. Wadley made
the same proposition which was adopted to-
day to the Georgia Road at the Savannah |
conference two weeks ago. As legal obsta-
cles prevented the Central from making the |
lease Mr. Wadley then determined to go !
over and lease the Georgia with the owners
of the South Carolina Railroad Company.
The effects are practically the same.
Mr.. PhiniZY said to night that the en- !
croachments of the Richmond and Danville |
forced this lease. When the new line is
completed to Point Rock, thence to Knox
vile from Salisbury, n. c., the Richmond |
and Danville Road will have a line to Au-
gusta and the West one hundred miles |
shorter than the Georgia Road through At
lanta. The guarantee, Mr.. PhinizY says,
secures a ten per cent. dividend on the |
Georgia Railroad stock, which, being free |
from taxes, makes 1t equal to twelve per
cent. He values Georgia stock tonight at
at least 1G0.
Central closed firm at 124 tonight. GeOr- |
gia this morning opened strong at 140.
Mr. Wadley says tonight that splendid |
new line of steamships will be shortly put
on between Charleston and New York, simi |
lar to the Savannah line. Port Royal will
have to take care OF herself for the present.
To days action is final and conclusive.