Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-25

the stocking 1t Is not in the books, and he
pouts, says they want his whole stocking.
and ties it around the neck with a blue
jeans string made in Macon, notwithsiand-
ing his acknowledgment in his last report
that he had chunked nearly a half million
of last years net earnings into it.
From this it would seem that General.
Alexandsr's whole offending lay in know
ing the condition of the affairs of Others
better than they know them themselves.
General Alexander cannot be called officiOus,
because, as a shareholder, he has the right
to an opinion and to make suggestions to
his fellow shareholders as to how the stew
ardship Of their property should be dis
charged. About the division of accumBla-
tions, the idea of General Alexander is that
entertained now by every thinking railroad
man in the State.
Iu the late division of the accumulations
of the Atlanta ard West Point Railroad,
Colonel WsdleY illustrates this idea in cast
ing the vote that doubled IFS stock by the
issue OF an one hundred per cent. diVi-
dend based only on the railroad aud appur-
Genances, and both the stock and the per
cent. scrip Of that company now rule above
par in value. II that road can stand such
dtlution and more than maintain itself, v hat
could not the Central sponge absorb and
hold, both sponges dipped by the same
hand Let US appeal to the figures-I would
say to the books, as merchants would eX-
press it, but the roads books are so mis-
leading; and justly this assertion by Col
Wadley's own admission to Gen. Ale x4nder,
as stated IN your reporters interview, Mr.
Editor, with the latter gentleman, that the
net earnings of the Ocean Steamship Com
pany were $401, 12l 81, instead of 1901 121 81,
as In the official published report of the last
fiscal year. Only a mistake Of $l00 600, that
possibly found its way into that expensive
old stocking.
With the above correction Incorporated,
from the report for fiscal year ending 31st
of August, 1881. we haveS
Gross earnings of roads and bank. So 7O7, ,s61 35
Working or current expenses for
the fiscal year -. ............ 1851, ,496 50
Net earnings of roads and bank 1886, 1874 So
Net earnings of ships, Vale Royal
property and cotton presses. -. 401, ,121 81
Making net total earnings for the
fiscal year F.. -. -. 2,2i7.616 10
the fiscal year CabouD. =. 100000 90
Six months interest on deben-
lures. ........................ 19s, 600 90
5 698.OoO co
Available for dividends, better
ments and surplus. ............ s., 1,549,616 10
Applied as follows:
To permanent improvement or bet
ments. ......... ...........$ $4,000 10
And per cent. dividend on Central
stock .................... 100000 90
Cash to reserve Observation-Disclosures. 492,C00 90
S1,549,616 10
a II ost startling exhibit, showing that after
paying expense and fixed charge, including
dchenture interest, and an per cent. divi-
deDd, S949, ,616 10, exceeding 12% per cent.
on the capital stock is added to The reserve.
II interest for year had been due on de-
hentures, the net would have been $138 COO
less, and even in that case the reserve would
have been augmented by $S11 616 10, enough
10 pay interest at 6 per cent. on 0,0O0, 600
more OF debentures, and still largely swell
the now pOnderOus reserve. But do not
think L advocate such an issue, at least for
the present.
Contrast with this the policy under the
same management In 1870 and 1871. In the
Presidents report for the fiscal year ending
December 1st, 1870, after reserviDg only
$3.50, 600 for rails from the net income. there
was paid in dividends the entire balance
save S6,273 20 In the next year, after ap.
proprgatilg $4,000 for rails, there was
paid in dividends all that was left, except
SO $50 9S, and this face is supplemented by
this remarkable language in the Presidents
report on page z:
'The bueiness of your own road as well
as those leased by your company has fallen
off very much during the past year. This
has been caused by very material reduc- !
tion in the cotton crop tributary to our
road, and also by a fierce competition from
other lines Of transportation which have been
opened. These lines have not onlv taken |
some of the business that has heretofore
passed over your road, but they have re-
duced rates of transportation in some cases |
below remuneratiDg prices"
Think OF this stockholders! Dividend s |
per cent. with reserve increased $949 GIG 10 |
In 1881, added to an already accumulated |
reserve worth easily over all liabilities ST. |
000OO0 in first-class assets, and the com. |
pany 10 perfect accord with the railroad |
system of Georgia; and In 1871, dividend 10 |
per cent. with reserve increased SO, 989 9S |
added to reserve not exceeding 5000, 900, |
with the company in open war with other
railroads in the State and in the face OF a |
'herce competition" !" &nd ''rates below re- |
prices" With these figures in |
iuxtsposition who can question the Justice |
OF Gen. Alexauder's claim fer larger divi-
dends for stockholders, in wbstever shape /
1t may be best and wisest to declare theme |
On these facts and figures Gen. Alexander
can rest in safety his whole de 'ense before
the bar OF public opinion or any other tri-
bunal, and feel assured of his most trium-
phant viBdieation.
The next question that naturally arises is
are the earnings of 1881 to continue? |
must confess that believe that the Central
Railroad is just In the spring time of it's
harvest. That 1t may have had bad wears
and reduced earnings, so it has a right to
expect even better years than any thGt have |
yet dawned upon it. But am progressive,
and believe th7 South is going to take on
1 new growth and a stronger one. ard in
-he developing Of her almost exhaustless
wealth OF soil, OF forest and OF minerals,
With her wonderful capacities for maufac~
lures, great future is ahead for her and her
varied laterests. Are We forever to be re-
yaled with doleful predictions for the Cen
'ral, when everything elss is starting into
new lifeg Certainly not, II we would only
be true to ourselves.
In connection with the accumulation of a
arge surplus, the struggle to resist the
temptation to be extravagant is only in /
tensitied. No man living is proof against
ibis insidtous syTen, ana for that reason, as a
general rule, surplus should be in the pro-
portion OF the contingencies to be provided
against, ard not as if to provide for the to-
ial replacement of vast and varied inter
the measure some would pre-
scribe for the Centrsl's reserve.
But the last election of directors was an
)utspoken protest against this latter policy.
Whether the stockholders who wrought the
change 10 the composition OF the directory
1t t5at election were brokers' or specula-
,ors, or foreigners, the acceptance of their
1allote proved their right to be heard, and
enter their protest against the method of
iisposing Of the earnings OF the road and
ts dependencies. Nor does it lay in the
province Of the representatives of the for
ner management in the present board to
aise their voice against this decision Of the
majority vote after their action In 1866 by
which the only barrier in the charter against
he rule OF an over exacting majority was
mended out by their own motion.
In the sterling integrity of Col. WadleY 1
AVE every confidence. Where / thought
lie and his associates had erred in the ad-
Of their great trust, have only
ought in dispassionate manner to point
out. Doubtless it can be shown that
very act of these gentlemen from 1866 to
late are sustained by the soundest wisdom
[ the inside circumstance surrounding each
are onnsidered hnt nnIr h. tho |