Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-17
TaR CENTRAL RAILROAD.
Conference No. 3-What a stock.
holder I'm Search of Light and
Truth has 60 Say 10 His Associates

Truth has 90 Say 10 His Associates.
To the Associated Stockholders cfathe Central
Railroad: My friend, Another Stakeholder,
gave us some very large figures at our
second conference, viz:
Expenditures on improvements or bet
terments on the road, out or net earn
ings of year ended 3Ist August, 1881. $457, COO
like purposes neutrality-suspicious.. 25S,OOs
And. again, there were expended on
grain elevator, warehouse No. /, and
wharves, slips, etc. ............ $4,000
Making the expenditures for better.
ments. extension Of lines, ships,
wharves and buildings equal to-. 1915, 006
(or 1l% per cent. on the entire capital Of
our company during the fiscal year ended
31st August, 1881. and In addition to these
large sums money was borrowed to make
other improvements and extensions OF our
lines on land and water during the same
fiscal year, and that the money borrowed
for these purposes made up our Floating
debt" These statements necessarily created
anxiety in the minds of all, but We were
much relieved by being told that the floating
debt had been adjusted or paid by the
sales of stocks and bonds that had been
given In payment to the Central Company
had expended large amounts OF money and,
materials-in other words, that the pro-
ceeds Of these securities had been used to
pay for important Improvements and ex-
tending of our lines, and to refund enough
of the net earnings to pay us the usual
semi-annual dividend of per cent, equal
$500, 900.
Having this summary before us, 1t be-
comes interesting to inquire II it was wise to
cYIno-ond Uhof
gencies caused the management to antici-
pate our leash in hand" to the extent men
toned. From such information as | have
been able 10 collect, | will try to state what
the emergencies were-or are represented
to be.
Ia our day, the management of railroad
system has become a great problem, and In
wolves questions OF much difficultY-rising
sometimes to the dignity and importance Of
national questions. balance OF power"
between rival and neighbOring railroad
systems must have constant attention and
adjustment TO prevent encrOschments on
the territory and business of each
other. Any one system may preserve
its strength and power aud territory
by improving fits connections, extending
fits brsnches,ImakiDg2 alliances with neigh
bOrs to work in common luse, and by max
ing such improvements as will facilitate ard
10 addition to all this, the system may have
to spend money for purely dJeaSi'e pur-
pOseS-that Is, by working roads that do not
paw expenses, and in other ways that cost
money, without any direct return. l take
&c for granted that our Central Railroad
system may be subjected to such necessities
as may, at times, demand heavy outlays.
Roads are forced often to expend
thousands for defense-for self-preser-
walton. Admitting all this to be
true, the questions still arise: Were
the necessities so pressing and immediate as
to Justify the borrowing of money to pro-
| vide for them? and was the provision made
ct a reasonable cost? On these points,
find diversity of opinions. Many contend
that the sum paid, for an eastern extension
| aud outlet, was enormous and altogether
upinstiiable-2nd the more especially so,
when It is remembered that our lines
already had three connections from Augusta
| to the ocean. More than one-half OF the
money borrowed was paid for this eastern
extension and outlet, making the price ex
horbitant-even admitting the purchase to
| be at all iustifiable.
On the other baud, the purchase is iusti
| fed ou the ground that rival system was
making efforts to secure the outlet, aud
with view to encroach upon our legitimate
| territory and business; hence this became a
case requiring defense at any reasonable
cost. La all cases where there are two or
4 more bidders for anything the price is
usually much enhanced. The other expen-
ditures for connections, extensions
| of property were less in amount
and more apparent in their
advantages. Such are the shades OF opin
ions expires sed by thinking and unpreju-
diced men-all, possibly, more or less right,
with grains of error interm'xsd. "To err is
human" aud l have no doubt there is much
humanity intermingled with the manage
ment OF our affairs. But let US take some
| consolation in the fact that the large amount
of cash borrowed has been paid, and paid
by using part Of our property of less va ne,
practically, than that for which we ex-
| changed It..
But there is one point. my hungry and
worthy associates, that | must mention be-
fore closing, If you will bear with me few
moments longer, and 1t is this: Be these
! OUTLAWS moderate or immOderate, wise or
unwi e. prudent or imprudent, they should
not bs brought up to plead poverty Of
| means and offered as so many reasons why
| dividends should be withheld from us-.he
owners OF the property that has been so
largely extended and improved by the use
of $S75 COS from the earnings Of
the one fiscal year, ended the 3lst
| August 1881, and by the iudicious
use, as is claimed by the management, OF
! large additional sums of borrowed money
| for the same purpose; the more especially
as the b, avy loans have been paid the use Of
properly Of less practical value than the
| improvements made. We like to see our
properly enlarged, but we have families
that must live and have some comforts, be.
sides those that they are willing to hand
down to posteTity.
| With apologies for tresspasing so long
| on the time OF the conference, l am your
! humble ASSOCIATE STOOEHoLDER.