Savannah morning news. [volume] (Savannah) 1868-1887, 1882-11-14
guarantees that their proportion shall never
be less than ner cant annuallu

guarantees that their proportion shall never
De less than per cent. annually.
For four years after the panic of 1873.
owing to the state of the market and the de-
manos OF the property, the Central paid its
etockholders but one dividend. 4 per cent.
During the next four years It paid reduced
dividends amounting to % per cent. max
ing " per cent. for the eight years. During
this time the Southwestern received So per
cent. The earnings aud investments accu-
INFLATED by the company during
these eight years enabled the board,
In 1881, to refund the stockholders, in
part, for their suspended dividends, IS was
set forth In the last annual report, by an
extra dividend of 40 per cent. OF certificates
Of Indebtedness, but this could only be done
oy giving, at the same time, bonus OF 30
per cent. to the Southwestern stockholders.
30, for the eight years, the Central stock
holders received but 81 per cent. while the
Southwestern received So. The actual
amount finally paid in dividends for these
eight years was 50 419,743.
Had the respective proportions assigned
by the lease to each party been maintained
at each dividend period. IS ,050 900 would
have sufficed to pay the Central stockhOld-
ers 20 per cent. for the eight years, instead
of the 81 which they finally got, or SO. 2O0.-
900 would have paid them 80 per cent, and
the Southwestern "a per cent.
OPERATIONS OF GEORGIA RAILROAD.
This lease went into operation April 1st,
1881. It was determined by the manage
ment for the lessees, very soon afterward, to
Immediately put the road in the best posi-
BILE condition for economical operation, re-
gardless of the financial results until that
was done. AS all the improvements were
charged to operating expenses, and as the
gross receipts were diminished by the short
crops, the net income for the first year
OF the lease was but $449, 52l IS. Is
was also determined to extend the Athens
branch across to 0cOnee river to a
favorable location In the city of Athens,
In order to compete on better terms for the
Athens business. and OF the above net
results $40, 400 % were applied to that ex-
tension. This amount, though an asset Of
the leesees and source of future revenue,
and properly borne on the books TO be
refunded at the expiration of the lease, has
been deducted from the net earnings Of the
Georgia Road In estimating the Central
Railroads. half of the deficiency on this
lease shown In table T.
The General Manager of the Georgia
Railroad, however, in his report, estimates
the value OF betterments put upon the road
during the year, IN addition 70 the work on
the Athens branch, as 1907 $40 81, which is
$50, S01 So more than the deficiency.
During the first SIX months Of the year
current at the date of this report, the ex-
tension of the Athens Branch has been
nearly completed (the total cost when fn-
ished will be about 500, 00O). and the cor
templated betterments have been so far
advanced that Is has recently been thought
best to suspend what remains to be done,
aud distribute 1t gradually over a longer
period. The whole main line Of this road
Is In steel, and much economy OF operation
will result from the improvements that have
been made. The business of .he road
justifies the hope that the lease will become
after this fiscal year a source of direct profit
In addition to the increased facilities for
competition which we enjoy over the leased
lines.
PHYSICAL CONDITION OF THE PROPERTY.
For details concerning the physical condi-
ton OF the properly reference is made to
the accompanying reports of the heads of
departments. 1t may be stated in brief that
OF the main line from Savannah to Atlanta,
225 miles, is laid in steel and 20 is in iron:
the Augusta branch has 10 miles of steel
and 81 of iron; the southwestern Road and
branches have 46 miles of steel and 297 Of
iron; the Montgomery and Eafsula has 90
miles of steel and 81 of iron. All renewals
are made of steel, which is laid where the
traffic is heaviest, and the iron taken no is
transferred to branches where it will last
AOi LnouJ JCnIo uuuCt tial1Cs
Our motive power is equal TO the demands |
upon It, but many of the engines, as will be |
seen by reference to the list in the report Of |
the Master Machinist, are much lighter than |
those now generally adopted as most eco
nomical. But what is found best adapted |
to or wants can be gradually substituted |
as our present stock is reduced by wear, |
and the lighter engines transferred to |
brasches where the traffic is lightest.
Our stock of cars is in very good condi- |
ton, but Ike that of all Southern roads is |
severely taxed IN the winter months, and q /
large part of It is idle in Summer. A moder-
ate yearly increase must be made in their |
number to enable us to compete for and /
encourage business whenever offered
For convenience OF reference, table 9 gives |
the ratio of expenses to earnings on cur |
roads and divisions, and gross and net earn
ings per mile.
Respectfully submitted for the board.
E.:P. ALEXANDER, President.