Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1882-07-11
SOUTHERN RAILROADS.
Inside History of the Memphis q
Charleston.
A Probable Advance of thG
Stock.

A Philadelphia special to the Chi
cago Tribune furnishes the following
points about certain southern roads
which possess q local interest: 1t is
thought that there will be a majority
81 the stockholders of the Memphis &
Charleston at the adjourned meeting
in August in favor Of accepting the
offer of merger with the lessee com.
pany. When the present Board of the
Memphis & Charleston secured con
troll of the company, they proposed to
break the lease to the East Tennessee
If possible, but since that time there
have been a number of legal decisions
both South and West that the direc
tors Of a railroad company have power
to execute valid lease without con.
sulting the stockholders. Being
blocked in this direction, the directors
thought it was best to go into partner
ship and merge their stock with that
Of the East Tennessee rather than
be at their mercy under the provisions
Of the lease, which required them to
turn over the surplus earnings of the
leased road for dividends upon its
capital stock. The meeting time came
at an inoppOrtune time for the lessee
company, for their stock was at de-
cided discount The Seney syndicate.
which controls by far the largest part
Of the East Tennessee stock. had
found the New York, Chicago 4 st.
Louis heavier load than they could
readily carry, and were obliged at that
time to throw over upon a depressed
market quite a block of their East
Tennessee securities. Since then.
however, they nave negotiated loan
Of s., 900, 600 through j, & w. Selig-
man, who paid over the money on
Saturday last, and this will give them
ample funds with which to finish and
equip that road. The East Tennes-
see road has earned within 10 per
cent as much as for the first half
of 1881, in spite Of the heavy
foods, and a falling of of about
80 per cent in the cotton traffic. The
Memphis & Charleston has also earned
within IL per cent as much gross and
per gent net Of last years figures.
All the old iron has also been taken
out OF the track, so that all the rails
are either steel or new iron, and all
the bridges have been removed
Meanwhile progress is making on the |
line to Central Kentucky, with which |
the East Tennessee has a perpetual |
contract, which will give a through |
rate to Cincinnati in competition with |
the Cincinnati Southern. Under all |
these circumstances the friends Of the |
road look for a rapid and merited ad
vance in its securities as soon as the
effect OF the crops is felt upon the
earnings, an advance sufficient to
louble the present value of Memphis |
Y Charleston stock when exchanged !
or East Tennessee securities. The |
& Danville during the first
TX months has done the largest six
months business it ever did, but the
'ates have been lower on account of a |
alling off Of 80 per cent in cotton
reights and the comparatively small
rafhc in fertilizers. Usually there is
/ heavy business in fertilizers up to
he middle Of May. This year the
business was all over by the LIST Of
April, as will be shown by the crop
'epor.s, all of which say that the use
# fertilizers has been much smaller
han usual. Nevertheless the company
las earned about five per cent net in
he first half OF the year, and it has
brilliant prospects for the last half Of |
he year. Last year they were seri-
,usly hampered for want of eauip.
nent, but this year they have fully
thousand more freight cars and sixty
II seventy engines in addition to the
quipment of last year, and they will !
,e able to handle all the business that
$ offered. The Charlotte, Columbia
Augusta has done about the same
8 last year, and the Columbia &
areenville has earned about Owe per
ent on the preferred stock for the half
ear, but IL Is not expected that any
liyidend will be declared until the
nd OF the fiscal year, in October.
Hand bills of all sises, from the
mallest to a three-sheet poster, done
nth neatness and dispatch at the