Savannah morning news. [volume] (Savannah) 1868-1887, 1882-06-21
THE RECENT RAILROAD RUs
mORS.


The following, which We clip from the
Atlanta Consultation Of Yesterday, is of in
terest In connection with the recent rumors
in reference to changes in the Central Rail-
road, already commented upon in the MORN
ING News:
Touching the question of the resignation
OF Col. Wadley, gentleman said yesterday:
81 am inclined 20 believe it. had a let
ter from Savannah the other day which in
formed me that Col. WsdleY was very much
broken up IN health, and that we need not
be surprised TO hear serious news from him
at any time. His ill-health and advancing
age, coupled with the discussions in his
board, have prepared me to believe that he
might resign"
own his resignation affect the lease of
the Georgia Road?
~ do not see why It should. The lease of
that road cost the lessees about $500, 900 last
year. With the fesrfully light business of
the present year It will cost much more--tf
the same improvements are made. You see
the Georgia Road earned its rental last year,
but did not earn the 500 900 that was spent
on betterment. / suppose 1t is worth som'
thing to the Central to be able to control the
Georgia Road, and 1t may go on paying
deficiency for several years rather than sur
render the lease"
Yesterday a Constitution representative
met a prominent director in one Of the At
lsnta lines and asked him what he knew of
the rumors concerning the lease of the
Georgia Railroad. He replied
81 am willing to tell you what l know,
but prefer that you do not use my name
when you write the matter up. When get
through you may decide for yourself wheth-
er or not the Central Railroad is willing or
anxious to let go its hold upon the Georgia
Railroad. Mr.. Wadley leased the Georgia
Railroad and afterwards made some kind
of an arrangement with the Louisville
and Nashville and Central Railroads
as sub-lessees, but has never transferred
his lease to them. 1t still stands in Mr..
Wadley's name. Mr.. Wadl Y says that he
did spend, last year, about 100000 more
than he made in putting down steel rails,
buying cars and equipments, digging wells
and ballasting the road. He expects to
spend about SIS 900 to build the road Into
Athens, and he expects to continue another
year and spend about 800 0C0 more than he
makes, making in all a total OF aboua $780,
600 during the irst three years of the lease,
more than the income. After that time he
exptc.s to be able to make more than his
lease. and in the next three to five years to
by the increase OF business which will
be occasioued by the growth of the
country and the terminal points OF. the
road-Atlanta, Augusta, Macon, ETC.
TO be able to make profits on the lease.
From that time on he will have about
ninety years, during which time he expects
to make profits for himself and successors.
As to the report that the Central and Louis
Vile and Nashville wanted to get rid OF the
fhar has hnaF ord oil Tn
that direction by those lines On the con-
trary, there are other parties that have tean
trying to get the road out of their hands.
The South Carolina road wants 1t very much,
and the Richmond and Danville would have
given more for II than Mr.. Wadley did at
the time that he leased 1t, and had man In
Augusta trying to get 1t, and they yet want
1t. The only thing that has been said in
relation to the lease was by the Commits
sioners in their cross bill in answer to Mr..
Wsdley's bill trying to get from under the
Commission in the suit now pending IN
Macon before Judge Simmons. Should
the courts or authorities decide that
the lease is Illegal as 1t now
stsnds-nOt exactly In the hands of the
Central and Louisville and Nashville, but
being worked by them-lt would not break
up the lease 81 far as 1t concerns the Louis
Vile and Nashville. 1t would throw the Cen.
trails half only back on Mr.. Wadley, which
would not destroy the lease because he
could assign 1t to any one else or hold it.
Mr.. Wadley has put up on the Centrsls &C
count equal to million OF dollars as seeu-
rity for nalf OF the lease, and half million
additional for the Louisville and Nashville,
In all a million and half Of securities now
In the hands of the Georgia Railroad-half
million in the hands of trust company
IN New York. and a million of these Sc
curites In the Georgia Railroad bank vaults.
Now, all those rumors about FORGETTING the
lease arise from the spectators who are de-
pressing stocks for the purpose OF buying
them cheap and making money. The lease
Of the Georgia Railroad to Mr.. Wsdley was
made by the knowledge and consent of It's
attorney and its directors, five of the direc-
tors being lawyers, and smolgst the best In
Georgia, aud they have no fears about the
lease being broken or even given up. The
Central Railroad Of Georgia could lose not
only $50 900 year, but 800 600 year en-
the lease, and make money. II, for IL
stance, the Richmond and nanville should
lease the Georgia Railroad, and then take
charge of It and compete at Atlanta and
Macon and be able to cut rates all through
between those points IN the Central Rail
road territory the Central Railroad would
lose far moee than she could lose by the
lease. Hence any wise, far seeding railroad
man would say at once that in no case would
this lease be abandoned. II might be in
directly transferred from the Central Rail-
road to some other of It's roads. For In
stance. It might ne turned over to the Port
ROYAL Road, road which the Central owns
and controls In part. This could be done
legally st a stroke of Mr.. Wadley's pen.
q; he could transfer 1t to the Eutaula and
Montgomery Railroad, or the Carrollton, or
MOBILE and Glrard Railroad. In no
case is there any probability or
prospects Of courts, stockholders,
Spectators or anybody else aver breaking
the lease of the Georgia Railroad as 1t
now stands. II the Georgia were to pass
Into opposition lines, the Central
would also have 1t to compete with 1t at
Montgomery, West Point and Columbus
This would ipjure the Central's business
at these points and iniure the l. usville
and Nashville ct Montgomery and Selma.
The Georgia Railroad owns half of the
Western Railroad of Alabama from West
Point TO Selma and Columbus, one. third
Interest In the Atlanta and West Point, and
the entire Macon and Augusta and Athens
tranches-all under this lesse-snd 1t would
be great power in the hands of any COM
peting railroad to carry freights away from
It. That is the reason why they can afford
to lease 1t. In case the courts decide in
Mr.. Wadley's favor, as he thinks they will,
10 take the Georgia Railroad from under the
State Commissioners, that will enable the
Georgia Railroad to increase its freight and
passenger rates according to its charter,
and viii make the lease Of tao Georgia Rail-
Htah Ia r. ho wurfkA