Savannah morning news. [volume] (Savannah) 1868-1887, 1882-03-28

Editor Morning Net7S l hope / will not bI
considered officious in asking the attention o.
the managers Of the Central Railroad anC
Banking Company to the valuable banking
privileges contained in their charter, which o.
late years have been utilized only so far as wa:
necessary to serve the purposes of a clearing
house for the railroad. am led to this com
munication, not so much to enlist them in 6
new enterprise as to urge an early and favora
BILE consideration Of a subject that know has
already engaged the attention Of some If moi
all Of them.
As an evidence of the Importance attached
to these banking privileges, by those who Sc
cured, in December, 1895, the amendment OF
| the original charter, they obtained authority
| in the amendment to employ $500 600, or one
| half the entire capital, for banking purposes.
At the expiration of this part of the railroad
| charter in 1870, it was renewed and extended
| for thirty years more by Legislative enact.
ment. In 1870, operating exclusively on the
deposits of the railroad and of individuals, the
net profit for the year was S108 029 16, and un-
| der the same conditions (save that the general
banking was circumscribed) in 1881 the net
profit was $22, ,465 25.
At this time when the construction of par
allel railroads and the arbitrary decisions of
a Railroad Commission are threatening to de-
plete the revenues Of the company, the occa-
sion is ripe and full OF compensating promise
lOF putting luGO acGlVe operation all the bank
Ing privileges possessed by the corporation.
The required capital can be raised either by
simple pledge of the company's credit, or by
the hypothecation of part Of the securities
forming the companys reserve, until conve-
nient season comes for their sale. Either plan
Will secure all the money needed under six
per centum per annum, and possibly at five
per centum in the other advantages Of CORES
pondence that would accrue to the bank or
banking company through whom the fund was
arranged for or secured.
With an active capital Of $1,000 COO for the
accommodation of the mercantile community,
deposits now under 10000 would swell to an
amount nearly equal the capital. OF this
S2,5 600 could ffnd ready employment at eight
per centum per annum, besides the increase in
other sources of profit incident to the employ
ment or so large fund in banking. With the
addition of a teller and two or three more eff
cient clerks, the present organization of the
bank would be adequate for the increase of
work imposed upon it.
Having now considered the direct gain from
the employment of this capital 1t is next in or
der to weigh the greater and more important
consequential or indirect benefits to arise
In no year since the war has the banking
capital or Savannah been sufficient to carry all
the business offered her. Much that would
have come here, therefore, has been forced
INTO other channels II the very earnest efforts
of Senator Brown in Congress, backed by the
cooperation and good will of the entire State,
for the improvement of the river and harbor
succeed, as believe they will, the inflow of
apparent the paucity of our present
banking facilities, and the advantages
OF deeper water in a measure be lost to us
Here the interests Of the city and the railroads
become one and the same, as in the improve
ments contemplated it is equally the desire
and concern of both to have them avaiIed of
to the utmost To secure this, as it is now
plain, the city can raise no more capitaI the
railroad must step in and supply this need and
the city see to its judicioUs employment Be
SIDES interest on money the railroad is benefited
by an increase of inward and outward freights
because the facilities afforded merchants an
able them to control cotton and other products
1 from points that want of capital has hereto
fore forbid, and the full tide of trade once
more directed and attracted to Savannah, with
her excellent market and other advantages
she will be able to hold against any other rival
for all time to come, I hope. Besides freight.
such course will largely contribute to the
more profitable use of the elevator. wharfs,
SHIPS, and other property of the Ocean Steam
ship Company, with many other indirect ad-
vantages to the railroad itself
From the bank under this management as a
purely financial organization it would not be
out OF reason to expect the net profits to reach
$125OOO to $780, 000 and the benefits to the rail
road in double the latter amount.
Ii this matter deserved the further conside-
ration or the managers of the Central Railroad
steps should be taken at once looking to its ac-
comDlshment that its effects may be Impressed
upon the coming CROP
The Georgia Railroad and Banking Companv.
having reserved, under the lease, the right to
continue to exercise the banking privileges of
their charter for their own separate use and
benefit will realize over $50, 900 net profit the
year just closing, banking only on deposits
and some money borrowed in New York
during the busiest part Of the season,
The managers of the Central Railroad
have never had such an opportunity
and may never see its recurrence again in the
future for placing the interests of the com
pany on such solid and enduring basis for
successful competition with every threatening
combination.
The increase of business that will be brought
to the city will give more active employment
to the bank capital now here. Possible of com
plete development without the need of impair
ing or reducing dividends, but rather making
step a defensive one and as fully provided for
under the charter, and from its profltableness
must meet, as it becomes understood and ap-
preciated, the earnest approval OF every
SToCKHoLDER