Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-16
The CENTRAL RaiIroad Management.

i OF understanding OSAliAOatCo5 ooSSN
upon the earnings Of the Ocean Steam
ship Company, is 10 be tested in the
courts. This fact, and Mr.. Wadley's
resignation as President of the steamship
company, have brought into more promi-
nent notice than would, perhaps, other
wise have been the case, the diff
ferences between the old directory,
under the leadership of Mr.. Wadley,
and the present directory, under the
recognized leadership of General Alex
ander, and we notice that the State
press is beginning to discuss this subject
| quite freely. Whether the recent action
Of the Ocean Steamship Company Di-
rectors is finally declared TO be legal or
not, there Is no doubt OF a unanimity
of sentiment among all parties interested
whether as stockholders or as a pOr-
ton Of the body polite of the State,
whose interests are, more or less, IN
vOlved in the welfare of the Central
Road-in favor of these differences being
compromised.
The varying views of these two rail-
way leaders and their friends may be
stated in few words. Both agree that
the railroad and steamship company are
each prospecting greatly, a condition of
affairs due mainly to the fact that, thanks
20 the alliance formed with the Louis
vile and Nashville Railroad, of which
Gen. Alexander is the First Vice Presi-
dent and moving spirit, the road is not
only, to a great extent, made independ-
ent Of the arbitrary Railway Commission
of Georgia, but really forms, through its
intimate connection with the Ocean
Steamship Company, direct line from
the Great West to New York
via Savannah. One faction of stock
holders under Mr.. Wadley, however,
favor, for divers reasons, the payment
OF comparatively small dividends, the
| continual betterment of the road, and
the accumulation of large reserve funds
for the purpose of making the Central
"sOlid" against any disastrous cOntin-
gencies which may hereafter arise. The
other. under General Alexander, also
favor guaranteeing the road against dis
aster IN future, but believe that with the
wealth already accumulated by the road,
this can be done without making the an
nual reserve fund so great, and that, there
fore, larger dividends could and should be
paid to the stockholders. To accomplish
this, and, at the same time, 10 avoid, if
possible, the payment of more money to
the stockholders of the Southwestern
Road, the plan of issuing interest bear
ing certificates to the Central stock
holders has been proposed and adopted,
on the ground, We believe, that these
certificates, being based on the earnings
of the steamship company, and that
company being a separate and distinct
corporation, would not be reached by the
clause in the contract with the South
western Road requiring the payment to
the stockholders of the latter company
dividends in the proportion Of eight dol
lars for every ten paid on the stock of
the Central from the earnings of that
road.
The News was the first paper in the
State to oppose the proposed issue of
bonds or snyother form of scrip
dividend, which would look like watering
the stock of the Central, or might fasten
upon the road a burden which might
| prove fatally heavy in the future. So
far from having any cause to change our
opinion in this respect, we see that our
views are being generally conceded
with, and yesterday morning we pub
lished in our local columns an arti.
Gle from the Augusta Chronicle, tax
ing the same position, and suggesting
that compromise between the two fac
lions of Central stockholders be effected.
The suggestion if adopted, would, we
doubt not, prove satisfactory to all con-
cerned. Mr.. Wsdiey's marked fidelity
to his trust as President of this great
corporation, and the ability which he
has displayed in its mansgement-and
which has been justified so fully by the
prosperity his policy has brought to the
rOad-certainly entitle his views to CON-
mand respect and careful consideration.
| On the other hand the majority Of the
stockholders having decided on the pro-
priety and justice of the road paying
larger dividends, and the fact that
General Alexander occupies too promi-
nent a position in railroad circles to be
willing to recklessly ieopardize his repu-
tation merely for the sake of a specula-
| ton, entitle his views also to receive
respect. Under these circumstances it
would seem to be clearly the part of wis
dom for each party to yield somewhat of
its position and meet upon a middle
ground, and the suggestion of our
Augusta contemporary. that in
place of the proposed interest
bearing certificates, it be determined to
declare a larger cash dividend-to be
paid, say quarterly, instead Of semi
neutrality-suspicious. to the earnings
of the Ocean Steamship Company after
deducting all that may be regarded ne
cessary for betterments, running ex
penses, insurance, ETC., seems to afford
fair and satisfactory solution Of the diff
Guilty. If the proposed certificates would
be exempt from the obligation of the
Central to the Southwestern, which we
greatly doubt, this cash dividend from
the earnings Of the steamship company
should, it seems. be so likewise. In any
event, we believe such a course would
tend TO harmonic all differences, satisfy
all parties in interest, and restore the
fullest confidence in the future prosperi-
ty and management of Georgia's great
and important highway.
A large number of miners and laboreTs
in the Pennsylvania coal fields have re-
Gently organized Miners and Laborers
Protecfive Association and IL is thought