Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-15
The Central Railroad.

The Chronicle has no desire to informed
die in the financial policy of the Central
Railroad. 1t recognizes that the majority
of the stockholders have the legal right to
manage the property, and make such dis
position as IT deems best Of the earnings Of
the company. Only in so far as the inter
ests of the public are concerned has news
paper right to criticise the acts Of its man
agement. On account OF the publicity
given to the affairs of the Central Rail-
road, growing out of the effort to issue
bonds on the Ocean Steamship Company,
and the legal steps to prevent the same, the
Chronicle has something to say. 1t is mani
fest that a large and powerful corporation
like the Central should be managed with
more than ordinary care, in order to make
it's service efficient and satisfactory to the
people who patronize 1t, as well as remu-
nerative to its stockholders. That differ
ences should arise as to its management is
to be expected. For some years the road
has been very prosperous, but there was
period preceding the present when the
stock Of the road sold very low. For four
or five years no dividends were paid to
stockholders, and the stock during that time
ranged from forty to seventy dollars. AS
soon as dividends were renewed the stock
began to appreciate and advance to high
figures. Those who favor the issuance Of
more bonds should not shut their eyes TO
the contingencies that may arise. In few
years the Central may have formidable COM
petition. There may be bad crops and com
mercial depression, and there may be other
unforeseen causes to operate against the
road making money to pay interest on Its
securities.
II our hind-sights were equal to our fore
sights fewer mistakes would be made by in
dividuals as we'll SIS by those intrusted with
the management of large corporations. The
issuing of 81 600, 900 debenture bonds was
mistake. The wise thing for the Central
people to have done was to purchase from
time to time the stock of the Southwestern
Road. The best thing for General Alexan-
der and his friends to do now is 70 abandon
the idea of issuing $3,5O0,000 income
bonds. The stock of the Central
bonds are not issued. The new bonds, as
a matter Of fact, would not be lien upon
the company either for the principal or in
terest In this uncertain condition the Sc
curity would not be sought for as an invest
ment. We understand that in view of the
doubts aud uncertainties attending the issue
Of bonds, even admitting their legality, that
there is a strong probability OF a settlement
of the whole matter. Il has been suggested
that good solution of the trouble would
be the payment of such a dividend to the
stockholders, at stated times during the
year, as will satisfy all parties-the dividend
10 be conditioned upon the well known
capacity of the company to earn it.
The Chronicle suggests to Colonel WadleY
and General Alexander to-come together
upon some such basis. As a preliminary
step to a settlement, let the steamship
directors abandon the Issuance Of bonds,
and, as they control the directory of the
Central, paw such dividend as the earnings
warrant This, It seems, 81 ould be salts
factory to all interests. 1t will enhance
the value of the stock and give
confidence to the public in the safe and
wise management Of the Central. The pres
ent complications can be readily removed
upon such basis as herein suggested. Gen.
Alexander is in a position to settle the pres
emit difficulties. The Chronicle suggests that
the present and future interests of the Cen
trail Road will be best subserved by aban-
doning the idea Of issuing any more bonds.