Savannah morning news. [volume] (Savannah) 1868-1887, 1882-01-07
CENTRAL RAILROAD DIVE.
DENDss
Defense of Gen. Alsxander-FiRs
ures 90 show that ne 10 not "a
&queexer''-Whgt a stOckholaer
Thinks OF the situation.

A Defense OF Gen. AIsxanaer-Figs
ures 20 show that ne IL not "a
Squeexer''-Whgt a stOckhOlaer
Thinks OF the Situation.
SAVANNAH, January 6.-Edisor Morning
Meas: In your issue of this mo- ming, under
the heading Squeezing the Central" you
have paragraph taken from Charleston
paper which sneers at Gen. Alexander, and
alludes to the action Of the majority Of the
voting stockholders Of the Central Railroad
as "the Alexander raid" and winds up
b7 saying "Mr. WsdleY brought the Central
Railfoad to its present powerful position,
and there Is with him guarantee that he is
looking to the permanent interests OF the
company, and not to the gains or losses OF
the hour. This is not the attitude of the
raiders. They want their profit immedi-
ately, and care very little what becomes OF
the road a'terward.n
To those who know General Alexander it
Is unnecessary to say that he is not the man
to lend himself to such scheme as the one
outlined In the paragraph referred to, or TO
Join in ''rsid" simply TO make an imme-
date profit, ''caring very little about what
becomes OF the road afterwards" To those
who do not know him / would say that he
is man Of honor, identified with the well
fare of Georgia, and his past record and his
present position shows him to be gentle
man above playing the contemplate part
that our Charleston friends assign to him.
The truth of the matter is that the ma
1ority of the stockholders OF the Central
Railroad and Banking Company are of the
opinion, after carefully Analysing the 10th
annual report, that the company can pay
larger dividends than per cent. per an
mum to the owners of stock, and they are
also of the opinion that the Board OF Dr.
rectors Of last season did not properly APP
preciate the value of the property in their
charge, and furth ermore that this board did
not appreciate the fact that the company
now holds a sufficient reserve fund in the
shape Of stocks, bonds, railroads etc, to
meet every probable contingency, and that
therefore 1t was about time that all net
earnings should be paid over to the stock
holders; or that they should get at least 6
per cent. interest on the large surplus in
vested In steamships, wharves, presses, ele-
vators, etc, etc.
In this move many of the old and con-
servative holders Of the stock joined, and l
venture to affirm that at the election for
directors held last Monday more Of the old
stockholders voted for the new ticket than
for the old.
Now the new party, known as the Alex
ander party, think that the Ocean Steam
ship Company can, with safety and
without prejudice to the interest of the
Central Railroad, Issue an income bond,
or a debenture that will amount to S., 00O,-
600, and will pay semi-annual interest Of
three per cent, say in all $500, 900 per year
to the holders. If this debenture is divided
between the stockholders of the Central
and the Southwestern Railroads in the pro-
portion of ten to eight, then the former
would receive 45 per cent, and the latter
sc per cent, I. e., every holder OF one hun
dred shares Central Railroad would get
81 500, which would give him an additional
yearly dividend of $270.
1t Is argued by the other side that this is
an unreasonable demand, and might result
in disaster to our pOsterity. Let US look
into the earnings OF the company and its
branches. taking the figures of the forty
sixth annual report, which is to the LIST OF
September just passed, and deduct from
those earnings the fixed charges, thus
arriving at the amount that is properly due
the owners of The property.
Net carr inRs of the Central Rail
road and Southwestern ......... $1.8s9 494 SO
Net earnings Of the Ocean Steam
ship Company ..................., 3Ol, III 81
Net earnings Of one-half Western
Railroad of Alabama. ............ $4,000 GO
Dividend 6,335 shares Southwest
ern Railroad of Georgia. 44,345 90
Dividend 1895 shares Eatonton Birch 1889 50
an and Girard Railroad bonds. ,.'... $4,000 90
Gates p Of Indebtedness SIS ..'.l,.... 9648 IS
$l,94O,772 O8
Less: fixed charges
Rent Southwestern
Railroad one year. S352,69o OO
Rent Augusta and Sa-
Vannah Railroad one
year ............--... l5,UUO W
Rent Eatonton Branch
one year 14,OOO 90
bonds . - ve'.Y',.e 262,64O 90
Half interest on ST ,sO8.
600 Western Railroad
Of Alabama bonds, 72,12O 90
Three per cent inter-
est on $4600000 GER
tifcates Of indebted
ness. ,................ $4,000 CO. 9l2458 90
owner ............... $1.O26,814 OS
OF this amount per cent. on 81
$780, 900 capital stock has been
paid in the shape Of semi-annual
dividends .s.-..--.. OUU,UUO w
Leaving undivided. .................S 42S, 314 0S
This does not include. ............. $4,000 90
Which the Superintendent tells you has
been expended in extraordinary expeudi-
lures and permanent improvements" II
you add this then you have surplus OF
1885,, 314 0S.
Surely all this amount should not be
withheld from the stockholders to bank up
on a reserve of over 81 SOC, 900, as set forth
on page "A of the eEOrt.
VerV respectfully. STOCKHOLDFR