Savannah morning news. [volume] (Savannah) 1868-1887, 1883-10-08

far aS the Western and Atlantic Railroad
has any power over the subject. In the
sharp competition which this combination
will have to meet. the Western and ATTAIN
tic will always be at liberty to quote rates
into the territory of the Central and the
roads subject to the Central. and the Gen.
tral will ALWAYS be at liberty to quote
rates into the territory of the Western
and Atlantic. This right is guaranteed
bv each to the other. The roads will all
be worked as nearly like one system as
possible though each VIII retain Its own
organization and revenue. The relations
between them will be of the most friendly
character. and they will be allies IN
everything pertaining to their general
PROSPERITY: and they Will give to each
other all non-cOnsigned fTeghts in prefer
ence to any competing line, and Will do
all acts which their respective charters
and the law Of the State will permit them
to do. to advance the interests OF each
other and to protect each other and to
work together as one line. In word,
the contract virtually uniies the roads
in the State above mentioned, and
puts them under what is equiv
alent to one management, and
binds each during the period of the
contract TO let the freights and passengers
Of the other into its territory at the same
rate charged by the company sending the
freight or passengers. If freight origin
ates at Chattanooga. or along the line of
the Western and Atlanta Railroad, We
would have theright to send those ireights
anywhere into the Central territory, or
the territory of the roads dependent upon
it, at precisely the same rates per ton per
mile that we send them over our own
road And the Central and those acting
under it have like rights in sending
freignts and passengers over the Western
and Atlanta Railroad. Neither road can
deny to the other the right OF free access
into its territory on equal terms
This seems To be a very important
movement, Senator; what was the object
in Identifying the different roads of Geor-
gia in interest and running them together
as one syStem?'
the object was to meet the strong CON
solidated combinations that are being
made by Northern syndicatcs which
threaten to swallow up all the roads OF
the South. and put Georgia and the south
ern states under the control of one or two
grand foreign corporations, We do not
intend, so far as the roads aboNe-men-
toned in Georgia are concerned. tnau TINS
shall be done; but we intend to hold the
Georgia system 50 that the Georgia roads
will help one another as against foreign
competitors seeking to use them for the
benefit of lines outside OF the state. We
will act together rs one common iratern-
ity against the common adversary, when
necessary. The contract just made puts
it where no Northern syndicate, by pur-
chasing a majority of the stock OF any
one OF the roads mentioned, can control
it as against the others. The contract,
which has been very carefully drawn,
binds the roads to work with one another
upon the terms above mentioned"
'SuppOse Il majority of the stock Of the
Central were now to be purchased by
Northern syndicate. could they not bottle
up the Western and Atlantic at Atlanta
and divert the business of the Central
over the East Tennessee, Virginia and
Georgia, so as to destroy the value Of the
Western and Atlantic:"
mo. they could not. The legal effect
of such Il purchase would simply be to
change the stockholders of the Central.
giving the majority Of the stock to persons
who are not now the owners. hut it would
not change the nature OF the Central as a
corporation, or its power to contract, or
its obligation to carry into effect in good
faith solemn contracts already made by
it. This contract is legal one, and would
be sustained by the Railroad Commission
and the courts of the State. 1t is made
for the protection Of the people of the
State, so far as the Western and Atlantic
is concerned. and Of the stockholders Of
the other railroads in Georgia so tar rs
The other party is concerned, And no
change of the stockholders Of either
can release the company from this
legal contract which binds the
roads to work with
each other upon the terms already men,
toned. The Western and Atlantic being
bound TO give nOn-cOnSigned freights to
the Central and its dependencies in pre-
ference to any other competitor so far as
the constitution and the laws Of the state
will permit, and the Central and its de-
being bound in like manner
TO the Western and Atlantic, and each
being bound TO let the other into its ter
ritory on terms of perfect equality, they
are both obliged to carry out the contract, !
ana change Of stockholders would in
neither case change the condition or obll- /
cation Of things. But the freights, ac-
cOrding to the terms of the contract, /
would still le prOrated upon the basis I
when at present exists, unless they are /
by subsequent contract between !
the parties. as this contract cannot be an /
nulled without the consent Of both par
ties"
.Then this is a very important matter
to the people Of Georgia."
1--WE so regard it. 1t is important to /
the whole people of Georgia, and especially /
different railroads Of Georgia. When |
these different roads fall into the hands of .
large Northern syndicates it is usually /
for the purpose of making large specula- /
tons in the stock, and then bearing them +
so as to destroy the hopes Of thousands Of I
our people. The railroad system Of Geor- /
gia is now in good condition, and, if let I
alone, will pay profitable dividends to the 7
stockholders. Our purpose IS to do all we I
can to hold it in this condition, and to /
have the roads run and controlled for the (
benefit Of the GeorgiaRs who have built /
them. and who are the stockholders as {
well as for the benefit of other stock T
holders. and for the benefit Of the people F
Of Georgia who own the State Road, sub
iect to but a short period Of lease
How long is this cOntracttO continued" !
For seven years from the date Of its
execution"
You say it has been fully executed" (
eyes. the contract has been drawn
with great care by able counsel, avoiding
legal difficulties. 1t has been signed by
he Presidents of the respective compa-
MES and ratified by their boards of direc-
.ors. and is as binding as any contract /
IAN be-"
.'Do YOU think under that contract it is
likely a Northern syndicate would want
10 purchase the Central or any other road
n Georgia:
1T is not likely that Northern syndi-
cate who understood the popular senu-
nent in Georgia would like to purchase
he roads for the object for which such
purchases are generally made. Northern
nen. seeing that there is TO be some sta
,ility about Georgia stocks, may be glad
o invest in them as a permanent invest
nent. This all are expected to do when
hey think it their interest. But no syn
licate can take the control of any one of
hese roads and divert the business from
he present channels, under the contract
# which | have just spoken. The only
nducement they would have for the pur-
.hase, therefore, would be 90 look to the
.alue of the stock as a diyidend-paying
nVestmsnt.