Savannah morning news. [volume] (Savannah) 1868-1887, 1886-08-30
CENTRAL QUIETING DOWN
10000 SHARES ESTIMATED TO
HAVE CHANGED HANDS.

The Boom Giving Place to p Downward
Nov, ment-SenEati0nal Talk About
the Rumored Louisville and Nashville
SnOOp-Some Reasons why the Louis
Vile aud Nashville People Want to
Control the CentraI-PeopIe Who
Think their stock a Good Enough In
vestment,
Central railroad stock appears to be
falling very gradually, and there is little
prospect of another boom. 1t is esti-
mated, or more probably guessed, that
about 12.000 shares were bought and
sent away during the upward movement.
Very few people here outside of the
brokers caught the speculative fever
until the stock got above the hundreds.
Several parties went in quite heavily
when it was several points above par.
and they are now apparently left high
and dry, at least for time.
Some of those who are supposed to
know call about it," say that the stock
can't 90 much below par, while others
say 1t Will go down TO where 1t was before
the boom began. With those who bought
for an investment. or for the purpose of
having something to do with the manage
3
very little difference what it is quoted at.
1t is a good investment to them. Those
who bought at high prices for speculation
will be the only parties hurt by decline
in The stock if it does not 20 up again.
Had the stock remained few points
above par for a few days longer IL Is pro-
bable tia there would have been large
amount of small holdings offered, out now
that it is below par stockholders living
throughout the State and owning from
one to twenty-five shares, and there are
many such, will hold on. The free ride
TO the meetings Of the company is q good
enough extra dividend on stock per
cent. below par.
The talk that is going on about the
Louisville and Nashville system having
scoOped the Central has created more OF
a sensation elsewhere tnan 1t has here.
All sorts of reasons have been given why
the Louisville and Nashville wants to
control the great Georgia system. One
reason is hat 1t wants to prevent the build
ing Of the CeutraPs GOodwater extension
from GOodwater, Ala, to Birmingham,
where connection would be obtained
with the Fort Scott, Kansas City and
Gulf railroad through to the West. When
the rumors got aflOat that the Central had
been gOhbled up, the inference was that
the extension would be stopped.
The Central is stronger now than it has
ever been, and is made so partly by reason
of the extension to Birmingham, or rather
the circumstances which lead to this eX-
tension. The facts are that at the time of
the agreement by the Boston syndicate
looking to the extension of the Fort Scott,
Kansas City and Gulf railroad, aud the
connection with the Atlantic system of
the Central road, it was concluded TO or
ganize new company to make the eX-
tension from Memphis to BIRMINGHAM,
and to build bridge across the Missis-
sippi river at Memphis. Upon the organ
ization of this new company the entire
stock and bonds were taken by the above
syndicate, and such was the confidence
felt in the prospective line that outsiders
could not procure any of the stock or
bonds except under premium of 10 per
cent. although not a mile of the road was
completed.
The Kansas City, Fort Scott and Gulf
railroad IL a powerful corporation backed
by millions. Its extension to Birming-
ham would be valueless without the con-
Meeting link between GoOdwater and Bir-
mingham, giving an eastern outlet through
the Central system. 1t Is not likely that
the Kansas City and Memphis people, who
are so deeply interested In the extension
OF the Central to Birmingham, would al
low 1t TO pass into hands inimical to their
interests. They are sufficiently strong TO
gobble up even the Louisville and Nash
Vile if it should be to their interest to
do so.
1t is positively asserted In many quar-
ters that the Louisville and Nashville has
secured sufficient stock to give it con-
trolling interest in the Georgia line. A gen.
tleman who is well posted In regard to the
CentraPs affairs, said yesterday that it is
practically impossible for any syndicate
to get controlling interest in the stock,
To do this it would be necessary to buy
up all the small holdings IN the country.
A large amount of stock IS held by people
in the interior as an investment. They
own from one to ten and as high as
twenty-five and fifty shares, are paid
per cent. dividend and bring their families
to Savannah once every year on the scrip.
To them the stock is a paying invest
ment. In order to get a controlling
interest good deal of this stock would
have to be bought in. The people who
own 1t do not want to sell, and unless
offered n high price Will hold it as sort
of family investment. 1t is not at all
likely that enough stock has been sold
with the Central people knowing it to
place a controlling interest in the hands
Of outsiders.