The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-09-11
THE GEORGIA COMPANY.
A Suggestion that Georgians Pui
chase a Controlling Interest.


Editor Morning Ne1rs: In your trade
edition, issued Sept. 9, you make glad the
heart of all good Savannahians by spread
ing out before them the promise of great
future for their city. You show that real
estate is steadily advancing, that hundreds
OF houses are being erected, that cotton re-
ceipts are increasing, that the business of
our merchants is satisfactory, and that our
| railroads are extending into new territory
! and projecting enterprises which must
result IN a larger volume of business in the
| near future.
But in our felicitation let us not overlook
the fact that we have weak points to guard,
and when we look about us to find where we
are most vulnerable, think two points can
be designated that need our constant vigi-
lance and our immediate attention. First,
| the sanitary condition of cur city, and
second, the ownership and policy of the
| Central Railroad and Banking Company.
| AS regards the first, have nothing to say
in this article; but on the second, beg
| your permission to utter few words of
warning and advice to our citizens and
merchants.
| 1t has passed into history that the control
/ of this organization is no longer in the
hands of Georgians, but is now firmly held
! by foreign-to Reorganization, called the
| Georgia Company This Georgia company
has a capt. al OF $l2, 000,000; a liability of
! $4,000,0 900 of per cent bonds; and is assets
| 1t owns 40 900 shares of Central Railroad
! and Ban&i' 2 Company stock, and is said to
have 100000 case in its treasury. 1t is
| fact that the owners of 5000 shares of
| Georgia cOmUauv stock-if til " act in coz
cert-can control absolutely the destiny of
the Central Railroad and Banking Com
pany, with its ,637 miles of steel railways,
| penetrating the territory and developing
| the vast resources of Gee rgia, Alabama aud
| South Carolina, with its magnificent feet
| of steamships, with Its extensive wherves
and congresses, with its territorial
facilities and barking houses, and
with its splendid equipments of
workshops and rolling stock, tie
total of whose moneyed value you name
as $50,000,000 TIE question | would ask is:
| Should not G. organs control this vast
| property! And by so doing make the com
pany now holding this power not only in
name, but in fact, a Georgia company! But
| to my question Y will ask another. How
can this be accomplished | answer that at
| a cost of little over S., 900 600 this can lie
| done. For it is & tting Dateut thai the
present holders of the Georgia company
would be willing to sell majority Of their
| stock at so cents on the 81. 1t is street
! talk" that there is a great lack of harm ny
| among those gentlemen. And 50 as long this
| discord exists they cannot hope TO make
their investment pay Whereas a sale
| OF 5000 shares at 30 cents on the
| 81 would ''get them out" with hand
| some profit. Let the moneyed business
| men of Georgia form syndicate and buy
| this control, and they could so readiust
matters as to make their investment pay
them from to ) per cent. This, you will
| say, IS not very good return as an invest
| ment. True; but then we can afford this on
account of tine object gained. Five thousand
st ,ckholders at an average subscription of
| 500 each would accomplish it. And every
| farmer and merchant in the state would do
well to help the cause For it is only in
| this way that we can feel sure that the
Richmond and West Point Terminal, or
| some other corporation, may rot ''gobble
J us up" and divert our trade to a Virginia
| port, thus drying up, not only Savannah,
| but many of our interior towns, and entail
ing upon our farmers and merchants a
| yearly tax in the shape of added freight
| charges.
| It may be that the entire twelve millions
| of Georgia stock could be purchased at p
cents on the 81, which would entail al
outlay of $1,000, 900; and upon this return
of per cent. per annum could be given,
| provided the Central railroad could be
made to pay 10 per cent to its stockholders.
1t is now demonstrated that this can be
| done, provided Savannah can be retained
| as the terminal point aud the Ocean Steam
| ship Company managed intelligently. OF
course if d large percentage of it, traffic is
| diverted to Virginia port the net earnings
| must be sadly reduced botn by
! land and sea; by land because everything
! will be worked in the interest of a continued
| fore.gn rival controlling; by sea, because
| such policy would result in the Coast line
| putting on its own line OF steamships. And
| it is we'll to note that large percentage of
| the net earnings of the Central railroad is
| due to the Ocean Steamship Company. The
off .inl ,Aft
pauy Just published shows that the net
earnings, after paying fixed charges,
amounted to $3.50, 00J; which is II per cent.
on the capital stock. This, however, does
not allow for the deficits i'll some of its
auxiliary roads; such as the Georgia r'ii-
road, augusta aud Knoxville, Gainesville,
jefferson and Southern, and Western rail
road of Alabama. But in a fairly good
year these deficiencies would not amount TO
to say that the extension to Birm-
ingham viii, in tie future, add
materially to the net earnings of the
system. SO, taking everything INTO consid-
Grafton, il is not out of the way to assert
! that the Central railroad is in a position to
earn 10 per cent. for its stockholders after
paying the Southwestern per cent. But
| do not Sc how this can he acconpl she'd If
it passes into the hands of some rival cor
| poratun, which would wish to treat it rs
| the Memphis ana Charleston is treated by
/ the East Tennessee, Virginia ami Georgia.
| On the other hand, let Georgians control It's
| destiny, and it can be so managed as 10
realize the predictions of its most enthu-
siastic friends and at the same time he
made to serve honestly the interior towns
and the agricultural and mining interests
of Georgia and Alabama.
GEORGIAN.