The morning news., 1888-10-23
CENTRAL IN NEW HANDS.
GEN. ALEXANDER PREDICTS A BIG
BOOM FOR SAVANNAH.

the Georgia Company ana the
Central System to Make Savannah
the Port for the Competitive Freight
of the Great Systems of the South
No Immediate Change in the Man
agement of the Central Anticipated
What the New Control is Expected
to Do-Goss.p of the Deal.
The Richmond and West Point Termina,
Company sccoped another great railroad
system or rather the control Of one, yes
terday. President Alexander, of the Cen
tral, last night corroborated the rumor
which was crcul ting among few rail
road people. President Inman, Of the Ter
minal company, telegraphed Gen A'exan-
der that the purchase Of the Georgia
company by the Terminal company had been
effected, and two hours later 2 representative
of the Georgia company confirmed the dis
patch, if indeed it needed any contirna
ton. 1t was stated that the sale was
effected by the Georgia company on terms
satisfactory to its stockholders, but that the
details have not yet been fully arranged.
Further than this Gen. Alexander could
not give any report of the sale.
PENDING FOR SOME TIME.
Negotiations are known to have been
pending for some time, and the Terminal
company held option on the Georgia
company stock. Tho Terminal directors
met yesterday afternoon and accepted the
offer of the Georgia company. The latter
owned 81. 600 900 of the 81, 800 900 stock Of
the Central Railroad and Banking Com
pany. The So 100000 or minority stock is
scattered all over the country, Gen. Alex
ander says, from Maine to California and
from the gulf to the lakes. A great deal'of
is Ia11 .hr ID in fal irilK
Germany and England. One stockholder
has not drawh his dividends for twenty
years, and when last heard from was in
South America.
THE MINORITY STOCK.
"What will be the effect On the minority
stockl" Gen. Alexander was asked
81 consider its value largely increased by
the trade. All dangers of freight wars will
be over and the Terminal company, hav-
ing such a large amount of money invested
with us, can only secure profit upon it by
dividends, in which the minority stock
holders will participate. There was great
apprehension when the Georgia company,
TWO years ago, got control of the Cent al,
that the control, being in Wall street. would
he an injury TO this port and to the minor
lty stockholders. ! said at the time that it
would be a benefit, because it brought
more capital TO the Central road and
would enable her to enlarge her facilities
and extend her lines The result has borne
out my statements.
GEN. ALEXAYDER's PREDICTIONS
1--WE have had the money to largely
increase our rolling stock, to buy a
new steamer to build the Birmingham
extension in the best possible manner,
TO buy the East Alabama railway, 10 ex-
tend the Clayton road - Ozark, and the
Southwestern road TO Columbia, and re-
Gently we have provided also an abundance
of money TO take up our obligations which
bear high rates Of interest, TO build the
new steamers that we want. and e. con-
struct the line from Eden to Americas. These
things indicate the value, TO the minority
stockholders, Of having the con rol Of the
company IN strong financial hands. These
bsnsfits-Sill all be confirmed, and new ones
derived from the present consolidation.
We will have ample means 10 make the
system first-class in every respect, and
especially to largely increase our present
rolling stock. | do not hesitate to state
confidently that the value Of minority Cen
tral stock is intrinsically increased by the
consolidation
BIT OF RAILROAD HISTORY
''As far back as 1881" Gen. Alex
ander went on, when was
with the Louisville and Nashville.
/ advocated consolidation with the
Georgia Central and the Richmond and
Danville, the stock of the Central then be-
ing at 50 and the Richmond and Danville at
90. This was the theory and the policy of
Mr. Cole in 1880, when the Nashville and
Chattanooga was under his control, and he
was about to lease the Central that year
from MIR. Wadley for ninety-nine years at
6 per cent just as they had concluded
their negotiations, and before the contract
had been signed. the Louisville and Nash
vile bought the Nashville and Chat
tauooga road, and then the Louis
vile and Nashville made the
mistake OF breaking off negotiations and
dropping the contract | have realized the
fact that there was as certain to be a great
consolidation of southern and western rail
roads as that the sun is TO rise in the morn
ing and set in the evening, and preferred
to see Savannah and the Central in 1t, and
not be left out.
EFFECT OF THE DEAL
"Mr. Inman assures me that the interests
of Savannah and of the Central railroad
minority stockholders will not suffer. but.
on the contrary, will be largely benefited.
This am entirely prepared TO believe, not
only from Mr.. 1nman's large personal in
terest in the property, as well as in the in
terests of the state of Georgia, but from my
knowledge of the railroad situation l have
long believed that it would be greatly to
the interests Of the city of Savannah and
of the Central railroad, if the three proper
ties of the East Tennessee, the Danville
system and the Central could be
consolidated; and, in fact, the bene-
fits to be derived from joint ownership
and harmonious working and exchange of
business were large factors in the. minds of
the Georgia company stockholders when
they endeavored last summer to gain con-
troll of the Terminal company. Such con-
solIdation, giving steady and uniform rates
and perfect system of transportation, is
one where merchant does not have to go
shopping for the rate that he will use, but
where every man, little and big, is sure OF
fair and uniform treatment. There is no
danger Of rates being advanced No con-
solidation in the country has ever had that
result, but, instead, the economies which
can be practiced will have tendency to re-
duce them"
TO BENEFIT SAVANNAH
"What effect do you anticipate it will
have upon the business Of this port7"
81 am entirely satisfied that it will result
in turning over the Central lines, and
through the port of Savannah, large guam
titles Of freight which the other systems
have heretofore carried by other routes, for
two reasons: First, they will find that the
business will be more cheaply done through
the port of Savannah; and, second, that the
Terminal company will receive the entire
freight when il Is handled over the Central