New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-24
MILLIONS FOR A RAILROAD.
COMPLETING ARRANGEMENTS FOR CON-
troll OF GEORGIA CENTRAL.

RICHMOND TERMINAL MAKES A BIG PURCHASE
OF RAIL AND STEAMER LINEs-sIG-
NIFICANCE OF THE DEAL-LITTLE
EFFECT IN WALL STREET
The acquisition of the railway and steamship sys
tenn Of the Central Railroad and Banking Company o.
Georgia by the Richmond and West Point Terminal
Railway and Warehouse Company, through the pur
chase by the latter Of the capital stock OF the georgia
company concern that holds the control OF the nrst
mentioned company, discussed with great Interest
in Wall Street yesterday by persons Interested In the
transaction 1t failed 20 exert decided influence OF
the stock market however, and the Richmond Termna
stocks which are supposed to be benefited by the
.deas to large extent, lost early gain in prices
and ended a shade below Mondays final figures. The
future IS relied upon to work out the benefits which
n Is asserted viii flow from this large consolidation
and harmonixing of Southern railroad interests
The details of the agreements involving the trans
fer have not been completed, and are not given
out even to the extent to which they have been ar
ranged. A conference of the leading owners Of the
Georgia Company and of the Richmond Terminal Com
pany held yesterday at the ONCE OF John T.
Calhoun, No IS WalLst., TO complete the necessary
arrangements and the papers are being prepared as
rapidly as possible In transaction Of this magnitude
The cash to be paid to the Georgia Company sellers
not turned yesterday but there Is declared
TO DO no question that the deal' IL actually con-
summated There were reports that an effort would
be made to interfere with the carrying out OF the
transfer but the people concerned In the TRANSACTION
"pooh- poohed' the reports The suggestion OF egal
obstruction laid at the doors OF the Louisville ana
Nashville and the Norfolk and Western Railroads.
which are declared view the deal with dissatsfac
ton II was asserted that the minority stockholders
In the Central Of Georgia Company, as well as
all parties in interest," had no cause
Of complaint but would be benefited by the economies
possible under the union OF the Southern railway sys
tens, we'll as the stopping Of injurious compe"uon'
which would result The recent lease OF the East
Tennessee, Virginia and Georgia to the Richmond anu
Danvllc Railroad, controlled by the Richmond 1crmi-
nal which formed part Of the consolidating policy OF
the Terminal people, was also threatened In rumors
with legal attack On these points, George 5 Scout,
president of the Richmond and Danville, said "Ihe
claim that the lease is invalid in consequence OF our
lines and the East Tennessee lines being competitive
had been fully considered in advance OF the MAKING
Of the lease, and it has been settled by the best
legal talent in the country The lines are in no sense
competitive The Danvllle system merely ahorus
to the East Tennessee system an outlet TO the sea
board through largo terminal facilities in place or
those they formerly used--those Of the Norfolk ana
Western
The new Terminal deal in itself is simple transac
ton whatever may be the complications which may
arise from what is called the iDancierng' OF the
Terminal Company In paying for its new property
holds controlling interest In the stock Of the Central
Railroad and Banking Company of Georgia. or as 1t Is
rallied, for the sake Of brevty, the Georgia Central
General Thomas of the Richmond Terminal, was
quoted yesterday outlining the transaction as fp-
lows: II. b. Hons Mr.. Denison, OF Philadelphia,
and Mr. Lehman, of this city, and their associates,
two years ago purchased 81 10000 out of 81 100000
Georgia Central Railroad Compays stock After this
purchase made they looked about TO see how they
could the money to carry 1t and stn retain con-
troll of the Georgia Central They concluded TO get
up an imitation of the Richmond Terminal Company
By obtaining in North Carolina a charter for COM
pany TO be called the Georgia Company. This COM
pany was authorized to issue $16,00O.0O0 of stock,
but in the end issued only $12 100000 OF stock,
which was held by IT, b. Holns and his party for the
"a COO 900 Of Georgia Central stock transferred 10 H.
This company in addition issued $1OOOOOO BOND
based upon the 100000 Georgia Central stock,
which had been placed in the treasury as security
This "a oOO, 900 Of bonds was marketed by Belmont
Il Co The Georgia Company had no other business
during ifs life than that which has been stated aside
from an assessment, which paid in by the stock
noIdeIS Of about 5000 900 II Is the total STOCK OF
This company which has been purchased by the Rich
mond Terminal Company. This stock. including IN
erest on the money paid by the holders cost perhaps
about % II has been purchased by the Terminal at
s5 and the Terminal receives the total stock OF the
Georgia Company, including in its treasury the
$4,000 OOO Of Georgia Central stock The Richmond
Terminal Company now dispense with this inter
cdiate Georgia Company, retain 1t, as they think
sest.S
IL Is generally believed in Wall Street that the
Georgia Company will be kept in existence to facilitate
the " ilnanccrings of the Richmond Terminal Piesi-
dent John H. Inman of the Terminal Company, said:
The money TO pay for the Georgia Company will
amount to about "a 100000. The Terminal Company
Will pay 81 200 900 cash out Of its treasury and for the
balance will issue 90 100000 per cent collateral
trust bonds. The company has. however, retired
about 50 OooO Of its present per cent collateral
trust bonds that the amount OF debt VIII be no
larger than IT account of the new issue. The
company has no intention of eliminating the Georgia
Company and does not therefore, need to release It's
Georgia Central stock held in trust"
The Central Railroad and Banking Company Of
Georgia owns leases and controls total mileage OF
LAG miles and receives part of the net results from
other companies owning / 231 miles more. 1t owns
IN ocean steamship line running between savannah
and NewYork with extensive wharf and warehouse
property The last statement Of the Georgia Central
for the ten months ending on June 30, 1855, showed
that IL earned a surplus Of s239o51 after paying a
dividend OF per cent on the stock The deai pisoes
The Richmond Terminal In control OF The largest rail-
road systems between the Atlantic Coast and the
Mississippi River and makes the other lines In that
territory contributory 10 one vast system 'ha' can
now be operated In entire harmony.
The proftabeness OF the transaction 10 the men who
bought control of the Georgia Central within two years
.annot be disputed. To accomplish certain results,
hey bought the stock without regard to price and
ound out shortly afterward that they had no market
ar their purchases The Georgia Company was |
orued In 1887 10 relieve this embarrassment. The |
Georgia Central stock held by the syndicate was aced
the hands OF the Central Trust Company 10 stcure
n issue of 81 600 600 fftyyea bonds at per cent
lterest and the Georgia Company then proceeded 10
sue its own stock TO the extent OF S12 100000 out OF
ne 81 600 900 authorized The recent purchase OF the
stock by the Richmond and Nest Point
crminai Company Is a second relief While details |
4 the dcalr naturally are withheld simple mathe-
naiical calculation would TO show that the un,
appy BUYERS of Georgia Central had nearly doubled
heit money within eighteen months The president
y the Rchmond and West Point Terminal, the com
,any that has bought the Georgia Company. is John
inmap who has been regarded as one OF the prin-
ipal members of the Hollins syndicate .
iThe Officers Of the companies involved In the dear
lie with each other In sanguine predictions about
he favorable effects OF the practical railway monop
,lx ia tic Snnthern states. prominent Oficcr Of