The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-07-13
AFTER THE STATE ROAD.
THE CENTRAL WILL BID FOR 1T If
NOT SHUT OUT.

The Railroads., be says, want In
coureRement to Build Up the Coun-
try-An Argument Both for Selling
and Leasing the Road
As the time approaches for the releasing
Of the state road a MORNING NEWS re-
porter called upon Gen. Z. ?. Alexander,
president Of the Central railroad, yesterday
to learn what interest, II any, is being
taken by the Central with reference
totbe proposed Jesse. Gen. Alexander had
Just returned from the annual meeting Of
the Southern Railway and Steamship As
ISOLATION at Atlanta. He was asked if
he had taken any interest in the matter
of the lease of the state road, and he replied
as follows:
81 have not taken a very lively interest,
because l have seen that there was dlspo-
Sition on the part OF some OF the members
to throw restriction about the lease which
would shut out the Central from bidding
for il: and while We would be glad TO lease
il at any figures which would leave Us
moderate profit for the risk and obligations
incurred, vet / do not fear auy disastrous
results to the Central, no matter into whose
hands it might pass. The local towns
along the Central lines are the Oldest
and best towns III Georgia, and
comprise a valuable territory, the service
of which would be sufficient inducement
for the lessees OF that road, whoever they
may be- to give Us fair treatment, especially,
too, as We would have other strings to our
bow. The East Tennessee from Atlanta,
and the Chattanooga, Rome aud Columbus
from Carrollton already furnish two other
outlets. aud the Marietta and North
,rybfch will "a ayfaudp1 N
meet the Louisville ard Nashville at Cum
berland Gap, will also form another connec-
ton which could easily be brought to
Atlanta and awaited OF in case Of need.
OPPOSED TO ANY RESTRICTION
"Do YOU think it wise for the state to
throw any restrictions about the lease, or
to shut opt foreign corporations from bid
ding for itp
~ do not see any reason whatever, why
the state should throw any restrictions
around the bidding II is not in the power
of any corporation. home or foreign, to OPP
press the commerce Of the state by exorbi-
tant rates, for rates within the state are
made by the state commission, and those
without by the inter state commerce commits,
sion. When the people are secured against
oppressive rates, it is all the better for them
to allow, and even to encourage,
the amalgamatiOn Of roads into large sys-
tens for these systems can render more far
reaching, cheaper and better service. With
the low rates that are now in force, the
only salvation Of our roads and the only
hope of their continued prosperity, lies in
their ability TO reach out and secure over
their lines part Of the great through bust
ness between the west and New York Our
competitors for this business are the great
trunk lines, reaching from Norfolk, Balti-
more, Philadelphia, New York and Boston
clear to the Mississippi river, and even far
beyond. Those trunk lines serving a pop
ulous territory and running through cars TO
all points in the west, can work at very
low rates, and our only hope of competing
with them is in the formation of similar
lines reaching from our South Atlantic
ports to the same points.
WHAT THE RAILROADS WANT.
I'VE ought" said Gen. Alexander, ito
have the good will and encouragement of
the Legislature and the people IN every way,
in our efforts in this direction. Our success
will place Georgia on the high road between
the east ana the west will give employment
to many more people, and will stimulate
agriculture, manufactures and CONNER CO
everywhere within our borders. 1t
is only necessary to look at the rail
road systems of the northern states to see
the evidence Of this. The larger the system
which serves any state, the better and the
cheaper is the service the state itself re-
ceiveS. No state, for instance, has a ser
vice superior 60 Pennsylvania either in the
cheapness of rates or the efficiency of serv-
ice. The state road Itself was originally built
with the idea Of furnishing an outlet for the
Georgia Central and Atlanta and West
Point roads TO the west, and now to deiber-
ately shut these roads Off from It, or TO
throw it into hands hostile TO them, world
be the hight of folly"
"What do you think of the proposition to
sell the road instead of leasing It'll"
"a good deal could be said on both sides
In favor of leasing it is the chance Of re
moving the lease at higher figure at its
termination, say twenty years hence, and
also the fact that there will doubtless be
more bidders for a lease than for purchase.
Any dozen men can form corporation
credit, but purchase would doubtless re-
quire a large amount of cash and a very
large credit in addition.
SALE MIGHT BE BEST.
On the other hand, there is an equal posi-
bility that within twenty years hence the
building Of new competitive lines may
have impaired the value of the road to such
an extent that the renewal might have to
be at lower figures, or sale at that time
might not bring as much money. A lessee
would not have the same inducement to
protect the territory against the building
of competitive lines, which a company
owning it in fee simple would have. As
an illustration of this fact, note the paral-
telling by the East Tennessee, the Chatta-
nOoga, Rome and Columbus, and the Ma
rietta and North Georgia, which has taken
place during the the present lease without
any opposition from the lessee company.
do not know that any opposition could
have been effective, but l think
that corporation owning the road
instead of leasing it would have
at least acquired the Marietta and North
Georgia, and probably have bought the
Rome railroad ana extended il, and posi-
bly, built other branches which would have
made it q much more valuable piece of
property than 1t now is. Naturally. par
ties with permanent interest viii fight
harder for d road than those with onlv n
temporary interest. As, however, [ am
happily not charged with any responsibility
upon this question, | have formed no de-
cided opinions on the matter, but am con-
tent to await the result, whatever it NAV
ben
TIE CENTRAL WILL BE THERE.
"Wm the Central be a bidder for the
''tEe probably will unless a limit should
be fixed which would leave no profit in the
lease. We would not care TO go into it for
glory"
"Will the Louisville and Nashville be a
bidder7'
81 have no idea. suppose their senti-
ments are very much IKE our own. That
system for the last few years has devoted