The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-10

the country to be bought by whom? Mr..
enort, SIT, has been to stand between the
cspltal invested in Georgia and the risks it
runs III thls speculative world. l have been
willing myself TO take some chances in bust
ness, and my friends have been willing, but
dealing with these great investment sscuri-
Ties we nave felt it duty to do all that we
could TO take care of them. and to make
tneLn underlying securities free from risk
NOW, all that it guaranteed except the
debts and fixed obligations under this lease
Is per cent upon $3.50, 900 of Central
STOCK, the amount that has been in existence
Tor nearly twenty years without one parti-
Gle of water in 1t, through the consolidation
OF the Macon and Western road. This is the
whole OF this lease. That lease so beneficial
to the interests OF this state is made the foun-
dalton OF this railroad agitation. An agita-
tlon designed to accomplish what? To break
down that combination that protects the
invested capital of Georgia. And for
what purpose! For what good! Why, the
gentleman from Monroe told ne that other
states had laws similar to his bill. And
yet, as l said in my Olive bill speech, In the
states where they had the strictest laws
against com binatiOns, in Missouri for in
stance. you find one man, in spite Of those
laws, owning different lines. Why, the Gould
system and the Vanderbilt system are not
made up like the Terminal system, and
controlled by one company.
A Member-Do understand you to say
that the lease of the Central railroad covers
guarantee to all parties holding securities
of that property?
Mr. Calhoun-Yes, sir.
A Member-What do understand you co
mean by the Terminal company being
worth 1928. 900 mile! What do you mean
by thAta
Mr.. Calhoun mean that all the securi-
ties of the Terminal system are selling to-
day at their market price at a sum that
only equals about 1000 a mile for the
roads 1t controls.
A great deal has been said about the Gem
trail system being watered, but the Central
has only about $4,000 mile in opds and
guaranteed stock upon it, and about 5000
mile In unguaranUeed stocks. Now, this
lease steps in and assumes the obligation,
not only TO protect the guaranteed stock,
but the unguaranteed stock, the Central
railroad common stock thereby making all
the bonds and stocks what we call under
lying securities. The Central system is the
lowest capitalized of any important rail
road system in the country.
Committeeman Berler-Do you include
the Georgia railroad9 Is not the Georgia
railroad the least capitalized railroad of
any Importance in the south?
Mr.. Calhoun include it as part of the
Central in my estimate. The argument
drawn from the obligations on the main
stem of 300 miles is misleading. The Cen
trail railroad has system, with its water
lines, of over 1000 miles, and a great deal
of it is owned and controlled by virtue of
debt which it has contracted on its main
line. You must deal with the system as a
unit. On its 1900 miles, as have said, the
guaranteed stocks is under $l6000a mile
Committeeman Berner-The SIS, 900
worth of bonds that were issued by the
Central railroad-$l8, 900, 900, believe, on
the Savannah and Western.
Mr.. Calhoun--Yes, cir.
Committeeman Berner--How much of that
was issued! Thirteene
DIR. Calhoun-My recollection is only
about 81, 000, 900 or $S, 900, 900 issued
Chairman Berner-You mean sold.
Mr.. Calnoun-Yes. aud issued.
Committeeman Berner-Were they all
sold at or below para
Mr.. Calhouu-The first were sold at 95
and interest, and some Of them S715 and i'm
terest. We reserved a number OF those
bonds to build, for instance, a road from
Greenville to Newman. We made an 31S,-
900 issue, and we provided for new road
building and eQuippiug. l think under
Committeeman Berner-There has been
no Central bonds issued of the Cen.
trail road itself in the last yearl
Mr. Calhoun-No, sir. We have made a
mortgage, but none OF the bonds have yet
been sold, of the $13, 200, 900 to take up the
underlying securities falling due.
Committeeman Berner-There il $l3, 000,-
600. and then 100000 or $4,000, 900 on the
Savannah and Western?
Mr. Calhoun-Yes. sir.
Committeeman Berner That makes
about SIC, 100000.
Mr. Calhoun-But the $4,000, 900 have
not been sold, and of the 5000, 900.
s., 00O, 900 of them are for the purpose of
paying the tripartite bond.
Committeeman Berner-This tripartite
bond was paid off by the West Point Ter
minal
Mr.. Calhoun-No. sir. have been con-
nected with the Central for over four years,
and can state as q fact that every dollar
Of the money received for the securities sold
has been expended for the benefit of the
company, some in the building Of new lines,
some on steamships, and that the lowest
price at which the Central railroad has sold
any of it's bonds was 6715 and interest; and
but for the attack in this legislature, do
not believe it would have sold a security
under 95 and interest. The first $1,000, 600
bonds being 5 per cent interest, we sold at
97%