The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-26
SCO0PEDBY THE CENTRAL
TIE MACON AND NORTHERN
ADDED TO THE BIG sYsIEM.

The Terms OF the Deal for the Ole
Macon and Covingson and the Reor
Ran'zation of the Road as q Feeder
for the centraPs Main Stem = The
Present q Per Cent. Bonds to be Re
tired With 4 ia Per Cent. Issue
The Road TO be Improved at Once.
The Macon and Northern railroad is the
property Of the Central. The deal wa
practically effected some time ago, but was
not made public until yesterday.
The MORNING NEWS announced the pur-
chase Of he old Macon and Covington at
Macon Thursday by Alexander Brown and
party OF Baltimore capitalists for 81 co.,
900.
The purchasers reorganized the road In
Atlanta Saturday under the name of the
Macon and Northern, and elected officers.
The purchase was made for the Central
railroad. After the Macon and Covington
proved failure as a paying investment
and was thrown upon the hands of the Ball
timore bondholders to get their money out
OF IL the best way they could, a meeting of
the bondholders was held in Baltimore to
receive propositions for the purchase Of the
road.
HOW THE DEAL WAS MADE.
Two propositions we're made, one by John
Robinson of Baltimore. who at that time
expected to buy the Georgia Southern and
Florida to run in connection with the Sea-
board and Roanoke system, and one by the
Central railroad, both propositions being
the same.
The Centraps proposition was accepted
and all arrangements were made to turn
over the road. The subsequent disposition
or the road was merely to carry out the
contract made at that time.
The terms upon which the Central secures
the road are the indorsanent Of an issue of
up the present outstanding bonds OF the
road and place it in good condition. The
entire issue OF stock is turned over TO the
Central This issue of bonds will be about
%, ZOO, GOO, good portion of which will 20
toward putting the road in order.
A PART OF THE CENTRAL.
Gen. Alexander said yesterday that the
Macon and Northern will be operated from
Savannah just as any other Of the Central
lines. The road is LOG miles long, its ter
minal points being Macon and Athens. It
runs through, good territory in middle
Georgia, which, however, is pretty well
drained fly other railroads the Central rail-
road and the Georgia railroad lines. The
chief value of the road TO the Central is as a
feeder to its main line. 1t also gives it
connection at Athens with the Richmond
and Danville, and might be used as q
through line IL desired from Southwest
Georgia TO the north by the Richmond and
Danviile. The Central can operate IL
cheaper in connection with its system than
as an independent company. and make
something more than enough from It
to pay the AZ per cent. on the bonds and
operating expenses.
THE ROAD AS IT WAS.
The Covington and Macon was an un-
fortunate speculation from the beginning,
It's stockholders never received a cent Of
dividends and lost every dollar they put
into 1t. The Baltimore capitalists lost
money on the roads bonds, as they are now
exchanging 8 per cent bond for one bear
ing Az per cent. loss of about Is per cent.
on their investment. The road, it is said,
was never more than half built, and is In
very poor condition now. The Central will
begin at once the work of putting it In
proper condition.
Gen. Alexander yesterday authorized the
purchase of 100, 900 crossties for the road.
The Centrars recent purchases of the
Chattanooga, Rome and Columbus and the
Macon and Northern have added about DAT
miles to its already large system. The sys-
tenn had a mileage of 1,3l2 miles on June 1,
1890, and the recent additions have increased
the mileage to $50 miles. This does not
include the Carolina system Of about 800
miles, the auxiliary roads of about 1,S0C
miles, and the Ocean Steamship Company's
lines. 1t is big system aud is still grow
ing.
The Richmond and DanviIle also Endorsed
the Macon and Northern bonds with the
Central,