The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-02
LEASE OF THE CENTRAL.
A POSSIBILITY THAT 1T HAS AL
READY BEEN SIGNED.

The Richmond and Dsnville and
West Point Terminal Systems On the
Guarantee Bond-Ths Central TO Re
tain Possession OF It's securities and
See that the Road Is Kept Up.
1t is learned from a source which leaves
no doubt of the correctness Of the inform a.
ton that President E. P. Alexander and
Cashier 7. II. Cunningham went 10 New
York last week authorizei by the board OF
directors of the Central railroad: to sign the
paper leasing 1t to the Georgia Pacific. The
only other signatures needed to complete
the instrument are those Of the president
and secretary of the Georgia Psciic.
The lease has been ratified by the boards
OF both roads, and will not have to come
before them again after 1t is signed.
THE GUARANTEE BOND.
All the details of the bond for 81, 600 900
which the Georgia Pacific is to give as a
guarantee OF the fulhllment of its part of
the contract have also been agreed on, and
IL only needs signing TO complete Ii.
1t will be signed by the proper
officers of the Richmond and Danviile aud
West Point Terminal systems. which COM
panies jointly aud seVerally guarantee the
tcASc- Ccu. AioAhId6E cApoCA6h ObCA
Thursday, and it is almost a foregone con-
elusion that both papers viii have been
signed, sealed and delivered before he
leaves New York. It is possible that they
are already signed, but announcement OF
this fact has not reached Savannah yet.
TERMS OF THE LEASE
The terms Of the lease, as has already
been stated in the MORNING NEWS, guaran-
tee the stockholders OF the Central z per
cent. per annum from the Georgia Pacific
company, and in addition they are to have
the profits from the Central railroad bank,
which is to have $5OO,0O0 capital and is
expected to net them about per cent. per
annum more, making a net income OF per
cent. The Central is now the owner of
nearly $40, 000, 900 worth of securities.
These will be retained in its possession,
but the income from them goes to
the Georgia Pacific. In addition the direc-
tors of the Central are to exercise super
vision over its physical well being, and sec
that IL is kept up to the standard. All ex-
pendltures from its income for betterments
and other improvements will also be under
their supervision. There can, therefore, be
no chance for wrecking the road.
A GOOD TRADE.
By men in a position to know the deal is
considered a good one. 1t guarantees the
the Pacific, which should largely increase
its earnings.
1t has hauled more cotton and merchan-
disc this year than ever before in its history.
The income derived from it by the Georgia
Pacific. therefore. will enable that road to
meet the per cent. interest charge, which
is 70 be paid spontaneously. Back of this
fact is the 100000 guarantee bond i,
which is also considered good one. The
Richmond and Danville company declares
an annual dividend of 10 per cent. on its
capital stock, which is quoted at $500 per
share. The Central people therefore con-
slider the lease good piece of financiering.
which will give its stock higher fixed
value than it has ever had before
SATISFIES THE MINORITY.
EIt Is understood that the bond satisfies the
demands of the minority and that there
viii be no objection to the lease from any
source. While the details Of the lease will
probably be all closed up this week the
formal transfer Of the property may not
occur for several weeks yet, as IL will re-
quire considerable time to make the neces-
sary arrangements. The June meeting Of
the directors may be postponed till the re-
turn Of Gen. Alexander. but it is stated
that semi-annual dividend will be de-
clared, but whether it will be 81 per share
or on the lease basis of So so is uncertain
vat