The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-12
Richmond re rm,nal Affairs.

Richmond TIE rm!nsl Affairs.
There are parties in Wall street VINO
seem determined to injure the Rlchmond
Terminal Company, and 10 break up the
Richmond Terminal system. week OF 80
ago rumors damaging to the company we're
circulated in New York, a1d uAE
or two after ward str ng eHor'
was made to depress the prices Of us STOCKS
and bonds 1t succeeded to some extent the
prices of both classes Of securities declining
ouite a number If points. The decline was
cha,xad however. by the firm stand In be-
: half ~ the sec1lri;i taken By the preslden
, Of the company and some OF the directors.
On last SATURDAY the New York Herald
published lengthy article which tended to
sboyx that the Richmond Terminal was a
wildcat concern. which was kept afioat for
speculative purposes. 1t was pointed out
that its millions OF stocks and bonds were
based upon little or nothing, and that the
three great railroad systems that it controls
while thew earned their fixed charges, did
not earn the dividends which they paid
the dividends being paid out of the surplus
they bad on hand or out Of the proceeds Of
new bonds.
! The publication Of this article is pretty
clear evidence Of a scheme TO break up the
Richmond Terminal system. There are many
railroad proper les when are in much
worse condition than the Rsrdld's article
showed the Richmond Terminal to be
aud the fact that their affairs are not dis
cussed in the public prints, while those Of
the Richmond Terminal ara, justifes the
conclusion that there are those who want
the Rican ond Terminal system broken up
TIE officers OF the Richmond Terminal
ssy tha: tie trunk lines to New York from
the ives. sre the enemies Of their system
a-d s-e making war upon their company.
Thar resson for thinking so is that the
RSca-c-d Terminal is getting a portion OF
.1s h-s-zsSs Z these trunk lines in the west,
z-i s--s.sscs s, o~ formidable competitor
.-E s1= 5S.szz,sss - that locality. This may
y 20 z1-l4-az;1-a Of the recent attacks
1T,,c as S.5.i.-,Cd Terminal securities and
.ess =. vygIs- ger v5--1cations hostile to that
s-E-Gzr
NJ Liza rrssaisnt of the Richmond
-ss---.-l- L,1--szy. says that all the rail-
-,r.5 sTsass-ss which the Richmond
Tea a'1:ruls are solvent, and
;asi i1s Rlchmond Terminals an
-szi report, which will be ready
tor publication within a few days,
vii show they are The Herald's article
did not assert that they are not solvent,
s1d, as a matter of fact, they
undoubtedly are solvent 1t only declared
that in 1890 their net earnings
we're not sufficient to pay their fixed charges
AID dividends. which declaration is doubt
less also true. The net earnings of the
Georgia Central were more than sufficient
to pay the fixed charges, but not sufficient
to pay the per cent. dividend. They would
have besn sufficient to pay the dividend had
not such large sum been expended in i'm
provemeuts.
Another charge of the HeraldS article
was that the Georgia Central's bonded debt
had been increased over $1,000, 900, but no
mention was made of the new properties
that had been added to the Central's system.
These new properties are the Savannah and
Western, which is about $50 miles in length,
the Savannah and Atlantic, II miles, the
Covington and Macon, 107 miles, the Chat
tanooga, Rome and Columbus, $40 miles,
and the extension of the Mobile and Girard,
so miles.
Whether the acquiring of control of these
properties was wise or not time alone can
tell But it is evident that the Central has
great deal to show for its S7,OOOO 900 of in
creased bonded debt.
The annual report of the Richmond
Terminal, which. according to President
Inman, will make a satisfactory ex-
hibit for that company, is Stocked for with q
feeling akin to anxiety. There are still a
great many people in Georgia pecuniarily
interested in tho Georgia Central.