The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-05
THE BERNER LEASE BILL.
CAPT D. G. PURSE BEFORE THE
HOUSE JUDICIARY COMMITrE E.

| HOUSE JUDICIARY COMMITTEE &.
He Discusses the Matter From Bust
ness Mans Position-Savsnnah and
Daep Water Brought into the Argu-
ment-The Central Railroad Georgia
Instltutiou-The Effect OF the Aglta-
ton of the Leases-Impossiblet to Bor-
row on Their Securities Outside the
State.
ATLANTA. GA, Sept. Capt. D. G.
Purse, president Of the Savannah
Board Of Trade, addressed the
judiciary committee tonight on the
Bsrner bill. Capt. Purse was introduced to
the committee by Representative Hart
ridge of Chatham. Capt Purse said that he
regretted that Col. Warren and Mayor Nc
Donough had found themselves unable to
coma. He began by saying that he did not
come before the committee to discuss the
matter from legal standpoint. but from a
business mans position. There was invested
in leased roads, he said, an amount equal,
or almost equal, to the entire
banking capital of the state The
stocks had been held by business men
who considered them absolutely safe bust
ness investments. Heretofore, these sscuri-
ties had been available as collateral at any
bank. Now that the matter had been
agitated it was impossible to borrow on
them in any city outside the state. When
the Central railroad was built, the idea was
to reach the west. and each step farther in
that direction was celebrated as grand
event. In the last leases it seemed that the
of had haap aftainaI and
THROUGH LINE TO THE WEST
had been established 1t was also hoped to
have a through line OF steamers to Europe,
realizing another dream-direct commerce
with the other continent.
Savannah had been making efforts to get
an appropriation sufficient to give her deep
water at once, and, with it, direct trade
through her port from the west to Europe.
| 1t was on the same principle that the great
cities Of the north had been built up. Under
such circumstances one effect would be to
make the prices for home products at home.
| Another effect would be the cheapenng of
| rateso UPWARD and inward. Ii would solve the
| problem of the alliance, and if we had
| middlemen they would be men of our own
| section.
BUSINESS MEN CALL HALT.
Aside from the advantages of these roads
and the danger Of breaking up of the bust
ness it puts business men into feeling of
trepidation, and they were compelled to
| call a halt. Is it proper that, after years
| of acceptance Of these leases, they should be
brought under investigation, and with their
breaking up bring the breaking up of COM
merce3 He Cited how the melon growing
and truck farming interests had been fos-
| tered by the railroads and brought up to
big industries.
At the time the constitution was adopted
ba iIao UNI bat ba afFaOt ~ n
would raise rates. 1t had proven the OPP
posite. In every case Of a combination of
which he knew the rates had been lowered
IL the small lines were taken out of the hands
of combinations not one Of the roads con-
posing the system would keep out of the
receivers hands for twenty four hours.
The combination lessened the cost of opera
ton.
If this comes about, these roads would go
TO northern bondholders. probably to some
OF them jealous of the development Of the
southern seaports, who would be willing to
run them at a loss to prevent competition
in the western trade. The freight bills of
the Ocean Steamship Company would show
that considerable amount of freight
passed through Savannah to the west.
THE CENTRAL A GEORGIA INSTITUTION.
The Central railroad was built by Geor-
gia citizens, and they had always worked
for Georgia. The individuals may have be-
come enemies of the road, but that was not
strange. The Central railroad has taken
many roads for the simple reason that 10 en-
abled them to make rates beyond. The
Southwestern railroad was quoted as an in
stance. The receipts have never paid the
were not in condition to be
dismembered. The Central railroad had
even gone beyond the state, and il it had
had the money it would have reached the
Mississippi river. The situation, as it APP
pears TO the business community, Is one OF
intense uncertainty, pending the result of
legislation. Business men had invested
their money in good faith, expecting the
state to protect them.
THE WRONG TIME FOR AN ATTACK.
The attack comes at a most inopportune
time, just following financi ii panic This
country suffered from the English panic
and from the destruction of confidence.
| This effort to take up railroad investi-
cation renews this lack of confidence.
Only a few weeks ago the legislature
stamped out the question of a stay law.
| That would have put the state back twenty
years. The legislature has every right to
regulate these roads. but not TO aim blow
| at their very existence. 1t is easy to take
| away, but hard to build up.
AT the time the constitution was adopted
| these leases had been examined, and the
people put no an notlce, out now IL is q
| different matter. These leases have COM
| piled with the spirit of the Law, even if not
| with the letter OF it. II these roads had
appeared with costly transportation then
| the leases would have violated the spirit of
the law. Capt. Purse said if it were posi-
BILE, other Savannah gentlemen would have
appeared before them, and might yet ap-
pear. if accorded that privilege.
Capt. Purse said he wished it uudersto ID
| that he owned not q share of railroad stock
except s., 900 in the Suburban road in Saw
| anSah.