The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-20
The csntr.I and the Lease.

The announcement that the Richmond
/ Terminal is auuOus that the lease OF tire
/ Central TO the Richmond aud Danville shall
be broken. and has actually taken steps 70
sever the relations between the two systems,
| causes no surprise % those who know what
the earnings OF railroads 10 the South At
lsntie coast states have been during tne last
year. Owing to the low price Of cotton
there has been q great falling OF In railroad
/ freiEhts. The merchants have not ortsred
I the usual amount Of merchandise and the
farmers have purchased very much smaller
amount Of c1mnerci4l fertilizers. nder
the circumstances the Richmond and Dan
vile has not found the lease profitable, and
was glad doubtless when Mrs. Clarke began
her suit 10 break it. If IL had made any
thing out OF the lease it would have paid its
obligations much more promptly, aud there
would not have been the opposition 10 the
lease among tue Gentral's patrons that has
been manifested ever since it was made.
1t would have ATTEMPTED to break the lease
probably before next July. the date OF the
payment OF a largo part Of the fixed charges,
IL Mrs Clar 3 bad not undertaken to do 90.
IL is certain that the security holders OF the
Central have bad very little confidence in It's
purpose to carry out the lease IN good faith II
it did not find its contract profitable oue It's
effort on Jan. l TO get q large sum from
the Central by threatening TO refuse to pay
the Centrals obligations due at that time
made them very uneasy. But it would not
have taken the course it did then probably
If It had not been in financial difficulties.
The truth probably is shat it intended to
comply with the lease in every respect if it
found the lease profitable, and to get
out Of IL in some way II ii did not find It
profitable. Il has not found it profitable
for the reason already stated. and 1t doesn't
want TO hold on 70 IL until business i'm
proves.
But the directors Of the Central don't in
tend the lease shall be broken II they can
helpit. They think IL valid, aud intend 70
hold the Richmond and Danville TO its con-
tract II they can. This interesting spectacle
is now presented: Mrs. Clarke aud Maj.
Bacon and a few other minority stock
holders are trying 70 break the lease and the
Richmond and Danville and all OF the ma
tority stockholders are assisting them. II
the court therefore decides that the lease is
invalid. it will do just what the plaintiffs.
and all the defendants, except the Central
railroad. want done.
The Richmond Terminal people are en-
tirely willing that the Central shall be man.
aged as a separate system. They don't
seem 30 desire 70 have anything to say in
its affairs. They have even offered to have
the New York directors, Messrs. Mabin and
Swan, resign so that their places may be
filled by residents of Georgia. A bad sea-
son for railroads appears to have had a
rather remarkable effect upon them.
1t seems to be the understanding now that
the Central will resist tho breaking OF the
lease and. IL it is successful, will compel the
Richmond and Dauville to comply with its
contract or pay the penalty provided in its
bond.
IL the court should break the lease the
Central would be placed in pretty difficult
situation. The Richmond aud Danville has
all OF its earnings up to the time the tenn
porary receiver was appointed. and its earl
inRs at this time of the year. even in pros
porous season, are not as large as 10 the fall
IL has securities however, and credit. II it
is thrown upon its own resources It can,
with good laundering, be restored to some-
thing like the position it had before the oon-
troll of it was captured and carried into
Wall street.