The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-03-23
a. compared with Its condition when be as
sumed charge Of Central affairs

| suEne0 charge OF central affairs.
THE oEErRAL's ADDITIONS.
"Whst are the terms upon which the
Central secured control Of the Chattanooga,
Rome and Columbus, the Macon and
| Northern and the Savannah and Atlantic
railroads. and do these roads earn the
amount from which the Central Is liablep
were the questions first asked.
! Gen. Alexander answered the questions
very readily by referring TO his last annual
report. This showed that the Chattanooga.
Rome and Columbus railroad was secured
cent annually upon Its bonds to the amount
Of 5000. 900, amounting TO slo4.-
500 annually; the Macon and Northen
railroad was leased jointly by the Richmond
and DanVille and the Central for an I'm
dorsemsnt of ~ per cent upon it's first mort
gage bonds TO the amount Of 81, 2O0, 600, or
s99. 900 annually. the Richmond and Dam
vile and the Central being jointly respon;
| sible for the dividend The Savannah aud
Atlantic was leased by an Endorsement OF
5 per cent upon $3.50, 900 Of its first mort
gage bonds aud about $39, 900 in cash.
In regard to the earning capacity OF the
roads named Gen. Alexander said:
1.-THE Central only obtained possession of
the Chattanooga, Rome and Columbus rail-
road on June l. 1891, 30 there was hardly
fair opportunity to judge of It's earning
capacity. The road has not been operated a
full year yet; it was In need of considerable
repairs and this has been a very bad year
for railroads, and Idoubs IL it has earned its
dividends.
VALUABLE ACQUISITION.
at is a very valuable acquisition to the
Central system, however. For s104. 500 a
year we obtain 40 miles Of road taking US
into Chattanooga. The state leased the
Western and Atlantic railroad previous to
this for monthly rentalof $35, 900 or $780,
600 a year. We parallel that line for sl04,-
500. The country, it is true, is not as well
developed as that along the Western and
Atlantic, but the road runs through rich
coal and mineral belt, which. when de-
veloped. will afford large amount of traffic
not only for this particular line, but for the
whole system. IL may not earn its dividend
for a year or two, but It will prove a valu-
able acquisition in the end"
The Macon and Northern railroad, Gen.
Alexander went on 10 say, was leased joint
ly by the Danville and the Central at an an
nual rental of 500. 000 81 don't think it will
prove a very profitable line in itself, but as
feeder it viii pay more than the deficiency
costs. The whole cost is $99, 900 year on
l07 miles OF road. Say that it earns only
half this There will remain deficiency of
about $50. 900. The Central would be liable
for one-haf this, or about $4,000. The
advantage OF having the road as a feeder
Is worth more than that / think
think Il will give US 100000
worth of business annually.
THE SAVANNAH AND ATLANTIC.
THE Savannah and Atlantic only costs
the Central S12, 500 a year. I believe the
road will earn that itself. II will earn a
portion of II at any rate, and the whole
sum will be small to control the road for
future prospects. Savannah will soon be a
city OF 100000 inhabitants, and this acqui-
sition will prove very valuable. The road
owns valuable terminals in the city and has
access to the river front below. 1t enables
the Central now TO run summer excursions
from all over the system. and thus obtain a
large amount Of business that it otherwise
would not.n
docs not the present indebtedness Of the
Central railroad amount to about $4,000
more now than 1t did five years agop Gan.
Alexander was next asked, Unloading the
Endorsement on 81, 200, 900 Of Savannah and
Western railway bonds, its own issue OF
IS, 000, 600 Of collateral trust bonds and
It's floating debt of about $4,000, 900 or
more. including the Speyer loanl What
has been done with this money and does
the property acquired earn interest on the
am cunt expended p
Gen. Alexander said that his last annual
report made a full explanation of these
| matters. showing the increase in the Gem
trail railroads indebtedness and for what
purpose.
"Here is statement in detail,n he said.
'of the floating debt and the assets by
which it IS represented
AssKTs REPRESENTING FLOATING DEBT.