The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-23
STATE ACTION HOSTILE 10 FOREIGN
CAPITAL

As most of our readers doubtless know the
Evening Telegram of New York is the even
ing edition of the New York Herald. A re-
cent issue of it contained the following edi-
torial on the Receiyership of the Danyille
railroad
INVESTMENTS IN THE SoUTH.-The appoint
ment Of receivers Of the Richmond and Dan
Vile railroad presents the singular anomaly Of
stockholders tying up their property because.
Ia obedience 20 q misdifected and bhghting
local sentiment "a Georgia Judge of the
United States courts permits minority IN
terest to manage a railroad and tho rights Of
other shareholders TO be confiscated.
The Richmond and Danyille receivcrshipis
the result of q weil-grounded belief on the
part of Northern and foreign capitalists that
it has become necessary to protect their pro-
perty IN the South by such measures. because
as individuals they have become afraid they
cannot get justice and will be wrongfully and
uniustly treated by Southern courts.
This is q serious stigma on the South and
establishes barrier in the path of progress.
Investors will only send money where they
know il will be protected. So long as tho
South does not otter the security which the
capital that would build it up IS entitled to
investors will withhold their money and take
lower interest In other sections. so long as
local sentiment does not treat investors fairly
every avenue of devel ppment will be impaired
and retarded In the South.
AS result Of this sngularly short-sghted
and repelling local sentiment, the Georgia
Central railroad. a thoroughly solvent cor
poratioD, is now in the hands of a receiver
and is being managed by minority interest,
which has confscated the interest of outside
stockholders. If this sort of thing continues
investors will leave the South alone.
mo section in this country has so much need
60 al ha M off,
better field at this time for the highest rates
of interest obtainable. Yet, instead of offer
ing the reasonable inducement and proper
protection afforded in other sections, the
South presents alluring promises TO capital on
the one hand and destroys its chances for
fair remuneration on the other.
THE South does not inspire confidence and
thus at a time when all her interests and all
new developments would be cheerfully en-
couraged aud supported by capital under fair
conditions it is extremely difficult to induce
the best class of tlnancers to enter this field.
AT the present time all sections of the coun-
try are being supplied with money at lower
rates OF interest than ever heretofore, with Il
tendency to still further decrease. Money on
call in New York is at ~ per cent for sixty
to ninety days and to per cent. for six
months. In London money for sixty TO ninety
days is seven-eighths OF per cent In Paris
il Is per cent. and in Berlin aud Frankfurt
ia per cent. Savings and trust companies in
foreign countries and In this country are re-
ducing the rates they pay for deposits be-
cause they are compelled 10 take lower rates
from borrowers. Yet with this plethora of
cheap money and Offering much better remu-
neration 80 capital than the North and W est.
the South stands directly in her own light
and destroys confidence In the safety of in
vestments.
The Telegram has been friend of the
. 1au al a
progressive movement by the Southern peO-
pie. 1t is, therefore, one of the best adyer-
tisers that the South could have ID its present
narrow-Visioned attitude toward capital. The
evil must be corrected. AS the south Is
obliged To secure foreign and Northern cap
ital for its development. Otherwise one Of
the most prolific and fruitful sections of the
universe will go on stepping from one system
Of mistakes 10 another. constantly stumbling
over its own feet and will be distanced in the
race Of industrial and commercial achieve
ments.
Some of the most powerful fnanciers and
financial institutions in the world have
already been deferred from making invest
ments in the South by reason OF the course
pursued by the legislatures and the courts
The situation calls for a radical change.
There is no reason why. with its great oppor-
tunities. better rates OF interest and excep-
tional assurances Of large profits in all its
Industries, under proper condition. the South
should not become "a fayorito field for invest
ment in all lines if its people will abandon
their cramped and selfish policy and adopt
the broad plane Of fairness. equity and pro-
lection prevalent in other sections"
1t would DO happy day for the South il
this article could be read by every voter
within her borders. II would be a happier
day still IL ovorv one of thona voters couid
come to proper understanding Of the meal