The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-28
THE PAPERS SIGNED.
THE SOUTH BOUND TRANSFERRED
TO THE F. C. AND P. SYSTEM

The Lease for Ninesy-niue Years at
an Approximate Annual Rental OF
S1oo,ooo-The Florida Central and
Peninsular Guarantees 5 Per Gent.
$4,000 a Mile-The Florida Con-
nection to Be Built at Once-The Deal
a Big Thing for Savannah.
The lease Of the South Bound railroad 20
! the Florida Central and Peninsular was con-
summated in New York yesterday by Pre5i-
dent B. A. Denmark Of the Savannah Con-
structon Company. Mr.. Denmark has
been in New York a week arranging the
details of the lease.
received In Savannah yesterday was q
telegram from Mr.. Denmark to Presi
dent Conner of the South Bound announcing
the fact that the pAperS had been signed and
the deed was complete. The lease 10 for
ninesy-nine years. at an approximate annual
| rental Of 100000.
It has been known for some time that
| such deal was In progress. The MORNING
NEWS recently announced that the plan
was completed, and it only remained for
the papers to be signed.
TERMS OF THE LEAsE.
BY the terms of the lease the Florida Cen
trail and Peninsular secures the South
Bound by guarantee OF per cent.
interest annually upon $4,000 of
bonds to the, mile, or upon
81. 125, 900 of bonds, the road being 1876
miles in length. In case the net earnings
OF the South Bound exceed the annual
rental the stockholders are to receive one
half the excess and the lessees one-half. A
bond of 100000 is given by the Florida
Central and PeninsulAr railroad for the
fulfillment of the lease.
President Conner was asked what would
be the result of the lease. He replied that
it will put the stock of the Savannah
CONSTRUCTION Company at par.
The construction company has a
capital Of S74o.o00 and owns
the bonds Of the road. This gives the CON-
struction company an interest of about
S106, $50 per snnum. President Conner said
there is no doubt Of the ability Of the Flor
ida Central and Peninsular to fulhl Its obliga-
ton. There are half dozen millionalres con-
neoted with its directory ana among its
leading stockholders, and they are amply
able to buy the South Bound and build the
line to Florida.
THE NEW FLORIDA LINE.
The understanding is that the Florida Gen.
trial and Peninsular people will commence
building q line at once from Harris
Road, Fla, to some point upon
the South Bound near Savannah.
A surveying corps is already at work in
the field and the surveys will be made as
rapidly as possible that the work may
begin this summer.
The new line will run east of the Savan-
nah, Florida and Western railway and
will. 1t is estimated, shorten the distance
between Savannah and Jacksonville about
forty miles. The present distance by rail
is 172 miles. The new line will make con-
nections with Brunswick, Darien, Fernan-
dina and St. Marys. 1t will then open up
some comparatively now territory and
make great deal Of old territory more
accessible.
It will be seen at once how much such a
line will benefit Savannah. 1t will give
Savannah a new connection with Florida.
aud will, in all probability, make IL the
headquarters OF a powerful system The
South Bound, with its 1876 miles, the
new line TO jacksonville about the same
distance, the Florida Central and PENN
sular railroad and branches comprising over
500 miles, and the cooperation Of the Jack
sonville, Tampa and Key West railway
with 600 or 700 miles, will form a pretty
good sized system, and by reason of the 10
cation OF its lines a very valuable one.
POWERFUL RIVAL.
The Florida Central and Pennsular and
the Jacksonville, Tampa and Key West
penetrate almost the entire state Of Florida
| independent Of the Plant system, and will
make a most important rival of that great
| system. Its short line connections between
| Jacksonville aud Savannah aud Savannah
and Columbia will more than balance the
| short cuts which the Plant system is now
making in florida on both sides of the
| peninsuler. Then comes in another benefit
TO Savannah. 1t will become the Elective
| point OF the rival lines, and the tendency
| will be to make them both practically
Savannah corporations. There will be
| active competition bet tween them for both
freight and passenger traffic. and the result
cannot be other than beneficial TO Savan-
nah. The new owners of the South Bound
| will immediately seek northern
connection with the Richmond aud Danville,
! or, il suitable arrangements cannot
be made with that system, with the Sea-
| board and Roanoke or some other impor-
tant system. A satisfactory northern con-
nection will certainly be obtained. as there
are several routes to choose from.
The Florida Central and Peninsular
succeeds TO the terminals of the
| South Bound in the city. Whether 1t
| will build into the city is un-
known, but it is expected that they will
| eventually do so. Unless it builds into the
city and utilize its own terminals it will be
compelled to use the Centrars terminals.
| 1t will be necessary, sooner or later. how
| ever, for such a system to have its own
terminal at its own deep water port.