The times. [volume] (Richmond, Va.) 1890-1903, 1893-06-11
rHK REORGANIZATION OF THE
TERMINAL PROPERTIES.

II would be difficult to ovcrestimate
the significance and Importance TO the
South OF the fact that Drexei. Morgan
A. Co. have undertaken, TO reorganize and
secure a proper management OF the Rich
uoud and Danviile Railroad Company
and its leased lines. and the East Ten
nessee. Virginia and Georgia railroad
and its leased lines. This banking house.
OF worldwide reputation for strength.
integrity and ability. has looked thorough
" into the condition OF these distracted,
disturbed and bankrupt Southern rail-
roads. and have declared that large earn
ings In the future can be obtained by
undertaking and enlarging the properties
go as to increase their business and de-
crease the proportionate cost of opera
ton. and that with this done there APP
pears TO reason whatever 10 doubt that
ouch a degree Of prosperity can be
brought about as will justify the con-
eess,on made by the present security hold
ers and input of fresh capital. They
say. however, that such results cannot
be accomplished except by liberal expen-
diture OF new capital to put the proper
ties In order and N furnish equipment.
and the ability TO command further
capital from time 10 time as shall enable
the new company to expand its business.
In pursuance OF this conviction, and as
evidence Of their faith, Drexel, Morgan
a. Co. and their associates have guaran-
teed to provide s22.z5O.ooo of cash for the
nurnose of paying all the floating debts
and equipment notes Of the respective
properties and for new construction and
contingencies.
This IL an immense sum Of money TO
come in as fresh capital In Southern
railroads. and is equivalent TO building
and equipping in the ordinary way one
thousand miles Of new railroad In the
South. without the useless wastes when
unnecessary railroad construction al
ways involves.
The expenditure OF this money Is, how
ever, not the most important feature OF
the case. This firm undertakes to have
these properties managed In way which
will remove them from the depraving in
fiuences which have made these Southern
railroads a byword and a reproach as the
harbor Of pretenders and plunderers.
The further result will be accomplished
Of inviting and encouraging capital 10 the
South, which now regards this region as
little better than a financial auckland.
The railroads will be operated in the most
approved way, with the most efficient pro-
vision for transportation of business, and
every facility to be given In that way
for the development Of new industries
and the improvement OF those already
existing.
We have heard much. but not too much.
recently Of the value Of confidence as a
potential factor in the prosperity Of the
elusive justification OF confidence In
Southern railroads and Southern enter
prise than this great undertaking Of
Drexel, Morgan g. CO. we cannot suggest
II, They should be welcomed most cor
daily by all who are interested in the
Of our people, and who wish
the world to know that God has given the
South unrivalled resources and that law
abiding Southern men will see that pro-
perty in their midst is protected.
This leadership to the capital OF the
world ie worth hundreds of millions Of
dollars TO the region reached by the
six thousand miles OF railroad so to be
controlled and operated.