The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-12

Southwestern and Reorganization.
The majority Of the stockholders Of the
thwestern railroad either have a much
better opinion Of the earning capacity OF
their property than the reports Of abe presl-
dent of the Central railroad indicate, or
else they hope by hesitatinE TO accept the
reorganization plan 20 get better terms than
are offered them in that plan. Very few Of
them, probably, have an opinion Of their
own that they would be willing to act upon
as to whether it would be to their interest
to accept or reject the plan. The most OF
them, naturally anxious to get all they can
for their stock, are probably following the
lead Of few who have assumed the part OF
leaders.
When the plan was published there was
considerable surprise expressed that the
treatment of the Southwestern was 50 lib
eraL Some Of those who claimed to be
well acquainted with the earning
capacity of the road thought that
the Southwestern stockholders ought to be
more than satisfied with what the reorgan-
ization plan gave them. Unless the books
Of the Central railroad do not show the
truth the gross and net earnings Of the
South western have fallen off very greatly
since the completion Of the Alabama Mid
land, Columbus Southern and the Savan-
nah Americas and Montgomery railroads.
But is there any one who is willing to say
they do not show the truth3 1t is safe to
say that they show the facts exactly, and If
the South western stockholders shoul1 un-
dertake to run their road as an independent
one they would fiud out speedily that they
do. The truth is the Southwestern has lost
very large part of Its most valuable
traffic.
One stockholder at the stockholders
meeting Thursday made the point that the
reports Of the earnings and expenses of the
Southwestern road could not be correct,
because its operating expenses were putdow
at so per cent Of its gross receipts while
the operating expenses Of the Central were
stated to be only 63 per cent. of its gross re-
ceipts That stockholder could not be very
familiar with the running of a railroad.
The reason the Central can be operated
for a much smaller percentage of its gross
receipts is that it's traffic is immensely
greater. There are roads In the Central
system that do so small business that they
do not earn enough to pay operating ex-
penses.
The suggestion made at the stockholders
meeting that perhaps 1t could be shown that
the tripartite bonds which cover the South
western as well as the Central might per-
haps be shown to have been issued illegally
must have produced rather startling effect
upon the largest stockholders, because it re-
vealed the possibility of an almost endless
litigation and the wasting of the assets of
both the Central and the South weStern.
II that question should be raised there are
plenty of the stockholders who doubtless
would get rid Of their holdings at almost
any price
1t was clearly revealed at the stockholders
meeting that the holders of large ma
jority of the stock are In favor Of accepting
the reorganization plan. The opponents are
the holders of minority Of the shares.
They, of course, greatly outnumber the
holders of the majority.
The idea that has cropped out that the re-
organization is for the benefit Of the Gen.
trail road at the expense Of the Southwest
ern is clearly erroneous. 1t is not improb-
able that IL it had not been for the very
great falling off in the traffic OF the South
western, reorganization would not have
been necessary.
Tie committee that has been appointed to
see what can be done to remove some OF
the objections raised against the plan
may be able to bring about better UNDER
standing of the actual situation than at
present exists. 1t is to be hoped that the
CentrsIs entire system will be held to-
gether.