The Lexington dispatch. [volume] (Lexington, South Carolina) 1870-1917, 1894-09-12

and Selma, Ala.
The lines of the company, located as
they are, reach aud serve all Of the dl'
yersifed interests of the South. In the
way of mineral, they penetrate its two
great coal fields, viz the Kentucky and
Tennessee coal fields on the north anC
the Alabama coal fields on the South
and from these are able to supply al
the States traYersed by them. They
also reach the great iron Industries OF
the South at Knoxville. Cleveland, Chat
tanooga, Admission, Birmingham, and
intermediate points. 1ron is made
cheaper in the United States, or, for
that matter, in the world. On the Wes'
tern division of the system thera are
over thirty iron furnaces. Through in
Vulnerable small branches the com
pany goes into the very heart OF the
lumber territory in the States through
which it runs. 1t is able, Of course, tc
draw cotton from every direction, not
only on its own lines, but from its con
nections, and it penetrates the sections
of North and South Carolina and
Georgia which are occupied by cotton
mills. The growth OF cotton mills
along the line is, perhaps, one OF It's
most remarkable features. Right
through the hard times new mills have
been going up, especially in North Gar
olina. Its lines in Kentucky enable it
to control it's full share of the tobacco
business at Louisville, and, IN addition
to this, it penetrates in every direction
the country in which Tobacco Is
grown, especially in the nelghborhood
of Oxford and Durham, IN North Caro-
lima, and along almost the entire length
of the former Western North Carolina
Railroad, which is now a part Of It's
system. By way of Augusta and It's
connections to Florida 1t does very
large share of the garden truck busl'
ness in the Southeastern States. 1t is
most direct passenger line from Wash
ington to Atlanta and all the intermed
late points, and also as short as any
line TO Florida. The old Piedmont ALI
Line, which is part of the system
has long been famous.
The properties embraced in the reor'
ganiZation had bonded aud floating
debts of about Sl35, 100000. This now
reduced to a bonded debt of $4,000 ,OOO
including sufficient bonds (Which are
reseryea) to take up all underlying
bonds and stocks of the 491 miles OF
leased railroad. The company will also
issue about 100000 more bonds dur,
ing the next two years, to purchase ad'
ditional equipment and improve the
properties, which will make the total
bonded dept of all kinds 81, ,OO,OOOOOO
The plan of reorganization wisely pro,
vides that $20,000,O00 of bonds addition
al (to be strung out through series
of years. may be issued hereafter only
for the further development OF the
property.
The interest charges before the re-
organization were about S7,oOO,OOO,
per annum, and sinking funGs were
about 100000, to 100000 per annum
additional. The new company'S charges
are 81 100000 for 1894, 100000 for 1893,
and S., 100000 for 1896.
The old company was always IN such
dire financial straits and had such large
fixed charges that it could not afford
to spend cent on the property where
such expenditures could possibly be
avoided, and in this way it really lost
business. Furthermore, its financial
necessities led it to litigate all Gains
of shippers for lost or damaged goods,
such litigation in nine cases out Of ten
having for its object simply to procras'
tinate and delay payment. The new
company, organized as it now is, can,
of course, follow different policy, and
by fair treatment Of shippers is sure to
enlarge its business.
Another interesting feature is that,
notwithstanding the nominal control
of the former East Tennessee y lrginla
and Georgia and Richmond and Dan
vile systems by the now detunc5 I>c-
minal Company, there was no actual
control. and the two companies did not
cooperate even In the ordinary inter
change of business. The Jealousy be-
tween the two was so great that they
preferred to turn business over to some
outside connection rather than give 1t
20 each other.
Another feature is the consolidation
Of the business organizations and the
reduction of expenses at Juuction
points were the Danyille and East Ten
nessee have each maintained separate
organizations heretofore.
In several of the Southern States,
legislation has been bitterly hostile,
and it must be admitted that the way
these companies were conducted pro-
voked such legislation. AS result OF
the reorganization there is already a
much better feeling IN this respect
and it is certain to grow as the com
munity is better served.