Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1894-07-11
Ti,c Ncw southcrn Eai!way.

y vast scheme Q! reorganization, EN-
braciag more than a dozen important
railroads in the South, is developing
steadily aud Systematically under the
direction OF the committee to which
was intrusted large majority OF the
securities of The old Richmond Termi n
al system. The amount of work al
ready accomplished is surprising ia its
extent and gratifying in its thorough
ness. The Southern Railway Company
which has Just been form I'd TO take the
place of the ambitious but unfortunate
Rcnmond Terminal corporation, gives
promise of better state of things in
southern railroad management. Un-
like its predecessors, it is not merely an
operating company it is a railroad
company, having acquired the franchise
and property OF the important Rich
mond and Danville system.
The projectors of the Richmond Ter
minal system aimed TO control all Of
the principal railroads in the South,
aud they succeeded in making a
combination which represented about
four hundred million of securities.
The combination, however, was loose
ly put together. It's chief factors re-
tained separate organizations, and they
had diverse interests. The very first
strain of financial stringency caused a
rupture, and the combination fell apart.
There were too many purely specula
tive interests in it. The Southern Rail
way Company aims to reunite all of the
factors of the Richmond Terminal sys-
tenn, and something besides. 1t aims
to bring all of the afliiating lines in the
southeastern section OF the South into
one compact business organization. Ii
is proposed. if possible, 10 make the
Southern Railway Company a success
full railroad enterprise, with the specu-
lative element eliminated, so far as the
manas ement is concerned. Samuel
Spencer, the president of the company,
is practical railroad man.
In order TO secure a harmonious reor-
ganzaton of the disiointed parts of the
old Richmond Terminal system, the re-
organization committee, of which j. Pier
pont Morgan is advisory head, and c..
II. Coster the working head-has adopt
ed the policy of acquiring by purchase
all rights and titles to the various prop
critics. Thereby it hopes TO form a
compact organization, the purpose Of
which is to operate railroads on a bust
ness basis and develop the resources of
the South. Two or three roads have
already been purchased under fore
closure, and others yet to be bought are
the East Tennessee, Virginia and
Georgia, Georgia Pacific Charlotte,
Columbus and Augusta, Columbus and
Greenville, Louisville Southern, West
ern North Carolina, Northwestern
North Carolina. Oxford and Clarkes-
Vile, and Clarkesville and North Caro-
lima. The dates Of sale of these roads
have already been fixed in July and
August.
BY next fall the Southern Railway
Company will be in control of one of
the greatest railroad systems in the
country, and If the cautious and bust
ness-like methods that have char
actcrized its formation are adj
hered TO in its operation, a success
full future ought to be its portion.
And the success Of so extensive a rail
way system cannot fail to cause a nota-
bic reawakening of industrial enter
prises throughout the South More
over, great reorganization OF this
kind must vizibly help the business sit
ualion of the entire country. If, as is
expected in the case of the new South
ern Railway Company, the knife is put
deep enough, if values are fixed, not
with a view to speculative possibilities,
but to earning capacity, the success of
the undertaking will be reflected in
other similar endeavors and in gen
eral commercial improvement. 1t is
well remembered in New York how
the settlement of the West Shore diff
culties frightened the business outlook.
y reconstruction Of this nature sup
plies life and new growth in place Of
death and decay, organization and
strength in place of division and weak
ness. That this great work has been
undertaken in the South is not only a
hopeful sign, but will in itself be a
cause OF Improvement in business con-
diti0ns.