The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-09-18


board AIRLINE. The correctness Of
these latter figures ] have not had time
to investigate. You also see fit to at
tack the earning capacity of the Geor-
gia, Carolina and Northern railway. Tt
should be well known to you, as
railroad man. that no new railroad,
running through such territory as
exists in the South without unusual
conditions, could realize it's natural
earning capacity until after some years
Of operation. The Georgia, Carolina
and Northern railroad has not been
operating more than four years. Its
earnings have been increasing regu-
larly and satisfactorily during every
wear of it's operation. Its expenses
have been decreasing as the road-oed
becomes older and more settled. 1T
has now arrived at a point where III
can properly be classed as a self-sup-
porting road. Its capacity for increase
and development is such that 1T prom
ises to be one of the best railroads IN
the Seaboard system, and no critical Cd
server of it's operations would have
classed it as a dead road But to
come to the present time, since you
challenge figures, let US take the earn
ings of the Southern railway and the
Seaboard Airline for the year ending
June 30, 1896. Turning to your report
and accepting your basis of net profits
as the true result, find that your
system has, during the year, on
mileage of 4,65433, without paying
any dividends whatever upon any of
the preferred stock, 1856, 485.19; the
Seaboard Airline with $50 miles, $780,
432.02; which is over and above all
fixed charges, interest, rentals and
other like deductions. OF this amount
it has paid out $24, 346.50 as dividends
upon stock, and has carried to surplus
account $158,076.52
THE net earnings of your system
per mile has been $119.56; the net earn
ings Of the Seaboard Airline, ex-
Guiding dividends, $196.45; deducting
the amount paid for dividends $166.39
per mile.g From the first of July to
September 18th your statements show
that your earnings have decreased up
on the Southern railway alone $192,-
$50 below the corresponding period for
1856, while the net earnings of the
Seaboard AIRLINE increased for the
month of July, 1896, over those of
July, 1895, 81 1851 / have not the
reports for August at hand, but there
has been a corresponding increase for
August and the first of September
These figures speak for themselves.
Il notice that you do not challenge
my statements as to the far greater
capitalization of the Southern railway
over the Seaboard Airline. 1t is per-
haps wise that you do not, as this
comparison would be quite as striking.
AND THE ASSOCIATION.
''Your attempt to divert attention
from the real merits of the matter
presented by insisting that the Sea-
board AIRLINE, in its protest against
physical pools in business and boy
colts, was not sincere and has been
guilty of improper conduct, will not
serve any useful purpose. 1t is true
that the Seaboard Airline, after hav-
ing resisted the Southern Railway and
Steamship Association and succeeding
in having it dissolved, joined with the
railroads in an effort to organize the
Southern States Freight Association,
with the hope that a legitimate assoc !
citation which would subserve useful
ends might be formed. This associa-
ton agreement contained certain
clauses of which the Seaboard Airline
did not approve, but it went in with the
hope that as it had succeeded in doing
away with the old Southern Railway
and Steamship Association it would
succeed, by degrees, in eliminating OBJ
tionable features 1t soon, however,
found out that the influence of the
Southern Railway Company in the
Southern States Freight Association
disappointed that hope, and that it
10 10 oh 70
ends; it, therefore, politely withdrew,
1t did not feel called upon to assign
all of its reasons for so doing. 1t is
sufficient that it could no longer re-
main with the association. That it
was not wrong in it's estimate of the
domination of the Southern railway
is proven by the fact that at the meet
ing of the Southern States Freight AS
ISOLATION at which the so per cent cut
was adopted, Mr.. 4. TX. Scott, general
manager of the Georgia railroad, who
held two votes-one for the Georgia
railroad and one as proxy for Mr..
Averill, receiver of the Port Royal and
Augusta railway, and who strongly
and vigorously opposed the Inaugural
ton of this so per cent cut in COM
mittee, absented himself from the
meeting of the association which
adopted said cut, and thus avoided
voting against it, although he knew
that his negative vote, under the rules
of the association, would have pre-
vented the Inauguration of the cut
which he so much deplored.
THE WESTERN AND ATLANTIC.
GAS to your statement that the Sea-
board Airline had committed frauds
and determinations in the matter of
the boycott, it is sufficient to say that
although the point was pressed to the
court that the Seaboard Airline was
not entitled to have the relief it prayed
against the Western and Atlantic rail-
road. because of alleged wrongs on it's