The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-19
PouPLIsM HURTS INVESTORS.
Some Facts About Railroads in
south Carolina.

south Carolina.
The New York news bureaus summary
Of commercial and financial news. in
recent issue, contained some interesting
statements rela tive to the financial con-
dition of railroads in South Carolina. The
following is the article;
"A gentleman Interested in southern
railroads was asked last evening If he
had invested in the new South Carolina
enterprise. the Charleston and Macon rail-
road, or the Greenwood, Anderson and
Western railway, and he replied: NO,
sir!' He said he could not believe a cap
itaitst with any foresight or hindsight
would put money into any new road IN
that state, where the railroad commits
sioners make both freight and passenger
rates so low that roads which have been
built there during the past twenty years
cannot earn operating expenses and prop
erly maintain road bed and equipment.
The Charleston and Macon railroad, as
far as 1t has been surveyed Charleston
to Allendale), he said, will go through
sickly wilderness, without single village
or even a single cross-road hamlet that
supports a store on the whole line. The
same gentleman made the following state
ment of the confiscation OF capital invest
ed in that state, which, he said ought to
be an object lesson to investors:
The Charleston, Sumter and Northern
railroad, $50 miles long, chartered in 1885,
and bonded for $1,O50,O0, was sold in 1895,
and the decree value paid to the first
mortgage bondholders, after holding their
bonds for several years without interesD
was u cents on the dollar
The Charleston, Cumberland Gap and
Chicago railway, twenty-four miles long,
was sold in 1895 by order of court for $685.
xxybf 10 6aoraa vol ata
Of the hrst mortgage bonds, after paying
receivers indebtedness, about cents on
the dollar
The Carolina Midland railroad, IS miles
long, does not earn gross $1,000 per mile
per annum, which 1t not enough to pay
operating expenses and keep up the miles
of trestle and bridges and the equipment
and roadbed.
The South Bound railroad, Columbia to
Savannah, 1856 miles long, is reported to
have been operated by the lessee in 1895
at loss of $4,000.
The Wilmington, Chadbourn and Con-
way railroad which was sold by order
Of court in 1894, reported gross earnings
for that year as less than $500 per mile
per annum. The road (4O miles long, and
equipment were sold for $4,000 being less
than half what the rails cost.
The Port Royal and Augusta railroad,
liz miles long, completed % years ago,
cost S2,625, 900 and is now Obliged to issue
receivers certificates to raise money to
pay employees wages, which are usually
months overdue, while the interest on its
bonded Indebtedness has not been paid
for several years.
The Charleston and Ohio River railroad,
chartered in 1885, issued $5,137, 900 first
mortgage bonds. In 1894 the road was sold
by order of court and the first mort
gage bondholders received stock for their
bonds, The gross earnings for 1895 on 21l
miles of road were $685. or about $500
per mile per annum.
Money put into other roads in that state
might as well have been sunk in the deep
sea, owing primarily to the sparsely set
tied country through which they run and
the antagonism of the populist govern
ment to capital. A notable example in the
northern part of the state is the Caro-
lima, Knoxville and Western railway l6
miles long, which was sold Qncluding
equipmenD at auction last month lor S.
500." . -