Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-12-17
s :, sor such consolldtal ton,

consideration for such consolidation
merger or purchase :. ~ 4 :
See how&this bill can work A rail-
road company goes to the commission
and asks to issue bonds. Antinterested
~? stakeholder, who has bought up his
stock In the interest Of a competitor,
appears and resists the Issue of the
bonds. II the railroad commission dis
agrees with him. he insists that the
amount and purposes are not within the
ACT. lie then files bill to enjoin the
sraliroad commission from granting the
permission and even if the irljunct ton
IS refused in the first instance, the bill
rests In court as cloud on the securf-
ties. Even if the suit eventually fails,
Its object will by that time have been
accomplished and any plan of reorgan-
Sization broken up. am advised that
the southern railway is urging the pas
sage Of this act; that they are urging
the members to vote for it as n fight be-
tween the Seaboard Air Line and the
southern, In which the State has no in
terest.
A BOAST IN NEW YORK.
The boast has been made by the OPP
ponents OF the Seaboard Air Line in
New York, since this bill passed the
Senate, that the Georgia Legislature
would prevent the reorganization of the
The Southern railway is capitalized at
Sl2o, 600, of common stock s57. 200. 400.
preferred stock, sl20 GOO 900 OF bonds and
sI4, 2a9,0 900 of stock and bonds of the SUI
oordinate companies which It controls
and operates and on which 1t is sup
posed to pay interest or dividends So
great Is their capital stock that even in
these boom times the common stock has
not sold for more than $12 a share. 1t
is certainly q noteworthy thing that a
corporation. SO capitalized. should de-
sire to keep down the issues OF bonds
OF all other corporations in the inter
est of the people, after 1t has fixed Its
own mortgage of record SO that 1t can
continue to issue bonds at Its pleasure.
THE PEOPLE INTER EsTED.
lis n great mistake IL any man
thinks this is only n fight between the
Southern and the Seaboard. 1t is fas
more. j is q. fight between the South
ern and the people. If the Southern de-
feats the Seaboard system, 1t defeats
the only efficient competitor now left
in the State
the Sea board system, except MS a means
to secure competition. AS such means.
they have the greatest interest In pre-
venting the Southern from throttling it
and defeating competition.
The people understand this clearly.
and it is to this that we owe much OF
the patronage we have received.
The people of Georgia, l am quite
sure. will denlore the pasaage of this
act. which will destroy the ability OF
the Seaboard TO carry through It's RE-
orga nization and so destroy coTpeti-
ton.
SOME HISTORY.
The Seaboard Air Line has been per-
sstentIy fought by competitors from
c hn u
and Steamship Association epdeavored
10 shut It out from doing business with
other lines and forced 1t into litigation
to maintain its rights. Next q boycott
was brought on against it. Then the
litigations In Georgin, South Carolina
and Virginia. known as the rate war
cases We're instigated against it. Pre-
sumably the allies of our competitors
cndenvnred to buy UP our capital stock,
and PLUNGED us into n series or litiga.
lions. When now 1t sees the Seaboard
Air Line about to form II system which
can effectively compete with It, it is en-
deaVoring through the Legislature OF
Georgia to pnss an act which will eff
fectually prevent this consolidation, al
though such consolidation is of roads
which are in every way non-compctI-
tive, and which does not infringe any
provision of the constitution or the
laws of Georgia.
TOO MANY RAILROADS"
The people have another great inter,
est in the defeat of this act, It is said
to be n favorite statement of our. COM
petitors that there are already too
many roads. This bill will defeat the
building of any more.
I do not believe that the people OF
Georgia wish to stop railroad building
in the state.
But If his bill passes. who can raise
on bonds the money To build q new
road, on q bin which is hidebound az
to amount; which efficiently prevents
the sale OF bonds below par-and pre-.
vents the borrower from meeting the
views of the men furnishing the money
ms to capitalization. Alabama, FLORIDA.
Tennessee. the Carollnas md Virginia
have no such laws, and yet capital Is
expected to come TO Georgia rather
We OF the South have to go elsewhere
to get money to build railroads. and
we must be able to meet the lenders
wishes or no money can he had.
PROJECTED BUILDING.
The Atlanta, Knoxville and Northern
has been contemplating building to At
lanta: the Fast and West from Car
tersville to Gainesville. and West Bir-
mingham; the Chattanooga Rome and
Southern from Carrollton to LAGRANGE.
and probably to Columbus. A party is
in the field between Athens and Au-
gusta surveying that part of the line
of new company proposing to build
from Athens to Augusta. and possibly
Chattanooga, All this will be dead If
this bill becomes a law.
1t Is surely of great interest to the
State that his bill should be killed
do not believe when the Lerisla,uro