The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-17

the first instance the bill rests in courr
IS cloud on the securities. Even if
the suit eventually fails, its object will
by that time have been accomplished
and any plan of reorganization broken
up. / am advised that the Southern
Railway is urging the passage of this
act; that they are urging the members
10 vote for it as d fight between the
Seaboard Air Line and the Southern,
IN which the State has no interest.
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
Seaboard Air Line system.
The Southern Railway is capitalized
ut $120,000,000, of common stock, SOL.
80 400 preferred stock, $120,000,000 Of
bonds and $74299,000 of stock and
3onds of the subordinate companies
which it controls and operates and on
which it is supposed to pay interest or
dividends. So great is their capital
took that even in these boom times the
oInmon stock has not sold for more
han $12 share 1t is certainly note
worthy thing that corporation, So
apitalized, should desire to keep down
he issues of bonds of all other corpora
lens in the interest of the people, after
t has fixed its own mortgage of record
o that it can continue to issue bonds
1T its pleasure.
THE PEOPLE INTERESTED.
1t is a great mistake if any man
links this is only fight between the
Southern and the Seaboard. 1t is far
more. 1t is a fight between the South
IN and the people. If the Southern
iefeats the Seaboard system, it defeats
he only efficient competitor now left
n the State.
The people have no real interest in
The Seaboard system, except as Il means
secure competition. As such means,
hey have the greatest interest in pre-
enting the Southern from throttling it
md defeating competition.
The people understand this clearly.
md it is to this that we owe much of
he patronage we have received
The people of Georgia, / am quite
ure, viii deplore the passage of this
ct, which will destroy the ability of
he Scaboard to carry through its reof.
sanization and so destroy competition.
SOME HISTORY.
The Seaboard Air Line has been per-
aistently fought by competitors from
is inception. The Southern Railway
md Steamship Association endeavored
0 shut it out from doing business with
Their lines and forced it into litigation
maintain its rights. Next boycott
Eas brought on against it, Then the IL
igations in Georgia, South Carolina and
Virginia, known as the rate war cases,
eere instigated against it. Presumably
he allies of our competitors endeavored
0 buy up our capital stock, and plung-
d us into a series Of htigations. When
now it secs the SeaboaTd Air Line
bout to form system which can ef-
ectiyely compete with il, 1t is endeavor-
ng through the legislature of Georgia
pass an act which will effectually
revent this consolidation, although such
onsolidation is of roads which are in
very way non-competitive, and which
Ices not infringe any provision of the
constitution or the laws of Georgia.
TOO MANY RAILROADS"
The people have another great inter
st in the defeat of this act 1t is said
be a fayorite statement of our COM
etiters that there are already too many
roads This bill will defeat the build
ag of any more.
| do not believe that the people OF
feorgia wish to stop railroad building
the State
But if this bill passes, who can raise
n bonds the money to build Il new
soad, on bill which is hidebonnd as to
mount; which efficiently prevents the
ale of bonds below par-and prevents
he borrower from meeting the views OF
the men furnishing the money, as to
capitalization. Alabama. Florida, Ten
nessee, the Carolinas and Virginia have
10 such laws, and yet capital is ex-
1ected to come to Georgia rather than
o those States. 1t will not do It, We
t the South have to 90 elsewhere to
ret money TO build railroads, and we
must be able to meet the lenders
wishes or no money can be had.
PROTECTED BUILDING.
The Atlanta, Knoxville and Northern
has been contemplating building TO
Atlanta; the East and West from Car
tersyille to Gainesville, and West Bir-
mingham; the Chattanooga, Rome and
Southern from Cnrrollton to LaGrange,
md probably to Columbus. A party is
n the field between Athens and An-
yusta surveying that part of the line
IT new company proposing to build
rom Athens to Augusta. and possibly
chattanooga. All this will be dead if
his bill becomes a law.
1t is surely of great interest to the
State that this bill should be killed
/ do not believe when the legislature
Understands this bill and its purposes,
hat it viii pass it. I am satisfied thar
i only got through the Senate because
If the fact that no attention has been
called TO its pernicious tendencies ana
appeal not alone to the legislature.
but to the people Of Georgia to defeat
his hurtful legislation.
K. ST. JOHN.
Vice Pres and General Manager.