The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-08-30
THE soUTHERN's VOTING TRUST.

when the directors of the Southern
Railway decided not TO declare a div
idend on its preferred stock, has been
| issued by the voting trust. The in
formation il contains is that it is to
the interest of the stockholders of the
Southern that the trust be continued
until 1907. for the reason that if it
were dissolved the stock might be
bought up by spectators and the
property fall into the hands of parties
not interested in improving it and
maintaining it in a condition that
would enable it to pay dividends. 1t
is also stated that there are negotia-
tions in progress by which the prop
erty will be so strengthened, that by
the time the proposed new term of the
voting trust expires it will be prac-
tically in an impregnable position.
VIII the stockholders continue the
voting trust? If they do they will
have to accept less than five per cent.
on their preferred stock. The South
ern is in a position to pay a dividend
of that amount now. but it is not GER
tain that it would be able to continue
to do so. The promise of the voting
trust is-at least that is the inference
from its circular-that if the trust is
continued for five years the property
will then be in a position to pay reg
ularly five per cent. on it's preferred
stock, and perhaps a dividend on its
,mfnon In this particular locality
there is a great deal of interest in
this proposition of the Southern's vot-
ing trust, for the reason that it is
with other transportation lines which
will have an important bearing on the
railroad situation in the South. The
Southern is not likely to form new re-
lations with transportation lines in the
South that will not include the Cen
trail of Georgia. The Question then is,
what negotiations in relation to trans
portation interests in the Southern
states, having an important bearing
upon the Southern's welfare, are now
in progress? 1t would be interesting to
know, for the reason that the infor-
are interested in the Central of Geor-
gia. 1t is generally believed that the
interests of the Southern and the
Central are pretty closely connected.
The owners of the two properties may
not be the same, but if they are not
it is quite certain that they are work.
ing in harmony.
fe- In1t 4
Nashville is to be brought into close
touch with the Southern, and there
has been a rumor that a traffic arrange
ment of some sort is to be made be-
tween the Central and the st. Louis
and San Francisco railways. This
would bring Savannah in touch with
Chicago st. Louis, Kansas City and
a large part of the best wheat and
corn growing section of the West.
Doubtless it will be known in the very
near future what the negotiations are
to which the Southerns voting trust
refers in it's circular.
The point may be made that the
voting trust is anxious to retain con-
troll of the Southern for the sake of
the power which the trust carries, but
that can hardly be the case. 1t is
worthy of notice. however, that the
voting trust of the Reading Railway
seeks to retain it's position for two
years more. The directors of that rail-
way. at their meeting day or two
ago, did not declare the full dividend
on the preferred stock of that road,
though it is said that it had sufficient
earnings with which to do so. 1t was
said that it was desired to give the
stockholders a chance to say whether
or not the voting trust should be con-
tinued for another term. 1t is prob
able, however, that the Reading road
will need a good deal of it's surplus
cash before the coal strike is settled.