Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-09-22
PROPOSAL TO EXTEND.
W. & A. TO COAST IS.
MADE BY ATLANT|AN
Hooper Alexander Represent
inc. William Hurd HiIlyer
Appears Before Commission
With Informal Offer

Hooper Alexander. representing Will
liam Hurd Hillyer. OF Atlanta, and as
sociates. appeared before the Western
and Atlantic railroad commission We'd
nesday and submitted a proposition to
extend the state road to the sea with
Savannah a. the coast terminus and
then 10 lease the completed road at a
rental Sufficient 20 cover the interest
on the bonds and the sinking fund TO
retire same at maturity. in addition to
providing a larger income than is now
received for the present road from At
Ianta TO Chattanooga, Tenn.
The proposal of Mr.. Alexander is pre-
liminary to = formal proposal which will
be laid before the commission after Sep
TENDER % when the detailed require
ments viii be promulgated by that body.
The bidders, he said. were able TO make
such cash deposit as may be required
10 furnish the requisite security in the
event that their bid is accepted.
In submitting the proposal. Mr.. Alex
ander called particular attention to the
fact that in order 10 finance the proposed
extension, It will be necessary for an
extra session OF the legislature to be
state bonds.
Mr.. ALEXANDER's PROPOSAL.
The proposal submitted by Mr.. Alex
aader read as follows:
ION behalf of MIR. William Hurd Hill
yer. of Atlanta, and associates, whom
represent. i am prepared to submit, SUBJ
ject to acceptance and the making of
valid and binding contract en- the part
o. the state of Georgia with my clients
on or before December 81. 1916, pro-
posal to build or at our option to build
or acquire and deliver TO the state of
Georgia, free and clear of all liens and
encumbrances, an extension Of the West
ern and Atlantic railroad from a point
at or in the immediate proximity of At
lanta to deep water, at or in the imme-
date proximity Of Savannah, with ade-
quate terminal facilities, rights of way,
dopots. stations, sidings, etc.
I'm payment for this property We will
accept state Of Georgia fifty-year 4 per
cent bonds, the exact amount to be
agreed upon being necessarily dependant
more or less on the specifications and
requirements of your commission with
reference to the character of the extern
sion of the road and its terminals, which,
We understand, are to be formulated and
announced on September %.
We will then lease from the state, pre-
ferably for a term of forty-seven years
from the date of the expiration of the
present lease, to-wit: December %,
1919. the entire line from Chattanooga,
Tenn, TO Savannah, Ca. at an annual
rental which will yield TO the state of
Georgia return ION the present line
running FROM Chattanooga to Atlanta)
substantially in excess of the present
rental, and an additional sum equal to
issued by the state in payment for the
extension and a further sum sufficient
70. provide for a sinking fund that will
retire all Of these bonds on or before
the date of their maturity, the sinking
fund to be annually invested I'm the
bonds of the state of Georgia or of it's
various counties and municipalities.
BOND ISSUE NECESSARY.
This communication is submitted at
this time. in advance of your meeting
on September 25. for the following rea-
sons: The legislation so far adopted
BY the general assembly with reference
to che leasing or extension of the state
road. as we understand il, authorizes
your commission TO receive and accept
a proposal TO extend The general as-
sembly. however, failed to adopt the
legislation necessary to enable the COM
mission 10 make payment for the eX-
tension. Any bonds that are TO be is
sued for such purpose must, as we UNI
derstand IL, be first authorized by the
general assembly, by way of an amend
ment to the constitution, and the con-
stitutiOnal amendment must then be rati-
fed by the people at a general election
after the amendment has been advertis-
ed for a period of two months. After
the year 1916 there are no general cleo
lions in Georgia prior 10 1918, so far as
1 am able 20 discover, and. naturally,
no bidder on the proposed extension
could afford to obligate himself for such
a length of time without any CORE
spending obligation ONT the part of the
state.
"In other words, we are ready to
trade, and possibly other bidders may
be likewise ready TO trade, IL the state
of Georgia is ready, and we submit
this matter to your consideration, so
that II any appropriate steps may be
taken in the manner pointed out by law
to remedy the deficiency.
"If additional legislation on this sub
ject is. to he adopted, IL would seem
necessary that the general assembly
! should be called together I'm extra ses-
sion and that such legislation be adopt
81 as will make it possible 10 submit: