Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-08-08
STATE ROAD MAKING
SPLENDID NET RETURN.
NC. & ST. REPORTS
Five Per Cent on Valuation of
S2OrOOO,0OO Is Shown in
the Figures Submitted by
Lessee

That the Western and Atlantic rail-
road, which is owned by the state of
Georgia and leased to the Nashville,
now earning nearly per cent net on
valuation of $20.00O,000, is shown by
returns which the Nashville, Chatta-
nooga and St Louis has made to the
comptroller-general of the state.
These returns show that for the year
ending May 1, 1916. the net earnings
of the Western and Atlantic, over and
above the rental paid to the state, were
$3.50. 1850.
The annual rental paid to the state is
s42O,012.
This rental added to the net earnings
over and above rental make the total
net earnings of the road, for the year
ending May /, 1916, $953.44S.S0.
Comptroller-Gene William A.
Wright has estimated the Western and
Atlantic railroad to be worth 100000
600, and has stated that he deems this
to be a conservative estimate.
Some people who are advocating the
sale of the Western and Atlantic rail-
road have declared General Wrights
estimate to be too liberal and have
claimed that the road is only worth be-
tween $l2,000,90O and $15,00O,000.
... PROOF IN REPORT.
That the estimate of the comptroller
general is not a liherales estimate, but
in reality is a conservative estimate, is
now conclusively' demonstrated by the
actual net earnings of the road, as dis
closed by the lessee.
General Wrights estimate is rendered
all the more conservative by the fact
that per cent net, which is approx
mately the actual earnings of the West
ern and Atlantic on valuation Of $780,
100000, is an exceedingly good return
upon any investment.
In addition to the annual rental OF
t42O,012 which is. paid for the West
ern and Atlantic railroad by the Nash
vile, Chattanooga and st. Louis rail-
road, the latter pays the state of Geor-
gia one-half of 1 per cent per annum
on the net earnings of the road. over
and above the rental
Once year the Nashville, Chattanooga
and st. Louis railroad files with the
comptroller-general a sworn return of
what the Western and Atlantic has earn
ed during the preceding twelve months,
over and above rental On this return
It nays the tax of one-half of 1 per
cent.
This TAX Tor the year enQinS may l.
1916, amounts to $2,667.1S.
LEASE 26 YEARS OLD.
At the close OF the year 1916 the
present lease of the Western and At
lantic railroad will have run for %
years, and in that time the road will
have earned for the state of Georgia,
in annual rental, the total sum of $10,-
92O,312.
In that time the road will have earned,
in the tax above mentioned, the total
sum of $35,519.43.
Added together, these sums make a
grand total of 1881, 43, which the
Western and Atlantic railroad will have
earned for the state of Georgia in 26
years.
The present lease of the Western and
Atlantic railroad will expire In Decem-
Der, 1919. The making of a new lease
has been placed by the Georgia legisla-
ture in the hands Of a commission con-
sisting of the governor, the chairman
of the railroad commission and Judson
L. Hand OF Pelham; G. Gunby Jordan,
of Columbus, and E. A. Copelan, of
Greensboro
The present lease of the road was ne
gotiated by a commission of which
Comptroller-General Wright is the only
surviving member. On that commission
were General Wright, Governor John B.
Gordon, Attorney-General Clifford l..
Anderson, Secretary of State N c. Bar
nett and State Treasurer r. u. Harde-
man.