Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-02-09
The Western and atlantic Lease.


mission and the Nashville. Chattanooga and St.
Louis Railway for the release of the State Road
give cause for general and solid satisfaction The
task of negotiating new lease was of the highest
moment to the people of Georgia, for i involved
their most valuable public possession Every cit
izen of this Commonwealth has a stake in the West
ern and Atlantic railroad. 1t built with the
/ peoples money, for the peoples benefit; it has
poured into their treasury millions upon millions
of revenue for the maintenance of schools and
other public institutions and it stands as the bed
rock of the States credit-a granite guarantee on
which the State can float it's bonds to the high
est possible advantage, borrowing at low interest
all the money it may need. The task OF dlsposlng
of this great property for half century to come
in such a way that it would yield the State fair
rental and at the same time be developed and con-
served was indeed a grave and eXacting RESPONSE
bity How creditably the Western and Atlantic
Commission has performed its difficult task is evil
denced by the terms and conditions of the new
lease contract
Briefly summed these provide that the State
Road shall be released to the Nashville, Chatta-
nooga and St. Louis Railway, whose present lease
on the property expires December p, 1919, for
period of fifty years at a yearly net cash rental of
five hundred and forty thousand dollars, payable
monthly in advance. The lessee is required, more
over 10 spend at least sixty thousand dollars
year for capital Improvements on the Road, in adj
dtion to such expenditures needful for first
class maintenance. Furthermore, the lessee shall
pay all taxes that part of the leased property
which is located the State of Tennessee, all taxes
levied or assessed by the federal Government, and
in the State of Georgia shall pay ad vaorem taxes
on its rolling stock and equipment. Taxes of the
kind last named are not required of the lessee
under the present lease. 1t is estimated that they
will Weld the State treasury not less than five thou
sand dollars annually and will afford additional
FIVE thousand to be prOrated among the counties
and municipalities along the line of the Road.
In addition to five hundred and forty thousand
dollars a year in cash rental and a minimum of
sixty thousand year to be expended capital i'm
provements and at least ten thousand year in
taxes on the lessees equipment and rolling stock,
the Commission has provided another important
source of State revenue from Western and Atlantic
property by excluding from the railroad lease, ard
reservng for future disposition, two parcels of in
proved property in the city of Chattanooga. These,
it is conservatively reckoned have rental of thir
teen thousand dollars year. Thus under the terms
of the lease the State will receive every year
for fifty years a total of six hundred and twenty
three thousand dollars exclusive of thirty thousand
year for Tennessee taxes to be paid by the lessee
These terms are best appreciated in comparison
with those of the existing lease. The State
ceives a yearly cash rental of four hundred and
twenty thousand and twelve dollars, which is vir-
tualy ten thousand dollars a month less than will
be received under the contract. The present
lease contains stipulation for big, permanent i'm
provements on the States property, and provis-
ion whereby the counties along the line of the
Western and Atlantic receive anything in the way
of taxes from the lessee. The present lease yields
the State yearly total of four hundred and forty
six thousand, four hundred and thirty-two dollars;
the lease will yield total of six hundred and
ffty-three thousand dollars, gain of two hundred
and six thousand, five hundred and eighty-six dol
lars year 1t should be noted, moreover, that all
improvements made on the States property during
the life of the lease shall go the State at the
piration of the lease, without charge or offset"
Another provision of much Importance is that
which prescribes lust and reasonable terms under
which, at the expiration of the lease, the State
have the option to take over properties acquired
by the lessee in its name and at its expense during
the life of the lease for in connection with the
State Road"
1t would have been exceedingly fortunate if, in
connection with new lease, feasible plan for
extending the Western and Atlantic Road to the
could have been adopted But the Commission
could find means that it considered advisable. 1t
is much TO be regretted that the new lease does
reserve to the State the right to sanction in the
future such changes suggestions of changes in
the Atlanta terminal facilities would be advan-
tageous to all the interests concerned. The Com
mission favored such a reservation, but fnasmuch
the only bidder for the Road objected unalter-
ably and threatened to withdraw its offer if the
point were pressed home, the Commission rather
than imperil otherwise desirable lease aban-
doned further insistence on this particular It
should be borne in mind, however, by the railroads
we'll as the public that Atlanta must have relief
from the insufferable smoke nuisance caused by
steam locomotives operating in the heart of the
city; and it must be borne in mind that for the
good of the railroads well as the community
certain readjustments in railway terminals must
be made These improvements shall be effected
either with the cooperation of the railroads or in
spite of them,
In broad essentials, the terms and conditions of
the new lease highly advantageous to the State
and they will prove highly profitable no doubr TO