Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-02-09
NEW STATIONS HERE
AVID IN CHATTANOOGA
IS n. c. & ST. |. PLAN
Western and Atlantic Lessee,
Following Close of Lease,
Said to Be Preparing for
Two Modern Terminals

IN connection with the announcement
that the Western ann Atlantic railroad
owned by the state of Georgia. has been
released 20 the Nashville Chattanooga
and ST. Louis railroad, the present lessee
for term OF fifty years at an annual
rental of s540, 600 or $500 a month, Il
became known "Wednesday that the Nash
willie, Chattanooga and ST. Louis railroad
is planning 10 erect new passenger ter
minal stations both in Atlanta and in
Chattanooga.
In addition to paying the state $780,
600 for the rental of the road, the Nash
vile, Chattanooga and st. Louis agrees
in the lease contract TO expend not less
than $4,000 a year during the term OF
the lease, or a total of $4,000, 900, on
permanent improvements and better
ments.
ii is understood that the present plan
OF the Nashville, Chattanooga and 81.
Jically all OF this S5,000.0OO in a lump
sum in the next few years for new
terminals in Atlanta and Chattanooga.
The present passenger terminal OF
the Western and Atlantic railroad in At
lanta. which is known as the Union sta
ton, is old, outgrown, inadequaN, in
sanitary and a general nuisance and eye
sore. The terminal station in Chatta-
noOga is not much better.
Although the Western and Atlantic
railroad commission, in negotiating the
future disposition of the state road, gave
careful consideration to tho matter OF
extending the road to the sea il was fore
ed to the conclusion thai no feasible pro-
ject was available for such an extension
and none was therefore recommended.
Two railroads with lines from Atlanta
TO the sea announced their willingness
TO sell, but the state was not in position
TO consider their offers. The commits
sion, however, gathered considerable data
as TO the cost and desirability of build
ing an extension
In addition to Atlanta's project for
building a plaza over the tracks of the
state road there were two other tenta-
tive propositions looking to a purchase
or lease of the overhead rights. These
were by J. h Mccall, of Atlanta. ana
II. II Dean, of Gainesville. Neither was
favored by the commission or the lessee.
II is known that some of the commits
sioners believe that this will be the last
time that the state road will be leased.
They are satisfied that when the present
lease expires the state will sell the prop
erty.
The lease was agreed on late Tuesday
afternoon by the Western and Atlantic
leasing commission and officials of the
Nashville, Chattanooga and st. Louis
railroad The lease will be formally
signed and executed in sixty or ninety
days.
The plaza clause, which the city Of
Atlanta requested the leasing commits
sion to incorporate in the lease, was
omitted. The commission explains that
il wanted to incorporate the clause, but
the Nashville, Chattanooga and ST.
Louis. which was the only bidder, siren
uousIy objected and threatened to with
draw its bid if the commission insisted
on the clause.
The first bid submitted by the Nash
vile. Chattanooga and St. Louis rail-
road-which is a subsidiary railroad
controlled by the Louisville and Nash
willie, of which Milton IL Smith is pres
ident-was S4S0,00O a year flat, with
no taxes to be paid by the lessee and no
improvements to be made. The leasing
commission succeeding in forcing the
bidder TO raise its price TO the above
stated sum of $40, 900 a year and also
TO include il the lease the following re-
quirements:
The lessee must expe7d not less than
$4,000 a year in permanent improve
nents and betterments. While the ma
ture of these is not specified, il is con-
templated that they will probably con-
sist in double-tracking certain portions
OF the road. Strengthening curves, cut
ting down grades. building better bridg-
es, etc No improvements are required
in the present lease.
IMPROVEMENT AND TAXES.
The state of Georgia reserves the use
of two pieces of property in Chatta-
nooga, Tenn. now used under the old
lease by the lessee. One IS occupied by
the Eastern hotel and the other by the
Southern Express company Their esti-
mated rental value is from $4,000 TO
$4,000 a year.
The lessee must pay ad valorsm taxes
on rolling stock to the estimated amount
of $1,000 year direct a. the state, and
must pay ad valorem taxes on rolling
stock to counties, municipalities and
school districts to the estimated amount
of $1,000 a year.
The present lease requires that the
lessee only pay income taxes amounting
to sI,420 a year to the state.
The lessee must pay all taxes due the
state of Tennessee on the portion OF the
road situated in that state, amounting
to an estimated total Of $4,000 a year.
The amount OF these taxes under the
present lease is about $4,000 a year.
and are now paid by the lessee.
All Of these payments added togeth-
er bring the total cost of the road to
the lessee to s553, 900 a year. as against
a total cost under the present lease Of
s556,432 a year.
WHEN LEASE BEGINS.
The present lease Of the Western and
Atlantic expires on December 81, 1919.
The new lease will begin on that date
and viii run for fifty years to Deem
Der %, 1869. The total amount of money