Fitzgerald leader enterprise and press. (Fitzgerald, Ben Hill County, Ga.) 1921-1964, 1922-04-20
A. B. & A. To Miss
Junking In Part

ATLANTA-No matter what may
be the fate of the remainder of the
line of the A. B. & A. Railroad, that
will never be scrapped or abandoned,
is the opinion of Secretary of State S.
G. McLendon, who has kept in close
touch with the development of both
the A. B. & A., and the Atlantic and
Birmingham Railroad.
In the event of sale of the A. B.
& A., becomes necessary, Secretary
McLendon feels certain that the bond
holders of the A. & B. would buy in
at least the 337 miles east of Montezu
ma that were originally owned and op-
Grated by that road, and showed an
earning power far in excess of inter
est requirements.
History Is Given
Secretary McLendon gave the fol-
lowing interesting history connecting
the A. & B. and the A. B. & A:
Tile recple who live along The
line of the Atlanta, Birmingham and
Atlantic Railroad, between Montezu-
ma and Brunswick, need not be alarm
ed as to the ultimate end of that part
of the A. B. & A. The people of
Brunswick, Waycross, Triton, Fitz-
gerald, Moultrie, Townsville, Cor
dele and Montezuma have no occasion
for distress. This part of the A. B. &
A. embraces 337 miles originally owned
and operated by the Atlantic and Bir-
riingham Railroad Company For the
wear 1906 the net earnings of the A. &
B.. were $1,04859 per mile, and the
net earnings for 1907 were $l,O65.9l
per mile. These figures are shown in
the annual report of the Atlanta, Biz
mingham and Atlantic Railroad for
the year ending June 30, 1907, as the
earnings of the A. B. & A. Railroad.
CAS- a matter of fact the A. & b.
Railroad was completed to Montezu-
ma about 1906. West of Monlezuma
to Talbotton was completed early i'll
1906, but had low earning capacity:
of course, at the outset. The road
was completed to Lagrange in June
1907.
The actual bonding power Of the
A. B. & A. at the GU set was simply
the earning power Of the A. B. A.
Company issued, and had outstanding
bonds amounting to $4,0o0000 payable
III 1884 and bearing interest at the
rate of 5 per cent.
Acquires Property
"When the A. B. & A. was organ
lied it acquired the property of the
A. & B. Railroad, subject to the then
existing, and still existing, first mort
gage debt of $4,0o0,000, equivalent TO
$12,136 per mile.
The A. B. & A. always kept the
interest paid on its bonded debt in or
der to avoid foreclosure and sale
of that part of the road which was abb
solutelv essential to the existence OF
the balance of the road. The first de-
fault in the interest of the A. & 3.
bonds was in January, 1921, and since
then no interest has been paid. Con-
seuuently. the trustee for the bond
holders of the A. & B. Railroad is now
foreclosing that mortgage and IN due
time the A. & B. Railroad will be
forced to sale unless those interested
in the A. B. & A. securities may be
able to save It. If it is forced to sale,
the owners of the outstanding bonds
would naturally buy in the property,
which. prior TO is incorporation INTO
| the A. B. & A. system. showed an
earning power far in excess of the in
terest requirements
"The interest on the outstanding A.
& B. bonds would amount to 100000
per annum, or on a mileage of 337
miles about 5000 a mile. The A. & B
Railroad has always been self-sus-
| tanning proposition. The real owners
of the A. & B. are its bondholders, and
their bonds are the first lien upon the
property, so that, with its history ly-
ing back Of the A. B.. & A. Railroad
COMPANY. it is manifest that that part
of the line east of on-ezuma will
never be scrapped or abandonded
Get it today, Haile's Flu" Knock
err, sure shot for Influenza, Colds and
/