Railroads -- United States; Railroads -- United States -- Finance
This completed the reorganization of the Richmond Terminal Company so
far as the principal part of its mileage was concerned. The portions
of the system excluded from the plan have been to some extent bought
back in later years. Control of the Alabama Great Southern was bought
in 1895; the Memphis & Charleston was acquired in 1898; the Richmond
& Mecklenburg was leased in 1898 and the Mobile & Birmingham in 1899;
and the Northeastern of Georgia was bought in 1899. The system has
not yet, however, fully regained its old position. The most important
loss has undoubtedly been that of the Central of Georgia. We left this
company engaged in active disputes with the Terminal management. During
1892 and 1893 efforts to reorganize it were made under the leadership
of Hollins & Co. The principal difficulties were the large floating
debt and the money required to put the property into good physical
condition.[392] A plan was actually prepared at the beginning of 1893
and submitted to securityholders, but failed because of that same
decline in earnings which had caused the modification of the Terminal
reorganization plan. A second plan, prepared in 1894, had a better
fate,[393] and in modified form was put into effect. The _Railroad_ was
sold at auction in 1895, the Central of Georgia _Railway_ was organized
to take its place,[394] and the corporation entered upon a new career
which we have not space to follow.[395]
As for the Southern Railway, the years from 1895 to 1907 have brought
it prosperity. It has extended considerably in mileage. Besides
reacquiring lines which formerly were part of the Richmond Terminal
system, it has grown south to Jacksonville and Palatka, east to
Charleston and to a more direct connection with Norfolk, and west from
Louisville to East St. Louis. It has further joined its Louisville-East
St. Louis line to Chicago by acquiring a half-interest in the Monon,
and to the rest of its system by a half-interest in the Cincinnati,
New Orleans & Texas Pacific; and it has bought control of the Mobile
& Ohio, which stretches through four states from East St. Louis to
Mobile. Instead of 4392 miles as operated on June 30, 1895, it now
reports 7546. The earnings of the system have increased more rapidly
than its mileage. The revival of business after 1897 occurred with
singular force in the South, and seems to have introduced there a new
industrial era. As a result, the Southern’s gross earnings have trebled
and its net earnings have been multiplied by two. Passenger receipts,
which were $4,329,499 in 1895, have become $14,683,006 in 1907. Freight
receipts have increased from $10,816,024 to $37,368,095.
Public-domain text, read in full here on John Shaqi.
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