been started in 1835 and completed in 1843; it amalgamated in 1872 whit the Macon and Western RR., which was begun in 1833. Since this consolidation the system has constantly expanded with the result that to-day the company owns and leases 854 miles, while it further practically owns (through possession of nearly all their stocks and bonds) roads with an aggregate length of 726 miles, so that the corporation possesses some 1,580 miles of road. In addition it has a controlling interest in various railroad companies. with a total of 1,094 miles, in steamship companies and in a bank. The share capital consists of $7,500,000, of which the R. T. holds $4,220,000-$4,000,000 of this indirectly, the Georgia Company having been formed for the purpose of evading inconvenient laws. The Georgia Central system is leased to the Georgia Pacific of the Richmond and Danville, likewise to evade the enactments of the Georgia Legislature. The system connects numerous points in Georgia. with Savannah and Port Royal, two ports on the Atlantic coast.

For many years this road was one of the most prosperous in the States, and paid heavy dividends. In 1888, however, the Richmond Terminal obtained control, an event which was confirmed by the lease to the Georgia Pacific; and the company has recently contracted a cumbersome floating debt in connection with construction and betterments. The Richmond and Danville claims $2,300,000 from it, but the Georgia has set up a counterclaim and litigation has ensued, the case being rendered very complicated owing to the legality of the lease being disputed while in addition some gross irregularities connected with the control through the Georgia Company have been brought before the Court.

However these disputes may be decided, it is certain that a very prosperous company came to grief owing to its connection with the R. T. In spite of a remarkable expansion of traffic the business of 1890-91 resulted in the first deficit the company had had for many years, a direct

consequence of an alarming increase in fixed charges. In addition to this deplorable feature there is a floating debt, already referred to, which was adjusted in 1891 by means of a loan secured by the company's own bonds; but when default was made in July, 1892, this loan fell due at once. Meantime floating liabilities had increased further, and now the unfunded debt amounts to about $5,400,000 exclusive of $1,000,000 car trusts. What course will be taken in order to afford the requisite relief it is impossible to say at present. Below are the latest statements of earnings, income account and balance sheet:

Balance Sheet, Central RR. & Banking Co. of Georgia,

CHAPTER LVI.

MINOR MEMBERS OF THE SOUTHERN GROUP.

Although the Southern States contain some of the oldest settlements in America, their development began later and proceeded slower than that of most other parts of the Republic; in consequence the construction of railroads on a vast scale began later than elsewhere, the various periods in the process of evolution came later, and railroad conditions in general have not yet reached a stage through which lines to be found in other sections passed long ago. For example, the process of consolidation which is so marked a feature of the American railroad system began much later here than elsewhere; in fact, it dates back no further than 1880, and assumed no formidable dimensions before 1886, when the Richmond and Danville was acquired by the Richmond Terminal. After that date, however, it progressed at a very quick pace. The last six years have seen the rise of Mr. Gould's remarkable though unstable system, the Richmond Terminal, which until the beginning of its adversities grew year by year. The Chesapeake and Ohio has acquired several other roads since its reorganisation; the Norfolk and Western has absorbed the Shenandoah Valley, the Lynchburg and Durham and the Roanoke and Southern ; the Louisville and Nashville has bought and leased many small roads, the Illinois Central has amalgamated with the New Orleans and Texas, and thus the five leading systems have all made considerable additions to their mileage during the last few years. Yet the process of consolidation has hardly begun, and there

remain in this section a greater number of independent lines than in any other region of the United States. In all probability, however, the majority of these will either amalgamate with each other or become absorbed by the large systems, and for that reason particulars pertaining to the most notable among them are given below.

Alabama Great Southern.-This road is part of the Richmond Terminal system and is shown on Map 5; it is 295 miles long, and belongs to an English company, controlled by the E. T., Va. & Ga., and capitalised as follows: Common shares 1,566,000l., 6 p. c. preferred shares 676,070l., 1st mortgage 6 p.c. gold bonds 1,750,000l., 5 p.c. sterl. bonds 476,000l., 6 p.c. gold debentures 134,000l., income certificates 53,2571. The company owns jointly with the E. T., Va. & Ga, $1,000,000 shares of the Cincinnati, New Orleans and Texas Pacific, with which the road connects for Cincinnati. Gross earnings for the year ending June 30th, 1892, were $1,858,039, net $444,730; total net revenue $464,730, interest on bonds $248,220. In 1891 preferred shares received 6 p.c., common shares 12.

Alabama Midland.-The Plant Investment Co. (q. v.) controls this road, which is 209 miles long and connects Montgomery, on the L. and N. system, with the other Plant roads and steamers. The company issued $2,625,000 common and $1,600,000 preferred stock, almost entirely owned by the Plant Co., and $3,100,000 6 p.c. bonds; it is proposed to reduce the interest on $2,800,000 of these bonds to 5 p.c. The company earned in 1890 $539,290 gross.

Alabama, New Orleans, Texas and Pacific Junction RR. Co., Limited. This is an English company controlling the Alabama and Vicksburg, 142 miles; Vicksburg, Shreveport and Pacific, 189 miles; New Orleans and Northeastern, 195 miles; and Spanish Fort Railways, 3 miles, a total of 529 miles. The lines, shown on Maps 4 and 5, connect the Richmond Terminal system, which they meet in Meridian, Mi., with New Orleans and Gould's Southwestern system. The company exercises control through ownership of the following securities:-Alabama and Vicksburg$30,000 1st mortgage, $141,100 consols, $387,700 2nd mortgage incomes and $387,700 stock; Vicksburg, Shreveport and Pacific

$3,692,000 1st mortgage, $1,364,000 3rd mortgage, $494,860 incomes and $1,594,000 stock; New Orleans and Northeastern, $4,900,000 1st mortgage and $4,320,000 stock; New Orleans, Spanish Fort and Lake RR., $300,000 1st mortgage and $200,000 common stock; of Cincinnati Southern, $532,000 stock.

The company issued the following securities: 2,500,000l. deferred shares, 1,500,000l. preferred shares, 748,850l. 'A' debentures, 1,048,3907. 'B' debentures and 810,700l. 'C' debentures, all entitled to 5 p.c. interest if earned. During the 15 months ending December, 1891, its revenue from investments was 76,4967. permitting of the payment of 5 p.c. in full on 'A' and of 21⁄2 p.c. on 'B' debentures; after these payments there remained a balance of 1,8331. The company was reorganised in 1890, after being managed by a receiver since November 1887.

The following table shows the company's revenue, etc.