Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1880-01-20
Cbe 1ailp Gbronitls.
Entered at the Post Ofice at Knoxville. Ten
nessee. SecOnd-class matter.l
TUESDAY, JAN. 90, 1880.
SC00PED.
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The Biggest Railroad Sensation Of
the Age 4sF W
Capture of the Cole System by its
Louisville Rivals.
An Operation in which Millions Of
|. Stock Changed Hands.
What Col. Cole has to Say Of the
Business.
An Operation in which Millions Of
80 Stock Changed Hands.
What Col. Cole has to Say Of the
Business.
Sundays Nashville American

Sundays Nashville Americana
Had thunderbolt dropped from q
clear sky and shivered our unpaid.fo fol
Capitol to atoms, it could not have
created more establishment and dismay
than the reports which became gener.
ally circulated about noon, yesterday,
to the effect that the management of
the Louisville and Nashville and Great
Southern had purchased Q suf-
ficient amount of stock to obtain cons
troll of the Nashville, Chattanooga and
st. Louis. The news spread with great
rapidity, the excitement Increasing in
its wake until it became decidedly fe-
verish.
At first the report was not very
generally believed, but the facts soon
began to leak utlittle by little, through
dispatches sent to bankers and brokers
What gave more credence to the ru'
mors than most anything else wastbst
some Of the most promi ent directors
one from Nashville and several in New
York, had not come to attend meet
ing OF the Board of Directors which
had been called for yesterday to APP.
prove the contract made with the
Georgia Central and other contracts
which had been entered into aud
which needed the approval Of the
Board to make them complete.
In response to q business telegram
sent by President Cole TO a Nashville
director now in New York, and who
was in ell probability interested in the
change in the stock which had already
occurred, the following was received ::
Certain changes have been made
by which you will have to consult
other parties hereafter
This dispatch was not obtained from
President Cole, but was a matter OF
general report about the Maxwell
House and said to be authentic.
COLE ON THE SITUATION.
A reporter of the american called
on President Cole at the Chattanooga
depot at p. m. and desired to know
whether he had received any telegram
from New York giving definite idea
as to whether the STOCK had changed
hands. He said that up to that time
be had received no telegram ceuceIn
ing what had occurred. The reporter
met him later at his residence, when
be made in substance the following
statement:
II have received reliable informs
ton from New York that important
changes have taken place in the stock
of my company. What the change
| knew nothing of 1t until late this
evening, and was greatly SURPRISED
aud am now without details OF thu
transaction. I trust that no interes
! OF Tennessee, my native State, nor o
Nashville, nor any connection of on
line, will suffer by any changes tina
have taken or may take place."
President Cole appeared to be yer.
much depressed, but said that he hat
learned all through life to take thing
as philosophically as possible and hop
for the best. ETss ~
THE FIRST IMPRESSION. .-
The news when first received by tn
management was an electric shock
1t was especially III expected BY Presi
| dent Cole, who had not looked for
ward to such result. Having accom-
plished all that was possible or de
sirable to do for his company in tn
organization of magnificent system
of Southern railways, he had hoped t
| enjoy season of rest. By some, how
ever, it had been feared for sewers
| dsys past that the continued stay c
Vice President ii. Victor Newcomt
the financial agent of the Louisvill
and Nashville and Great Southern
and other prominent officials in Ne'
York, meant mischief President Col
by his management and strategy ha
so completely cornered the Louisvill
| and Nashville and Great Souther
! railroad that fts managers found then.
selves either forced to build the Geogi
Western at cost OF several millioBi
or cover in the Nashville, Chatta
nooga and st. Louis railway stock. A
the amount of stock required to b
| purchased was about $1,000 goo, it wa
cheaper to purchase a controlling 10
terest even at par than to build th
Georgia Western. = F
COLES DIRECTORS FAITHLEssNEss.
The unkindest cut Of all was tn
manner in which President Cole
leading directors treated him. The,
utterly ignored him in the transaction
V. X. Stevenson was criticised will
especial severity. 1t Is general!
thought that he arranged the 'sel
out" and that the profit he has real
lied must be at least five hundreC
thousand dollars. G. M. Fogg, who il
also director and the attorney for The
Nashville, Chattanooga and st. LouiI
railway, left here very hurriedly few
days ago for New York, and is sup
posed to have gone over to the new
combination either by sale of stock o.
the purchase of stock In the Louis
vile and Nashville and Great South.
ern. some of the smaller stockhold.
ers fear that in the change the man
agement of the Louisville and Nash.
vile and Great Southern people may
panIper their own stock, pay dividends
upon it, and "bear" the Chattanooga
stock until low enough for few capi.
talists to scoop 1t in--in fact, that thi
whales will swallow up all the LITTLE
Jonahs. ..f.
EXPRESS COMPANIES INTERESTED
A very important feature enters int,