Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1885-09-10
RAILWAY NEWS.
The Bltferest Rate War Ever Expert
eneed in Progress Between
Two Prominent Roads.
Stockholders Meeting OF the Nashville,
Chattanooga and st. Louis Com
pany-A New Directory.
Close of Important Negotiations Con-
cerning the Union Pacific Com.
pany Involving Millions.

Cured between Southern railroads IS now
in progress, and to-day's developments bid
fair to make 1t even more general and de-
termined. The war was commenced two
weeks ago by the Western and Atlantic
railroad, which made cut of 55 per cent.
in Eastern rates out of Chattsnooga. This
cut was made, on account OF the rivalry
existing betwee that line and the East
Tennessee, Virginia and Georgia road.
The cut was not met, and thereupon the
Western and Atlantic officials announced
that the low rates would be permanent,
and at once the East Tennessee made a
cut of 60 per Cent. on Eastern business out
of Atlanta, and the Richmond and DAN
vile was brought into the fight. 1t is now
thought that the Western and Atlantic
railroad will open q ticket office in Knox
vile and begin an indiscriminate cut to all
Southern points. The Louisville and
Nashville is being drawn into the fight,
and all the Southern lines are becoming
involved.
Union Pacific COnrluded.
BosfoN, September 9.-The important
negotiations which for some time past
have been quietly carried on bet~cen
President Adams of the Union Pacific
Railroad Company and representatives of
certain leading Boston banking houses
were concluded to-day. Under the agree
ment reached, the firms in question are to
take a large amount of the bol DIS Of the
railroa compsnV, of various issues, paying
cash therefor. Provision is also made for
taking up $6 10000 of ouutAnding
fl ,atipg securities of the company, as
they mature, between now and the
close of the year. None of the money
thus furnished the company is for less
than three years. 1t is understood, how
ever, that a portion of it, if The company
80 ects, can be paid off at an carrier
period. The average rate of interest will
be something less than 8 per cent. The
company agrees for a certain length OF
time to pls ce mo more of it's securities of
the issues specified on the market, except
at the request OF the firms in ques-
ton. This arrangement provides also
for all the GU standing notes OF
the company and the balance Of
the floating debt, representing pay-rolls,
non-accrued coupons and accounts with
other railroad companies. The whole
transaction amounts to scale of bonds and
a loan or collateral. Exactly what the ag-
gregate amount secured is cannot be
and pledged known, though 1t is presumed
that they are st. Joseph and Western
bonds, of which the company owns about
$4,000, ,000 81
Stock bOiders sseei.ng Of the Nashville,
ChatfaBOOga and at. Louis Railroad.
NASHVILLE, September 9-The stock
holders of the Nashville, Chattanooga and
St. Louis railroad met to-day and elected
the following directors: j. w. Thorn j.
w. Sparks, A. II Robinson, Thomas
Lipscum, E. L. Jordan, M II. Smith, T.
W. Evans, G. A. Washington, E. Norton,
A. S. Coiyar, ]. e. lnman, j. T. Rhes, j.
G. Aydelott, Z. B. St4hlman and G. M.
Fogg. The directors met and electsd j..
w. Thomas president and general mana
ger, R. c. Bran.ford treasurer, j.
d. Nancy comptroller, and R. c..
Morris chief engineer. The result Of the
operat ons OF the road for the past fiscal
year have Act been as satisfactory
as expected on account of the unremu-
| nerative rates enforced by competitive
| lines. Had remunerative rates been Sc
| cured the net earnings would have been
as large as for any previous year. The
gross earnings for the year of all lines
| operated-5S0 miles-were 2,240,71S 9S;
| operating expenses, Sl,304,00l 81; inter
est aad taxes, S6S2, ,z73 "a; improvements,
| S5S 4O1 80. The bonded debt 10 date is
| 1898 600. No dividend Was paid during
the year because it was deemed best to
| apply the net earnings to the re-
duction of the floating debt. If the
net earnings, as heretofore, had
been divided among the shareholders
| per cent. could have been psid upon the
capital stock. The gross earnings Were
above the average for the past twelve
years, Notwithstanding that by the con
struction of competitive lines the road ha'
been deprived of large share of through
traffic, reducing the revenue from through
freight over $500, 900. The gross Ievenu,
has been maintained by the encourage
ment of local ente prises, and by the pur
chase and construction of branch roads
which act as feeders to the main line
This policy should continue. The tota
freight earnings were 81 ,270, ,S41 II.