The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-07-25
ARAnWAY CONSOLIDATION
That Means for Memphis Through
Unbroken Route to the North.

That Means for Memphis Thro ugh
Unbroken Route to the North.
The New York Financial Chronicle, in its
money article in this weeks issue, reports
that the negotiations which are reported
in progress for turning over control OF the
East Tennessee system from the Richmond
& West Point Terminal company to the
Norfolk & Western, have excited consl-
derable interest in railroad and stock
exchange circles. The change, il perfected,
will be an important one, and provided
the the terms exactcd are not too oner-
Gus, ought to be to the advantage
OF all parties concerned. The Chronicle
has always contended that the East Ten
nessee and the Norfolk d Western were
natural allies. They not only connect ut
common point, but form together con-
tinuous and direct line between the north
and the south. The action o. the Termi-
nal company in buying the East Tennessee
year and half ago was important rs a
piece OF strategy by which the Terminal
might enforce harmonious views in
auy contest with the Norfolk
x Western. OF course it was
also expected that some of the
traffic of the East Tennessee tributary to
the Norfolk d Western might be made
tributary to the Richmond Terminal.
This latter expectation has not been real
lied, and though various ingenious sugges-
tions have been made as TO the reason for
this, the simple truth appears to be that
the route proposed was not natural one,
and it would have been an act OF vio-
cnce TO have several existing ar
rangements with the Norfolk x West
ern. Ii now the Richmond Ter
mnal people should conclude that IL is
better to let the Norfolk d Western have
full possession Of the East Tennessee, and
they can get satisfactory price for their
holdings OF the first preferred stock OF the
latter 1--WE assume, OF course, that n part OF
the arrangement will be an agreement for
maintaining harmonious relations between
the Terminal and the Norfolk x Westerly
there would seem little criticism to make
upon such course. The Norfolk Il
Western has lattcrly been doing rcmarka.
bly, well; one OF our correspondents
has taken pains TO figure the earnings per
mile for the half year ended June 30, on
the los roads given in our table last week,
and he finds that, excluding the Staten
Island and the Manhattan Elevated, which
w NOhlHSi hNNN nv paw hi ohNi Noh-
parison, only the California Southern
shows larger gain in gross per mile than
the Norfolk x Western; in other words
the road has added $3.50 per mile tC
its earnings for the six months las
year, making them now 81, lI9 per mile
with q heavy aggregate anyway. and es'
pecially so us the first six months are the
poorer half OF the year. This favorabl,
result has been achieved almost entirel,
on the local business With the uncer
tainty rs TO the relations with the Eas
Tennessee removed, the company woult
be in position TO develop also the rougl
traffic. The East Tennessee, 1t should b,
remembered, controls both the Memphis
Charleston and the Mobile x birmingham
md the Norfolk 4 Western has hold OF
the Shenandoah Valley. Hence q unioI
OF these roads would form n system ex
tending from Norfolk, Va, and Hagers
town. Md, down to the Gulf Of Mexico il
one direction and TO Memphis on the Mis-
sissippi in the other, making a combine n
once compact and comprehensive-some
thing more than merely vast aggregat
of mileage.