The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-11-06


minal that cannot fail to find many inter-
ested readers in Memphis
The announcement yesterday that the
Richmond & Danville Company was nego-
thting for the purchase OF the Atlantic
Coast line dispelled all doubts as to the
intimate purposes OF the men who are con-
dncting the most colossal scheme OF rail-
pad consolidation Of the present decade.
a consolidation Of railroads east Of the
mississippi River and south Of Mason and
Dixon's line is aimed at, and as a railroad
,nan tersely expressed it yesterday, their
success is only matter Of dollars and
cents, " unless, indeed, thela steps in and
forbids the proposed consolidation.
Not only have overtures been made to
the Atlantic Coast Line people, but to the
owners OF the Norfolk q Western, Sea-
board &Roanoke, Louisville 4 Nashville,
the Cincinnati Southern, otherwise known
rs the Queen & Crescent routes, and
the Erlanger systems aud the Plant roads
(~~ e all been approached. BY the con-
aoi OF these routes the whole railroad sys-
TEN in the area bounded by the Ohio and
Potomac Rivers, the Atlantic Ocean, Gulf
OF Mexico and the Mississippi River will
fall into the grasp Of one set OF men, who
will control the railroad and industrial fu-
ture Of the late Coniederacy.
The scheme is 10y no means new one.
Two years ago. when the stockholders OF
the Richmond Terminal Company called
Alfred Sully TO the presidency, he devised
the plan which is now being carried out by
the men who have succeeded him aud his
friends in the Terminal directory. The
only difference is that Mr.. Sully would
probably have used different methods in
bringing about the same result. That his
plan was feasible, the success OF the pres
ent Terminal directors has demonstrated
beyond doubt. ii the whole project is car.
ried through, the Richmond Terminal
Company will control upward OF 1900
miles Of railroad, besides steamship lines
TO all the important North Atlantic ports
and a steamship line 10 Cuba.
The Atlantic Coast line, which the
Terminal is making efforts 10 capture, is
an aggregation OF small railroads extend
ing from Quantico, Va, on the north 70
Savannah, passing through Richmond,
Wilmington, Charleston and Columbia,
and operating several small roads reaching
into the interior. II consists Of more than
500 miles Of railroad, and connects on the
south with the Plant system in Florida
The roads composing II are the Rich
moud, Fredericksburg q Potomac the
Richmond & Petersburg, the Wilmington
d Weldon, the Northeastern Of South
Carolina and the Charleston & Savannah.
These roads are over 900 miles long The
connecting link between them is traffic
contract providing tina, all the roads shall
be considered ~ one line in the transport
talion Of through freight and passengers,
-sgross receipts TO be pr0ratcd, but each
| line 20 retain for itself the local business
OF It's road.
4 more powerful factor, however, in
bringing about harmony in operation is
the fact that all the roads arc owned prac.
| ticilly by the same people. W. T. Wal
| tiers, Of Baltimore, Of peach.blow vase
fame, Is q director and large stakeholder In
| al the companies. II. Walters, Of the
same city, j. director in one or two. a. is
nlso D. T. Newcomer Moncure Robinson,
| Jr., OF this city, Is a director Of the Rich
mond, fredericksburg < Potomac, and J.
r. Brnton, Of this city, is President Of the
same company. II these five men agree
10 sell 10 the Terminal their holdings aud
| those which they can control, the tansac.
ton Il accomplished. There will be no
need OF consulting other stockholders.
| The capital stock OF the four roads is about
F h., 10000, aud the bonded debt is about
| 100000. II the Terminal people offer
| enough Tor the property there IL little
| doubt they will get IL.
There is but one way 10 pay for pur-
chased property known TO the Terminal
. people, and that Is 20 issue obligations
agninst thesccuriiies acquired. They never
. pay cash. Just ~ long "a the sellers are
content 10 accept collateral trust bonds Sc
cured by the stocks they have issued, just
50 long will the Terminal directors issue
them. The affairs Of the Terminal Com
| pany form a wonderful conglomcaiion Of
bonds, preferred ard common stocks, coli
lateral trust loans. debenture issues. traffic
conirncts-all forms OF securities, but very
little money, and the accounts are becom.
Ing more complicated every day.
Warning nolcs that the Terminal direct.
on ac going too fast are alpady heard.
II is openly charged that speculative mo-
tivcs. aud not a desire 10 improve their
property by recognized business methods,
arc at the bottom OF the deals that have
~~j been made. A prominent railroad
man, speaking Of the recent deals, said
yesterday that some Of the Terminal IL
Tccions are largo holders OF Fast Tcnncs ~
bonds, aud the lease OF the company "a
the Richmond & Danvillc, Whichsguaran
ties the Interest. has materially advanced
the market value OF the East Tennessee
bonds. some Of the directors, however
had few East Tennessee securities, bu
were interested In the Georgia Ccntm
Railroad.
The Terminal therefore bought a ma
jority Of the Georgia Central stock NJ !
price that even the holders hardly cx.
| pccicd would bc paid. There were siill 4
. lew who had made nothing 10 speak Of,
and 10 a lease u the Knoxville < Ohio
Railroad 70 the East Tennessee WIS agreed
upon. This was hardly necessary, % th,
last Tennessee owns nearly all the stock
Of the Knoxville & Ohio. but Il improve,
the value oi the bonds Of the road, whicl
were held by parties interested. one OF
two Terminal dipcton are also siockhold
en- Ia the Mann Boudoir Car Company
and they have been trying Tor n long tim,
20 get H. cans introduced upon Southern
roads. A. about everybody else had ben
Gifted by the various deals that hal been
/ perfected, Il was considered only fair tia
all should have a chance, aud - a con
tract was made by which the Mann car
are 20 be- run all through the South.
With the purchase Of the Atlantic Coas
| Line the Terminal will have absolute con
troll 81 all the roads east Of the Allegheny
Mountain chain. II only remains iol
them 10 secure the Louisville * Nashville
with mileage Of 5000 miles. and ~,
Queen & Crescent system, 100 mile