The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-02-16
RUMBLINGS OF THE RAIL.
THE RICHMOND TERMINAL AND
LOUISVILLE g. NASHVILLE.
What Is Believed To Be the Object of the
Big Tour OF Inspection BY the Norton
Party over the Latter System-Mis.
csllanoous Railway Intelligence.

The Birmingham correspondent OF the
st. Louis Globe Democrat says: "Will the
Richmond Terminal Company scoop the
Louisville q Nashville Railroad? This
question is now causing serious discussion
among business men, manufacturers and
railroad men in this part OF the South.
The iron manufacturers OF the Birining-
ham district are most interested in the
question, and they are going to protest
ii they find any such scoop is contempla-
ted. With the extension OF branch OF
the Central, of Georgia, to Birmingham
last year, manufacturers Of pig iron in this
district were able to put their product into
Eastern markets, because they had the
choice Of four competing lines OF railroad.
The Central RAILROAD, with water uans-
portation from Savannah, was able TO make
good rates on pig iron. This con-
dition OF affairs continued barely
long enough for the iron men
TO begin 10 fully appreciate its advantages,
when the Central was scoopedby the Rich
mOnd Terminal Company. That famous
scoop also included the Georgia Pacific
Road, the extension OF the Richmond Il
Danvillo from Atlanta 10 this city. BY
this arrangement two lines OF road, which
promised great competition for pig iron TO
the East, passed into one management,
and Of course all rate cutting was mt an
end. No important advances Of rates were
made, however, and shippers were not
much disturbed 10y the great scoop; many
OF them were cOntending that II was best,
rs IL would insure permanent rates, on
which contracts for future delivery could
bo based. The Birmingham furnaces sell
most oil their output In the West, tho prin-
cipal markets being Cincinnati, ST. Louis
aud Chicago. Tho Louisville * Nash
vile Railroad, Of course, gets the bulk
Of these shipments being the most
direct line, aud usually Offering tho
best rates. President Norton's tour
OF the Louisville * Nashville. ac-
companiod by a party OF distinguished
capitalists, including Andrew Carnegie,
Roswell l.. Flower, and Others, has caused
genuine alarm in this section. There were
rumors at the time that the Georgia Cen
trail was scoopcd, that the Richmond Term
innl wanted To control the Louisville *
Nashville, but IL was argued that the lat
ter was too big n concern 10 be easily COB
blcd up. Mr. Norton's party included
several very wealthy gentlemen who are
largely interested in the Richmond Term
inal Company. and IL WIS noticed that
they sought all the information obtainabe
nbout the output Of the various mines aud
furnaces Ia this section. OF course Mr..
Norton and his ificnds were very rcticcnt
about the real objects ol their visit 10 the
South. and declined on almost all occa-
sions 10 be interviewed. That some big
railroad deal ia the ultimate object OF the
Nashville system is very generally believed
here, and the conclusion arrived at
by various lines OF reasoning Is that the
Richmond Terminal Company IL getting
ready 10 scoop the Louisville * Nashville.
There IL no outspDkcn dissatisfaction over
the scoop Of the Georgia Central by the
Richmond Terminal, aud there has been
no material advance OF rates. The feeling
la all business circles IL that the consolila-
ton ui railroad tu,ctesis In ihe South las
noW sonc inr enough. Shippers want to
await Developments, they want 10 soc how
il IL going 10 work before any morr big
consultations are made. The South needs
morc railroads aud better ones, and the
control Of many lines of road hy ono man
Hgvmunt. II h reasonably supposed, will
prevent the building OF many new roads
aud branch lines which are needed 10 de-
yclop the vast idle resources Of the South.
ANY further efforts to consolidate the head.
ing hunk lines ni the South would greatly
rclarl the Development OF this section aud
cause u general feeling Of unolsinuss, II
not panic.