The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1894-09-12

CHATTANOOGA, Tenn, September 81
The greatest com bination of private capi-
tai ever enlisted in one enterprise in the
United STATES is supporting the Southern
Railway Company. From thoroughly
reliable source the Times is informed that
the underwriters, as they may be term
ed. of the reorganization scheme OF the
Richmond and West Point Terminal, and
the East Tennessee, Virginia and Geor-
ria Railway companies are none other
than the Rothschilds of London and Paris
and the Vanderbilts of New York, Cor
nelins and William K.
The reorganization, as is we'll known,
was undertaken and successfully con.
summated by Drexel, Morgan d Co., OF
New York, and j. S. Morgan & Co., OF
London. These two great banking
houses interested their richest clients,
the Rothschilds and Vanderbilts. The
syndicate is really very small In num-
bers, for it is divided into four persons,
but is colossal III wealth, representing
the greatest aggregation of capital in the
world, more than half billion dollars
The Rothschilds have oae-quarter, tho
Vanderbilts one-quarter, Drexel, Morgan
g. Co, one-uuarter, and j. S. Morgan 81
Co. one. uarter. The reorganization
plan provided for thirty million dollars
of new capital, and it is this sum that the
uuartette has agreed to supply, and more
if necessary. The money is to be used
in heavier rails, new bridges, new equip
ments, terminals, extensions, etc.
The Southern Railway has now acquir-
ed in complete ownership four thousand
five hundred miles Of road, and by the
reorganization has reduced the bonded
Indebtedness from $135, 900, 030 to SOC, O,OOO,-
GOO, lust one-third, and the fixed charges
from 81, 800, 900 per annum, to S4,5Oo,0oo
saving of S3,000,000 per annum. The
bonded Indebtedness OF the road Is now
less than $40 900 per mile.
The first annual meeting Of stockhold-
ers is to be held in Richmond, Va, on
Tuesday, October Q, and bonds to the
amount of SI2O,OOO,00O on the entire
property will be authorized. Thirty
millions OF the bonds are to be used IN
Improvements. The expenditure of this
large sum of money in the South along
the line of the Southern Railway will be
far-reaching in it's effect.
There is now very little doubt that the
Southern Railway project IS simply an
extension of the Vanderbilt system into
and throughout the South. The Chesa-
peake and Ohio will, no doubt, become
Dart of the system within short time,
the Queen and Crescent system will ultl-
mateIy become part of the system, what
ever may be the immediate plans OF the
Cincinnati, Hamilton and Dayton peo-
ple. Through the Cincinnati Southern
ths Big Four, of the Vanderbilt system,
will be reached at Cincinnati. The con.
trailing stock of the Central Railroad of
Georgia is held by the Southern Rail
way. and when the property finally gets
into the hands of the security holders,
which is only question Of short time,
it will be discovered that the Rothschllds-
Vanderbilt system Is in control.
The plans of the Drexel- Morgan people
ara now 40 near fruition that it is now no
longer a matter of speculation. The
greatest railroad ombination on earth IS
near completion. twenty-five thousand
miles OF the best railroad property in
America will soon be under the control
of the Rotl hild-Varderbilt combina-
ton. 1t has been an open secret for some
months that the Rothschilds were be-
coming interested In American railroads.
While the reorganization plans OF the
Richmond Terminal and East Tennessee
give Drexel, Morgan & Co. supreme con-
troll for five years, by the expiration OF
that time it is confidently believed they
will continue the control by virtue OF the
fact that they own the controlling inter-
est.
The beginning of the Southern Railway
ia under the most favorable conditions.
While the properties have been reorgan-
lied on a basis that would enable pru-
dent management to make fixed charges
during a depressed business period, such
as the South is Just emerging from, the
prospects for business greater IN volume
than the South ever before enjoyed are
now of the most encouraging character.
The cotton crop will yield nearly y ten
million bales and the South Will not only
have enough corn for its own use, put
great surplus to sell. The general condi-
ton of the planters and farmers IN the
South was never better. Ihey were
never before so little in debt.
Factories and furnaces are resumlng IN
every direction. One order for twenty
thousand tons of pig iron has just peen
given the Tennessee Coal and Iron Com
pany by Matthew Addy u Co., OF 81.
Louis, and in consequence the Cowan
South Pittsburg furnace will also be in
blast in few days. Every factory in the
city of Chattanooga is at work and the
greatest activity is among the boiler
makers.
A very marked improvement in the
general tone of business throughout tho
South has beon apparent for some tlme.
The feeling that the South ls on tne
threshold of a great era of prosperity
seems to be daily increasing in the North
and West. Eastern banks are 1reely
offering money at low rates of interest to
their Southern correspondents and large
mercantile houses are crowding the South
with commercial travellers. The South
ern Railway has its beginning at propi-
tious timo.