The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1894-09-06
| GIGANTIC RAILROAD DEAL.
Greatest Combination of Private
Capital Ever Gotten Together.
The Vanderbilts and Rothsohilds Are In
It-They Own the Southern Railway
Company and Will Soon Control TO-
900 Miles OF the Best Railroad Prop
erty In America.

ever before enlisted in one enterprise in
the United States is supporting the
Southern Railway Company. From a
thoroughly reliable source the Times ia
informed that the underwriters, as they
may be termed, OF the reorganization
scheme of the Richmond and West Point
Terminal and the East Tennessee, Vir-
ginia and Georgia Railroad Company
are none other than the Rothschilds, of
London and Paris, and the Vanderbilts,
of New York-Cornelius and William K.
The reorganization, as is we'll known,
was undertaken and successfully con-
sumated by Drexel, Morgan & 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 really is very small in num-
bers, for it Is divided into four persons,
but is colossal in wealth, representing
the greatest aggregation Of capital in
the world, more than half billion OF
dollars. The Rothschilds have one
quarter, the Wander bilts one quarter,
Drexel. Morgan Sc Co.. one-quarter, and
.. mOEBdu cS OOs QuarL6r.
The reorganization plan provided for
100000, 900 OF new capital, and it is this
sum that the quartette has agreed to
supply and more If necessary. The
money is to be used in heavier rails, new
bridges, new equipment, terminals, ex-
tensions, etc. The Southern Railway
Company has now acquired, in complete
ownership, 4.500 miles OF road, and by
the reorganization has reduced the
bonded Indebtedness from S135, 900, 600
to 500, OOO 600, just one third, and the
fixed charges from $500, 900 per annum
to S4,5O0,oOO, saving of 5000, 600 per
annum. The bonded Indebtedness of
the road ia now less than $40, 900 per
mile.
The first annual meeting of stockhold-
ers is to be held in Richmond, Va,
Tuesday, October "a, and bonds to the
amount of Sl2o,oOo,0OO on the entire
property will be authorized. Thirty
millions of the bonds are to be used in
i'm provements. The expenditure of this
large sum of money in the South along
the line OF the Southern railway will be
far reaching in its effect.
There is now very little doubt that
the Southern railway project is simply
an extension of the Vanderbilt system
into and through the South. The Ches.
apeake and Ohio will no doubt become
a part of the system within a short time
and the Queen and Crescent system will
ultimately become part Of the system
whatever may be the immediate plans
Of the Cincinnati, Hamilton and Dayton
people.
Through the Cincinnati Southern the
Big Four OF the Vanderbilt system will
be reached at Cincinnati. The control
linn ~ o1,fr -
Georgia is held by the Southern Railway
Company. and when the property gets
into the hands of the security holders,
only question OF a short time, it will
be discovered that the Rothschilds-
Vanderbilt system Is in control. The
plans Of the Drexel- Morgan people are
now so near fruition that they are now
no longer matter of speculation.
The greatest railroad combination on
earth is near completion. Twenty FIVE
thousand miles of the best railroad
property in America will soon be under
The control OF the Rothschilds- Wander
bilt combination. 1t has been an open
secret for some months that the Roths.
childs were becoming interested in
American securities, while the reorgani-
cation plans of the Richmond Terminal
and East Tennessee give Drexel, Nor
OIL ~ W. q plSh6 COHbTOl IOr i've
years. BY the expiration OF that time,
1t Is confidently believed that they will
continue the control by virtue of the
fact that they own the controlling in
terest
The beginning OF the Southern rail-
way Is under the most favorable con.
ditions. While the properties have been
reorganized on basis that would enable
prudent management to make fixed
charges during depressed business
periods, such as the South is just emer.
ging from, the prospects for business
greater than the South ever before
offered are now Of the most encouraging
character. The cotton crop will yield
nearly ten million bales, and the South
will not only have enough corn for it's
own use, but great surplus to sell.
The general condition of the planters
and farmers in the South was never
better. They were never before 80 little
in debt.
Factories and furnaces are resuming
in every direction. One order for 20, 600
tons of pig iron has just been given the
Tennessee Coal and Iron Com pany by
Matthew Addy & Co., Of st. Louis, and
in consequence the Cowan furnace has
been put in blast and the South Pitts.
burg furnace will also be in blast in q
few days. Every factory in the city of
Chattanooga is atwork. and the greatest
activity Is among the boiler makers.
A very marked improvement in the
general tone of business throughout the
South has been apparent for some time.
The feeling that the South is on the
thre shold OF great era of prosperity
seems to be daily increasing in the
North and West Eastern banks are
freely Offering money at low rates of in
terest to their Southern correspondents