Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-09-06
ROTHSCHILDS IN IT.
The European Bankers Back Of the
Southern Railway.
vANDERBILTS ALSO PARTIES.
Greatest Railroad Combination on Earth
Its Beginning Under Favorao'e A"'
spices-The South 10 Boom'

5.-The greatest combination OF private
capital ever before enlisted in one en-
terpriss I'm the United States IS supporting
the Southern Railway Company. FROM
thoroughly reliable source the Times IS
informed that the underwriters, as they
may be termed, of the reorganization
scheme of the Richmond and West Point
Terminal and the East Tennessee, Nir-
ginla and Georgia railroad are none other
than the Eothschilds, Of London and
Paris. and the Vanderblts. Of New
York; Cornelius and William X. The re-
organization. as is well known, was un-
dertaken and successfully consummated
by Drexel, Morgan & Co., OF New York.
and ]. S Morgan & CO.. of London. These
two great bankng-houses Interested their
richest clients-the Rothschilds and the
Nanderbits.
The syndicate really IS very small in
numbers for it Is divided into four por-
tions. but Is colossal in wealth, reprerent-
ing the greatest aggregation OF capital
In the world-more than half a billion
OF dollars. The Rothschiids have one
quarter the Vanderbilts one quarter.
DreXel. Morgan ~ Co one quarter. and
}. : Morgan ~ Co. one quarter. The re-
organization plan provided for S',J'.wO
Of new capital. and 1t IS this sum that
the quartette has agreed TO supply and
more II necessary the money TO be used
I'm heavier rails. new bridges, new equip
mept terminals, extensions, etc.
The Southern railway has now acquired
IN complete ownership 400 miles OF road,
and by the reorga nization has reduced the
bonded Indebtedness from Sl35,0oc,W0 to
So. c00-just one third-and the fixed
charges from T5OO,000 per annum TO ST.
00.0OO-a saving of 100000 per annum.
The bonded Indebtedness OF tho road is
now less than $4,000 per mile.
EXPENDITURES IN THE SOUTH
The first annual meeting Of stockholders
is 10 be held in Richmond, Va, Tuesday,
October oath. and bonds 10 the amount
Of $l200O0OC0 on the entire property VIII
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 Sotthern railway project - sim
ply an extension of the Vanderbilt system
into and through the South. The Chesa-
peake and Ohio will. no doubt. become a
part of the system within short time.
and the Queen and Crescent system VIII
ultimately become part of the system,
whatever may be the immediate plans of
the Cincinnati Hamilton, and Dayton peo-
pie Through the Cincinnati Southern, the
Big Four, Of the Vanderbilt system, VIII
be reached at Cincinnati.
The controlling stock OF the Central
railroad Of Georgia is held by the South
ern railway. ana when the property gets
into the hands of the security holders,
which Is only a question Of "A short ume,
il VIII be discovered that the ROthschild-
Vanderbilt system is IN control.
The plans Of the DreXCl-MOrgan people
are now so near fruition that they are
no longer a 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 Observation-Disclosures combination. 1t
has been an open secret for some months
that the Rothschilds were becoming in
terested In American railroads. While Che
REORGANIZATION plIns Of the Richmond Ter
minal and East Tennessee give DreXel
Morgan q co. supreme control for five
years. by the expiration Of that time
It IS confidently believed that they VIII
continue the control by virtue OF the fact
that they own the controlling interest.
BUSINESS PROSPECTS.
The beginning o. the Southern railway
Is under the most favorable conditions.
While the properties have been reorgan-
iZed on n basis that would enable prudent
management to make fixed charges during
a depressed busin- IS period, such as the
South is just emerging from, the pros
uects for business greater IN volume than
The South ever before offered are now
of the most encouraging character. The
cotton crop will Yield nearly ten million
bales, ana the South VIII not only have
enough corn for its OW Ise. but great
surplus to sell. The General condition
Of the planters and farmers in the south
was never better. They were never be-
fore SO little in debt. Factories and fur-
naces are resuming In every direction
one order for 2J00O tons Of plg-iron has
iust been given the Tennessee Coal and
IRON Company by Matthew Addy y Co.,
OF St Louis, and in consequence the
Cowan furnace has been put In blast and
the South Pittsburg furnace VIII also BE-
in blast in "A few days.
Every factory in the city Of Chattanooga
in at work. and the greatest activity *
among the boiTer-makers. very marked
improvament in the general tone Of busi-
ness throughout the South has been an
parent for some time. The feeling that
the South is on the threshold of a great
era Of prosperity seems to b. daily in
creasing in the North and West East
ern banks are freely Offering money ut
low rates Of interest 10 southern cor
RESPONDENTS, and large mercantile houses
are crowding the South with commercial
travellers The Southern railway has It's
beginning at prOpitiOus time.