Evening star., 1896-09-26
A G r e AT SY S T E M
How the Southern Railway Company Has
Grown by Consolidation.
J. PicrpOnt MOrgan's Master Hand
chase of the Reading Road.

Chicago Railway Company, has. 1t is
stated on excellent authority. practically
made deal by which the kentucky and
Indiana bridge which connects Louisville.
KY. and New Albany. Ind, and which
is now in the hands Of receivers, will at
an early date pass into the possession OF
the three companies named.
In connection with this deal word comes
from a reliable source that the Southern
some tine ago made arrangements by
which 1t and its partners will secure con-
troll at sn early date by either a lease
or purchase OF the Monon Line, which
went into the hands of q receiver about
two weeks ago. and by this the Southern
railway will secure a line from Louisville
to Chicago. 1t is understood that the
Southern and the other railway companies
named bought some time ago $264,WO
worth of the bonds of the Kentucky and
Indiana Bridge Company. which gives them
control of the terminals at Louisville,
there being but $l36.WO of these bonds
outstanding besides those held by the above
named roads.
1t is not known whether the failure of
the Southern Railway Company to secure
the Cincinnati Southern road has had any
thing to do with this deal. but it is be-
lieved that the Southern intends to get
into Cincinnati from the south over a line
Of its own and to be independent of every
other CON pany.
The CINCINNATI southern.
AS is well known. the Southern Railway
| Company is already operating the Gin
| cinnati Southern. under the terms OF a
| lease which in the opinion of most rail-
| road men is SO high that it is impossible
| for the read to earn its present rental.
| The rent due the city Of Cincinnati for
| its southern road for the quarter ending
| July II last is still unpaid. and il it is
| not paid by October II the lease under the
| terms can be forfeited from the Southern
| Railway Company. As ii is not, SO far as
| is known. the policy of President Spencer
| to operate any of the lines of his sys-
| tenn DIT a loss unless they are absolutely
| essential to the working of his various
| lines, the impression has gotten abroad
| that the Southern would not have many
! feelings OF regret If the city Of Cincln-
| natl should demand the surrender of the
| lease. 1t Is not believed, however, that
| the lessee of the Cincinnati Southern will
| resort to such extreme measures as that,
| because there is no desire on the part OF
| the city government Of Cincinnati to op-
crate the road themselves. and there is no
| reason to believe that any other railway
\ corporation wants 1t.
The purchase at the foreclosure sale
| last week Of the Norfolk and Western
railroad by the committee of bondhoIders
| who, ii is now well known in railroad cir.
cles, represented Mr.. ]. p. Morgan. who
also. as is equally well known, has the
controlling interest In the Southern Rail-
| way Company, places the southern IN
practically Independent position so far as
its relations with the city of Cincinnati
are concerned. Through the Norfolk and
| Western It can reach Columbus. Ohio. ovel
its own line and run its trains from thai
| point to Cincinnati and Louisville ovel
lines that are to the highest degree friend
| ly to it
Bought the Reading.
Mr.. ]. P. Morgan. already told in Tht
Star, Wednesday purchased the Phla
delphia and Reading railroad and the hold
} ings of the latter. which amount to a con-
trolling interest in the Poughkeepsie bridge
| via which the Reading and several other
railway companies obtain an entrance into
. | Boston. The purchase of the Norfolk and
; Western and the Philadelphia and Read
ing by Mr.. Morgan and their practical ad
: ditions to the Southern railway system
makes the latter probably the greatest rail
way system in the world. Never before
in the history Of this country has rail
road corporation made such rapid strides
in absorbing railroads on a great scale
and there Is every reason to believe tha
, the end is not yet. 1t also proves tha
there is in New York a master hand, which
= appears to be shaping matters, which viii
result in building UP a most powerful
, competitor to the Vanderbilt lines ant
t those of the Pennsylvania Railroad Com
pany, as gradually the Morgan lines ar,
being extended in every direction.
History of the Consolidation.
great consolidation has been brought abou
Is very interesting. Less than four year
ago the old Richmond Terminal system
the predecessor of the Southern, was s.
| utterly financial wreck that its stool
| could hardly have been given away
was previous TO the time that the Rich
It mond and Danville railway went into tn
: hands OF those who were associated wit
4 Mr.. John H. Inman a good property. lik
the Georgia Central, East Tennessee Viz
e ginia and Georgia. and other southern rail
:, | roads. but being overtaken by the finan .is
= panic which prevailed in 1893 it was force
- to go into bankruptcy. 1t was then tha
Mr.: j. Pierpont Morgan, at the earnes
9 | solicitation of the majority of the securit
holders or the road. undertook to rccrgan
lie 1t. How we'll he succeeded is show
a by the fact that with the financial aid ey
II tended by him. and under the superintend
IS ence OF President Spencer. it has bee
In every paI ticular the peer of the bes
l. railroads in the United States
Rcnching Out for More.
IT The present mileage of the Southern, IL
le Guiding the Norfolk and Western, and /
,e latest addition. the Philadelphia and Rea
20 Ing, y about 1880 miles 1t is also ii is VI
A. derstood, seeking to get possession Of Il
is Memphis and Charleston road, which q
r. tends from ChattaL ooga to Memphis Ten,
IF a distance Of $40 miles; the Atlanta al
re 100 miles; the Georgia Sou hern and Florid
Of Macon. Ga. to Palatka, Fla, 2S5 mile
lie the North Carolina railroad, Goldsboro'
y Sharlotte, N C., 256 miles; the LouisviI
Southern. Louisville to Lexington, Ky, /,
VS. miles; Knoxville and Ohio. Knoxville
Jellico, Tenn, So miles; Atlantic Tenne
Of see and Ohio. A miles; Alabama Gre;
y, Southern, from Chattanooga, Tenn,
r Merfden, Miss, 344 miles: Chattanoos
L. Union AZ miles; Central of Georgia, vii
n branches, 200 miles; Cincinnati Souther
a. from Chattanooga, Tenn, to Cincinna
er Ohio. :S'o miles; Atlantic Coast Line (pra
In tically controlled by iD. 1.337 miles, lnakir
r grand total of almost 1900 miles
he This enormous system OF 1900 mil
IN forms network of lines from Wash;npt,
er to the Mississippi river and ramlfies Il
to states of Virginia, the Carolinas Georgi
of Alabama, Mississippi, Tennessee kentuck
Ohio. Pennsylvania and several OF her sta
" In the north and west.
n
We Bananas I'm Typhoid Fever.
Mt From the Chicago Inter Ocean