Evening star., 1896-12-19
A RAILROAD SCOOPED
The Louisville and Nashville Gets the At
lanta and West Point.
This Will Cut the Southern on From
New Orleans-A New Road
May be Built.

The Southern Railway Company has been
scooped by the Louisville and Nashville
Railway Company out of it's most import
ant ally in Georgia, well as Its outlet
fl ON Atlanta to the south. This is the At
lanta and West Point road. The result
may be that the Southern may have to
build g. line of its own from Atlanta to Sell
ina, and thence to New Orleans, in order to
continue to have an entrance into the last
named city.
1t is also expected another result of the
deal will be that the Seaboard Air Line will
be able to run its trains from Norfolk to
New Orleans, a privilege right, as it is
claimed to be by Vice President ST. John of
the Seaboard, it has heretofore been denied
According to advices received in Wash
ington the Louisville and Nashville and the
Central of Georgia, in the latter of which
the Southern is understood to have a con-
trolling interest. have for some time been
quietly buying all the Atlanta and West
Point stock that was available but
the Louisville and Nashville has now
enough of the stock in its treasury to con-
troll the property.
May Get Mr.. Ryan's SeabOard Stock.
The same authority goes on to say that
1T is rumored on what appears to be excel
lent authority that the Louisville and
Nashville is negotiating for the purchase
of the Seaboard Air Line stock held by Mr.
Thomas F. Ryan of New York, and If this
deal Is consummated the Seaboard will
form an alliance with the Louisville and
Nashville, by which the two lines will
measure their combined strength against
the Southern railway in a struggle for
business. both freight and passenger. from
New Orleans and Atlanta to Norfolk"
1t is further rumored that If the Sea-
board forms an alliance with the Louis
vile and Nashville the Southerns project
ed road from Atlanta to Selma will be
built and will be extended through to New
Orleans, forming the outlet from Atlanta
of the Southern railway.
This would make two powerful COM
petitors for all railroad business through
out the south. state of affairs that would
be heartily welcomed by the commercial
and agricultural interests of the southern
country.
Some years ago the Louisville and Nash
vile and the Central of Georgia jointly
leased the Georgia railroad for a term Of
ninety-nine years, paying an annual rental
OF 5000 .OOO-lO per cent on the capital stock
of N,0OO.OOO. For several years the joint
lessees operated the Georgia road with lit
tie or no profit to themselves.
The Central Defaulted.
when however, the last payment Of a
years rental was due the Central default
ed. ard the Louisville and Nashville paid
| the entire amount. Later the Central raised
its share of the sum and rendered 1t to the
Louisville and Nashville. That road de-
clined. however. to accept the money and
claiming that the Central had forfeited it's
rights in the lease by default. began the
operation Of the Georgia under its own
management.
The Central does not however admit
the legality of the claim set up by the
Louisville and Nashville. and the question
as to whether or not the Central has a.
right to a voice in the management of the
Georgia will probably have to be settled in
the courts.
when the Louisville and Nashville and
Central stood together they controlled the
Atlanta and West Point. The Louisville
and Nashville held about 1850 shares of
stock in the Atle nta and West Point while
the Central held about L. 800 shares of the
same stock and the 5000 shares gave them
a controlling interest in the Atlanta and
West Point. But when the split came each
of the two lines became ambitious to get
ccLtrol of the road.
THE Louisville and Nashville had the
advantage, however. in that it already held
the larger block of stock. and when to its
original holdings was added that which has
been purchased during the last few months
by Atlanta brokers, it had enough to give it
the control of the Atlanta and West Point,
which is so much desired"
1t is stated that notwithstanding the fact
that the Louisville and Nashville has Sc
cured the Atlanta and West Point the
two managements will be maintained, al
|
for common interest.
How the Southern Could Get Even,
The Seaboard has long wanted to get into
New Orleans. If the deal now reported
pending by which the Louisville
and Nashville may get Mr.. Ryan.s
stock In the Seaboard is sue
cessfully consummated. 1t is believed that
the Seaboard will naturally be given the
advantage of the Southern over the line
of the Atlanta and West Point out of At
lanta and that the Southern will to ali
intents and purposes be cut OF from the
crescent city. Here Is where the new
Atlanta and Selma line will be useful for
the Southern. and If 1t should be built, the
Southern would have a route 16S miles
shorter than the present one between At
lanta and New Orleans.
1t Is said that New Orleans and Selma
capitalists are now making active prepara-
tions to build the new road. and this latest
move on the part of the Louisville and
Nashville WILL 1t is believed, enable the
projectors of the new line to interest New
York capitalists In their scheme.