Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-20
WILL HAVE A DIRECT LINE
The Southern Railway Connection Betweea
Washington and Memphis.
Proposed Purchase of the Memphta
Of Important Interests.

The Memphis and Charleston railway will
in short time. it is announced, become
through public sale, the property OF the
Southern Railway Company. and the latter
VIII thenceforward have line of its own
from this city direct to Memphis, Tenn.
The Southern has for some time past
operated its cars over the line. but its ten
antcy has, it is understood. been threaten
ed with notice to terminate owing to the
fact that Il committee, headed by Mr. ST.
mon Borg of New York which. 1t was re-
ported, was likely to secure a majority of
the bonds of the Memphis and Charleston.
was being urged form coalition with
another railway company which Is sup
posed &c be in a certain degree ant5gonistic
to the Southern. Now, however, comes
the announcement among those Interested
that the way has been cleared for a con-
solidation of the Borg interests with these
of Morgan & Co, and the passing of the
Memphis and Charleston into the owner-
ship of the Southern.
The Anticipated Result.
The ultimate result of the disposition Of
the Memphis and Charleston road to the
Southern Railway Company will probably
be the realization of the plans of those
who secured the charter of the former
road. more than fifty years ago, which is
the construction of railway line between
Memphis, Tenn, and Charleston, S. c.
the union of the Mississippi river with the
Atianuc ocean, at one of the finest sea-
ports on the southern coast of the United
States.
The immediate effect of the ac1uirement
of the Memphis and Charleston will be TO
bring the mileage of the Southern up TO
almost 5000 miles. In the near future
many thousands, perhaps several millions,
OF dollars will be expended in putting the
road bed and equipment into perfect condi-
ton.
The main line of the Memphis and
Charleston extends from Memphis. Tenn,
TO Stevenson, Ala, 212 miles and it has
branches amounting to fifty-eight miles, a
total of $50 miles. Its trains have entrance
into and terminal facilities in Chattanooga
under an arrangement with the Nashville
and Chattanooga and st. Louis Railway
Company, whose tracks are used under
contract at a rental of 5000 per month.
The Memphis and Charleston Railroad
Company CT artered February =. 1916.
and the road was opened July 4. ISIS In
July 1892, the road went into the hands of
receivers. The company was formerly
controlled by the East Tennessee, Virginia
and Georgia Railroad Company. which is
now part of the Southern Railway Com
pany, but excluded from the modified
plan Of reorganization of the Richmond and
West Point Terminal Company, February
~. 1894
Under date of March ). 1886 a plan OF
reorganization prepared by a committee
representing the holdings Of the several
classes of q per cent bonds promul-
gated. and has since been assented to by
practically ali of the several classes of Z
per cent bonds.
Issue of Gold Bonds.
This plan provides for an issue of $500
600 first mortgage 1Oo-year gold bonds TO
bear interest, at 1 per cent per annum. for
the five years from July |. 1896. to July l,
1901; four and Il half per cent for the next
five years, and ) per cent thereafter. Also
S5,0o,Goo non-cumulative per cent in
come bonds cor preferred stock. as may be
decided. and issue of common stock
to an amount not specified in the plan. The
Tennessee lien. first mortgage and second
mortgage bonds, with coupons 10 July !,
1896. attached. will receive per share. $500
in new first mortgage bonds and 81 300 in
income bonds, while general mortgage
bonds offered in exchar ge for every
81 600 new income bonds. to the amount Of
81 800 being 81 2oo for the principal and
500 for overdue interest to July 1. lSe6.
These changes if effected will consume
81 0Ss no of the new first mortgage bonds
and Si,O0s,0N income bonds, leaving "A bal
ancc of $1.3l6,e0O Of the former, which it
is proposed to apply to the hetterment of
the property, and SrG.2rD income bonds,
which are offered to stockholders paying
assessment of 81 per share, at the rate of
$40 for every share of their holdings.
Long Term Lease.
The plan also provides for leasing the
property for ninety-nin years to the South
ern Railp ay Company, at a rental equal TO
the fixed charges of the company, and for
delivering to the Southern Railway Com
pany the entire common stock of the new
q mpany in considera ton of the guaran-
tee and release of all claims by the South
ern Railway Company against the Men,
phis and Charleston Railway Company.
MIA FORE
proceedings were begun in July, 1896 and
February IL, 1897 a decree vas issued or
dering the sale of the road within thirty
days after March 1, 1897. An appeal from
this decision granted, and the final or
der of sale was nos made until recently.
The Southern Railway Company was
chartered February 20 1894. and the COM
rany was organized June Is, 1884 On the
latter date the Richmond and Danvie
railroad was sold under foreclosure, and by
the purchase turned over to this company.
The operation of the leased and controlled
lines of the Richmond and Danville was
assumed by this company at the same time
The other lines were acquired at different
fip,aS and under various conditions