The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-05-28
BANKERS IN CONTROL.

/ At lHe HEAT dHlludI HlecliilsS 1t ueNtltp-
ed that the banking syndicate was i'll
control. The railroad which had been
| in the hands of a receiver was re-organ-
| lied as the Georgia and Alabama rail
road, and the Georgia Central Com
pany was forced to reduce it's rental
of tracks under threat that the other
would build it's own line into Savannah.
| This arrangement, however, was only
temporary, as within the last eight
months right of way has been secured,
and land for terminals on the water
front purchased by the new owners OF
the Georgia and Alabama, and wharvcs
and warehouses are now being construct
ed at cost of over $1,0O000O in Sal
lvannah.
With the Georgia and Alabama secur-
ed, and arrangements made to terminate
it at tide water the syndicate turned
its attention to the Seaboard Air Line,
which for the last four years has been
the only obstacle in the plans of j. l..
Morgan and Company to secure a mo-
ln0poly of the transportation lines from
the Potomac river southward. Readers
of the Investor" are familiar with the
bitter fight which has been made be-
tween the Seaboard Company and the
Southern, backed by Morgan and Com
lpany.
THE KEY TO THE SITUATION.
With terminals on Hampton Roads.
Wilmington, n. c., Baltimore and At
lanta, and reaching the best section
of the Carolinas, the Seaboard Air Line
was indeed a very desirable property
The key to the whole system is the
Seaboard and Roanoke railroad, which
gives it entrance into Norfolk and Ports
mouth, Va. 1t was only necessary to
obtain control of this road to carry with
it the entire system, and the syndicate
laid its plans for this purpose. Orig
finally comprised of the banking firms of
Middendorf, Oliver and Company of
Baltimore, and John l.. Williams and
Sons, of Richmond, it took in the Balti-
more Trust and Guarantee Company, in
order TO secure the necessary capital to
finance the big deal. Negotiations were
conducted so quietly that Morgan ana
Company and the Southern railway dis
covered one morning that the stock in
the Seaboard and Roanoke had practi-
cally been transferred to the new own
ers without their knowledge, and that
the plan of absorbing the Seaboard i'll
the Southern system was at an end, at
least for the present. With the Georgia
and Alabama the syndicate now CON
trolled 1890 miles of road but there
was no physical connection between the
lines.
Another railroad owned in the South
principally, is the Florida Central and
Peninsular, which was built few years
ago from Columbia, ;. c., to Jackson
vile and Savannah, with branches to
the more important Florida winter re-
sorts. This line connects with the
Georgia and Alabama at Savannah,
while the Seaboard enters Columbia, by
an arrangement with the Columbia,
Newberry and. Laurens railroad
Naturally the property of the Florida
Central and Peninsular was the next
step in the deal, and this has been TAX
en- The syndicate purchased a majority
of this stock. Consequently combin-
alton of lines extending from the North
Carolina border to Montgomery, Ala.
and all of the South Atlantic seaports OF
any consequence except Charleston,
through the principal cotton manurac-