Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-06-04
An Instance Of Successful South
ern Enterprise.
BANKERS IN CONTROL
The Consolidation OF the scabonrd
Air Linc-A Mniion Dollars FOR
Whnrves-New Rival of the PENN
sylyanin, Louisville nnd Nashville
rnd tho southern Systcms-Thc
Lender in the Deal.

weston will give readers of the Virgin
ian-Pilot a correct idea OF the signili-
canoe of the recent consolidation of
railroads. planned and perfected by
Mr.. John Shelton Williams, OF Rich
mond:
For the last three years n railroad
combination has been steadily progress
ing in the South. despite the most siren
uous efforts to break ii. 1t has been
planned and carried out by Southern
fnanciers, who realized the value in
having q competing system from the
Potomac gateway 10 the heart of the
Southern States.
The nucleus Of this system was the
Savannah, Americas and Montgomery
railroad. A glance at the map OF the
Southern States in 1895 would not in
dictate that this line was of special i'm
portance. Terminating at Montgomery,
Ala, connecting with the Louisville
and Nashville, and one or two other
railroads, 1t was cut off q the little sta
ton few miles east of Savannah. and
was entirely at the mercy of tho Cen
trail of Georgia for an eastern and sea-
board terminus. A syndicate of bank
ers in Baltimore and Richmond realized
the possibility of extending this road
to Savannah. and discovered n way by
which it could be done. They obtained
control of enough of the stock and
bonds to give them a majority inter-
est, the stock being bought at very
small figure. it was considered of
very little value.
BANKERS IN CONTROL.
At the next annual meeting it de-
yeloped that the banking syndicate was
in control. The railroad which had
been in the hands Of a receiver was re-
organized as the Georgia and Alabama
railroad, and the Georgia Central Com
pany was forced to reduce it's rental OF
tracks under a threat that the other
would build Its 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 wharves
and warehouses are now being con-
Etructed at Il cost of over $l,0Q0,000 in
Savannah.
with the Georgia and Alabama Sc
cured, and arrangements made to ter
inmate it at tide water. the syndicate
turned it's attention to the Seaboard
Air Line. which for he last four years
has been the only obstacle in the plans
of ]. p. Morgan and Comapny to Sc
cure a monopoly OF the transportation
lines from the Potomac river Gouth.
ward. Readers of the "Investor" are
familiar with the bitter fight which has
been made between the Seaboard Com
pany and the Southern, backed by Nor
gan and Company.
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 4 very desirable property.
The key to the whole system is the
Seaboard and Roanoke railroad. which
gives it entrance into Norfolk and
Portsmouth, Va. 1t was only necessary
to obtain control of this road 10 carry
with it the entire system. and the syn
dicate laid its plans for this purpose.
Originally comprised OF the banking
firms of Baltimore. and John l.. Will
1iams and Sons, OF Richmond. it took
in the Baltimore Trust and Guarantee
Company, in order to secure the neceS-
sary capital to finance the big deal. Ne
gotatlOns We're conducted so quietly
that Morgan and Company and the
Southery railway discovered one morn
ing thatfthe stock in the Seaboard and
Roanoke had practically been trans
ferred to'the new owners without their
knowledge. and that the plan OF obsorb-
ing the Seaboard in the Southern sys-
tenn was at an end, at least for the
present. With the Georgia and Ala
bama the syndicate now controlled 1880
miles Of road, but there was no physical
connection between the lines.
Another railroad owned in the South
principally, Is the Florida Central and
Penihsular. which was built 4 few years
ago from Columbia, S. c., to Jackson
Vile Ind 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,
Nswberry and Laurens railroad.
Naturally the property OF the Florida
Central and Peninsular was the next
stepIn the deal. and this has been tax
n. II purchased n to
or this stock. Consequently n combina-
tion of.lines extending from the North
Carolina border to Montgomery, Ala:
and all of the South Atlantic seaports
or any consequence except Charles ton
through the principal cotton manufac-
turing districts of the Carolinas and
Georgia, and through some of the rich
est agricultural territory has been
made up, which is absolutely controlled
by Southern capital.
COMPETITOR OF PENNSYLVANIA.
But this Is only a portion of the
scheme. While the Seaboard reaches
Baltimore through its water connection
on chesapeake bay, the Baltimore
Steam Packet Company. it may be said
TO be bottled UP" so far as an all rail
line to the North is concerned. for il
must use the Atlantic Coast Line,
known TO be Il strong ally of the South
ern, to Richmond. and the Richmond,
fredericksburg and Potomac and
pennsylvania lines, north OF The Vir-
ginia capital. The Seaboard has been
gwen the small end of the deal by the
pennsylvania as to train service, ana
tne trackage for its through trains to
New York over the Pennsylvania ana
Atlantic Coast Line has been very
heavy. The Richmond Petersburg and
carolina railroad, now being construct
ed, and partly completed between Rich
mono ana q connection with the Sea