The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-07-05

system ana the Baltimore and Ohio.
For the new Baltimore and Ohio as Il
solvent corporation. with ample financial
backing and an aggressive mama cement.
the b,lilding of the short Ene necessary
to furnish the Northern outlet to the
new system would he a simple matter.
AS the situation now stands. the Penn
sylvania Railroad is the neck through
which must pass all regular through raj
business between the Easterm states ana
the South. and the Baltimore and ONO
is practically shut out CT the South. Inc
Southern Railway and the Atlantic
Coast Line. which run the through trains
from the North, are the allies of the
PENNSYLVANIA Railroad.
Interests associated with john SHELTON
Williams, who heads the syndicate
which is carrying ON the consolidation
scheme. are known to favor an alliance
with the Baltimore and Ohio. There are
important New York interests i'll THIS
syndicate. lut they do not dominate it.
although they have offered to furnish all
the money needed by the syndicate
Baltimore and Richmond capitalists COR
troll the situation. and they have received
assurances that all or the bulk of the
money wanted for the plans of the syn
dicate would be Forthcoming from these
two cities.
1t is likely that the Richmond, Freder
icksburg and Potomac Railroad will take
the new system from Richmond to its
Northern connections. whether this he
the baltimore and Ohio or the Penn
sylvania. The plans of the Williams
syndicate contemplate running trains
over the new system from New York
to Tampa by January 1, 1900. and
things are being rapidly shaped mp to dc
this.
While these plans are being worked
out by the Williams syndicate the South
em Railway is also actively at work
fortifying it's position against the compe
tition this new system promises. In.
Southern is to build new line to Sa
vanmah from Columbia. AT present ii
uses the South Bound Railroad. which
however is part Of the Florida Contra
and Peninsular SYSTEM. The latter also
furnishes the Southern its Florida CON
nection and it is understood that nego
tiatiols have been under way for some
time between the Southern and the Plant
system for the turning over at Savannah
Of the Florida business of the Southern
to the Plant line which is the Savannah.
Florida and Western Railway. The At
lantic Coast Line. which now uses ting
Florida Central. will. it is said. follow
suit. Florida business has taken on
greater significance than ever before t.
railroad men as result Of the changes
in the Cuban situation and the premise
of the steady development of business
betweem this country and the West In
dies.
j. =. Norman did not turn the South
ern Railway over to the Stockholders
Saturday He took charge of it Cn July
|, 1891. under an agreement by wh1cf
he was to control the property for five
Years. At the end of that time. if the
company was paying ; per cent dividends
on its preferred stock. Mr.. Morgan anf
his associates were to turn the system
over to its stockholders. If it had mol
paid 3 per cent in any one year. he ha.
the option of holding on or letting go
as he chose.
SO far the Southern has only paid
per cent dividends on preferred stock.
But the system has grown wonderful,
IN these FIVE years 1t has expanded
from 5000 miles to almost 5000. and it.
gross earnings have grown from SIT.
Uvu.O 900 to $50 100000 n year.