The Savannah morning news., 1901-01-31
MOBILE anu Ohio
NOW PART OF SOUTHERN RAILWAY
SYSTEM.
THE DEAL IS ANNOUNCED.
SOUTHERN ACQUIRES A DESIRABLE
PROPERTY.

Mobile and Ohio People Get a Good
the General Mortgage 4 Per Cent.
Bonds of the VI. a O.-StOck h OIders
Get AnnunL Dividend of Per
Cent, Except That They Get Only
3 Per Cent. the First Year and Il
Per Cent. the Second.
New York. Jan. SO.-The Southern Rail-
way Company to-day secured control OF
the Mobile and Ohio Railway Company,
The terms were briefly outlined la a state-
ment given out tonight by w. Butler
tors Of the Mobile and Ohio Railroad Com
pany. Mr.. Duncans statement follows:
"The Southern Railway Company has
offered to the holders of the bonds and
stock of the Mobile and Ohio Railroad
Company. in effect the guarantee of the
general mortgage, per cent. bonds of
the latter company, and to the stockhold-
ers. of the Mobile and Ohio Railroad Com
pany, an annual payment equal to divi-
dend OF 2 per cent. for the first year. 8
per cent. lOI tuC 6tCOtlNs dlIQ per CENT
in perpetuity thereafter"
The passing of the control of the Mo
bile and Ohio Railroad Company through
ownership of a majority of the general
mortgage bonds is complete so far as the
Mobile and Ohio Railspad Company is
concerned The deal only awaits a for
NAL ratification by the Southern Railway
Company. When Chairman Duncan was
asked tonight as to whether there was
any possibility of the arrangements fall
ing through he replied that there was no
possibility whatever. He said that so far
as any person could foresee the arrange
ments for the future control of the Mo-
bile and Ohio Railroad Company were
settled, the leading interests on both
sides having consented to the arrange
ments outlined in his statement He said
that the Board of Directors of the Mo-
bile and Ohio Railroad Company had to-
day recommended the adoption of the
proposition of the Southern Railway
Company, and that so far as he was
personally concerned, he was in favor of
the proposed plan.
President Samuel Spencer of the South
ern Railway Company, gave out the fol.
lowing statement
''The circular addressed to the general
mortgage bondholders and to the stock
holders of the Mobile and Ohio, explaint
the transaction of the proposed acquisition
of those securities by the Southern Rail
way Company, and by this means of the
control and management of the Mobile and
Ohio property.
'The Value of the Mobile and Ohio to
the Southern is chiefly in giving to IL a
direct short line from st. LOUIS and Cairo
to the Gulf" said President Duncan.
''The valuable terminals of the Mobile
and Ohio at Mobile used in connection
with those of the Southern, will enable
the Southern to develop traffic through
that port to an extent which would not
be practicable to either of the two lines
operated separately, and the recent acqui-
sition by the Southern of large and valu-
able terminals at East St, Louis through
it's st. Louis division which are very
much larger than those possessed by the
Mobile and Ohio, will enable the Mobile
and Onion line to develop business at and
from the st. Louis gateway to an extent
and in a manner that would have been
impossible with the limited terminals
heretofore available to the Mobile and
Ohio
''The Mobile and Ohio had previously
built line to the edge of the Birming-
ham coal and iron district, bur without
gaining real entrance. This entrance
the Southern can now furnish in the most
adequate way without further construc-
tion or purchase of terminals This will
materially strengthen the Mobile and
Ohio property as well as the Southern.
''The Southern will reap another adj
.E.s.4
city of Montgomery"
President Spencer expects to start
South within day or two and ne will
make a thorough investigation of the Mo-
bile and Ohio property
The circular issued by the Southern
Railway Company saps that the Southern
Railway Company offers TO exchange its
securities for general mortgage bonds and
for stocks of the Mobile and Ohio Rail-
road Company, which, on or before March
/, 1901, shall be deposited with ]. p Nor
gan & Co, New York or ]. s. Morgan &
Co., London. In exchange for general
mortgage per cent bonds of the Mobile
and Ohio Railroad Company without the
March, 1901, coupon, but with all subse-
quent coupons attached) 50 deposited in
transferable form lin case not less than
a majority thereof shall be deposited) the
Southern Railway Company will issue its
own collateral trust gold bonds for the
same amount, principal and interest, pay
able on the same dates and secured by a
pledge of all said general mortgage bonds
acquired or owned by the Southern Rail-
way Company.
For shares of stock of the Mobile and
Ohio Railroad Company, deposited in
transferable form on or before March J.,
next. Gin case not less than majority Of
the general mortgage bonds also shall
have beer so deposited, the Southern
Railway Company will receive the same,
and will make provision for the issue of
corresponding stock trust certificates, en-
titng the holder to receive In perpetuity,
in gold coin of the United States in semi
annual installments, sum squal to divl-
dends upon the deposited stock from April
/, 1901, at 1.-THE rate of per cent per an
mum, excepting that such payment for
the first year shall be at the rate OF 2
per cent, and for the second year at the
rate of per cent. per annum.