New-York tribune., 1901-01-31
SOUTHERN GETS THE M. & O.
CONTROL OBTAINED THROUGH MAJOR
ITY OF GENERAL MORTGAGE BONDS.
LINE FROM ST. LOUIS AND CAIRO
TO THE GULF.


price of the securities of the Mobile and Ohio
Railroad Company was fully explained late yes
terday afternoon, when official announcement
made by Southern Railway interests that
the Southern Railway Company had secured
control of the Mobile and Ohio Railroad Com
pany through ownership of a majority Of the
general mortgage bonds The change III control
is with the entire cooperation of the stockhold-
ers The stock will receive a guarantee of per
cent for the first year, 3 per cent for the next
year and 4 per cent thereafter in perpetuity.
The deal is closed far the Mobile and Ohio
is concerned. and only awaits formal ratfca-
ton by the Southern Railway Company. The
Southern Railway Company has issued circu-
lar making the following offers to exchange its
securities for general mortgage bonds and for
stock of the Mobile and Ohio Railroad Company.
which, on before March l. 1901, shall be de-
posted either with ]. P. Morgan & Co, New
York, or J, s. Morgan & Co, London:
In exchange for general per cent mortgage
bonds of the Mobile and Ohio Railroad Company
without the March, 1901 coupon, but with all sub
sequent coupons attached so deposited in trans
Terrible form Cn case not less than majority
thereof shall be deposited) the Southern Railway
Company will issue its own collateral trust gold
bonds for the same amount, principal and interest
OF all said general mortgage bonds acquired or
owned by the Southern Railway Company ron
road Company deposited in transferable form on
before March next Gn case not less than a
have been so deposited) the Southern Railway
company VIII receive ~ tHe SAM ad stnn trust
certificates, emitting the holder to receive IN per
petuity in gold coin of the United States IN semi
annual nstalments a equal TO DIVIDENDS upon
the deposited stock from April l. 1901 at the rate
ment for the first year shall be at the rate OF per
cent and for the second year at the rate or per
cent per annum.
The Board of Directors of the Mobile and Ohio
Railroad Company yesterday recommended the
adoption of the proposition of the Southern HalI-
way Company. and its adoption is also recommend
ed bv J. p Morgan & CO.. A Iselin Co ana r
W Whitridge respectively representing interests in
the two companies j. =. Morgan & Co also an
nounce that IIp to and including March next they
win receive deposits of the general mortgage b9nds
and stock of the Mobile and ONO Raliroau runc
pany, the deposit of consider pie anoui og
having already been assured Upon EomPietDh PI, ,b %a
the specified conditions the firm Will de1vtr me
collateral trust bonds and stock tIusi C., d tuoe
of the Southern Railway COMPANY ana IN age fe Siie
issues al the New York Stock Exchange
President Samuel Spencer of the Southern
Railway Company says:
The circular addressed to the general mortgage
bondholders and the stockholders or me Mou'se @
antioD Of the proposed acquisition Of those seGur-
ties by the Southern Railway oohlanS, l, az ~ tbss
this means 9i OF the roGnL,H G0mtTUi ana
The value Of the Mobile and Ohio to the SCUM ii
Is chiefly in giving TO II II HiT' nTs IT, yauI-
from St Louis and Cairo TO the Gun. IhS ~
I,sed in Connection with those of the Southern, will
enable the southern TO develop tr.l IIuei iie
!" either Of the two lines operated separately, and
the recent acquisition by the @ % rbrnTb its
St Louis division. which are very muCh l"tsVi 1I
enable the Mobile and ohio line TO develop ousl-
ness at and from the ST Louis EatGway 70 @ an & Tn
possible with the limited terminals heretofore
The Mobile and Ohio had previously buit me
10 the edge of the birmingham coal and IRON S dlS-
entrance the southern can now furnish in the most
adequate way without further constrqGtion or hui, %
,a1c Nj "A
Mobile and Ohio property as well as the SOUTH n
Gaining an entrance into the city OF Montgomery
President Spencer expects TO start South
within a day or two and he will make a thor
ough investigation OF the Mobile and Ohio
property.
Rumors concerning the future of the Mobile
and Ohio have been actively circulated for sev-
/ eral days these reports variously ascribing to
the Southern Railway Company. the ILLINOIS
Central the Louisville and Nashville and the
Kansas City Southern the desire 10 obtain con-
troll Of the road Probably that control Will be
Of more advantage to the Southern which has
now secured it. than it would have been to any
of the other roads mentioned. For the Mobile
and Ohio has not only as President Spencer
points out direct line from St Louis, the
western terminus of the Louisville and s. Louis
division Of the Southern Railway to Mobile
where it's terminal facilities will supplement
those Of the Southern, but ii also intersects the
Southern's lines at three intervening points.
The Mobile and Ohio operates a total Of $40
miles of road. of which it 10 miles. The
main line extends from Mobile TO Cairo, ILL.,.
whence the road reaches st. Louis, 1J2 miles
by the ST. Louis and Cairo Railroad, which it
leases. The most important branch extends from
Columbus. Miss. on the main line to Montgom-
cry, Ala
The authorized capital stock of the Mobile and
Ohio is S10,OO0,OOO, of which S5.32OGoO is out
standing. The outstanding bonded Indebtedness
is $29410,GO0. OF the general mortgage per
cent bonds 50 446 coo (par value) Is issued. of a
majority of which the Southern Railway Com
pany has become the owner. That owner
ship amounts to control of the road, the
voting power on 81 967 200 of the $500 600 out
standing stock is exercised by the general mort
gage bOndholders, by virtue of the deposit in
trust under the general mortgage of the old
debentures of 1879, upon which this voting
power conferred
The general mortgage is closed last Saturday
at S9$, and have since then been steadily ad-
vancing. Yesterday they went high as 9JA
the last sale being at %. The stock of the Mo-
bile and Ohio has had similarly rapid rise
closing on Saturday at 4S. Monday at 1885,
Tuesday at 541s, and yesterday at 61 a net
gain of thirteen points in three days. Southern
Railway common stock yesterday advanced TX
per cent and the preferred q per cent
William Butler Duncan. chairman of the Board
of the Mobile and Ohio, said late yesterday
afternoon:
The Southern Railway Company has made an
10 nf Erna and hoDfic Of t,..