The Savannah morning news., 1902-04-12
MERGERS Do GOOD
COL. A. r.. LAWTON FAvORs RAIL
WAY CONSOLIDATION.
SERVE TO REDUCE RATES.
THEY MEAN BETTER SERVICE AND
BETTER RESULTS.

News of Developments in the
Plant system DeaI-COI. LawtOn
Says News That the Plant System
Had Been Secured Not Unexpected.
He Rather Thought the Southern
Would Get It-HOw He Thinks
Consultations of Railways Serve
to Better the Country Through
which Lines Run-COI. LRwtOn
GratiGed over Advance in Price OF
the Central Railways Income
Bonds.
The railroad world is on the watch
for news of developments in the Plant
System deal All railroad men want
TO know the real conditions. They
want to know whether the Atlantic
Coast Line was acting solely for itself
in acquiring the control of the Plant
System, or whether it was not really
the Pennsylvania Railroad or the
Southern Railway that, through the
Coast Line, executed the coup that has
been followed by such wide discussion.
The affairs of the Plant System are
jogging peacefully along. I'VE would
happened, said a Plant System official
yesterday, unless we had seen it in
the newspapers. We are working on
just as if there was no change in pros
peet, and 1 don't suppose any of US
are worrying very much over our pros
pects.''
Col A. r. Lawton, who is member
Of the executive board of the Central
of Georgia Railway, was asked by a
representative of the Morning News
yesterday if any information other
than that through the newspapers. had
reached him relative to the Plant Sys-
TEN deal. He replied that there had
not The announcement of the acqui-
sition of the Plant System caused him
no surprise, he said, as he had thought
all the winter that there was some
such transaction brewing.
Does Not Credit Pennsy story.
Il believed, however" said Col. Law
ton, that the Southern Railway, and
not the Coast Line, was likely to secure
the property. 1t cannot be denied, how
ever, that ii would attract the Coast
Line, for it is a connection of the Coast
Line as well as of the Southern. No,
do rot attach very much Importance
to the report that the Pennsylvania
may really be behind the Coast Line.
do not think the Pennsylvania Rail-
road would care to reach quite so EAR
south as the Plant System extends"
In view of the report that the South
ern Railway seeks to acquire control
of the Louisville and Nashville, Col
I.awton was asked for his opinion as
10 the prospect for such a deal. He
answered that he did not think such a
step likely. as the two companies have
not worked under the most harmoni-
GUS relations.
This is an age of railway consolida-
ton said Col Lawton, land / be-
lieve that it is but necessary to COM
pare railway operation and commercial
results with what was to be observed
some years ago, before the consolida-
ton movement started. to recognize
the advantages Of consolidation. Then
a broken, disjointed service was given,
for lines We're of insufficient mileage
to admit of such a service as is now
afforded.
Consultations Beneficial.
CONSULTATIONS rebound to the ben
eft of the communities they affect. A
reduction of rates results. When a
company receives freight that is to
move a long distance over it's own
cheaply than it can be handled when
it is to go a certain distance over it's
line and then be transferred to anoth-
er. For instance, if a shipment is to
be made 100 miles over one line and
20 miles further over another. the 100
mile rate would have to be paid, and
then the 20-mile rate on the other line
would have to be paid. If one COM
pany owned both lines, the 120-mile
rate would be allowed, and that is
cheaper.
ut is sometimes the case that con-
solidation helps one place and then,
in some one particular, perhaps, in
jures another. When the Middle
Georgia and Atlantic became the
property of the Central. Machen cried
out that competition was killed
while Covington welcomed the consol-
idation, because the Georgia and the
Middle Georgia and Atlantic had been
working in such close accord that
there was practically no competition
there. Eatonton complained because
cotton could be shipped, it's merchants
said, to but one port-Savannah. Yet
it was shown clearly that the consoli-
dation by the reduction of rates
meant an annual benefit to Eatonton
of 000 To offset this was the OBJ
lection that a cotton merchant could
not send a few bales of cotton to Will
mington."
Central and Union station.
Col. Lawton was asked If the Gen.
trail Railway would combine with the
Plant System, the Southern and the
Seaboard Air Line in the use of the
Savannah Union Station. He answer
ed that he did not know; that no one
knows as vet what will be done.
The upward fight of the income
bonds of the Central in the financial
market is gratifying to Col. Lawton,
as it is to all directors and officials
of the Central. Col. Lawton said that
he considers that the advance in price
is due to the increase in the CentraPs
earnings and to the improvement of
security through the extensive addi-
tions that have been and are still be-
ing made to the company's equip
ment. Out of the earnings of the
road within the last year there have
been 400 box cars purchased, at a cost
of about 100000, besides 5000, 900 worth
of new steel rails. Other additions to
equipment have been secured, and
paid for from earnings. In addi-
ton, there is the contract whereby 500
box cars will be built by the Central
of Georgia in its shops at Macon and
Savannah, bankers of New York fur
nishing the material and paying for
the labor, the cars to be turned over
to the Central upon their completion
and paid for out of earnings within
period of eight years. This arrange
ment was made in order to prevent
the cars passing under the mortgage
of the Central for a car trust com