The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-10-19
EXPECTS NO MERGER
GEN. sUPT. DENHAM LOOKS ONLY
FOR A CLOSE ALLIANCE.
OF COAST LINE AND L. & N.
DOES NOT THINK THERE WILL BE
A CONSOLIDATION.

General superintendent of the Coast
Line COncurs in the View That the
Control by That Road of the
louisville and Nashville VIII Not
Mean the Operation of the LETTER
by the Former-Letter Sent Out to
the Stockholders of the Coast Line.
Details of the Methods by Which
the Deal for Louisville and Nash
willie stock VIII BE Financed.
Few, If Any, OmciaI Changes
Looked for Here.
General Superintendent w. B. Dem
ham of the Atlantic Coast Line con-
ours in the probable course, as indi-
Gated in the Morning News yesterday,
that will be followed by the Coast Line
and the Louisville and Nashville Rail-
road, after the former has secured the
controlling interest in the stock of the
latter. AT a meeting of the stockhold-
ers Of the Coast Line Railway Com
pany, to be held in Richmond on Nov.
II, the contamination of the acquisition
Of the stock is looked for.
II think the results will be much as
indicated in the Morning News to-
day." said Mr.. Denham. 81 do not
look for any actual physical CONSOLE
dation. There will doubtless be a very
close accord between the two COM
panies, and the Coast Line may have
something to do with shaping the pol
ICY of the Luisville and Nashville. The
latter road has been very successful,
however. and I do not believe that
there will be changes made. In their
traffic relations the two lines, of
course, will be very close"
Stockholders to Meet.
A letter giving notice of the meet
ing at Richmond has been addressed
to Coast Line stockholders.
The purpose is to have the stock
holders vote upon a proposition to
increase the common stock of the COM
pany S15000,0 900. This will be in addi-
ton to the $23, 5000 now issued, max.
ing the total out $Ss, $780, 900. 1t is also
the intention to increase the bonded
Indebtedness by $35, 200, 900 collateral
trust purchase money 50-year 4 per
cent. gold bonds. In conclusion the
letter says:
"Such additional stock and bonds are
to be applied and used, as far as is
necessary, toward payment of the pur-
chase price of the 100000 shares of
stock Of the Louisville and Nashville
It is understood that the Coast Line
Railroad Company has agreed to pay
$35, 0O0,0 900 in 4 per cent. gold bonds and
SIC, 000,0 in cash for the Louisville
and Nashville in addition to the pur-
chase of the 100000 shares of stock,
which constitutes a majority. The
purpose of the issue of SIS, 000, 900 of
stock is to furnish money to make the
cash payment and to pay approximate
ly $5,0OO.000 for the stock purchased
from ]. P. Morgan & Co., of New York
1t is to consist of 10000 shares of the
par value of 500 each.
Stockholders to Have Preference.
Stockholders will be given the prefer
ence to subscribe for the new issue,
but it has not been decided at what
price the shares will be put out. The
general impression is that the price
will be fixed at $3.50 a share, though it
may be less. Common stock of the
company is now selling at $40 a share.
Practically all the preferred stock has
been bought in and Cancelled. In adj
dition TO having $23,15o 900 of common
stock outstanding, the Atlantic Coast
Line Railroad Company. since absorb
ing the Plant System, has Sc, 900, 900 of
D per cent. certificates of Indebtedness
and $7,000. 900 of 4 per cent. certificates
The Louisville and Nashville has out
sta nding stock to the amount of $780,
100000 and a funded debt of about
$l14, 900, 600.
Talk of Change in Officials,
Local views are somewhat at vari-,
ance with the following from the Balti
more Sun:
The merger Of the Louisville and
Nashville with the Coast Line win
doubtless be followed by some changes
in officials of the two roads. Slate
makers are already at work, and a.
rumor is rife that Mr.. Milton H, Smith
now president of the Louisville and
Nashville, will be made president of
the greater Coast Line system. In that
event he would succeed Mr.. Warren g.
Elliott, who is now president of the
Coast Line. 1t is said that Mr.. Smith
at one time lived in Baltimore. There
is also rumor that R. L. Kenly. now
general manager of the Coast Line. and
X. Il. Smith. assistant general man.
ager, will become general manager and
assistant, respectively, of the combined
system, and that Capt. w. B. Denham
general superintendent of the second
division of the Coast Line, will be gem
eral superintendent of both the first
and second divisions, and F. H. Fechtig
VIII be purchasing agent. Whining
ton' N. G.. 1T is said, will be made
headquarters of the new system. -
Locally, no merger is looked for and
1t Is expected that officials will remain
practically as at present