New-York tribune., 1902-08-29
2 r. DEAL IN SOUTH NEAR
Plan TO CONTINUE SOUTHERNS VoT-
ING TRUST FIVE YEARS.
CIRCULAR TO STOCKHOLDERS INDICATES
THAT BIG COMBINATION IS
CONTEMPLATED.

CONTEMPLATED.
7 Pierpont Morgan, Charles I-snier and
George F. Baker. the voting trustees of the
Southern Railway Company yesterday sent out
10 the stockholders a circular advising an ex-
tension of the voting trust for another period
Of five years. a significant argument for such
an extension is the declaration that there are
nsndng negotiations for the further develop
ment and strengthening OF the company and
other negotiations lin relation to transportation
interests in the Southern States which have an
important bearing upon the interests OF the
Southern Railway Company
This statement by Mr. Morgan and his fellow
voting trustees was taken in Wall Street yes
terday to he confirmation of the reports that
have been iTl circulation for several weeks
cerning q Southern railway merger. 1t has
been the talk Of the Street that the Louisville
and Nashville. the Southern Railway. the Sea
board and the Atlantic Coast Line were 10 be
brought under one control. The organization of
holding company. TO be known as the Southern
Securities Company. has been mentioned one
means Of centralizing control. Financiers sup
posed to be interested in the negotiations have
declined to give information. and the statement
in the circular issued yesterday was the first
acknowledgment TO come from Mr.. Morgan's
office that negotiations affecting the whole
Southern railway situation under way.
The circular sent out yesterday recites the
provisions of the voting trust Of 1S95 and adds:
On April Is 1899. the company paid semi, annual
Fl 3Ss dividend son @ Ge to be u decared payable in c
tober, shall be at the same rate. of the condi-
e t9 rod o tsreo Wi haz bsen fned and
under that agreement, unless it be extended, the
holders Of both common and preferred stock trust
certificates viii be entitled after payment of such
dividend. have certificates for stock Of the South
ern Railway Company delivered them upon sur
render Of their respective stock trust eertifca1es
therefor The certificates for actual preferred and
common stock OF the company would thus be issued
the control Of the company to be bought ana soId
from day 10 day ard rendering its policy and man
Hoisers Of large amounts Of preferred and com
non STOCK xotns trqst M Tonns @
an extension Of the voting trust agreement. and
me wishes of the stockhoiders on the subject the
hoard OF directors should postpone until rhe Sep
sT9unt Of the October dividend for it might
corseTva fively paid under a continuance OF the
existing administration the board might feel hesi-
in the control and management OF the company
should be endangered by the termination OF the me
fixing the rate Of the dividend in order that the
heir wishes regarding the continuance Of the
situation before them in reaching their conclusion
as 10 the rate of dividend 10 be declared
The events Of the last eighteen months in connec-
lion with railroad properties have revealed the
danger 70 which corporate pfopertIeS & are @ 5
The market bT purchasers not identified with the
1neTf ana IMPROVEMENT. Therefore We do not hest
yate that in opinion il Is decidedig for
ssiiEsS protect their properg by an extsnsion
Cor R 96e furter aeveiopnenf and fTeng Of
IT'S lines shall DC settled beyond any risk OF being
iiztions now pending In relation 70 trsnsporta
interests IN the Southern states Whlch nave an I'M I'M
poreant bearing upon the interests OF the Southern
Railway COMPANY e.. - .. ..t .,,.+ :,
bringing this matter the attention of the stock
nooeTs Tg Ee If P9 be sf eight Years at the
rine we have felt that under the circumstances u
20 the Stockholders themselves however. with full
What 5st-szis shsfl Be done In
The circular says it is proposed to extend the
voting trust for an additional term of five years
or until October 10 1907 and the voting rus-
tees have consented TO extend their agreement
il a ma jority in amount of the stockholders
shall assent TO the proposition. Holders OF
stock trust certificates for both preferred and
common stock Of the Southern Railway Com
pany. therefore, are asked TO present their Ger
tihcates at the Office Of J. P. Morgan & Co, on
or before September ID. and have them stamped
as asserting to the extension of the voting trust
For the information OF the stockholders the
circular says that during the present manage
rnent from October Is. 1894, 90 June 80. 1soZ'
the operated mileage of the company was in
creased from 1891 miles to 6.765 miles, and
with the increase of 2374 miles OF main track
age there was added 16S miles of second track,
spurs and sidings- The gross earnings Tor the
year ending June go 1902, are given as
So 712,24S increase of S2O,594.4o over the
gross earnings for the year ending June oo'
1895 This is an increase Of over 12o per cent
in the yearly gross earnings OF the company
For the same wears the net income above fixed
charges was 1895, ,744 I'm 1895 and S36co,S9I
this wear an increase of over 800 per cent. Ihe
circular ends with these statements:
During the same period large sums have been
expended and charged against income, 1of tIie ~
Improvement of the property and equipment ia
order TO increase the operating efhciency WIN
out adding correspondingly TO the capItai a..
count On June 30, 1902 there was standlng 10
The credit Of profit and loss S6510.S94 IS, being
the amount of accumulated net income 10 Ihe'
date on hand cash cash assets
The physical condition OF your company
property and equipment has been greaty I'M I'M
rroyed and is now in high state OF efhclehcS'
J. PIERPONT MORGAN
CHARLES LANIER.
GEORGE f BAKER.
Voting Trustees