The Savannah morning news., 1902-08-11

Mr.. Morgan is now on his way nome
from Europe, and his return may mean
the contamination of the scheme.
Legality of Consolidation.
One of the things which seems to
be in the way is a doubt as to the
legality of the Northern Securities
Company. If the courts declare that
a corporation has the same right as
an Individual to hold a majority of
the stock of several rival railroad cor
porations and control them to suit its
own policy and purposes, the virtual
amalgamation of all the Southern rail-
roads will become an easy matter. Mill
lions of dollars which Mr. Morgan has
been compelled to keep tied up in the
securities of individual roads will then
be released for other purposes. A third
of the money now invested in these
properties will be sufficient to retain
control of them under this plan. This
information has been CLEANED and COM
piled by the World in it's
investigation of the railroad sit
uation.
spemcer's Denial for Southern.
Another interesting view of
the situation is the interview given the
New York Herald by President Samuel
Spencer of the Southern Railway, in
which he denies some of the rumors
current for some days regarding con-
solicitations and mergers of Southern
railroads. He outlined the policy of
the Southern in regard 20 consolida-
ton, and stated very emphatically that
so far as his road is concerned it is
not interested in the acquisition of any
new railroads, and further in his judg-
ment, the mass of merger rumors
which Wall street hears daily have no
foundation in fact.
THE Southern Railroad has finished
its map he said, tersely. at is buy
ing no more railroads, nor does it pro-
pose to do so. Our road is not involved
in any consolidation, prospective or
under way, and our policy is to develop
what we have. 1t will not be CONSOLE
dated with the Louisville and Nash
vile or the Seaboard Air Line, nor is
there any proposition being considered
of such a description.
Start of the Rumors
I'm my opinion, the stories one hears
of these proposed Southern Railroad
mergers arise from the fact that Louis
Vile and Nashville has changed hands
and from the recent purchase of the
Chicago and Eastern Illinois by the St
Louis and San Francisco. Back of that
however, is the gradual establishment
of most cordial traffic arrangements
between the big Southern railroad sys-
TENS 1t is probably being appreciated
now that for at least three years the
South has had a stability of freight
rates that has not been equalled in any
other part of the United States. This
has been brought about by officials of
the various systems coming in contact
with each other, frank dealings and
candid and open discussions of difficult
ties that have arisen from time to
time.
Willing to Cooperate.
''In the Southern railroad situation.
as it now exists, l believe that all the
big systems, competitors of the South
ern, such as the Illinois Central the
Frisco, Louisville and Nashville, Sea-
board Air Line and the Atlantic Coast
Line. are willing to cooperate in es-
tablishing position of confidence
which enables the maintenance of
rates. This situation does not imply.
in my judgment, any sort of corporate
relationship between the various roads.
1t means that, instead of various roads
quarrelling, with cutting and slash
Ing of rates, an understanding will eX-
list whereby the properties will be OPP
Grated to the best advantage and pro-
fit of the stockholders. The Southern
hopes to have that understanding with
all its neighbors. no matter who they
are
President Spencer was asked to give
some specific examples of proposed
traffic relations which may result in
the Southern situation. To this he re-
piled that at all points where business
was interchanged between various lines
pleasant relations. he hoped, would
be established. Railroads." he said
''are getting to understand each other
better than they have in the past"
TO SPEND SUMNER NORTH