The Savannah morning news., 1902-04-18
RAILROAD SITUATION IN GEORGIA.

hAlLNOAD SITUATION IN GEOHGiA.
John W. Gates raid into Wall street
and his capture of the Louisville and
Nashville Railway seems to have Gre
ated a great deas> of alarm in some
information that there is an intention
on the part of anybody to disturb the
railroad situation in Georgia.
The alarm grows out of the impress
sion that the control of the Louisville
and Nashville had passed to the South
ern. There is nothing upon which to
base an impression Of that kind,
though there were wild rumors a few
days ago that the Southern was the
real purchaser of the road.
1t is agreed now that Gates pur-
chased majority of the shares of the
Louisville and Nashville without con-
sulting any railroad system, and with
out being inspired by any one of
them. 1t may be that he thought that
he could sell the shares again at a
profit, either to the Southern or to
some other one of the railway systems
with which the Louisville and Nash
vile Is in touch.
Those in control of the Southern say
that that system does not want the
Louisville and Nashville. II it did it
is probable that it would have taken
steps to get it long ago. The fact
is that the laws of a number of states
states whose territory is tributary to
either the Southern and the Louisville
and Nashville. or to both-present in
surmountable difficulties to the merg-
ing of the two properties. The same
difficulties are in the way of the merg-
ing the Louisville and Nashville and
any other system.
1t is probable that Gates intended
to corner" the stock when he began
his raid, but had to abandon that in
tention, because having got control of
the road he could not corner its stock
without injuring the property, which
had become his own. 1t may be that
he will be able to sell the property
back to the Rothschilds from whose
control he wrested it. The Belmonts
simply represented the Rothschilds.
If Gates has to keep the property
and run it. he may find that he has
paid too much for it, thought it is
probable that he would find a way to
get his money out OF it.
1t would be a regrettable condition
of affairs If he should be compelled to
keep the property. 1t occupies such a
position that it could be made an ex-
ceedingly disturbing element in the.
railroad situation in the South and
West. And it is not improbable that
Gates would make it a disturbing ele-
ment.
Those in this state who were alarmed
by the change in the control of the
Louisville and Nashville assumed that
the Southern had become the purchaser
of it. Because ]. P. Morgan & Co.
have become the depository of Gates
shares of the Louisville and Nashville
it does not follow that the Southern
has anything to do with that road.
That banking firm has much to do
with number of roads. The Southern
is not the only road by any means in
which it is interested. The shares of
Gates We're taken to j. P. Morgan &
Co. simply because they are very con-
servative bankers and have the con-
fidence of Wall street and the public to
marked degree. What they will do
is this. They will fix the price which
the Rothschilds must pay Gates for the
control of the road if they want to
get 1t back again. In the meantime
they will see to it that the interests
of all the stockholders are protected.
The Southern Railway isn't known in
the matter at ALL