The Montgomery advertiser., 1902-09-30
FUTURE OF THE L. & N.
SOON TO BE DECIDED WHO WILL CONTROL SYSTEM.
Option of ,. P. Morgan on Block of Stock Will Expirs-Atlantic Coast Line May Secure
 Controlling Interest.

October 1 will definitely decide who Is to hold the shares of Louisville and Nashville stock controlled by the Gates crowd. There is still much conjecture as to the upshot of 1t all.
 The New York Herald says:
 It 10 understood in banking circles in Wall Street, that a disposition of the Louisville and Nashville Railroad system has been made by J. P. Morgan and Co.,, by which the Atlantic Coast Line Com pany, of Connecticut, will acquire control of the great Southern system, over which one of the most famous stock market duele ever waged took place some months ago. The report reached the city yester- day from Richmond by private channels and the statement was definitely enough confirmed in high banking quarters.
 All these beliefs, which wall Street fondly entertained about the formation of . Southern Securities Company, in which the Louisville and Nashville and the Southern Railroad were to be merged. were scattered yesterday by the state- ment that the Atlantic Coast Line would turn up to be the controlling factor in the Louisville as soon as J. P. Morgan and Company exercised the option on the Louisville and Nashville stock, which is now locked up in the vaults of the big banking firm.
 Authorities familiar with the deal, which has been closed so far, as the agreements are concerned, stated that on October ]. P. Morgan and Company will announce to the ates-Hawley sym dicate that they have concluded arrange ments for a disposition of the Louisville and Nashville, and that they are prepared to take up the option of the remaining 204, 900 shares of Louisville stock.
 It will be remembered that when J. P. Morgan and Company took over the con- trol of that system from the Gates syndi- cate and the Hawley pool, which had wrested control from the Belmont bank ing house. about 3o4,ooO shares were de- livered to the Morgan firm. Arrange ments were immediately made for the payment for 10000 shares of this stock and an option was obtained on the bal- ance. Negotiable certificates were issued for the stock under option and the entire control was held in the hands of the Nor gan banking house. Since that time an interchange of options apparently has been made, for 1t is now accepted as cor rect that the Gates-Hawley element has the privilege of again obtaining control of the property in case the Morgan firm failed to effect disposition of the Louis- vile system.
 As the date of the expiration of the option draws near interest has naturally been aroused in banking quarters as to the nature of the success of the Morgan firm in effecting a disposition of the Louisville. In more than one banking house 1t was said yesterday that the At lantic Coast Line was undoubtedly the road which would exercise control of the Louisville and intimations were given that the underwriting syndicate had been formed which would guarantee the sue cess of the deal. The only statement made which might be termed authorita- tive had 1t that the preliminary arrange ments had been completed by which the Atlantic Coast Line, assisted by J. P. Morgan and Co. would acquire control of the Louisville. Whether the Southern Railroad will share in the control of the property ip the future remains to be de- termined.
 It is generally understood that the idea of a Southern Securities Company has been abandoned for the present. With those who expressed the opinion that the Atlantic Coast Line had acquired, or would soon acquire, control of the Louis- vile, the impression holds strong that the present disposition of the Louisville is a solution of the problem presented to the Morgan banking house, which had lO dhtl"th tAWS Ol tHC South In the sale of the road.
 The Atlantic Coast Line is not com pettor of the Louisville and Nashville. although it enters territory covered by the latter. In addition the Atlantic Coast Line is one of the most prosperous prop critics in the South. as was witnessed a few months ago when 1t quietly and un- ostentatiously acquired the Plant System, combination of Southern lines which was capitalized away up in the millions It's status is best determined when it is known that the stock of the Atlantic Coast Line Company, a Connecticut cor poration, is quoted at nearly 1850 shere It lately increased it's dividend to 8 per cent The dominant factor in the prop erty Is Henry Walters of Wilmington, N. c.
 The Morgan firm, 1t is now expected, will become a factor in the Atlantic Coast Line. a property In which 1t never had any interest. The effect of the present deal can therefore be appreciated when it will be seen that the entire railroad sys- tenn of the South, with the exception of the Seaboard Air Line, will be dominat- ed by interests friendly to the great Wall Street banking house.
 The four systems In the South, namely the Southern Railway. Atlantic Coast Line the Louisville and Nashville and the Seaboard Air Line have gathered into their fold all the railroads of any import ance in the South. The Southern has re- gently decided to continue the voting trust, by which the Morgan firm remains in absolute control for a period of five years more, and the deal by which the Atlantic Coast Line will acquire control of the Louisville gives the Morgan house an important. if not a dominant. inter est in the two other important systems. This leaves the Seaboard Air Line prac- tically out In the cold.
 It is a matter of common gossip that the Gates Hawley stock delivered under option to the Morgan firm. will be paid for at the rate of $15O share. Whether they will accept cash or securities of the company which may be formed to take over the Atlantic Coast Line and the Louisville Is also a matter left to be de- termined. At any rate, the closing of the Louisville deal marks the termination of the boldest stock market coup in the history of Wall Street.
 There were many who believed when the Morgan firm took the property under it's care that it was taking over a load of trouble, in view of the Northern Securi- ties muddle and the high prices fixed by the Gates Hawley syndicate before they would give up control But the Morgan house has successfully accomplished it's plan of dlsposing of the property to good advantage, and at the same time has placed the railroad situation in the South where it will be free for many years from rate disturbances.