Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-10-01
,. MORGAN & co. ENE
THEIR OPTION.
STOCK BROUGHT S15OA SHARE
George w. Perkins Says the Coast
Says Rights of Minority stockhoid-

NEW YORK. September 3o-tSpeciaL)
The option upon 100000 shares of Louis
vile and Nashville stock given by John
w Gates, Edwin Hawley, and their aSso-
ciates to J. Pierpont Morgan Il Co, at
the time the corner in that stock was
avertcd and good at $50 until OCTOBER
18TH was exercised to-day and EeSo-
tiations to take ever the contro! OF the
road before conveying it to the syndicate
from. which the Atlantic-Coast Line Com
pany will acquire stock were closed up.
Officers ard others of the Atlantic-Coas'
Line Company were in conference to-day.
Neither President Elliott nor Vice-Presi-
dent Walters was willing at the current
stage Of the operation to add anything
tn what has already been published about
the terms of the deal. Although certain
reports in circulation to-daJ rah 1t that
the minority holders of Louisville and
Nashville might be taken care or In
some way, bit on terms less favorable.
of course. than those obtained by the
majority, the hest information available
indicated the prola bility that the minorl-
ty would needs b. content with dividends
now paid on Louisville and Nashville
stock Mr. Morgan himself said he knew
of no provision to give this interest with
any better terms
The price to be paid by the Atlantic
Coast Line for control of the one-tlme
Belmont property it was remarked to-
day. was but s50,Goo,0Co par value Ten
million dollars cash. it was reckoned.
would be worth 4 per cent to the pur-
chasing company. Atlantic-Coast Line
railroad As fetch about 10l. The $50. Geo. 0O
of Collateral Trust 4's would also cost the
buyers per cent. The S5,oO0.oOo OF Allan
tic Coast Line stock also to be given the
syndicate will likewise cost the company
1 per cent, unless the present dividend
rate be increa sed. Altogether. the add
tiola1 fixed charges to be assumed by
buyers Of the control, even including the
dividend on stock given In part payment,
will be 100000 q year-or per cent.
on $50. O0O co., whereas the revenue to be
derived from 3O6.0oO shares of Louisville
and Nashville at per cent, Will be
81, $50 GEO a year
In what manner this expense OF $470. 000
per annum is to be met, without increas-
icg the dividend Of Louisville and Nash
vile stock, remains to be explained. 1t
may be that the alliance itself is worth
interest on more than 100000. Posi-
b,v the management may believe itself
able to turn or to attract additional,
amount of business to its own lines sufti-
Client to yield net earnings of $4,000 each
twelve months. 1t has not yet appeared
After the conference to-day a formal
transfer of property was made. J. p.
Morgan gets 100000 of the Atlantic
Goa st Line shares. amounting to s.. eO0,yl
which is part payment of the s55. 500. COO
This s1.o0O.oO0 is Morgan's compensation
for managing the syndicate.
An official statement was issued this
evening. 1t was freely said that the deal
was e1ninently satisfactory to the South
zern railway.
In announcing the close of the Louis
VILE and Nashville deal George w. Per
kins.s OF J. p. Morgan 6 Company. said
THE Atlantic Coast Line Company /.
going TO take 16, Coo sharta Of Lpulsrill,