The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-08-05
IS REACHING
FOR CENTRAL
The Frisco is After An
other Line.
SOUTHERN MAY BE In IT
Believed to Control the Gen.
trail of Georgia.
President Yoakum Of the st. Louis &
San Francisco Declines to Dis
cuss the Plans Of
His Road.
SOUTHERN MAY BE in IT

New York, Aug. 4.-GSpecial.) livery pos
tive statements were made today that
negotiations are pending for the acquisi-
ton of the Georgia Central system by
the st. Louis and San Francisco, which
last week secured the Chicago and East
ern Illinois, and which during the last
year has made notable progress In ex-
pansion.
These reports were practically confirm
ed so far as regards the statement that
negotiations with this purpose have been
under way. They are not however, COM
pleted.
Negotiations between the Frisco and
Georgia Central would be all the more
significant because of the understanding
which it implies with the Southern Rail-
way which has a large interest in the
Central, IL in fact it may not be said to
control 1t. A majority of Georgia Central
stock is believed to be trusted in the In
terest of the Southern. The Southern
could not openly own it because the laws
of Alabama and other States preclude
the ownership of a parallel road. A trus-
teesnip, however, answers every purpose
The Southern has representatives on the
Georgia Central Board, including Samuel
Spencer and Charles Steele of ]. p. Nor
gar & Co.
With Southern's Consent.
1t was stated today that If the Frisco
deal Is contaminated 1t will be with the
consent of the Southern hallway. From
the same authority a denial was obtained
of the reports of a grand merger of all
Southern railroads. He declared that the
Illinois Central and Rock Island Com
panies are not back of the Frisco in its
comprehensive program. Neither e. H.
Hartman nor the Moore Brothers have
anything to do with the plans of this ag-
gressive new system, and the Seaboard
Air Line also contemplates no alliance
with the Frisco.
If the purchase of the Central by the
ST Louis and San Fra ncisco is effected,
the problem as to who is back of the
Frisco in the purchase of the Chicago
and Eastern Illinois and other systems
will apparently have been solved. and 1t
will mean that much more traffic will be
thrown over the newly acquired lines
than the Frisco itself could give them. 1t
would presumably mean the reaching out
of the Southern Railway by southerly
route beyond the Mississippi River to
connection with many large trans-conti-
mental systems
The question was raised today as to
whether a majority of Frisco stock will
not eventually land" in the treasury of
the Southern Railway, If the program
outlined above is carried out. The South
ern could legally hold this stock since 1t
does not in any sense parallel the Frisco
but supplements it.
Negotiations have apparently not yet
gone far enough to make 1t clear in what
way the Frisco would acquire the Geor-
gia Central whether by lease or by the
issue of a collateral trust bonds against
a majority of the stock, as was done in
the cast of the Eastern Illinois. The
deal may at the last moment fall through
but the steps taken so far have been in
good faith although efforts were made
to keep it from becoming known
President B. F. Yoakum of the St Louis
and San Francisco remarked that he had
said all he cared to about the Southern
railroad situation. and he declined to dis
cuss it.