The Savannah morning news., 1902-08-07
WOULD NOT MERGE
CENTRAL RAILWAY WOULD HAVE
INDIVIDUAL MANAGEMENT.
GUARANTEE TO BoNDHoL DERS
WOULD MAKE AN ABSORBING LINE
HESITATE ABOUT MERGING.

Col. A. II. Lavvton Was Asked Yes
terday About the Report of the
Frisco System Acquiring the Gem
traI-He Knew Nothing About IL,
but said That the Rumor Was Not
n New One-Thinks Central Would
Never Have Its Management Merg-
ed with That of an Absorbing
Company, Because of the Rights of
the Income BOndhOIders-New
York Times Discusses the PrOba-
bility of the Deal.
The denial of J. P. Morgan & Co.,
of the rumor that negotiations are
pending for the acquisition by the st.
Louis and San Francisco Railroad of
the Central of Georgia, is accepted by
some of the Savannah directors of the
latter company as proof positive that
there is little, If any. basis for the
report. 1t seems a certainty that none
OF the Savannah directors knows any
thing about the reported deal, though
they admit that it might be consum-
mated without their knowledge. Pres
ident John NJ. Egan and Directors
George ]. Mills and A. r. Lawton
have all disclaimed any knowledge of
such negotiations,
''It does not follow that directors
should know anything about such me-
gotiations, if they were pending" said
Col. Lawton yesterday. 1T would
simply be a question of the acquisi-
ton of the stock of the Central Rail-
way. If the St. Louis and San Fran
cisco could buy up that, it would, of
course, have the control. There is no
way for the directors of the Central to
know whether or not the st. Louis
and San Francisco is buying Central
stock, unless it should happen that an
offer should be made them for. their
holdings.
Rumor Not a New One.
This rumor of the Frisco system
securing the Central is not new. /
heard 1t some time ago. The Frisco
has been branching out, and seems
anxious to acquire new lines. Whether
or not the Central is absorbed, believe
that 1t Will continue under an individ-
ual management. / do not think that
any company acquiring it would seek
to merge 1t with other properties. The
bonded debt of the Central seems
safeguard against that.
No company would be likely to
guarantee the payment of the interest
on the income bonds of the Central,
amounting to $4,000 per annum. The
bond holders have rights, and these
they could insist upon. do not mean
to say, however that some sort of an
arrangement with the bond holders
could not be made. 1t simply appears
that no road would care to step in and
guarantee those payments. Merged
with some other company and
operated in connection with
1t and under the same man
agement, there would be no way of
telling what the income of the Central
might be, so there is the difficulty
that would confront the controlling
company and the income bondholders.
This opinion from Col. Lawton will
be reassuring to those who may think
there Is something in the report of
the big deal. Savannahians would
greatly dislike to see the removal of
the Central Railways general offices
from this city, where they have been
since the organization of the company.
Ii the obstacle that Col. Lawton mem
tons should deter a company that
might absorb the Central from actual
consolidation, it would be viewed by
Savannahians with the utmost salts
faction.
The New York story.
The New York Times. not crediting
denials that negotiations are on. has
the following about the reported deal:
Negotiations are pending and are
understood to be rapidly nearing sue.
cessful completion by which the ST
Louis and San Francisco will come
into the control of the Central of
Georgia Railway
III these negotiations reach a sue
cessfm conclusion-and representatives
OF the main interests in the two prop
critics seemed confident yesterday that
they would-another great railroad
system will have been nodded out of
various smaller properties. a system
which among its Western competitors
Will be unique in that 1t alone will
have an outlet of it's own to the At
lantic seaboard, at the same time tap
ping all the rich grain fields of the
West and Southwest.
Even the hastiest glance at the man
demonstrates the logic of such a COM
bination. The Central of Georgia and
the Frisco connect at Birmingham.
Ala, and not mile of road will have
to be built to enable through trains
of freight or passengers to run from
Kansas City. Oklahoma and other
points in the Southwest to Savannah.
from where a new fleet of ocean
steamers will carry them to the mar
kets of Europe. The benefit from this
combination would be equally import
ant to both systems, so it was point
ed out yesterday.
Increase I'm Western Tramc.
THE increase of freight trafic over
the Central of Georgia, especially in
such commodities as cotton and iron
products from Alabama and Texas;
corn, rice, and wheat from Oklahoma,
Texas, Kansas, Missouri and other
states; packing house products from
Kansas City and Chicago, and the in
creased traffic in general merchandise,
Will, 1t is expected, add materially to
the Georgia roads earnings.
"On the other hand, an outlet to the
seaboard was considered practically vi
tai for the best interests of the Frisco
system, and 1t is intimated that il