The Topeka state journal., 1902-07-23
WATSON MORGAN
Another Big Railroad Merger LIS
Being Formed.
1t is Designed to Include 10000
Miles of Track.
GATES is BEHIND IT.
Will Take in All Important
Roads in the South.
Connecting Chicago, the Gulf
and Southern Atlantic Cities.

New York, July 23.-Another merger
fully as sweeping in its scope as the
Northwestern is in course of formation.
requiring only the master hand of j. f.
Morgan to complete it, This new COM
bfnation is designed to effect monop-
oily of the railroad traffic between chi
cago and the gulf and lower Atlantic
cities.
gate of more than 10000 miles of track
1t will call for new securities COM
pany of probably $400,000.000 capital,
represented in stock of the different
roads, and will bring several of the
southern states within absolute grasp
OF one corporation.
1t will mean a concentration of forces,
a great reduction in the personnel of
the various roads included in the COM
bination, and, more serious than all, it
will mean, if permitted to exist an alb
solute control of the passenger and
freight rates from the lakes to the
south.
The new combination will practically
unity four direct and indirect routes
between the lake region and the south
ern coast. Various interests will be
combined in order to kill off any pOSSi-
BILE objection, and the southern states
traversed by these roads WILL unless
stirred to immediate action, find their
interests dominated by those of this
newest and greatest of combines.
This giant enterprise is the outcome
of successful precedents-this traffic
trust of the south is the outcome of a
comparatively small squeezing move
ment. 1t dates back but few months
ago to the successful effort of John W.
Gates to wrench a few millions from
August Belmont, who was short of Lou
isville & Nashville stock.
Mr.. Gates, with the same tenacity
that recently sent July corn soaring to
80, bought Louisville & Nashville until
the market jumped. Mr.. Belmont was
squeezed, according to Wall street re-
port, but Mr.. Gates found himself bur.
dened with an immense amount of
stock for which he had no immediate
use.
So, too, was his friend, Edwin Haw-
ley, western railroad magnate, who
heads what is known as the Haw1ey
syndicate. So. too. were J. P. Morgan
and others, who held between them
majority of the stock.
Louisville & Nashville had risen to 40
under the pressure of buying. Some
thing had to be done to sustain this
value. Mr.. Morgan controls the South
ern Railway company and rumors of
friendly relations between the Southern
and the Louisville & Nashville began to
help both stocks. The idea of a real
consolidation followed.
H. H. Porter controlled the stock OF
the Chicago & East Illinois railroad.
which, with the Evansville & Terre
Haute road, would give the Louisville
& Nashville an entrance to Chicago In
the effort to buy the Chicago & East
illiOio SlOch II JulupCu lTOIIl lou 10 11u
in a few weeks. Mr. Porter, realizing
the magnitude of the plans, joined the
combination and then it was realized
that the Gould-Harriman interests be-
tween Chicago and the south should not
be antagoniZed.
The Goulds bought in the ST. Louie
Southwestern road, Hartman the Hi
nois Central The Chicago, Indianapolis
& Louisville and the Evansville &, Terre
Haute would complete the list of roads
that between them control the traffic
of the richest portion of the United
States.
The first of these roads is controlled
by Morgan The merger of the Illi-
nois Central was effected through the
friendly relations of Mr.. Gates and the
Illinois Savings Bank and Trust COM
pany, of Chicago, which is trustee for
a big block of the stock of that road