The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-10-07
GREATER ATLANTIC COAST LINE.
fl a Great System-Growth of the
Coast Line in Twelve Months Has
Few Parallels i'm Railroad History.

the rallroad world has a more or in
terest to the east of the Mississippi
river section than the deal involving
the Louisville and Nashville system. OF
this deal and the Greater Atlantic
Coast Line hat results, the New York
Commercial says:
George W.. Perkins. of j. p. Morgan
& Co., announced today the underwrit-
ing syndicate had been formed, the
money provided, the contracts signed
and all of the arrangements practically
completed for the sale Of the controlling
interest in Louisville and Nashville TO
the Atlantic Coast Line. The Atlantic
Coast Line will purchase BOG, 900 shares
OF the Louisville and Nashville, a ma
jority OF the capital stock
THE syndicate, which will attend TO
the transfer n underwriting OF the
securities to be issued by the Atlantic
Coast Line has been formed and the
necessary capital provided. The 306,-
900 shares will be purchased al $50, a
share, involving an outlay of S45, 900, 900.
MORGAN'S PROFIT SO, OOO, 900.
In return for delivering these shares
to the Atlantic Coast Line the syndi-
cate Will receive from the company
SO, 600, 900 in cash, $35, O0O, 900 in 4 per
cent. collateral trust bonds secured by
a deposit of the Louisville and Nash
vile stock purchased, and So, 900, 900 Of
the Atlantic Coast Line stock
"Of the latter issue, it is understood,
Mr.. Morgan will receive 81, 900, 900 as his
compensation for managing the syndi-
cate. h appears to be in addition TO
the $1,000, 900 profit which the firm of
J.. P. Morgan & Co, made from the sale
of 100, 900 shares of Louisville and
Nashville stock to the syndicate OF $50
a share.
NO official information is obtainable
in regard to whether the dividend on
the stock of Louisville and Nashville. is
to be increased.
COST IS ) 1000, 900.
1T will cost the Atlantic Coast Line
$50, OO0, 900 in cash and securities to pur-
chase the BOG, 900 shares Of Louisville
and Nashville. At 4 per cent. this will
amount to $4,000, 900 a year. At the
present dividend rate of 5 per cent. the
income on the BOG, 900 shares of Louis
vile will amount to 81, $50, 900.
There is accordingly an annual de-
felt OF $4,000 if the present dividend
rate of Louisville and Nashville is not
advanced.
1.-The absorption of the Louisville and
Nashville by the Atlantic Coast Lin
creates a new railroad system, which
in mileage, earnings and situation will
be one of the most powerful and eX-
tensive in the entire country.
NEW GREAT SYSTEM.
THE total mileage of the new system
will be in excess of 10000 miles, eX-
tending from Chicago and Washington
on the north to New Orleans and Flor
ida on the south, and from the Missis-
sippii river on the west to the Atlantic
coast on the east.
Some idea of the extent to which the
intervening territory is covered may be
gained from a statement of a few of
the cities into. which the new system
will possess entrances. Among the
more prominent are the following: Chi
cago, st. Louis, Cincinnati, Memphis,
Nashville, New Orleans. Birmingham,
Montgomery, Pensacola, Atlanta.
Charleston, Jacksonville, Tampa, Sa-
vannah. August, Wilmington, Norfolk,
Richmond and Washington.
REMARKABLE GROWTH.
The creation of this system has been
at a surprisingly rapid rate. A year
ago the Atlantic Coast Line was oper-
ating only about 1900 miles of road.
Within a year it has grown into one of
the most extensive railroad systems N
the country. Last July the Savannah,
Florida and Western railway Ohe old
Plant System). which owned and con-
trolled 2,234 miles of road, was alb
sorbed.
This brought the mileage of the At
lantic Coast Line to about 1900 miles.
In addition the Atlantic Coast Line has
a half interest in the lease Of the Geor-
gia railroad (615 miles) acquired in 1000
from the Louisville and Nashville, and
a sixth interest in MISUNDERSTANDING
ton 015 miles,, purchased September,
1901.
GROSS EARNINGS ENORMOUS.
The Louisville and Nashville and its
affiliated roads have around 5.400 miles
of road. In addition the road owns Il
half interest in the Chicago, ~Indianap-
oils and Louisville, through which it
possesses a direct entrance into Chica-
go. The new system will therefore
either own or control more than 10, 700
miles of road, completely ramifying the
Great Lakes and the Gulf of Mexico
and the Mississippi river and the At
lantic ocean.
The annual gross earnings of the
different roads, included in the e
system, are nearly as large as those of
the New York Central. There have
been few parallels in the history of the
railroads of this country of such a
rapid growth in mileage as that of the
Atlantic Coast Line during the last II
months"
Mistaken Identity.
The late General John NJ. Palmer used