The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1902-07-10
RUMORED In NEW YORK
THAT ACTUAL CONTROL OF L. &
N. WILL PASS
To the Morgan Interests on the LIST
of August-Morgan to Exercise
Options on Gates's Holdings.
Distribution Of the Stock.


According to the following New York
telegram in The Chicago hecoro-ii
r p. Morgan & Co, will. on August l,
take actual control Oh the AouisNiiie "NN
Nashville Railroad.
The Gates party is understood TO nave
engaged to put Louisville and Nashvilie
to $50. Neither the rumor OF the STOCK
going to be advanced 20 per cent
basis nj this weeks meeting nor the story
that I p. Morgan & Co., have dennlteiy
arranged to exercise their options on the
Gates holdings has been confirmed AT au-
thoritatiye sources, but these representa-
tions are made in a very posluFe inan
ner and excite more confidence than they
u,n,,,d ~ the Gates crowd on previous
occasion had not been so famousiy SUE
cessful In the Louisville and NasnViile
coup. ,o,,,s-
The Hawley-Gates holdings OF LOUIS
y;Ie and Nashville are understood 10 as
preeate about 800. 600 shares. j. +. Moi-
san e Co. are said to have an option on
ioo 600 shares at 1870 and on another lVo'Voo
shares at $50, making an average Oh l4V
for 200, 600 shares. A prominenent proher-
age house largely identified with western
transactions in the stock market IL unoer-
stood TO be carrying lOO'oOO shares VI 900 . a'o
Hawley-Gates holdings. The zoo,VVV
chores on which J. p. Morgan q Co.,
have options, together with the STOCK
already owned by Morgan interests con-
stitute an actual majority.
1t has been regarded all the while as
foregone that the Morgans would tahe
over Louisville and Nashville and' IN
deed, considering their extensive cohhee-
tiou in the railroad affairs of the SOUTH
ern country, it is difficult 10 consider now
thew could do anything else than take
this property after once having then
fingers on 1t. x.~
AS nearly as can be made out from
the statements that are being MADE IN
hehalf of j. p. Morgan & Co, no posi-
tive ARRANGEMENTS have yet been maae
to exercise these options, but 1t Is gem
erally believed that on or about august
actual control of Louisville ana NASH
Vile will pass to Morgan hands
Two railroads running into Montgom-
cry have furnished more material LOT
the LEGAL courts than probably all Oh tne
other local roads combined. These roads
are known as the Alabama Midland III
vision Of the Plant System and the
Mortgomery division of the Mobile ana
Ohio Neither of these two roads now
are what they originally were known as,
the Plant System having passed into the
hands of the Atlantic Coast Line and the
Mobile and Ohio being the property OF
tho Southern. While primarily neither
of the above roads were connected with
a big case now pending In the courts a
case that has become cause ceiepre'
yet the lawsuit grew out of the buiiolhg
of both roads.
Something over twelve years ago Major
j. w voolfolk was the head of con-
earn ignown as the Alabama Terminal
ard Improvement Company.The object OF
the company was to build a railroad from
cambridge, Ga, to Montgomery The
bonds of the company were at that time
eiIt-edeed. a number of citizens of Troy
holding some of them in return for mon
ey put in the company or for services
rendered in building the road. In the
course of time the road was completed
and finally bought by Mr.. II. B. Plant,
who made II the Alabama Midland diVis-
ion of the Plant System.
Then Major Voolfolk started In 10
build the Montgomery, Tuscaloosa ana
Memphis, now the Mobile and Ohio and
the sum of S125,000 was borrowed from
local bank Every business man of
Montgomery remembers those days-the
bank suspended and not Icing after began
the lawsuit that is still pending In the
local courts.
The suit originated In 1894 and the cur
of it at the last session of the Alabama
Supreme Court. Some three years ago
hearing was had in the chancery side
of the City Court--Hall and Farley, trus-
tees. against the Alabama Terminal and
Improvement Company ct al. was the
style of the case.
\ The trustees of the banking house that
had been hurt years before were suing
certain citizens of Troy for the amount
of the bonds that were alleged TO be
owing the Alabama Terminal and I'm
provement Company. Mr.. Scott Sayre
was appointed special judge in the case
and he decided in favor of the trustees,
the Troy people losing out
The case was appealed to the Supreme
Court. which body reversed the decision
of the lower court, the decision being
that an action in chancery dH not hold
in the case, and that the only remedy
that the trustees had was in a court of
law and not equity. An application for
rehearng OF the case was made by the
trustC es, but that also was overruled!
1t is probable that the famous case
will come up again during the October
terms of tho City Court.