The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1902-04-15


er-The Coast Line and the Plant
System to Come Under it's Control.
Atlanta, Ga, April 12.-The passing
of the Louisville and Nashville system
into the hands OF the Southern railway,
as reported in New York, would leave
but two lines OF railroad in the south
western states-the Southern and the
Seaboard Air Line.
Although it has not been officially
announced, it is believed here that the
Atlantic Coast Line and the Plant sys-
tenn will soon come under the control
Of the Southern railway and that the
elimination of the deal will be "com-
munity of interest" The roads con-
trolled by the Louisville and Nashville
are the Nashville, Chattanooga and
st. Louis, the Western and Atlantic.
The Atlanta, Knoxville and Northern,
the Georgia railroad and several small
er lines in Alabama
If the merger as outlined is accom-
plished the total mileage of the lines
believed to have been acquired by the
Southern will aggregate 31,349 miles.
An interesting feature Of the situa-
ton is the part the state of Georgia
may play in the rumored combination.
The state owns the Western and At
lantic, which runs from Atlanta to
Chattanooga and is leased by the
Nashville, Chattanooga and st. Louis.
The Southern is already operating a
line between these cities. and the Cen
trail of Georgia, which is believed to be
under the control of the Southern, has
a road from Chattanooga to Griffin,
Ga.
The effect of the purchase of the
Louisville and Nashville by the South
ern is said by some to mean that at the
expiration of the present lease the
state road would be completely bottled
up, rendering It merely a local line be-
tween Atlanta 0nd Chattanooga.
When asked his opinion on the mat
ter, Governor Chandler said: II do
not think there is any danger of the
roads bottling up the state road
While railroad combinations are very
powerful they cannot cope with the
state of Georgia, for if such attempts
were made the result would be such
drastic legislation in Georgia that the
railroads would have to pay more
money than they could make on the
transaction. The railroads may at
tempt to depreciate the value of the
state road in order to get the state to
sell 1T at low price, but such an eff
fort would also fail. The people of
Georgia will protect their interests in
the matter and nobody need have any
fear on that score"
The Atlanta and Westpoint apd the
Western Railroad of Alabama, con-
stituting line from Atlanta to Selma,
Ala, will also come in under the sup
posed merger as both are controlled in
directly by the Southern and Louis
willie and Nashville.
New York, April 12.-As a result OF
several conferences held today there is
a very general conviction that contro
of the Louisville and Nashville road
has passed or will pass to the Southern
railway. Representatives of the Louis.
vile and Nashville and the Southern
roads and a member of the Gates fac.
ton were in consultation early In the
day and, later, John W. Gates wa:
closeted for almost an hour with George
w. Perkins at the office OF J. p. Nor
gan & Co.
Neither Mr.. Perkins nor Mr.. Gate.
would say what passed between them
hut it was admitted that the Louisvill,
and Nashville situation was discussed
| in its several points. \ most authori
tative report going with the recen
course of Louisville and Nashville i
substantially as follows:
Some time ago Southern railway in
terests, alarmed at the increasing
strength and prosperity of Louisvill
and Nashville, made IN offer for ma
tority interest. The offer was declined
as report has 1t, by screign holders o
Louisville and Nashville, who held IN
balance of power. Recently when Louis
vile and Nashville increased its capita
stock by $4,000, 600, Mr. Gates and hi
associates saw an opportunity I
squeeze" the insiders by buying Louis
willie in the market, and threatening
scarcity in the stock. To what exten
the Gates faction succeeded is still
matter Of conjecture. but it is nc
doubted that they were in a position t
/
Conditions seemed ripe for an attemp
to gain control of Louisville and Nash
vile and Southern railway interests, a
represented by Morgan & Co.. authc
rized the Moore Brothers to acquire a
much of the stock as possible In tn
4