The Savannah morning news., 1902-09-28
WILL AID SAVANNAH
CONSOLIDATION OF A. c. L. AND L. Is
N. WILL HELP.
THE DEAL A LOGICAL ONE
Is THE OPINION OF JOHN VI. EGAN,
PRESIDENT OF THE CENTRAL.

Touching at Savannah Would BE
Benefted-Au l.. a n. Freight
Routed East Probably Would Pass
Through This City-ROads Now
Touch at Two Places. Montgomery
and River JunctiOn-COI. A. r..
LmwtOn Makes Very Conservative
Comment - Much Discussion OF
Deal. Especially of Its Effect on
Southern.
The Atlantic Coast Line has secured
A controlling interest in the Louisville
and Nashville This is news that has
been received from New York. The
report says:
Authorities familiar with the deal,
which has been closed so far as the
agreements are concerned, state that
on oct J. P Morgan & Co. will an
nounce to the Gates Hawley syndicate
that they have concluded arrangements
for disposition of the Louisville and
Nashville and that they are prepared
to take up the option of the remaining
2O4, 600 shares of Louisville stock"
Mr.. John NJ. Egan, president of the
Central of Georgia, who returned yes
terday from New York, says that ru-
mors of some such a deal were in cir
culation in Wall street while he was
there, but that details We're not then
known.
The New York account of the deal
says further:
1T will he remembered that when J.
p b.o troll
of the Louisville and Nashville from
the Gates syndicate and the Hawley
pool, which had wrested control from
the Belmont banking house, about 304,
coo shares were delivered to the Nor
gan firm. Arrangements were imme-
diately made for the payment for 100,-
600 shares of this stock and an option
was obtained on the balance. Negotia-
ble certificates were issued for the
stock under option, and the entire con-
troll was held in the hands of the Nor
gan banking house. Since that time an
interchange of options apparently has
been made, for it is now accepted as
correct that the Gates Hawley element
has the privilege of again obtaining
control of the property in case the Nor
gan firm failed to effect a disposition
of the Louisville system"
Deal Would Help savannah.
Mr.. Egan was asked for his opinion
as to the effect the deal will have on
Savannah. 1t will help the port, he said,
in everyway, not only Savannah as a
city, but every transportation line that
touches the city. In explanation of this
Mr.. Egan said that it is but natural
that every road should favor the port
that gives it the longest haul and that,
therefore the freight formerly taken by
the Louisville and Nashville to Pensa-
cola, its principal terminal. and to the
other Gulf ports, will be brought to Sa-
Nannah wherever it is possible.
This does not mean, Mr.. Egan thinks,
that Pensacola, where the Louisville
and Nashville has very fine terminals,
will suffer to much extent, but merely
that most of the Louisville and Nash
Vile freight routed eastward will be
brought to Savannah via Montgomery
or River Junction, where the Louis
Vile and Nashville and the Atlantic
Coast Line touch.
The deal was logical one, Mr.. Egan
thinks, for the roads are both fine
pieces of property, are not competitors
and, combined, will have a system of
about 10000 miles, of which the Louis
Vile and Nashville now controls 1924,
according to the last obtainable fig
ures. The remaining miles are of the
Atlantic Coast Line. since the con-
solidation with the Plant System.
The Louisville and Nashville now
taps the Ohio river district of wheat
fields, but Mr.. Egan thinks that but
little of this grain will be brought
to Savannah because the Gulf ports are
so much nearer than Savannah is.
Col. A. r. Lawton, member of the
board of directors of the Central, was
also asked what, in his opinion, would
be the result of the consolidation, that
is, so far as Savannah's interests are
concerned. He hadn't heard OF the
matter before, he said, and therefore
had not given it any consideration, but
it certainly would not do this city any
harm, though if it is expected that
certain freights formerly carried to
the Gulf ports are to be brought to Sa-
vannah, it is only natural to expect
that some of the freight now brought
to Savannah will be carried to the
Gulf.
How The Southern Would stand.
There is a good deal of speculation
as to the effect this deal will have on
the Southern Railway. A comment on
this saws:
"A most interesting phase of the sit
uation in regard to the deal with the
Coast Line is THE benefits that the
Southern Railway will get. 1t is, of
course, inconceivable that j. p Nor
gan & Co. would consider any deal
without providing for their pet project,
the Southern. 1t is believed among
the best-informed railroad men that no
such a deal as the Louisville one
would have been made by j. p Nor
gan & Co. unless some form of con-
tract had passed between the Atlantic
Coast Line and the Southern Railway.
This opinion holds that such a con-
tract must have been made, but does
not expect official announcement of the
fact. The feeling against mergers in
the Southern states prohibited even Sc
rious consideration of a wholesale COM
bination and the formation of the
Southern Securities Company, such as
has been reported several times would
be the final disposition of the Louis
Vile and Nashville. For the same rea-
son the understanding between the At
lantic Coast Line and the Southern
Railway, which, it is believed, has been
reduced TO a written contract. would
be naturally kept secret. Such a con-
tract means an alliance, and thus, of
course, may, if officially admitted. stir
up antagonism. A contract of this ma
ture would naturally extend over a
long term of years"
Williams on the Deal.
President John SHELTON Williams of
the Seaboard Air Line was interviewed
in New York yesterday about the deal
a dispatch from that city says:
president John SHELTON WI
liams Of the Seaboard Air Line
Railway. in response to inquiry
10. day as 10 The effect which the pro-
posed purchase OF the Louisville and
NASHVILLE Railroad by the Atlantic