Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-08-14

NEW YORK, n. Y, Aug. 1.-THE re-
turn of J. Pierpont Morgan from abroad.
It is generally believed in Wall street, will
be followed by important developments in
the southern railroad world says the New
York World.
Mr.. Morgan's interests have become so
large In that section Of the country and
the burden of carrying the majority stock
necessary to the control of the situation
has become so heavy that even the Atlas
of the financial world feels compelled to
shift II in part to other shoulders
There is little doubt that during Mr..
Morgan's absence in Europe George w.
Perkins, the genius of the office Of ]. P.
Morgan & Co. when the head Of the firm
is away, has been at work on a plan
similar to that Of TIE Northern Securities
company for the amalgamation Of the
southern roads which Mr.. Morgan and his
friends control.
For this reason Mr.. Morgan is particu-
larly anxious to have the courts pass as
speedily as possible upon the legality of
the Northern Securities company. If the
courts declare that a corporation has the
same right as an individual to hold a
majority of the stock of several rival rail-
road corporations and control them to suit
its own policy and purposes, the virtual
amalgamation Of all the southern rail-
roads will become an easy matter.
Millions of dollars which Mr.. Morgan
has been compelled to keep tied up in the
securities of individual roads will then be
released for other purposes. A third Of
the money now invested in these proper
ties will be sufficient to retain control of
them under this plan.
Morgan Fears Southern Laws.
Having acquired possession of Louis
Vile and Nashville by exercising his OPP
ton on 10000 shares at $50, Mr.. Morgan
is now trying to arrange a method Of
harmonizing IT with the Southern railway
and his other subsidiary lines without an
tagonizing the governments of the south
ern states, nearly all of which have strin-
gent laws against the amalgamation OF
competing railroad systems.
Mr.. Morgan at the present time controls
nearly every important railroad system in
the south with the exception of Illinois
Central and Seaboard Air Line, new sys-
TEN of roads recently put together by
John Shelton williams, of Richmond Va.
For many years II was the policy of
Air. Morgan to- conflne his railroad opera
lions in the south to the territory south Of
the Ohio river and east of the Mississippi.
ne thus avoided strained relations with
Illinois Central and a number of the West
roads. which divided the late traffic with
him on favorable terms.
His unexpected acquisition Of Louisville
and Nashville and following that the joint
contract by which Louisville and Nash
VILE and Southern railway obtained con-
trol of Monon, thus gaining an entrance
into Chicago. apparently brought about an
entire reversal of policy.
It would be natural to expect, therefore
that Illinois Central would Immediately
begin a system Of reprisals upon his roads
in the south. On the contrary, UP to the
present time Illinois Central has remained
passive and by no mean unfriendly, at
least on the surface.
This lends ONE color to the>recent re-
port that +. II. Hartman and his friends
have sold out their majority holdinS in
Illinois Central in order to devote their en-
tire time and money to the development
of Union and Southern Pacific. and that
their holdings have been turned over to
John w. Gates in time. perhaps, to find
their natural resting place in the hands
of the Morgan system.
Needs Only Illinois Central.
With Illinois Central included in the
Morgan system, the great financier would
hold the entire south completely in his
control, as the opposition of Seaboard Air
Line is but feeble at the present time, al
though its sponsors are ambitious men
and daring railroad financiers.
liable to be included in the consolidation
and which may cause it to extend it's ten
tacles into the southwest in opposition to
the GOulds and possibly to the Pacific it.
self
The fact that Illinois Central has per-
mitted st. Louis and San Francisco in
which the Gates syndicate is interested,
TO purchase Chicago and Eastern Illinois
is regarded as highly significant, but stin
more significant is the fact that despite
denials a very close traffic agreement is
being arranged between St. Louis mad
San Francisco AND the Georgia Central.
which is controlled by ]. p. Morgan per-
sonally.
1t is believed. as a matter of fact, that
Mr.. Morgan really controls st. Louis and
San Francisco, and that this road with
play an important pert in his new railroad
system. which will place over 10000 miles
of railroad under direct control of ]. p.
Morgan and his friends.
Mr.. Morgan will sail from Europe next
Wednesday and his homecoming is await
ed with great interest in the financial
world.