The Montgomery advertiser., 1902-10-05
STOCKHOLDERS DISSATISFIED.
Minority Holders of L. 6 N. Threaten
 Proceedings.

A New York dispatch says:
 Tn the contemplated transfer of the Louisville and Nashville railway to the Atlantic Coast Line Company much dis satisfaction has sprung up among the minority stockholders, who claim that they were shown no consideration by J. P. Morgan and Company in the ne- gotiations. When Morgan announced that his firm would transfer the 102, 900 shares of the Louisville and Nashville. that representing what his firm really owned, and the 04,000 which came to it from the Gates-Hawley pool thus giving the company majority of the railroad s stock, the minority owners looked for some word which would insure them fair treatment and a consideration of their interests.
 Proceedings are threatened. it is said, by the largest holders of stock who are not included in the Morgan deal The report on Wall Street today that attor- neys had been retained to make inquiries as to the legal aspect of the case seems founded on competent authority. ' When the stockholders at their an- nual meeting of the Louisville and Nash vile adjourned without taking any &C., tion, it was generally believed to be due to a hitch in some of the details con- pected with the transfer of a majority of the stock to the new owners.
 Status is Uncrtain.
 The New York Press of October 3 said:
 Uncertainty as to the status of the minority shareholders of the Louisville and Nashville Railroad in the deal by which the control of that property is to be turned over to the Atlantic Coast Line, has caused vacllation in the mar ket price of that stock, besides giving rise to threats from certain Wall Street quarters of opposition to the deal itself.
 ''The necessary legal formalities for the transfer of 306,000 shares of Louisville and Nashville stock to the Atlantic Coast Line Company are now being worked out and it is expected that within a few days the control of this extensive rail- road system will pass to the Atlantic Coast Line interests.
 "A representative of the last mentioned interests said today that the minority stockholders of the Louisville and Nash vile would not suffer in consequence of this change in control. It is the avowed purpose of the new dominating influence to operate the Louisville and Nashville system in such manner as to secure the largest possible revenue.
 'AdVantageous connections are to be maintained with other lines and friction
  Through it's ownership of the lant Sys- tenn of Railroads the Atlantic Coast Line Company will be able. it is asserted, to give the Louisville and Nashville much Southern traffic that has heretofore been distributed in other directions. One of the Louisville and Nashville lines already connects with the Plant System in Flor ida.
 It is argued by representatives of the Atlantic Coast Line Company that effec- tive economies can be practiced by the joint operation of the Louisville and Nashville and their own system. The per centage of operating expenses to gross earnings will be materially re duced. it is claimed. in thS case of each system.
 Tt is furthermore pointed out by the Atlantic Coast Line people that the div idend rate of the Louisville and Nash vile is to remain at per cent. There Is a +acit agreement that this rate shall not be changed during the current year. If at the end of the year the new man 3,-arnent find that the earnings will jus t,fv an increased dividend. the subject, il is said. will be taken up in a liberal spirit.
 In the opinion of the Atlantic Coast ina representative. quoted herewith. th' Drascnt minority stockholders in Louis vile and Nashville will soon hav' no trouble in finding buyers for their stock in the open market at price equal tp the maximum price paid for the synvi- cate's 306, 000 shares,