Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-09-29
WAR OVER LIZ \, SALE
Pres, Williams of Seaboard Air
Line Makes Threats.
NEUTRALITY-SUSPICIOUS.
PRESENT TRAFFIC AGREEMENTS
MUST BE CONTINUED.
How the Deal is to Be Financed-Im-
mense Profit to j. P.
Morgan & Co.
NEUTRALITY-SUSPICIOUS.

A railroad war In the south. This is what
IS threatened as possible outcome of the
transfer of the Louisville and Nashville
road to the Atlantic Coast Line manage
ment a transaction which Is now being
put through.
This threat Is made in no uncertain terms
by John Shelton Williams. president of the
Seaboard Air Line, in a statement just is
sued by him. Mr.. Williams says that I'M
less the present Interchange of business be-
tween his road and the Louisville and
Nashville is continued under the new deal
the lines of the latter will be paralleled. He
adds by way of comment that this can be
done for less than one-half the cost per
mile that the Atlantic Coast Line will pay
for the stock of the Louisville and Nash
willie. In this statement Mr.. Williams says:
Effect of Sale.
whether the purchase Of a controlling
interest in the Louisville and Nashville by
the Atlantic Coast Line railway will prove
a profitable and valuable acquisition. or
whether it will prove unfortunate for both,
will depend entirely upon the policy which
shall be pursued by the new owners.
IF the lines of the Louisville and Nash
vile system are held open for the inter-
change of business on fair and reciprocal
basis with all connections, without I'M
friendly Determinations the union of these
two important systems may be made ad-
Vantageous to both, but If an attempt is
made to interfere with the free interchange
of business between the Louisville and It's
present connections such q policy will be
followed in due course by the construction
of railroads into the Louisville and
Nashvilles territory and the building OF
additional mileage throughout the south.
Such additional mileage can undoubtedly be
built for less than one-haf the cost per
mile of Louisville and Nashville. figured on
the basis which, it is stated, has been paid
for its stock~
81 assume however, that the friendly re-
lations which have heretofore existed be-
tween the Louisville and Nashville railroad
and its several connections will not be in
terrupted. 1t is certainly the desire of the
Seaboard Air Line to maintain cordial rela-
lions with both allies and competitors.
Reported Secret Arrangement.
'1 do not know what arrangements were
made behalf of the Southern railway
with the owners of the Atlantic Coast Line
IN connection with the sale of the Louisville
and Nashville to the Coast Line interests,
nor do l know whether there is any truth
in the report which has reached me to the
effect that a secret offensive and defensive
alliance has been entered into between the
Southern railway and the Atlantic Coast
Line, covering a period of years.
1T is certain. however. that nothing has
been done and nothing will be done which
VIII effect adversely the earnings and bust
ness of the SeabOard Air Line system The
lines of this system now ramify seven
southern states, extending from Baltimore.
in the north, to the southern limits of
Florida. in the SOUTH and to Montgomery
and Birmingham, Ala. in the southwest.
The business of the system at the present
time is limited only by Its capacity to move
the freight which is offered to it, and these
conditions will not be interfered with by
any action of connecting lines
The Louisville deal is rendered particu-
larry interesting to Mr.. Williams and his
Seaboard Air Line from the fact that his
direct connection with the west has been
the Louisville and Nashville. Mr.. Williams
has for years, to use Wall street phrase,
'buCked" Mr.. Morgan persistently and ag-
excessively in his fight against the Southern.
Now that the Louisville has come under
Mr.. Morgan's control there Is a possibility
and a strong probability, that business
which the Louisville formerly gave the Sea-
board Air Line will necessarily be given to
the Atlantic Coast Line, the concern which,
il Mr.. Morgan's deal goes through, will
own the Louisville. In addition, as Mr.
Williams has heard. 1t is only reasonable to
assume that the three Morgan roads. which
will now include the Atlantic Coast Line
the Southern railway and the Louisville and
Nashville. will work together to the detrl-
ment OF the Williams road, the Seaboard
Air Line.
Details of Plan.
II Is understood that the transfer of the
Louisville and Nashville to the Atlantic
Coast Lire Company has as yet progressed
no further than a tentative offer. The
formation of a syndicate to underwrite the
transfer is said 10 be one of the steps which
Is now being taken by the banking firm of
). 7. Morgan & Company. This syndicate,
IL formed, would take over at $50 the en-
tire $4,000 shares of Louisville and Nash
Vile stock which ]. p. Morgan will own
after October l, under the terms of the
option he now holds. This amount of stock
carries with 1t the control of the Louisville
and Nashville road, the total issue of
the stock of that company Is 600 900 shares
Morgan & a n
shares of this stock al present and to have
purchased it DIT average price of 1870 a
share.
The proposition which has been submitted
TO the Atlantic Coast Line people requires
them to pay for the 36D,tsn shares of stock
which is to be transferred to them as fol-
lows: slO,00D.oo0 in cash: 800 900 in At.
iantic Coast Line stock which. on an esti-
mated vahe of ITO, would be worth
IS 10000.
The remainder. So OCT, 900. is to be maid
In per cent collateral trust bonds of the
Atlantic Coast Line Company, secured by
deposits of the l.. and n. stock These
bonds. il is estima ted, would sell at o. the
issue thus representing S33. $50 900 and MAX
ing a grand total for the control of the L.
and n. property OF S31 80. 600 The differ
enoe between this amount and the $4,000
600 which, under the present option, the
3o6ooo shares OF the L. and n stock will
cost the Morgan people. is regarded as
quite satisfactory profit for the engineer
ing OF the deal
1t is understood that an offer of the trans
Ter OF the l.. and n. made to the Sea-
BOARD Air Line some time ago at a certain
price and was declined In the present Of
Ter 10 the Atlantic Coast Line the minority
stockholders have not been considered in
any way, and opposition to the deal ON
aneir part Is said to be certain and deter