The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-09-28
Former One Of the Greatest
Systems Of Railroads in
the World
$45,9OO,OOO AMOUNT PAID
FOR CONTROLLING STOCK
Coast Line VIII Operate L. & N. In
Connection With the Recently
Acquired Plant system-Takes
Possession at Once.
: HE Atlantic Coast Line Railroad

HE Atlantic Coast Line Railroad
has gotten possession of the
Louisville and Nashville sys-
tenn and will operate the same.
The. deal was closeo in New York
yesterday by which ]. P. Morgan &
Company transferred to the Coast Line
company controlling interest in the
Louisville and Nashville. The Atlantic
Coast Line will take possession at
once and probably operate the Louis
vile and Nashville as part of its own
system.
1t will be remembered that the
Coast Line recently acquired a ma
jority interest in the Plant System and
is now operating it. With the Louis
vile and Nashville added the Atlantic
Coast Line will become in point of
mileage one of the greatest railroad
systems in the world.
B45,eoo,oo0 PAID FOR
THE BLOCK or STOCK.
New York, seSptember 27.-The situa-
tion with respect to the ultimate disposal
of the controlling interest in Louisville
and Nashville shares, now owned by ].
P. Morgan & Co., as it developed today,
was this;
7 p Morgan q, 70 annear IN have
sounded their several large correspond
ents and the principal parties in interest,
upon the project of turning over the
control to the Atlantic Coast Line, wheth-
er the Atlantic Coast Line Company Of
Connecticut, a securities-holding concern.
or to the Atlantic Coast Line Railroad
company, one of the corporations, a ma
jority of whose stock is owned by the
Connecticut company. is not certain,
though most Of the reports mention the
commissioning concern.
1t is proposed to form an intermediary
syndicate. to acquire the 100000 shares
of Louisville and Nashville owned or to
be owned by the banking firm, this being
the stock of which about 100000 shares
were bought outright from John w.
Gates, Edwin Haw1ey and Others and
for the remainder of which an option to
expire October had been gwen at $3.50
a share.
The price the syndicate is to pay is set
at $3.50 share. or s45.sOo.ooO for the
control
This syndicate is expected to deliver to
the Atlantic Coast Line company tho
whole block Of 100000 shares. In payment
the preliminary proposal is that the syn
dicate shall receive d s1o0OO,0OO In cash
(2) $35, 900 in 4 per cent collateral trust
bonds OF the Atlantic Coast Line COM
pany. secured by deposit of the Louis
vile and Nashville stock and (S) $5o0O,-
boo in Atlantic Coast Line company stock.
MORGAN PEOPLE
EXPRESS SURPRISE.
New York. September 27.-A member of
the firm of ]. P. Morgan & Co. expressed
surprise at the tone of Mr.. Williams
statement with regard to the attitude of
the Seaboard Air Line in the matter of
Louisville and Nashville and Atlantic
Coast Line negotiations. No action or
course hostile TO the Seaboard Air Line
was contemplated he said, though the
seaboard was not considered a factor
in the present negotiations.
Further than this, however, the firm of
Morgan & Co. was not prepared now
The member of the firm interviewed said
he was unable to find an explanation at
the time for Mr.. williams attitude.