The Birmingham age-herald., 1903-09-03
, RAILROAD WORLD.


 The New York Commercial says: It developed today that the Atlantic Coast Line has recently increased It's holdings of Louisville and Nashville, and that 1t now controls close to 70 per cent of the capital stock of that company. It is not known what price was paid by the Att lantic Coast Line for the additional Louisville stock acquired, but it is under stood that all of it has been purchased in the open market during the last few months.
 As Louisville and Nashville Is now sell ing around 106 and it recently sold below par the average cost of the stock to the Atlantic Coast Line is probably about sl02 or s103 a share. Last summer the Atlantic Coast Line purchased the con- trolling interest in Louisville and Nash vile from J. P. Morgan & Go.
 A few months before this firm had taken an option on the controlling inter est in the company from John w. Gates and Edwin Hawley. who had purchased a majority of the capital stock of Louis vile and Nashville in the open market. The 3O6,OOO shares of Louisville and Nash vile representing the controlling inter- est was sold to the Atlantic Coast Line. It was estimated that the syndicate formed by J. P. Morgan, to acquire an option on the 3O6,0O0 shares of Louisville stock from Gates and Hawley and sell them to the Atlantic Coast Line, made a profit of s6,000,0OO on the transaction. For these 306O0O shares tt- Atlantic Coast Line paid s1O,OOOO0O in cash. sS5,- 000,000 in per cent bonds, and s5,O00,O00 in Atlantic Coast Line stock. This was generally considered at the time an ex- tremely high price. Taking the bon1s at par and the stock at 142, the total market value of the securities and cash was equivalent to more than s17O share for the Louisville stock.
 As a result of the high price paid by the Atlantic Coast Line for the controlling interest in Louisville and Nashville. the company has had to face deficit on the investment, the dividends received on the Louisville stock not being sufficient to meet the interest and dividends on the bonds and stock which were issued in payment
 It is understood that this was one of the conditions which influenced the At lantic Coast Line to add to its holdings of Louisville and Nashville. By purchas- ing additional stock around par the com pany has greatly reduced the average cost of it's holdings of Louisville, and the investment is now practically self-sustain- ing.
 There have been many wild reports within the last few days concerning the Seaboard Air Line deal.
 An evening paper of Tuesday published a report coming from Norfolk to the ef- feet that there had been no merger of the Seaboard; that the Rock Island had not acquired control of the property, and that John Skelton Williams would continue at the head of the road.
 This would have been very interesting had it been true. but unfortunately for the interest of the story MT. Williams has repeatedly. within the last week. stated that the control of the road has passed out of his hands. But 1t is un- derstood that MT. Williams will continue to be president of the Seaboard Work on the Seaboard's connecting link between Birmingham and Coal City. and its work between Rockmart, Ga., and Att lanta is being pushed steadily. About 5000 men are now employed by the con- tractors. It is thought that the track be- tween Birmingham and Coal City will he completed early next year, but 1t may be late in the spring or summer before the tunnel on this branch is finished.
 Major Bushnell. engineer in charge of i, construction of the Seaboard's new work in Alabama and Georgia, is in Birming- ham.
 Supt. L. B. Parsons and w. L. Wood- TOW of the East and West road, are in the city.