The Montgomery advertiser., 1903-09-03
HE !. & \. DEAL
sTATED THAT ATLANTIC COAST
 LINE HAS CINcHED CONTROL.
Almost 150, 900 Shares Were Bought in Open Market-New Owner Averages the Investment by
 Recent Acquisitions.

The New York commercial of Sept. 1. says:
 It developed to-day that the Atlantic Coast Line has recently largely increas- ed its holdings of Louisville and Nash vile. and that it now controls close to 70 per cent. of the capital stock of that company It is not known what price was paid by the Atlantic Coast Line for the additional Louisville stock acquir- ed, but 1t Is understood 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 10s. and it recently sold be- low par, the average cost of the stock to the Atlantic Coast Line is probably about $102 or $103 share. Last sum- mer the Atlantic Coast Line purchased the controlling interest in Louisville and Nashville from J. P. Morgan & Co.
 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 3o6ooo shares of Louisville and Nashville representing the controlling in- terest was sold to the Atlantic Coast Line. It was estimated that the syndi- cate formed by J. P. Morgan, to acquire an option on the 5000 shares of Louis- vile stock from Gates and Hawley and sell them to the Atlantic Coast Line. made profit of $s.0oo.ooo on the trans action.
 For these 3os.ooo shares the Atlantic Coast Line paid $10,00o,oo0 in cash, $s5.- 000.00O in per cent. bonds, and 5,000.- 900 in Atlantic Coast Line stock. This was generally considered at the time an aYfranalv hi0h rrirA ToI xk~ -H. at par and the stock at 142 the total mar ket value of the securities and cash was equivalent to more than $17O a share for the Louisville stock.
 As result of the high price paid by the Atlantic Coast Line for the control ling interest in Louisville and Nashville the company has had to face a 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 it's holdings or Louisville and Nashville. By purchas- ing additional stock around par, the company has greatly reduced the aver age cost of it's holdings of Louisville, and the investment is now practically self-sustaining.
 It was stated to-day by a capitalist who Is in a position to be acquainted with the facts. that the Atlantic Coast Line. or interests closely identified with that company. has purchased between 125,0oO and 10000 shares of Louisville and Nashville stock in the open market during the last four months. It is un- derstood that this block of stock is not at present owned by the Atlantic Coast Line. but Is being carried by interests identified with the company.
 In the near future this stock will be transferred to the Atlantic Coast Line, that company probably issuing new se- curities of some kind in payment.
 W. A. Russell has been appointed As sistant General Passenger Agent of the Louisville and Nashville, with headquar- ters at Louisville. being the second as- sistant that had been named to aid MT. c. L. Stone. in looking after the passen- ger trafilc matters of the Louisville and Nashville.
 MT. Russell, up to a few months ago, was city passenger and ticket agent of the Louisville and Nashville at Louis- vile. Later he was appointed acting chief clerk to Mir. Stone during the ill., ness of the then incumbent, and upon the death of the latter was named to that position. After a few months service his ability was recognized and the new posi- ton above named Waa Craatad for hixn