The Birmingham age-herald., 1906-10-03
|, & N. SECURES
 AN IMPORTANT LINK Buys the Chattanooga Southern
 Which Runs to GadSden HOLDERS MAKE MONEY Men Who Put Up Money When Road Went Into Hands of Receiver
 Will Be We'll Repaid for
HOLDERS MAKE MONEY

Dispatches from New York yesterday morning announced the purchase by the Louisville and Nashville of the Chatta- nooga Southern railroad. a line from Chattanooga to Gadsden, It is 9S miles long and has 23 towns between Chat tanooga and Gadsden.
 The sale is said to involve about $l,- O0O,OOO payment being made partially in cash and partly in Louisville and Nash vllle bonds bearing per cent interest
 The purchase Is regarded as an import ant one for the Louisville and Nashville railroad. It gives practically a through line from Birmingham to Chattanooga, where the Louisville and Nashville will then connect with the Nashville. Chat tanooga and St. Louis railroad controlled by the l.. and N.
 The Chattanooga Southern Is not con sldered a first class railroad in regard to track and equipment, but the Louis- vile and Nashville will spend money on it and probably put it in good condition. It Is of more value to the Louisville and Nashville than any other railroad, un- less the Seaboard had built into Gadsden as projected when the Chattanooga Southern would have been most valuable.
 The line feeds a portion of Alabama and Georgia that is fairly rich in timber lands, mineral property and also in farm- lands and peach orchards. It will receive tonnage from Nashville Chattanooga and St. Louis at Chattanooga and from the Alabama Mineral at Gadsden. The Louisville and Nashvllle's line from Birm- ingham to Gadsden is via Oneonta, All toona and Attalla.
 Following is dispatch from New York In regard to the sale:
 New York, October 2.-The terms of the sale of the Chattanooga Southern rail- road to the Louisville and Nashville Rail- road company was made public today The holders of stock and bonds of the Chattanooga Southern will receive the amount of the assessment paid by them eleven years ago, plus interest on the money at the rate of per cent per an- mum. This means that the bondholders who met the assessment of 25 per cent levied on the bonds in 1895 will get $25O for each bond plus accrued interest for the period at same rate. Payment will be made for the property partly in cash and partly In per cent bonds issued by the Louisville and Nashville Railroad company. The whole deal, 1t Is under stood involves about s1,00O,Ooo.
 The following from Louisville tells of tn luck of the security holders:
 'It develops that the sale of the Chat tarooga Southern railway to the Louis- vile and Nashville will prove bonanza to the holders of s3OO0,OO0 worth of securi- ties.
 .The holders of nearly s3000,000 worth of defaulted securities in the road will be surprised recipients of cash payments on bonds and stock which have been re- garded as worthless for the last fourteen years For more than a decade they have been marked worthless in the of- ficial list of securities.
 "The read runs from Chattanooga to Gadsden, Ala. It was planned to extend it to Birmingham, Ala, and Atlanta, Ga This was in 1892. Then 1t was found that insufficient funds had been provid- ed to complete the road and the panic of 1892 cast it into the hands of re- ceiver It was learned yesterday that stockholders who paid the assessment of S2 a share will get back their money with interest for eleven years at six per cent. Bondholders who paid the asses ment will get the sum back with interest the balance of the purchase money being distributed pro rata among the original hondholders"