Pine Bluff daily graphic., 1909-05-23
COTTON BELT MAY BUY INTERNATIONAL Rumor Being Heard in State Capital-NoW in Hands
 Of Receiver.
REPORT UNCONFIRMED
Visit Oi General Manager BrittOn and General Attorney Perkins to Aus.
 tin Starts Report.

Austin. Tex, May 22.--lt is persis- tently rumored here that the St. Louis Southwestern Railway Company wants to buy the International and Great Northern Railroad, which is now in the hands of receiver, and that the recent visit of Vice President and General Manager Britton and Attor- ney General Perkins of the first named company simultaneously with the visit of Receiver Freeman of the International had something to do with the proposed deal.
 During this visit they called upon the Railroad Commission, an the in ference is drawn that this subject was discussed. However. no confirmation of the matter can be secured at the Railroad Commission offices. Indeed, it is we'll understood that the commits sion's sanction of such a deal would be insufficient. Nothing short of leg islative sanction would suffice, but ob vously the commissions opinion in the premises would be potential in ap plying to the Legislature for consent
 It is easy enough to see why the St. Louis Southwestern Cotton Belt) should want to make the purchase, but not so easy to perceive a reason for the sale The Cotton Belt is spend ing many millions of dollars to con- vert it's property into a first-class freight line, having small ambitions as to through passenger traffic, and it is logical that it should want a Gulf terminus. Indeed, it has gradually been pushing it's Lufkin branch sea- ward. although in somewhat a circuit ous and tortuous route.
 Gould's Interest in Line.
 Both of the lines are commonly called Gould properties, but as a mat ter of fact they are by no means iden- tical in ownership. The Goulds own a controlling interest in the Interna- tional. They own minority interest in the Cotton Belt, but control it un- der agreement. Why they should wish to sell railroad which they control by reason of ownership to company in which they hold only minority in terest. and which they control only temporarily and by agreement pre- sents question the answer to which is not apparent.
 It is suggested that because of the bonds of the International are soon to fall due, and because questions might arise as to how much of these the Railroad Commission would permit to be refunded, the Goulds are anxious to get rid of the property. But this does not seem to be reasonable eX- planation, for the bonds will begin maturing before such deal could be consummated; the purchaser of the line would fare no better in the mat ter of bond approval than would the present owners, and besides it is be- lieved that the International will be able to make a showing as to the value of it's property sufficient to se- cure approval of the issuance of new bonds in sum equal to those now outstanding.
 4 more plausible suggestion is that the Goulds, perceiving that the ma jOrity interest in the Cotton Belt are determined to push that line to the Gulf by new construction which would cut into the traffic of the In- ternational, are in mood to say, Don't build-buy."
 The International and the Cotton Belt connect at Tyler. Jacksonville, Should the two lines be combined in Waco, Mertens and Fort Worth. one system. it will reach every large city in Texas. In all probability, too, | a connecting link would be built northward from Longview, the pres ent northern terminus of the Inter- national. to point on the Cotton Belt midway between TeXarkana and Mount Pleasant, which would give the system a straight shoot from St. Louis ! and Memphis to Galveston, Velasco and Laredo, the southern termini of the International.