The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-16
ATLANTIC COAST LINE
DISSOLYES ITSELF
Holding Company Agrees to Re-
turn Majority Of Stock
to Owners.
WALTERS CONTROL STANDS
Effort Seen to Avoid Suit Over
Combine With Louisville
and Nashville.
WALTERS CONTROL STANDS

The Atlantic Coast Line, the ono per-
sonally owned railroad system OF size left
In the country. started yesterday to get
Itself into line with the 'unscrambling OF
corporations" policy of the Government.
Henry Walters, chairman OF the board
and owner Of the Atlantic Coast Line
Company OF Connecticut, the holding COM
pany through which the Walters family
have controlled the greatest railroad sys-
tenn Of the South. announced yesterday
that the stock OF the holding company was
TO be cut In two.
In return the stockholders Of the hold
Ing company are to receive "A distribution
OF a little less than half Of the stock of
| the Atlantic Coast Line Railroad. now
held by the holding company. The stock
OF the holding company lis cut from
Ii7.64O.000 to sS,S20.OO0 The stock OF
the railroad company to be distributed IL
$l7.640.0O0. leaving sl5.5l0.i00 in the
hands of the holding company.
The effect of the change Is that the
holding company loses control of its sub
sidiary, the Atlantic Coast Line Railroad
Company, and also the Louisville and
Nashville system, which is in turn owned
by the Atlantic Coast Line Railroad Com
pany. Instead OF holding 81 per cent. Of
the stock OF the Atlantic Coast Line Rail
road the holding company will now hold
only ~ per cent.
Eject Not Drastic.
The practical effect. however is not
drastic. Henry Walters. his family and
associates. who own the entire capital Of
the holding company. according to general
belief, will henceforth control the stock
, Of the Atlantic Coast Line Railroad Com
pany. and through Il the Louisville and
Nashville directly. through holding 1t in
their own hands rather than through the
medium Of holding company
In practical working the control OF the
Atlantic Coast Line-Lousvllle and Nash
VILE system is hut little changed. The
organization Of the system. which invited
attack and dissolution by the Government
by reason OF its extreme concentration. is.
however. brought more nearly into line
with the Governments ideas.
| Henry Walters. through ownership OF
most OF the sl7.640. 600 stock Of the hold
/ Ing company, controlled "A railroad system
with a total outstanding Capitalization Of
nearly $3.50, 000. 600. He owned and d.
rected two complete systems united in
stock organzation--thc Atlantic Coast
! Line and the Louisville and Nashville lie
retains control
There has been iiv public knowledge
OF any action being prepared or Contem-
plated by the Department OF Justice
against the Atlantic Coast Line holding
company organization and the control by
II of two lines considered as competing In
the pujo committee hearing the Atlantic
Coast Line came in for attention from
Mr.. Cntermycr Mr.. Dawson of J. L.
Morgan Co. and Mr.. Baker We're ques-
toned abou. 1t. Their examination on
the matter was conducted. however. chiefly
with view to showing the extent of
| influence of the Morgan Baker group over
railroads and industrials.
Though there has been no definite re-
port OF action by the Attorney General
1t has been generally accepted since the
Union Pacific dissolution decree that II
was only n matter of time when the At
torney- General would take up other COM
ponies owning alleged competing lines
Control Less Direct.
The purpose OF the action by the At
lantic Coast Line announced yesterday. in
the absence of explanation in any official
quarter, was taken to be the effort OF the
owners of the property to take Joint
ownership OF two alleged competing roads
out OF direct possession OF third COM
phny BY restoring control Of the Allan
tic Coast Line Railroad Company 10 the
stockholders of the holding company. con-
troll Is made less direct
The criticism that two railroads alleged
to be competing. the Atlantic Coast Line
and the Louisville and Nashville. remains,
however. In the fact that ownership of
control OF the Louisville and Nashville
by the Atlantic Coast Line Railroad III
left unchanged.
This is the formal announcement:
AT a meeting OF the board OF al ec'ors
OF the Atlantic Coast Line Company Of
Connecticut held to-day II was decided
TO recommend TO the stockholders that
the capital stock be reduced one half by
"A distribution from the assets OF the COM
pany to the stockholders.
1.-THE reduction in value OF the Connec-
ticut company's stock will amount TO
$3.50 900. In exchange for which will be
delivered to stockholders sl7,64O, 900 OF
stock Of the Atlantic Coast Line Railroad
Company"
At the present prices 2s3 bid for At
lantic Coast Line of Connecticut and
l2i for Atlantic Coast Line Company.
the exchange of yesterday means a divi-
dend In stock 20 the stockholders of the
holding company amounting TO about
N.5Oo,000, or approximately 81 cents a
share.
walters n silent Figure.
Henry Walters is the most silent and
one of the most powerful railroad and
financial figures In Wall Street. He Is
the ono man In the financial district who
has never been interviewed. His move
ments are little known, but his dom-
nance or this great railroad system of
the South is absolute.
Mr.. Walters was tho close friend and
associate OF the late J. i. Morgan. and
the Morgan house has been "A large figure
in the history and the financing of the
Walters railroad system. 1t was chiefly
through the strong friendship OF Mr.. Nor
gan for Mr. Walters that the latter was
enabled To build up the enormous system
he personally controls.
The supremacy OF Mr.. Walters in the
Atlantic Coast Line system Is the story
of one OF the most interesting chapters
In railroad finance of the last fifteen
years. Mr. Walters and his family had
been dominant In the Atlantic Coast Line
railroad for a number OF years.
Tho Belmonts, led by August belmont,
controlled the Louisville and Nashville.
These two roads and the Southern and
Seaboard were sharp competitors In the
South
John w. Gates bought heavily into
Louisville and Nashville. At the time.
about twelve years ago. he was not looked
upon with favor as the manager and