Railroads -- United States; Railroads -- United States -- Finance
It appears from this statement that the capitalists who controlled the
East Tennessee now again consolidated with the leading interests of
the Richmond & Danville and lines east, albeit changes in personnel
and transfers of holdings occurred. Return to the old combination was
made desirable by the more intimate connection of the two groups of
roads. The Western North Carolina had been opened across the mountains
of North Carolina in 1882. This had made practicable the diversion of
the western traffic of the East Tennessee from the Norfolk & Western
to the Richmond & Danville; a traffic which the northern connections
of the East Tennessee promised largely to increase. Consolidation
was doubtless also prompted by the desire to save the East Tennessee
from serious financial difficulty which threatened it. It had become
apparent that this company, at least, had severely taxed its strength
in the rapid extension of mileage which had followed 1876. Before that
time its position had been secure. It had possessed a monopoly of the
somewhat limited local traffic between Chattanooga and Bristol, and had
formed part of the most direct route between New York, Philadelphia,
Baltimore, and Washington, and towns in Tennessee, Northern Alabama,
and Mississippi. Its extensions had changed the situation. They had
brought it into touch with the Mississippi River and the Atlantic
Ocean, and had increased its fighting power; but they had also endowed
it at large cost with a group of poorly equipped, unprofitable lines
located in a keenly competitive territory. The Selma, Rome & Dalton had
been purchased just after a foreclosure sale. The Macon & Brunswick had
never been able to earn much more than working expenses. The Alabama
Central had not seen fit to publish its financial figures after 1878,
while the Memphis & Charleston, as we have seen, had turned to the East
Tennessee only to escape bankruptcy.
Public-domain text, read in full here on John Shaqi.
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