The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-07-31
SENEY SYNDICATE SYSTEM.
DETAILS CONCERNING THE SALE OF
THE RICHMOND AND DANvILLE
RAILROAD.
This system and the T.. T., v. & G..
to be Practically Consolidated,
If Reports be Truo.

HtVNh Va thN hitIlIOUu anu idii-
road has passed into the hands OF new
syndicate, OF which the chief members are
George S. Scott. OF G.. s. Scott & Co.,
brokers and bankers. Of New York. and
intimates Of jay Gould; William i. Clyde,
OF the great shipplng-house OF W.P. Clyde
d Co.; George Il. Baker, president OF the
First National Bank OF New York; T.. ID.
Vlhenstock, vice-president OF the same
Samuel Thomas, Of the East Tennessee,
Virginia and Georgia railroad; Calvin s.
Brice, Of the Metropolitan Bank Of New
York, and director also in the last-named
road; and George /. Seney, president OF
the Metropolitan Bank OF New York. Mr.
Clyde is the only prominent member OF the
late syndicate in the new one. He has been
for years large holder Of the stock. Mr..
Seney is the gentleman who has given great
sums OF money to Georgia colleges. Alto
gether ii is very, very strong team.
1t is question whether the Danville road
will be operated by them in unison with
the East Tennessee, Virginia and Georgia
railroad, but the bestopinion is that it will.
The latter road, beginning at Bristol,
spreads out to Atlanta and Brunswick,
Ga, on one hand, and to Memphis on the
other. 1t has ali along depended on the
Norfolk and Western road TO get 10 the
seaboard; it may, under this united sys-
fem. by the use Of the Western North
Carolina road. come into the Danville road at
Salisbury and use its track to West Point,
or by change OF truck at Danville use the
Midland track to Washington and Balti-
more.
As to the intentions Of the new owners
with reference to the official corps Of the
Danville road nothing is known at present.
Major Fink, late OF the Norfolk and West
ern, is now with the East Tennessee, Vir-
ginia and Georgia road, and very proba-
bly,, in the event Of practical consolidation,
will have more influential position; but
there is no reason as yet to suppose that
there will be any great changes made in the
management OF the Danville road.
There are only two members Of the pre-
sent Board of Directors Of the Danvlle
Company resident is Richmond-Colonel
a. ;. Buford and Mr.. John =. Branch.
A meeting Of the stockholders will be
held on September 18th, and then, ii not
before, the new owners will no doubt re-
veal their plans.
RICHMOND AND DANyIILE CHANGES.
a special from New York to the Boston
Herald says: Since its introduction to the
Stock Exchange three years ago the stock
of the Richmond and Danville Railroad
Company has been one OF the features OF
the market, in which its behavior has been
OF the nature OF pyrotechnic display. y
year ago last February it sold up TO $3.50 a
share, and last February it sold at S47.
Within the last two weeks it has sold at
sos, and from that figure has worked steadily
up to So. On Wednesday Of last week the
directors adopted a resolution recommend
| ing that the stockholders increase the capi-
tai stock from S5,000,00 TO $1,000, 900. 1t
was announced that the new stock would
be sold at price to be agreed upon by the
stockholders at a special meeting to be held
on September 18th, and that the proceeds
were to be applied to eXtinguiShing the
floating debt, which il generally under
stood to be about S3, 800, ,000.D Its current
ly reported in Wall street that some OF the
people who influence the policy OF the
company sold the stock short some time ago
in expectation Of this action, and that it is
understood that they are still short OF it.
Almost as soon as the proposal TO increase
the stock was announced the stock ad-
vanced, and has continued to advance
pretty steadily. The insiders and
their friends, who expected it to
90 down, and who have sold out and
gone short, expecting to cover their shorts
and regain their holdings at the lower
range OF prices, were informed few days
ago that the stock they had sold had been
picked up by Mr.. George S. Scott, who
announced Yesterday that he owned ma
iority Of the company's shares. Alr. VIII
liam p. Clyde, one OF the directors Of the
company, has been opposed to Che increase
OF its capital, and, as the representative Of
his OWL and Mr. Scott's holding, endea-
vored, at a meeting on Thursday, to have
the Board Of Directors rescind the resolu-
ton commencing the increase. He was
unsuccessful. The matter will therefore
90 over to the stockholders meet
ing, when, according to Mr.. Scott,
it will be voted down. Messrs.
Scott, Clyde, and other stockholders
sent a letter to the directors to-day, de-
manding that the meeting be called for
September 18th for general business, in-
stead OF for the purpose OF voting upon
the proposition to increase the capital. IL
is understood that this is done in order to
| insure the retirement Of the present Board
OF Directors in case they should not resign
before that date. Under the laws OF Virgil
mia. their retirement can be effected in the
manner indicated. The Board acceded to
the request. For what purpose Mr.. Scott
| has acquired a control OF the property Is
not known. The situation now il that
| MesSrS. Scott and Clyde hold good dea!
more than half the stock, while some peo-
ple are short several thousand shares in
| the aggregate. 1t is said that one stock
house is short more than 5000 shares, or
about one eighth Of the entire capital.
WHAT MR.. BRICE SAYS.
Mr.. Calvin $. Brice, one OF the members
i'm the new syndicate, expressed himself on
Saturday to a reporter in Saratoga as fol-
lows:
"Yes: the report is true that syndicate
| i'm which | am interested has bought con-
troll OF the Richmond and Danville road.
| We have the strongest combination that
has ever been formed to take hold Of south
ern railroads. We have secured about
2S. 900 Of the 10000 shares OF stock issued
bv the Richmond and Danvile Company.
| Our syndicate controls, besides our new
purchase, the East Tennessee, Virginia and
| Georgia railway and the Chesapeake and
York River line OF steamers that ply be-
( tween West Point, on the Chesapeake,
and Baltimore, and has close traffic ar
rangements with the Clyde steamers.
which run between New York and Phila-
delphia to all southern points. Our pur-
nose is to confine all our railroad and
steamship lines under one management,
and equip and operate the system in the
best possible manner. We have made a
careful inspection Of our new purchase,
and feel well satisfied with its condition.
By the consolidation referred to we will
have the greatest railroad system In the
South. 1t gives us over 1000 miles Of road
through the most beautiful and productive
| ,aart of the country. the most direct outlet