Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-11-02
DEPENDS oNlEEcIIoN
seaboard Deal Waiting Is seeFho Will Be
President. J.
VIII Go Through II A1eKinley 4,
ChOsen-ExceedingAy Important
Railroad TraMsacHIOn.

The completion Of the deal fby which the
control Of the Seaboard Air Line Railroad
Company Is to pass into the hands of Mr..
Thomas F. Ryan of New York and his
associates is said to be more dependent on
the outcome of the presidential election
than any other cause, according to the in
formation given to a Star reporter yes
terday in Philadelphia by a banker who is
supposed to possess inside Information in
reference to the much talked-of transac-
ton.
"If Bryan is elected" said this banker,
you may safely, in my judgment, con-
clude that the deal will not go through. If
Mckinley is the choice of the people of the
United States Tuesday business will pick
up to SUCH an extent that 1t Will be no
trouble Whatever to carry the proposed
new corporation along, but if the result Is
otherwise 1t will be impossible to do so, for
the reason that business people generally
anticipate panic in the near future the
like Of which has hardly ever been expert
enced in this country"
Persons who are directly associated with
Mr.. Ryan and likewise some of those gen.
temen in Baltimore who know or are sup
posed to know what Is going on do not,
however, seem to think that the outcome
OF the election has anything whatever to
DO with the deal for the Seaboard, and the
following statement, which comes from one
who Is closely Unidentified with Mr. Ryan in
various business transactions. may be ac-
copied as the view entertained Of the mat
ter by those nearest to the expected new
owners Of the property:
MT Ryan has acquired the control OF the
Seaboard and Roanoke system, generally
known as the Seaboard Air Line, for him
self and IN the purchase Of the property
he stands alone. Neither the Southern
railway nor any other road is interested in
the transaction, and Mr.. Ryan intends to
Keep and operate the property as an in
vestment. His policy will be one Of devel-
opment. and. while he is for peace. and the
Seaboard will be managed on such policy,
he is unqualitiedly for business, and the
traffic capabilities of the road will be de-
veloped to their fullest extent.
The seaboard Air Line will work In har-
mony with and part Of the Port Royal
and Augusta and Port Royal and Western
Carolina roads. The terminal facilities of
the latter at Port Royal, S. c., will be de-
veloped. and the Seaboard will form a
formidable route from the north and east
to Atlanta.
When the Seaboard passes into Mr. Ry-
ans control he will under any condition
personally control two-thirds of the stock,
ana he Will devote his personal attention
to its management and development
Importance of the Arrangement.
The acquisition of the Seaboard Is re-
garded in railroad circles generally, so far
ject. as the most important railroad deal
that has been made since Jay Gould Sc
cured the Missouri Pacific, and then only
about 800 miles long The Seaboard holds
peculiarly strong strategic position, and
Is capable of extreme development.
Included In the transfer of the controll-
ing stock are virtually LOCO miles of rail-
road and 875 miles of steam lines. The
property Is bonded for only $l6,HU q imife,,
Whiie the Georgia railroad. which is about
800 miles long is Jointly leased by the
Louisville and Nashville and Central of
Georgia. at a rental OF sGOO,UD a wear,
which is more than the Seaboard's annual
fixed charges
The bonded Indebtedness of the Port
Royal and Augusta road is 5000 a mile
and the desirability of the Seaboard as a
trunk line from Baltimore to Atlanta In
connection with the Port Royal roads is
regarded as NEST powerful. F.
The Seaboard also has an interest in the
Old Dominion Steamship Line from Nor
folk. Va, to New York, which enables it
to have New York outlet In the south
and southwest the Seaboard Is peculiarly
strong, and the new owners OF the prom
erty will develop the local business, partic-
ulerly on that portion between Monroe
which Is located on the line between the
states OF North Carolina and South Caro-
lima and the city of Atlanta
The control of the Old Bay Line OF
steamers is also included in the deal, and
this insures the continuance of the twb
lines OF steamers on Chesapeake bay. 1t
is understood that Mr.. Ryan Will own
three-fourths of the stock of the Old Bay
Line, and that it will be operated in con-
junction with the Seaboard. ef.
No Hitch I'm the Deal. e-
Referring to the alleged hitch in the mat
ter of the closing Of the deal, the same
authority said: The control of about $500
shares of the Seaboafd and Roanoke stock
will be transferred to Mr.. Ryan on or be-
fore November Is next. A contract now
binds the pool headed by Mr.. Louis Nc
Lane of Baltimore, to deliversthe stock at
125, and there has never been any question
Of the money.
Mr.. Ryan has until November Is to take
the stock, and SO far as the money is con-
cerned. it was provided for over a week
ago. When the contract was made by Mr.
Ryan with the pool. forty days were al
lowed to close the deal, and this expires on
November Is.
1.-The question of money has never once
entered into the affair, and the reports cir
culated of alleged bitches and the like are
absolutely groundless. The fact of the
matter is that they are the results of the
efforts of other parties who want the Sea-
beard Air Line and are doing all in their
power to break the contract which the Nc
Lane pool has consumma5ed with Mr..
Ryan. Despite this, however, the control
of the Seaboard will pass into Mr. Ryan's
hands on or before November 15."