Evening star., 1896-06-27
Probable Result Of Starting a New
Steamship Line.
ACTION OF TEE SOUTHERN RAILWAY
RetaIiatory Measures Attributed to
the Seaboard Air Line.
SALE OF A RAILROAD

Seaboard Air Line. the extent OF which can
be predicted. and 1t is possible that rates
for travel may be demoralized throughout
the entire trunk line territory.
Both sides Immediately concerned in the
controversy have been preparing for a des-
perate fight for months past the Seaboard
Air Line by adding to its feet of steamers
belonging to what is known as the "Old
Bay Line" ard the Southern by having
built some of the most magnificent steam
ers that have ever sailed on the waters Of
the Chesapeake: and with these the latter
proposes to invade the territory which for
more than a third of century the Sea-
board and its ally, the Old Bay Line. have
regarded as exclusively their own. and In
which they have heretofore had no COM
petition.
The Southern Railway Company has long
been restive on account of the imperfect
arrangements that it has for reaching
Richmond from Washington and the north,
and as a means of securing a better route
at least from northern points has organ
lied a steamship line to run between Balti-
more and Norfolk w.. where passengers
can be transferred to Its own lines. and
those who wish to go to Richmond over
the Southern's routes can do SO in that
manner.
A New Steamboat Line.
Under the name of the Baltimore. Chesa-
peake and Potomac Transportation Com
pany. the Southern has for long time
operated fleet Of steamers between Bal
timore and West Point, Va, to which
point the Southern extends. but there be-
Ing better means at Norfolk for the trans
action OF a large business than at West
Point the Southern some months ago de-
termined to put In operation the line which
will be fnaugurated Wednesday next.
The Old Bay line. which is the working
partner of the Seaboard Air line. has al
ready announced that as soon as the
Southern begins running its boats to Nor
ing place Of West Point. and then the war
will begin in earnest. and as to the pro-
portions 1t will assume no one can at this
time form any conc option.
The Southern. with its $500 miles Of
track and penetrating all the states of the
south. has much more territory from which
to attract trade than does the Seaboard.
The latter has in its vice president and
general manager. Mr. E. st. John. one of
the greatest railroad fighters in the coun-
try. He was brought by President r. Cur
Zon Hoffman of the Seaboard to his road
from the Chicago and Northwestern road,
because Of his fighting qualities and since
he has been with the Seaboard he has
manifested his aggressiveness in a way
that has not been at all pleasing to those
in control of rival lines.
Trying to Get Even.
The lines Of the Seaboard reach many Of
the same points in the south as do the
Southern, and it is believed that Manager
St. John has been able to make arrange
ments with connecting roads, whose lines
his own, by which he expects to secure
great deal more travel for the Seaboard
than the latter will lose by the invasion
Of its Chesapeake bay territory by the
boats of the Southern. and thus amply
compensate the Seahoard for any falling OF
in travel that may come to it on account
Of the action Of its big rival, the Southern.
Mention has been made that the steam
ship line of the Southern between Balti-
more and Norfolk would comprise some Of
the finest vessels ever seen on the Chesa-
peake. The first Of these. the Atlanta, Is
now at Baltimore. and in readiness to be
put into service on schedule time.
The Atlanta was recently completed by
the Cramps at Philadelphia. at q cost of
$25O.OO0. She is 24O feet long, AZ feet wide
and with depth to the saloon deck Of
26 feet.
Readings Troubles.
Readers of The Star will recall that an
nouncement was made in these columns
that there was authority for the statement
that when the Reading was put up at auc-
ton, as was understood was soon to be or
dered by the United States court at Phila-
delphia. it would be purchased by ]. p.
Morgan Company. That was the plan,
and there is no reason for believing that it
would not have been carried into effect
according to the settled program as speed
lily as possible, but for the Intervention
this week of two of the stockholders of
tho company. which is in bankruptcy. A
railroad official, who Is very anxious that
the Reading be taken out Of the hands of
the receivers, especially as 1t is such a
harmonious ally of the B. and O., said to
a Star reporter that the action last institut-
ed was another of the many obstructive
measures Of litigation employed to prevent
a reorganization by foreclosure Of the gen.
eral mortgage on the Reading railroad
and its coal and iron properties. He con-
tfnued:
"It is in the form of equity PROCEEDINGS
instituted by the court to restrain the fore
closure proceedings on the main ground
that II reorganization should take place
have the effect to divorce the Reading
Coal and Iron Company from the Reading
Railroad Company, under the provision of
the Pennsylvania constitution Of 1874 pro-
hibiting the ownership or control of coal
mining property by railroad company.
"The bill in equity was filed by two law
yers, as counsel for Jacob o. Field. owner
Of 1900 shares Of Reading railroad stock.
and William X. Kurtz, owner Of 2,4O0
ST ares, against the reorganization commit
tee Of Philadelphia and Reading Railroad
Company, Messrs. Frederick P. olcott.
Adrian Isein. jr., J. Kennedy Tod. Henry
Bulge. Thomas Denny, George H. Earle,
jr:., Sydney H; Tyler, Samuel R. shipley
anu fSCHdTu l. SOOk, also - L. morgan
& Company, Drexel & Company, ]. 8. Nor
gan & Company. the Pennsylvania Com
pany for Insurance on Lives and Granting
Annuities and John c. johnson.
Bearing in mind the fact that the plan
of reorganization as submitted to the
stockholders by the committee was, it is
understood, mainly the inspiration of j.
P. Morgan & Company. the most eminent
railroad surgeons in the United States, If
not in the world. the following paragraph.
which was copied by me from the bill filed
in the case. contains words that are start
ling:
'"The plaintiffs aver that II this scheme
is legal they and the other assented stock
and bondholders. who are now the owners
of 81 per cent Of the equity Of redemption
in the properties, would again own the
same, subject to the same general mort
gage, and discharge Of the present rights of
the unassented stocks and bonds. and Of
the judgments and other claims against the
two companies; but the plaintiffs are ad-
vised that this scheme Is unlawful and is
both moral and a legal fraud. and that
the effect of such proceedings would be
that the property Of the reorganized COM
panies would come into the ownership OF
the plaintiffs and the other assented stock
and bondholders, through the medium Of
another corporation, subject to said claims
with like effect as II the foreclosure sale
had not been made. and that these claims