Evening star., 1896-10-08
THE BIG RAILROAD DEAL
Reported Absorption of Seaboard Creates q
Sensation.
Great Secrecy Maintained by South.
ern ROad-StrOnE Feeling ON the
Subject In Baltimore.


Air Line by syndicate of New York and
Baltimore men, as stated in The Star of
yesterday had occurred. has created a pro-
found sensation throughout the entire Sec
tion Of the country bordering on the At
lantic seaboard. and is already he subject
of holding public meetings to discuss the
matter. with the view of erlaininy If
the alleged proposed consolidation Of that
system with the Southern Railway Com
pany system cannot be prevented
The officials CT the Southern Railway
Company continue to deny that that cor
poration has either secured controlling
interest in its heretofore rival line or that
1t intends to do so. but this statement does
not prevent the business community in va
rious cities so far has been heard from,
from believing that the parties who have
engineered the deal which has resulted in
placing the Seaboard Air Line in their
possession have done so in the interest of
the Southern Railway Company. and that
the expenses incident to the conduct of the
late rate war will have to be borne by the
people of the south, who are depending on
the two roads for the transportation CT
their supplies.
An examination Of the details of the ar
rangement of the deal, so far as they
have been allowed to leak out, shows that
the active purchasers of the stock for at
least that portion held in Baltimore was
firm of brokers who have all along been
on terms OF closest intimacy with the Of
fcials of the Southern Railway Company.
The actual buying of the Seaboard stock
was. 1t Is said, done by d member of the
firm referred to, who Is very intimate with
of Mr.. Morgan's closes. assistants.
Very few persons have had any idea that
the Southern Railway Company would
come out openly and buy the Seaboard Air
Line In the face Of the attacks which have
recently been made on that great system
for consolidating other lines. So, taking
both these matters into consideration, he
public came to the conclusion in almost
every large city that the efforts inaugural
ed by Mr. Gill was in Mr.. Morgan's inter-
est.
Controlling Interest.
The latest reports state that the deal
which was consummatei at Portsmouth,
Va. gave the syndicate headed by General
GIL. and in which Messrs. George B. Har-
vey and Thomas F. Ryan, one of whom
at least is largely and closely interested in
the Southern Railway Company. a pool of
four thousand shares of the Seaboard's
common stock, which was held by Messrs
Louis McI.ane OF Baltimore, Moncure Rcb-
inson of Philadelphia and Judge A. Watts
of Portsmouth, Va.
These holdings. with the shares upon
which General Gill secured an option al
800 share. give the syndicate control of
SEQ shares out of a total Issue of about
1000 shares. Efforts We're made yester
day to induce the Mr.. Ryan above referred
TO to state definitely whether the purchase
Railway Company. His reply was that he
would not deny the report that he bad
bought for himself and others a majority
of the stock of the Seaboard and Roanoke
Railroad Company. 1t is stated on reliable
| authority that Mr.. Ryan and Cen e. b.
Thomas of New York have recently ma de
other purchases of railroad properly in
| the south. including the Port Royal and
ID (>.,
| lima roads, and have consolidated the two
| lines into one system, the new company
operating as the Charleston and Western
| Carolina. The Importance of he trahsac-
ton lies in the assurance of peaceful re-
adjustment of the relations between the
Southern Railway Company and certain
of its competitors. who have been rcspcn-
s.ble for radical disturbance in rates.
A well-known banker in Baltimore said
| in reference to the attempts to mystlfy the
| public as to who are the real owners of the
| Seaboard Air Line: 1T is very well for the
| gentlemen who are interested to deny that
| the Southern Railway Company is a party
| to the deal. but their proteStations will de-
| ceive nobody. Mr.. Ryan is now and has
been for years Identified with the interests
| that control the Southern railway. and
there is not the slightest doubt in my mind
| that in this instance he is acting for that
| corporation.
| 1t is understood in railroad circles, pre-
| sumably for the object Of keeping the pub
|
| ests of the Southern Railway Company in
the Seaboard. for the next few years al
least. that the new owners will form a
| voting trust to continue in existence for
| five years, and that the shares will be
| pooled with this trust.
| One View.
| AS Indicating the belief that control OF
| the Seaboard Air Line system has been
purchased in the interest of the Southern
l .lo
| chants having business with merchants in
the south, the following communication
signed merchant, which was published in
| an evening paper in Baltimore yesterday
| becomes of much interest. The writer
| asks: Are the business men of this city
aware of the fact that the trade of Balti-
| more with the southern states IS seriously
| menaCed by the complications which have
| arisen relative to the Seahoard Air Line:
| At present Baltimore mas 3ul Two lines OF
| transportation to the south via Chesapeake
| bay-the Seaboard Air Line through its Bal
| timore connection, the Old Bay Line. and
| the Southern through it's Norfolk steamers
| If the former is absorbed by the latter this
| community is at the mercy of one railroad
| company, which can raise or lower freigh;
| rates at its pleasure.
| THE experience of our merchants in the
| past proves the necessity for competition
| in routes from this city to the south, and
the vital need of more than one line if W.
| equitable basis with our northern competi
| tors. We canrot afford to be bottled up
| when fully two-thirds of Our wholesalers
| depend on the southern market for the
bulk of their revenue.
| is not this a matter that the Merchants
and Manufacturers Association and Other
business bodies should take up and fnvesti
| gate? Some time ago. through the prompt
| action of the Old Town Association, the alb
| sorption Of the Western Maryland by &
competitor was successfully averted. I:
not this present issue far more importan,
| to our jobbers and manufacturers?
1T is stated that the deal con.emplates
the transfer also to 1t of the stock in the
Baltimore Steam Packet Company. which
| operates a line of steamers between Balti
| more and Norfolk and Richmond"
| 1t Is likewise said that there has harGl,
! ever been a deal of equal magnitude to thi:
that has been conducted with so much Sc
| crecy, and 1t is believed to be safe to sa,
that outside of the parties interested nt
one knows exactly what has been done,
DEPORTATION CASE,
| Court of ADDc0la COusislnr3n~ 49,