Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-11-18
HOFFMAN PLAYED TRUMPS
Mr.. Ryan'S Deal Proved a Rank
Failure.
THE SEAB0ARD AIR LINE
Ownership Remains Unchanged and Without
Strings to the Management.
THE DEAL FAILURE WAS A SURPRISE
President Hoffman Says He Had it All His
Way From the start-The Manufact-
urer's Record on the Outcome
South to be Congratulated.
THE DEAL FAILURE WAS A SURPRISE

Baltimore, Nd, Nov. 17-The much
talked about Seabord Airline deal re-
ceived Knockout blow this afternoon
when the committee, which has some
5000 shares of the stock pooled, refused
to turn it over to the syndicate headed
by Mr.. Thomas F.. Ryan, of New York.
The decision was a great surprise to
everyone except President Hoffman and
"a few of his associates. 1t was a signal
victory for the Seaboard president.
When the arrangement was made at
the Portsmouth meeting, looking to the
sale of controlling interest in the Sea-
board company, there were few VINO
doubted its consummation. The an
nouncement this evening that the deal
was entirely off, and that the road would
hereafter be conducted as an independent
line, as heretofore, was not at first cred
ited 1t was only after President Hoff-
man confirmed the statement that 1t was
generally believed.
Just before leaving for Portsmouth,
Va, whittier he went late this afternoon
on business connected with the system,
the executive officer of the Seaboard Air
Line gave out the following:
Under the terms of the pooling agree
ment," said President Hoffman, mo sale
OF the pooled stock can be made without
the assent of three-fourths of the stock
pooled. There are 1921 shares in the
pool, and as less than one-half of that
amount gave their assent, there will be
no sale.
THE vote also shows that the stock
holders have every confidence In the fu-
ture of the property and in the present
management. The Importance of keep
ing an independent line to the south can
scarcely be overestimated, and no doubt
influenced the vote of Baltimore, Norfolk
and Portsmouth stockholders. Had this
line got into the hands of New York par
ties representing the Southern railway
there would be but one line to the south,
and that In the hands of New York, and
these cities would have suffered accord
ngly in their trade.
THE future of the system now looks
very promising, as the first three months
of ti'e current fiscal year show large net
ga.ns over the corresponding months of
1895, and the fact that the Ryan syndi-
cate has been willing to pay par for even
minority interest shows the results of
their study of the resources of the Sea-
board Airline.
Under the present management" con-
tinued Mr.. Hoffman, 1.-The road has been
honestly operated in the interest of it's
stockholders and of those holding its
securities, amounting to many millions of
dollars. Should change throw its con-
troll into the hands of those that seek only
a personal profit or to serve the ends of a
competitive carrier, 1t might be difficult
to overeStimate the danger that would
threaten all interested in the system.
1.-THE public, l think, is to be congatu-
lated that this line is still Independent,
and will be run in the future, as in the
past, looking to the interest of Balti-
more and the southern cities with which
it's trade relations are most intimate and
important"
In commenting upon the failure of the
ID fI,a No 20 ID
ord tomorrow will say:
The failure of the New York people to
seure controlling interest in
the Seabord Airline should cause
profuond Thanksgiving, not only
throughout the south, but wher-
ever there exists any interest in the
tration of ownership of all railroads In the
central south in New York hands would
prove serious injury to this section, and
eventually to all southern railroad secur-
tiles, admits of no question. In the first
place, competitor is essential to the best
interest of the south; 1t is essential to the
success of its merchants, manufacturers
and farmers; 1t is essential to the best
railroad work for the upbuilding of it's
Industrial resources and the encourage
ment of immigration. The Seaboard Air
Line has given this much needed competi-
tion. No railroad company in the coun-
try has done better and broader work
for the material advancement of the
country tributary to 1t than has the Sea-
board. In the second place, the purchase
of the Seaboard would have been regard
ed by the southlas the gobbling up of the.
last independent line north of Atlanta,
and this would have given the politicians
of the populistic persuasion new fight
ing ground against railroads. 1t is safe
to say that, under such circumstances
legislation would have been enacted in
the central south of vast injury to all
southern railroad securities, and thus to
all southern business interests.
With the details of the recent contest
for control the Manufacturers Record has
nothing to do. 1t may, however, very
appropriately be said that the record of
the present administration during the
last three years, of probably unequalled
business depression, is one of which any
company might be proud In that time
this company has shown a most marvel
Gus increase of the magnitude of the
roads traffic, a wonderful development of
passenger service by the establishment
of through Pullmantrainsb between WASH
ington. and Portsmouth and Atlanta,
whereas three years ago there were only
local trains and no through passenger
service, the establishment of Atlanta
Terminals, the enlargement of Ports
mouth facilities with new warehouses,
office building, enlarged water front, etc,
the raising of the standard of the rolling
stock from a very inferior condition to
its present high grade, with the best To-
comotiyes and good cars. All these
things have been done, not as Is often
necessary, at the expense of net earnings.
On the contrary, during this three-year
period the gross earnings have largely
Increased, but better by far than that is
the fact that Notwithstanding this very
great advance in the physical condition
Of the road. the net earnings have made
q very large gain also.
With the announcement that the Sea-
nil Ql a q
system, the people of Baltimore and of
the south have an opportunity to stand
by this company and make sure of its
perpetual independence by giving 1t the
most liberal support
This need not be done in any hostility