The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-05
SEAB0ARD STOCK A BIG SPEC.
GEN. JOHN GILLs WANTS AN OPTION
ON A MAJORITY AT 800.

Says He Has No Assurance That the
southern Railway VIII buy a
Controlling Interest at the Price
$65O.OOO of stock Constitute the
Controlling IAterest-Presfdent
Hoffman Incensed at the Offer.
Baltimore Nd, Oct. 4--The possible alb
sorption of the Seaboard Air Line by the
Southern Railway Company, as indicated
in these dispatches last Friday, has led
up to such serious trouble in the Seaboard
household that the rate war with the
Southern Company is for the time being
forgotten. Gen. John Gill, president Of
the Mercantile Trust and Deposit Com
pany, of this city, which corporation has
been the financial agent of the Seaboard,
has taken issue with President Hoffman
and Vice President St. John, regarding
the management of the road and rates,
and has addressed to the stockholders of
the Seaboard and Roanoke railroad, the
line which controls the Seaboard system,
a letter asking for options on the stock.
This letter offered 800 share, il a con-
trolling interest in the line can be secured.
AS the market price of the stock is now
about $45, it can readily be seen that Gen.
Gnl means business and that an earnest
agement of the Seaboard from the hands
of those now in control.
The offer is made at this time because
the annual meeting of the stockholders of
the Seaboard and Roanoke railroad Will
be held next Tuesday at Portsmouth. As
the offer is so much higher than the mar
ket prices OF the stock, It would not be
surprising II the control OF the road should
pass into the hands of the parties repre-
scented by Gen. Gill. He, however, asserts
that he is not acting for the Southern
A bout $650,O00 in stock constitute a control
Of the road
The pecullarity of the situation can be
better understood when II is stated that
Gen. Gill is director Of the Seaboard Air
Line system, and that President r. Cur
zon Hoffman of the Seaboard is director
of the Mercantile Trust and Deposit Com
pany. Should the control Of the Seaboard
be obtained by Gen. Gill. it is believed
that Gen. Manager st. John will be de-
posed and he is looked upon by the Balti-
more stockholders as being responsible
for the present ruinous rate war
President Hoffman, as soon as Gen.
Gill's proposition was made to the stock
holders, sent a letter to each of them, in
which he said that Gen. Gil's letter had
been issued without the knowledge, con
sent, authority or approval of the man
agement, and is against your true inter-
ests."
To this letter Gen Gill to-day made re-
ply that his proposition to buy a controi-
ling interest in the Seaboard company
was known to a great many stockholders,
4 a. l.
been his efforts for years to stand by the
president of the Seaboard, but as a man
of business and financial experience, he
has been compelled to take issue with
Mr. Hoffman in the matter of the war
with the Southern, and does not know
of single gentleman of any prominence
in financial circles in this city, or in any
other who does not approve Of his ac-
tion."
He says Mr.. Hoffman does not own the
Seaboard, but "is owned by the stock
holders, of whom l am one of the larg-
est" He goes on to say that the securI-
ties of the Seaboard have been rendered
almost unstable.
"For this reason" he says. IT seek q
change, and to give the stockholder.
either an opportunity to sell their stock
at a good price, or by cooperating witt
us to secure harmony and put an end tC
the war of rates"
Gen. Gill further says that he has al
ready secured an option Of large block
OF the stock, and, II the controlling in
terest is gotten, says he is assured thai
it can be sold at 500 per share. So fai
as he knows, Gen. Gill says the contro
of the Seaboard stock win not go to the
Southern railway. He says II is under
stood between himself and those he rep
resents that they take the stock also 'pi
the Baltimore Steam Packet Company al
a fair price.
Gen. Gill says he desires to inform the
stockholders of the Seaboard and Roa
noke railroad that petition has beer
filed with the Mercantile Trust and De
posit Company. signed by number o.
bondhoders and the largest financial In
sttutions in the citl, demanding of then
as trustees to intervene in the suit nov
pending in the United States circuit cour
for the eastern district of Virginia thu
object being to compel the various rail
roads made defendants therein to re
store and maintain rates.
CINCINNATIs RALLY FOR CUBA.