The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1896-11-26
THE DEAL IS OFF.
SEABOARD AIR LINE WILL NOT BE
SOLD.

SoAO.
Mr.. Ryan Fails to Get Control-The
Stockholders Who Feared the South.
ern Came to the Rescue of Presi-
dent Hoffman-The Road Will Con-
tinue to Be Run Independently-In-
terview With President Hoffman
Extract From the Manufacturers
Record Editorial.
Baltimore, Nov. I7.-The much
talked about Seaboard Air Line deal
received Knockout blow this after
noon, when the committee, which had
some 5000 shares of the stock pooled
refused to turn it over to the Ryan
syndicate, headed by Mr.. Thomas E.
Ryan, Of New York. The decision
was great surprise to everyone ex-
cept President Hoffman and a few of
his associates. 1t was signal victory
for the Seaboard president. When the
arrangement was made at the Seaboard
meeting, looking to the sale of the
cotrolllng interest Of the Seaboard Air
Line Company, there were few who
doubted its consummaton. The an
nouncement this evening that the deal
was entirely off and that the road
would hereafter be conducted as an in
dependent line, as heretofore, was not
at first credited. 1t was only after
President Hoffman confirmed the state
ment that 1t was generally believed.
Mr.. Hoffman declined to give any
details, but a stockholder gave this
view Of the case:
"President Hoffman's opposition to
the sale was we'll known, and as soon
as Mr.. Ryan's representatives began to
buy stock Mr.. Hofman's friends came
to his support and purchased all they
could obtain, with view of pooling
it for his benefit. We have really had
the upper hand in the fight from the
start, but have said nothing. When
the impression became general among
the stockholders that Mr.. Ryan really
represented J. P Morgan & Co., the
New York bankers, who control the
policy of the Southern Railway Com
pany, and that the sale ofthe Seaboard
would mean its eventual control by
the Southern Railway, we gained
ground rapidly, and we're favored
rather than MIR. Ryan, in spite Of the
high prices he offered for the stock"
Just Def, re leaving Portsmouth, Va,
whittier he went this afternoon on bus
mess connected with the system, the
chief executive Of the Seaboard Air
Line, gave out the following statement:
"Under the terms of the pooling
agreement" sud President Hoffman,
"no sale of the pooled stock can be
made without the assent of three
fourths of the stock pooled. There
are 8, ,32I 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
future of the property and in the pres
ent management. The importance of
keeping an independent line to the
South can scarcely be over-es,imated, :,
and no doubt influenced the vote Of
Baltimore, Norfolk and Portsmouth
stockholders. Had this line got into
the hands of New York parties repre-
sented in the North there would be
but one line to the South, and that in
the hands of New York and those cities
would have suffered accordingly in
their trade.
"The future of The system now looks
very promising as the first three months
of the current fiscal year show large
net gains over the corresponding
months of 1895, and the fact that the
Ryan syndicate has been willing to pay
par for even a minority ln,eres, shows
the results of their study of the resour.
ces of the Seaboard Air Line.
"Under the present management,
! continued Mr.. Hoffman, "the road ha:
been operated in the interest of the
stockholders and of those holding it:
securities, amounting to many million:
of dollars. Should change throw it:
control into the hands that seem only
after a personal profit or to serve the
ends of a competitive carrier, it NIGH
be difficult to overestimate the DANCE
which would threaten all interested ii
the system.
.The public, think, is to be con
graduated that this line is still lnde
pendent and will be run in the future
as in the past, looking to the interes
Of Baltimore and the Southern cite
with which its trade relations are mos
intimate and important"
In commenting on the failure Of th'
lRyan syndicate the Manufacturers
Record will tomorrow say:
.With the details of the recent con
test for control, the Manufacturers
Record has nothing to do. 1t may
however, very appropriately be sait
that the record of the present admins
tration during the past three years
business depression, is one of whicl
the company might be proud. In tha
time the company has shown a mos
marvellous increase in the magnitude
of the roads traffic, wonderful devel
|opment of passenger service by the es
tablishmenl of through Pullman train
to Washington and Portsmouth ant
! Atlanta (whereas three years ago ther
were only local trains and no throug
passenger service), and the establish
ment of Atlanta terminals, with th
best locomotives and good cars. A
these things have been done, not IS
often necessary, at the expense of Mt
earnings. On the contrary, during tn
three year period the gross earning
have greatly increased. But better |
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