Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-11-18
Mr. Thomas Ryan WillNot Secure the
Seaboard Line.
[HE POOL HOLDS ITS STOCK
A Statement Given Out by Presi
dent Hoffman.
MUCH SURPRISE CREATED


| noke Railroad Company. popularity known
| as the Seaboard Air Line, which was de-
posted with the Hoffman McLane pool
and which result was foreshadowed in The
Star, is almost the sole topic of converse
ton in banking and railroad circles here
today, and the concensus of opinion as ex-
pressed seems to be that Mr.. Louis Nc
Lane. who 1t has generally been under
stood was the manager of the pool has
| completely outgeneraled Mr.. Ryan.
What is to become Of the certified check
for 100000 which Mr.. Ryan Is known to
| have deposited with the pool as all evil
dence Of his intention to take the pools
holdings provided that would give him the
control of the Seaboard. is being asked, and
hardly any one can be found who is willing
to say for publication whether in their
opinion the check will be handed back by
the members of the pool to Mr. Ryan or
whether he will have to go into court and
make contest to secure Its possession.
Inere are, indeed, many well-informed
persons who believe that as soon as the
necessary papers can be prepared Mr. Ryan
Will, through his counsel, Mr.. Elihu Root
OF New York, file proceedings in the Uni
ted States court of Maryland praying for a
mandamus to compel Messrs. r. Curzon
norman, Louis McLane, Moncure Robinson
and Leigh r. Watts to deliver the $500
shares of stock held in trust by them and
Aoi themselves anu OtnerS whom they
resent on the ground that he was ready to
perform his part Of the contract at the time
agreed upon.
1t is intimated on high authority that
should Mr.. Ryan fail to secure man
damus, If that is the course he dicides to
adopt, he will take whatever legal steps
In his judgment may be necessary to win
victory. and 1t is said that in this event
interesting developments will attend a very
bitter fight which seems to be ahead for
| the control Of the Seaboard Air Line It is
claimed by friends Of Mr.. Ryan that the
present situation is the result of a deter
minatlon to Keep the property In the hands
OF the present management or to embrace
| an opportunity which, it is alleged, has
been presented to the members of the pool
to sell their holdings to certain parties,
shares than 1t was agreed Mr.. Ryan could
have them for. At present the road is in
the hands of the Hoffman interests, but
| 1t is not improbable that developments may
take place tomorrow that will place an
entirely new phase on the situation.
Possible DEVELOPMENTS.
On that day the annual meeting of the
stockholders of several of the subordinate
| lines of the Seaboard and Roanoke Com
pany will be held at Raleigh, n. c., to
which place President Hoffman and other
officials of the road have gone. The COM
panies referred to are the Raleigh and
Castor, Raleigh and Augusta Air Line,
Durham and Northern and Palmetto rail-
road.
The stockholders of each Of these roads
| met at Raleigh on Thursday of last week
in pursuance of their several charters,
but in each case the announcement was
| made that President Hoffman, Vice Presi-
dent St. John and the Baltimore stock
holders were detained at home. Under
these circumstances no course remained
open for those present but to adjourn until
| future date. which, after naming tomor-
he fiF1na how n n
| The Raleigh and CASTOR, Raleigh and
Augusta Air Line, the Durham and North
ern and Palmetto railroad, with the
Georgia, Carolina and Northern and the
comprise the majority Of the mileage of the
Seaboard system, and, although Messrs.
Hoffman, McLane, Robinson and Watts
have stock enough to do what they please
| with the road, it is believed they will take
DO steps that do not afford abundant pro-
| lection to the minority stockholders. The
| annual meeting of the Georgia, Carolina
and Northern and the Seaboard Air Line
| Belt Railroad Company will be held at At
| lanta.
President HOfman's Statement.
President Hoffman and the other officials
| of the Seaboard last evening left Baltimore
| for the south, and before doing SO Mr..
| Hoffman dictated statement of the pres
| ent condition of affairs, copy of which
was today furnished to a Star reporter by
| the secretary of the Seaboard company at
| the office of the latter here. The statement
| is as follows:
Under the terms of the pooling agree
| ment no sale of the pooled stock can be
made without the assent of three-fourths
of the stock pooled. There are S321 shares
| in the pool, and as less than one-half of
| that amount gave their assent, there will
be no sale.
1.-The vote also shows that the stock
holders have every confidence in the future
of the property and in the present man.
agement. The Importance of keeping an
independent line to the south can scarcely
| be overestimated, and no doubt Influenced
the vote of Baltimore, Norfolk and Ports
mouth stockholders. Had this line gone
| into the hands of New York parties, repre-
senting 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 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 month of 1895, and
| the fact that the Ryan syndicate has been
willing to pay par for even minority In
terest shows the results of their study of
the resources of the Seaboard Air Line.
Under the present management 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 a change throw its control into
hands 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.
THE public is to be congratulated that
| this line is still Independent, and will be
run in the future as in the past looking to
the interest of Baltimore and the southern
cities, with which its trade relations are
! most intimate and important"
Legal Review.
Ex-Judge L. r. Watts. general counsel Of
| the Seabcard. gave the following review
Of the situation:
1.-The deal with Mr.. Ryan is off, and for
the present, at least, the Seaboard will be
operated under the same MANAGEMENT 1t
has been for some time past. Mr. RYAN
offered $125 share for all the stock in the
pool, and the holders were asked to express
themselves by vote If or not they favored
selling at that figure. To sell required a
three-fourths vote, and as less than half
of the pooled stock was voted for a sale
the sale cannot be made.
I'VE counted the votes, and as soon as
we knew the result we mailed letter tn
Mr.. Ryan telling him of it..
Created Surprise.
Until after the adjournment of the meet
| ing of the pool committee, which was held
at the companys general offices In Ralt,-
4 <A~--