The times. [volume] (Richmond, Va.) 1890-1903, 1896-11-19
SEABOARD AIR Line DEAL.
A LONG LEGAL BATTLE IS EXPECTED.
President Hoffman Says There Will BE No
Change in the Policy Of the Eosd-lhe
Question Of Interest IL WIN the
Rate War lie Kesumed

The failure OF the lhonaS-tNyu' o''
for the purchase OF the Scaboard AIT
Line occasloncd little surprise here. THIS
outcome has been expected and pre- eiictod
, since the transaction was first made pun
lie.
President h. cuzon Hoffman anu
nun.bcr OF the directors OF the me ''''"1
down from Baltimore this mor"i's y"
,he Hav Line steamer. Georgia An'
n,rtv was ioined here by PRESIDENT
:, John. and they left on spccf"
u.,,n al s o'clock for tour OF nrpeoVo'''
President Hoffman was radiant
Asked about what void be the p"AeS
of the scab5ard In tho future. he said.
our road indcpemlene poh,y - ".'
known. snd We nave 10 changes ~
make.
Nice-Prosidont ST. John SAID;
.of course. II Is a source OF Sratliea-
| ton TO ,is. and our patrons feel safer
| vhen they knoN that competition VIII 10
| continued IN the South. We had sonc
doubts al ono time as TO the continu,d
indcpcndcncc OF our Tine II was a clo7o
! shave. but we have emerged irom douos
INTO the certainty of cOatinued eoInpeu-
ten. .......,,
DOES AtDl INl liAs M 4 hff'f
BALTIMORE. MD, Nov N.-The an
ncuncoment th.t the deal for the sale
| o, the Seabo1rd Air Line To Mr.. Thomas
- RYAN representing a NV YORK syn
| dicatc is on does not end the matter
according TO reports current to-day III
Nell-inforrod circles. 1t Is said that MT.
Ryan will institute legal proceedings 10
| coIapcl the pool committee TO deliver the
| 500 shares held Dy ,he previous. 10 and
81. anf AT
| Portsmouth, Va, between Mr.. Mcheen,
| representing the pool and Mr.. Ryan.
| It is said that the committee has full
| control Of the stock. and can dispose
| of il without consulting the owners, VINO
| empowered them to act for them The
| 5000 which Mr.. Ryan deposited, ana
| which WAS to have heen forfeited In the
| event that n had 20 carry out his part
Of the coutract will, II IS understood, DO
| returned at once
| The question of interest now IL, Will
| the rate war be resumed,
The company is now free to renew hos
| tlities and It is believed I'm some quart
| crs. that the Seaboard viii renew It's
| demand for the withdrawal OF the York
| River service to Norfolk ana Ealing. will
| slash rates again.
| There are still many who believe that
| the Louisville and Nashville will finally
secure control of the Seaboard Air Line
| system. II is known that The Louisville
| and Nashville l. anxious TO own an east
| crn connection, and II IS said that the
knowledge OF this may have induced
some of the stockholders TO withhold
their consent for the sale to the Ryan
| syndicate.
| MIR. RfAN'S NEXT MOVE.
| NEW YORK, Nov. ls.-The announce
| ment that the negotiations for the con-
| troll Of the Seaboard Air Line 10 Thomas
| T.. Ryan, OF this city, had feilen through
| because OF refusal OF the Hoffman pool
| 10 turn over its stock, has been confirmed
| by an Official statement from President
| Hoffman, issued in Baltimore last niBht.
RYAN'S STATEMENT.
Mr.. Thomas f. Ryan's recital OF his side
| Of the deal, given out late to-day from
the Office oc his attorney, Ellhu Root, Is
| as follows.
."rho story oil thls TRANSACTION from be-
| ginning to end is perfectly plain, and
there Is no reason why IL should not
| be- made public. l have desired for some
| time to purchase the stock Of the sea-
| board and Roanoke railroad. Win that
| object In View obtained through General
| John Gil. president OF the Mercantile
| Trust and Deposit Company. options upon
| about 800 shares OF the stock. | then
| went 10 Portsmouth on the night proceed
| lng tho annual stockholders meeting Tor
the purpose OF negotiating with otner
| stock kholders who might desire 10 sth thtiF
| holdings
| ION the forenoon OF the annual meet
! inc 1 met i'm the Office Of the counsel OF
| The company. Messrs Louis McLauc,
Moncure Robinson and u. r.. watts. They
Informed me that they could sell and de-
liver 10 me at 1east a majority Of the
stock II a prico could be agreed upon.
| 1 did not even ask ~ see their anthofl-
zation. but was assured that they were
honorable. trustworthy, ana acting IN
good faith
THE sole questions IN the negotiations
related TO, first. the price 10 be paid for
| the stock. which they agreed 10 sell;
| and second as 20 the time which should
| be allowed me FOR examining the books
| 20 verify certain representations they
thon made regarding the condition OF
! the company and property The only
| conditions imposed by Messrs Mcl.ane.
| Robinson and watts. were that I should
| purchase the stock Of the Bay-Line
| Steamship Company. an a price agreed
| upon and should give % every holder of
stock in the Seaboard and Roanoke rail-
road the privilege OF selling his stock 10
| me at the samo price as that n1ed Tor
the stock which they personally sold To
me. | assented TO these conditions, we
| agreed upon the price to be paid for tho
| STOCK, upon the lihe 10 DC hIoNeu iDs
| examination OF the books. and We COM
| ploted and executed on that day a con-
| tract Of purchase and sale, and | paid
$4,000 on account Of purchases.
COULD SEE THE BOOKS.
"Replying upon their representations
availed myself OF the options secured by
General Gil and purchased and paid for
tho stock which had been put IN his
hands.
"On October 18th, they refused TO allow
me TO examine the books but even this
did not deter me from cndeavoring 10 car
rs out my part OF the contract 20 the let
ter ana I went 10 Baltimore on Saturday
last prepared 10 take from Messrs. Nc
Lane Robinson and Watts the stock
which | had purchased.
They were not ready 10 deliver II. and
now says that they are unable 20 perform
their part OF the contract and only one
Of two conclusions Is possible. Either
they deliberately mlsrepresented the facts
N the time they said they could sell me
the stock and made a contract TO that
| effect, or they deliberately broke n con-
| tract which they were, In fact, able 10
| perform.
ASIDE from their verbal representa-
tons to me that they were able 20 sell
me a majority OF the stock. the recital
! OF the contract. which they signed states
| plainly that they are stockholders In tho
| Seaboard and Roanoke Railroad Com
| pany and also represent large amount
| OF stock In said corporation held by otn-
ers and that they. IN behalf OF themselves
| and associate stockholders. are desirous
| - ....t,tr, caia ~ all their stock In