Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-10-30
SEABOARD AIRLINE.
SOME INSIDE HISTORY ABOUT THE
RECENT DEAL.
EXPLANATION OF The DELAY.
Dimcuity I'm Raising the Money
Whercwith TO Make Payment Tor
the stock-Adyice from MIR. NC
Inne-L. & y. Humors.

BALTIMORE. October pa htne
inside history Of the deal for the sale OF
the seaboard and Roanoke railroad TO
the syndicate headed by Thomas r.
RYAN. of New York. came TO light this
morning. II explains the delay In the
contamination Of the deal. and disposes
- many absurd rumors, which have been
freely circulated.
When a controlling interest In the STOCK
was negotiated for, just previous 10
the annual meeting at Portsmouth. a Few
weeks ago. It was supposed that the
deal would be closed up in few days.
good. round sum was paid In cash as
a guarantee Of good faith. The remain
der was TO be paid within a stipulated
time. Upon this final payment being
made the property was to be turned over
10 the Ryan syndicate, along with the
designations OF the present directory OF
the Seaboard company. IL appears, now
over that when the final payment. which
represcnted something like a round MIL
lion dollars, became due the purchaser
were not ready with the cash. Ihey
found that I'm the present unsettled state
sum was not so easy 10 raise. They Of
fered. il Is understood, TO pay half OF
the amount I'm cash. and asked for time
on the remainder. To this proposition
Louis McIane. who IS representing the
Pooling Committee I'm the deal, desined
to assent and the purchasers returned
10 New York TO look for more ready
money. In the mean time they secured
an extension of time on the whole trans
action.
Thus the matter now stands. Mr.. Nc
Lane insisting that the whole amount
must be paid I'm cash before the pooled
stock Is turned over 20 the Ryan sy> IL
cate. In this pool there IS the original
1900 shares. and enough additional 10
make with the 200 shares secured by
General Gil. over 5000 shares. Owing
10 the peculiar voting privileges which
the charter Of the company provides for.
a big majority Of the total issue is neces-
sary 10 complete control.
This charter which is one Of the old
est I'm the country. scales the vote SO
that stockholders have a vote for each
share up 20 a certain number. Beyond
this the number Of votes is scaled. the
proportion depending upon the size Of
the holding This provision was put in
the charter with view to protecting
minority interests.
CIRCULAR FROM MLANE.
Mr.. McLane has issued q circular adj
vising stockholders TO pool their stock
with the committee Of which he is the
head. II Is not stated what price those
who pool their stock will receive. but il
viii probably be something in the neigh
bOrhood Of SG. This viii be So more per
share than was received by those who
joined with General Gill in selling their
stock at par.
Meanwhile the air is filed with rumors
that the Louisville and Nashville Rail-
road Company IS after the SeabOard sys-
tenn, desiring 1t for an outlet to the
sea. Should this be true, 1t would not
be improbable for the Ryan syndicate 10
sell b this company. The ownership OF
this line by the Louisville and Nashville
would practically complete the latter sys-
TEN by giving It an entrance to the
northern SEAPORT.
Should the property pass into the hands
OF the Louisville and Nashville, the war
Of rates would be permanently ended,
and that lines rivalry with the South
ern would be much more friendly than
has been the rivalry between the South
ern and the Seaboard Airline. In any
event. rates will be restored on the bay,
and the two steamer lines will be con-
solidated and operated under a single
management.
II is not believed that there will be
any further developments in the Seaboard
affair until the latter part Of next week.