The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-09
SEAB0ARD A BIG SENSATION.
GEN. GILL's BLOCK OF STOCK TO
co WITH THE 1000 SHARES.

IL Amounted Up to Tuesday Last to
2.TOO shares, and the Price TO BE
Paid Is 800 Per share-The own
ers of the 1000 shares Demand
$3.50 Per share. Hut Finally Took
$40.
Washington, Oct S.-,A Richmond spe-
cial says: THE details OF the transfer
of the Seaboard and Roanoke railroad
have been completed, and the property
is now virtually in new hands. ANA win
now be operated for the general railroad
development and welfare Of the south. 1t
IS known that the three parties holding
the controlling shares under the pooling
contract were anxious to get the highest
figures possible. They were offered par.
but they made it known that $3.50 was
the least they would take. Mr. Ryan
and the pool committee held short con
ference, the result Of which was the ac-
ceptance of about $ll0 per share by the
committee. A contract for the necessary
transfer was drawn by Henry Crawford
for the Ryan syndicate and Judge Watts
Tor the pool, There were conditions of
the transfer which included the re-elec-
tion of President Hoffman, or the reten-
tion of the present management for an
other year. AZ the matter stands to-day.
the Seaboard Air Line is com
petely controlled by Thomas T. Ryan.
and its future policy will be one of con-
servatism and peace.
Baltimore, Md, Oct SIN addition to
securing a controlling interest Of the
stock of the Seaboard and Roanoke rail
road the New York syndicate, headed by
Thomas +. Ryan and Col. George H.
Harvey, has, as already announced, also
secured control of the Baltimore Steam
Packet Company. This company, more
famlliarly known as the Bay Line, oper
ates a line of steamers which forms the
connecting link between Baltimore and
Portsmouth of the Seaboard Air Line sys-
tenn, of which the Seaboard and Roanoke
is the parent company. The steam packet
company has 100000 in capital stock, dl-
Vided into 400 shares OF 81, 900 each Hith-
erto this company has had separate
management from that of the Seaboard
and Roanoke road and has been held as
an individual corporation, although the
management was made of the same inter
ests which controlled the Seaboard ana
Roanoke railroad. Usually the same
board of directors controlled the opera
tions of the two companies.
1t is said to be the intention of the pur-
chasers, as soon as they come into con-
trol of the properties, TO combine the
stock Indebtedness of these companies
and form one corporation having it's
northern terminus at Baltimore. The
capital stock of the new corporation will
depend on the earnings of the two COM
| panies, as determined by the examination
| of the books of the companies. The syn
dicate 1t is said, viii build up a system
| in the south composed of the Seaboard
| Air Line, Port Royal and Augusta and
| other lines in that sectionn already con-
troled by Mr.. Ryan and those who are
| associated with him. The syndicate, It
| is said, now controls about 6,7O0 of the
1000 shares of the Seaboard and Roanoke
stock. This is made up of the 4,0O0 shares
held in a pool by Judge Watts Of Ports
mouth, Va, Louis McLane of Baltimore
and Moncure Robinson of Philadelphia,
and of the options on about 2,700 shares
| obtained by the Mercantile Trust Com
pany Of this city.
| The primary cause Of the purchase was
TO get rid Of the rate cutting inaugurated
! under the management of the two COM
panies and to restore harmony among the
southern lines in place Of the recent hos
| tilties. The following card is published
| here to-day:
ITO the stockholders of the Seaboard
| and Roanoke Railroad Company: l do not
desire to enter into a newspaper discus
| sion as to the right or wrong Of the action
of the financial agency OF the Seaboard Air
Line, but Mr.. GIL has asked me one direct
question. which / will answer. l do not
| consider ii to the interest OF any stock
| holder TO give an option on his stock, and
particularly at 500 "a share, as / consider
| the Seaboard and Roanoke Railroad Com
pany's stock intrinsically worth more, be-
cause there is in the treasury of that COM
pany stocks and bonds to the par value
OF more than the capital stock. This IS
entirely outside Of the holdings OF that
company, which control about 1000 miles
of road, property, terminals roadbeds,
etc. / therefore say that the stock of the
Seaboard and Roanoke railroad is intrlns-
ically worth much more than par
and where a control Is desired
| by any other line more than dou-
BILE par. Where Is there another
case In which 1000 miles Of railroad is con-
trolled by a company with a capital stock
| of s., 1888 400, and this stock not worth over
slOO per share? "R. c. Hoffman.
President Seaboard and Roanoke Rail-
road Company"
The absorption OF the Seaboard and
Roanoke railway continues to be the one
topic Of discussion among financiers and
| railroad men Of this city. The same se-
| crecy that characterized the early stage
of the negotiations is observed and II
Idea OF the transaction. II Is known that
| Gen. John Gill, president of the Mercah.
tile Trust and Deposit Company. had, vi
to the time Of his leaving for Portsmouth
to attend the stockholders meeting, on
Tuesday, secured 2,700 shares Of the Sea.
board and Roanoke stock, while President
X. curzon Hoffman carried with him. IN
cluding his own holdings 1900 shares.
Gen. GIL had guaranteed 500 per share
to the owners Of the block which he rep
resented. IL was stated to-day by one
in position to know that Mr.. Hoffman
declined the offer OF the New Workers. 70
| purchase the 1900 shares which he held
at that price, and finally closed the deal
with them at Sil0
The syndicate insisted on having turned
over to them the controlling interest In
the Packet company without which the
Seaboard would be bottled up at Norfolk.
A block Of the stock is owned by
the Seaboard and Roanoke. but IL lacked
considerable of the coveted majority and
the representatives Of the voting pool
represented at the conference agreed to
sell the necessary number Of shares, the
par value OF which is 81 200. Fifteen hum
I