The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-30
SEABOARD DEAL GOING SLOW.
CONCENTRATION PUT OFF UNTIL Az
TER THE ELECTION.

The Purchasing Syndicate Finds II
Almost Impossible to Raise 81, O0O.-
900 in Cash just Now to Make the
First Pnyment-The Pool Stock
Not 20 BE Turned over Until the
Cash Is in Haud.
Baltimore, Md, Oct. pa little inside
history Of the deal for the sale of the Sea-
board and Roanoke railroad to the syndi-
cate headed by Thomas Ryan of New
York. came to light this morning. 1t ex-
plains the delay in the contamination OF
the deal. and disposes of many absurd
rumors which have been freely circulated.
When a controlling interest in the stock
was negotiated for just previous to the
annual meeting at Portsmouth Va, some
weeks ago. 1t was supposed that the deal
would be closed up in a few days. A good
round sum was paid in cash as a guaran-
tee of good faith. The remainder was tn
be paid within stipulated time. Upon
this hnal payment being made the prop
erty was TO be turned over to the RYAN
syndicate, along with the RESERVATIONS OF
the present directory of the Seaboard COM
pany. 1t appears, however, that when the
iinai payment, which represented some-
INNS hht a Ahuiu IlllilOn dollars. became
| due, the purchasers were not ready with
the cash. They found that in the present
unsettled state of the money market the
required sum was not so easy to raise
They offered, 1t Is understood, to pay half
| OF the amount in cash, and asked for time
on the remainder. To this proposition
Louis McLane, who is representing the
pooling committee In the deal, declined to
assent. and the purchasers returned to
New York TO look for more ready money
| In the meantime they secured an extern
sion or time on the whole transaction
Thus the matter now stands. Mr.. Me-
Lane insisting that the whole amount
must be paid in cash before the pooled
stock Is turned over to the
| Ryan syndicate. In this pool
there is the original 1000 shares.
and enough additional to make with the
2,70O shares secured by Gen. Gill over 700
shares. owing to the peculiar voting
privileges which the charter OF the COM
pany provides for. big majority of the
total Issue, Is necessary to a complete
control.
This charter, which is one of the old
est In the country, scales the vote so that
| the stockholders have a vote for each
| share up to certain number. Beyond
this the number OF votes is scaled, the
proportion depending upon the size OF the
| holding This provisions was put In the
| charter with a view to protecting minor
| ity interests.
Mr. McLane has issued circular advis-
| ing stockholders to pool their stock with
the committee of which he is the head 1t
is not stated what price those who pool
their stock will receive but II will prob
ably be something in the neighborhood OF
Sl25. This will be $25 more per share than
| was received by those who Joined with
| Gen. gill in selling their stock at par
| Meanwhile the air is filled with rumors
| that the Louisville and Nashville Rail-
| road Company Is after the Seaboard sys-
/ TEN, desiring II for an outlet to the sea.
| Should this be true II would be improba-
| BILE for the Ryan syndicate to sell to this
| company. The ownership of this line by
| the Louisville and Nashville would prac-
| tically complete the latter system by
| giving 1t an entrance to the northern sea-
| ports.
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 Southern
| would be more friendly than has been the
rivalry between the Seaboard and the
Southern line. In any event rates will be-
| restored on the bay and the two steamer
| lines will be consolidated and be oper-
ated under a single management
1t is not believed that there will be any
| further developments in the Seaboard af-
fair until the latter part of next week.