Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-11-18
DEAL KNOCKED OUT.
sEADOARD AIRLINE WILL RE-
MAIN INDEPENDENT.
HOFFMAN STOCK UNOBTAINABLE.
The Ryan Syndicate Fails to Carry
Its Point, and Negotiations Are
On-signai Victory for the Bniti-
more President.

BALTIMORE. November 1.-THE much
talked-about Seaboard Air-Line deal re-
ceived a knockout blow this afternoon,
when the committee which has some 5000
shares of the stock pooled refused TO
turn It over to the syndicate headed by
Mr.. T. +. Ryan, of New York. The de-
cson was a great surprise to every one
except President Hoffman and a few Of
his associates. 1t was a signal victory for
the Seaboard president. When the ar
ran cement was made at the Portsmouth
meeting looking TO a sale of a controll-
ing interest in the Seaboard Company,
there were few who doubted its con-
summation. The announcement this eve
ming that the deal was entirely off, and
that the road would hereafter be con-
Quoted as an Independent line, as hereto
fore. was not at first credited. 1t was
only after President Hoffman had con-
firmed the statement that It was gene
rally believed.
Mr.. Hoffman declined 10 give any de-
tails but a stockholder gave this view OF
the case: president Honman's opposi-
tion to the sale was well known, and as
soon as Mr. Ryan's representatives. be-
gan to buy stock Mr.. Hoffmans friends
came TO his support and purchased all
they could obtain, with a view to pooling
il for his benefit We have really had the
upper hand IN the fight from the start,
but have said nothing. When the i'm
preston became general among the stock
holders that Mr. Ryan really represented
X
ers who control the policy Of the South
ern Railway Company and that the sale
Of the Seaboard would mean its eventual
control by the Southern railway, we
gained ground rapidly, and were favored,
rather than Mr.. Ryan, in spite Of the
high price he offered for stock"
STATEMENT FROM HOFFMAN.
Just before leaving Portsmouth, Va,
whittier no went late this afternoon on
business connected with the system, the
executive OF the Seaboard Airline gave
out the following statement:
"Under the terms of the pooling agree
ment" said President Hoffman mo sale
of the pooled stock can be made without
the assent of three fourths of the stock
pooled. There are 1921 shares I'm the pool,
and as less than one half OF that amount
gave their assent, there will be no sale.
''The vote also shows that the stock
holders have every confidence IN the future
OF tho property, and In the present man
agement. The Importance of keeping
an Independent line to the South can
scarcely be oyerestimated. and no doubt
Influenced the vote Of Baltimore, Norfolk,
and Portsmouth stockholders. Had this
line got into the hands Of the New York
parties represented in the Southern rail-
way. there would be but one line to the
South, and that In the hands Of New
York, and the securities would have suf-
fered accordingly
FUTURE PROMISING.
"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 months Of
1925. and the fact that the Ryan syndicate
has been willing TO pay par for even a mi
nority interest shows the result Of their
study Of the resources Of the Seaboard
Airline.
Under the present management" con-
tinued Mr.. Hoffman, "the road has been
honestly operated, i'm the interest Of its
stockholders and OF those holding its Sc
curities, amounting TO many millions Of
dollars. Should a change throw its con-
troll into the hands that seek only a per-
competitive carrier. it would be difficult
to overestimate the danger that would
threaten all interested in the system.
THE public | think Is TO be congratu-
lated that this line is still Independent.
and will be run, in the future as i'm the
past, looking TO the interest Of Baltimore
and the southern cities with which it's
trade relations are the most intimate and
important"
PRESS COMMENT.
In commenting upon the failure Of the
Ryan syndicate, the Manufacturers Re-
cord will tomorrow say: THE failure Of
the New York people to secure a con-
trolling interest in the Seaboard Airline
should cause profound thanksgiving. not
only throughout the South. but wherever
there exists any interest in the future Of
this section. That the concentration Of
ownership Of all railroads in the Central
South in New York hands would prove a
serious injury TO this section, and event
ually TO all southern roads securities, adj
mits Of no question. In the first place,
competition Is essential to the best inte-
rest Of the South; IL Is essential 10 the
success Of its merchants manufacturers
and farmers: il IS essential 10 the best
railroad work for the upbuildng OF its
Industrial resources and the encourage
ment Of immigration. The Seaboard Air
Line has given this much-needed compe-
tition. No railroad company in the coun-
try has done better and broader work for
the material advancement Of the country
tributary TO II than has the Seaboard In
the second place. the purchase Of the Sea
board would have been regarded by the
South as the gobbling up OF the last indie
pendent lire north Of Atlanta, and this
would have given the politicians Of the
Popullstic persuasion Il new lighting
ground against railroads. lt Is safe 10 say
that under such circumstances. legislation
would have been enacted In the Central
South OF vast injury to all southern rail-
road securities. and thus to all southern
business interests"
THE HOFFMAN RECORD.
"Wth the details Of the recent contest
for control. the Manufacturers Record has
nothing to do. II may. however, very ap-
propriately be said that the record OF
the present administration during the last
three years of probably unequalled busi-
ness depression is one OF which any com
pany might be proud In that time this
company has shown a most marvellous
increase I'm the magnitude Of the road 5
traffic. a wonderful development OF pas
senger service by the establishment or
through Pullman trains between Washing
ton and Portsmouth and Atlanta twhereas
three years ago there We're only Local
trains and no through passenger service)'
the establishment OF Atlanta terminals,
the enlargement of Portsmouth facilities
with new warehouses, Office building. en-
larged waterfront etc, the raising OF
the standard Of the rolling-stock from a
very inferior condition to its present high
grade. with the best locomotives ana good
cars. All these things have been done.
not. as is often necessary. at the expense
Of net earnings. on the contrary during
this three-year period the gross earnings
have largely increased but better by far