Evening star., 1896-10-06
A FIGHT FOR CONTROL
seaboard Air Lines Future May Be Deter
mined Today.
Meeting of the Board of Directors
President HOfmnnn's View of
the Value of the Stock.

President John Gill of the Mercantile
Trust and Deposit Company of Baltimore.
who, heretofore stated in The Star, has
for several days been trying to secure an
option on enough stock of the Seaboard
and Roanoke Railroad Company to enable
him to change the policy of President Hnff-
mann and Vice President and General Man
ager St John in regard to rate cutting, last
night went to Portsmouth. Va, to attend
the annual meeting of the stockholders of
the road, which takes place in that city
today.
Before leaving Baltimore Mr.. Gill con-
versed with Star reporter on the sub
Ject of his efforts to secure control Ct the
SeaDoard and Roanoke in which corpora
ton the former for a long time Eeen
a director. Mr.. Gill authorized the reporter
to say:
Il have a strong personal interest in this
matter and have taken an active part in
recent negotiations for the simple reason
that l am personally one of the largest
holders of the stock and represent very
much more. The controversy between Mr.
Hoffman, and myself is one solely of bust
hess Judgment. l do not maintain that
MIR. Hoffman, is wholly responsible for
the recent policy of the company, but l do
believe and insist that that policy, whoever
is responsible for 1t. is very detrimental to
the interests of the security holders
The cutting of rates is always dan
serous expedient on the part of a railroad
ironted by an aggressive and financially
strong competition. 1t is easy % start
Such warfare. but no man can tell where
1t may end if it is persisted III. In MANY
cases in the past 1t has resulted in the COM
pitte rum OF either or both of the COM
peting lines.
1 confess that do not like to see a prop
erty in which so MANY of nv friends %
well as myself are Interested engage vol
unfairly IN so hazardous a proceeding and
nave acted In a way to emphasize INV
fairs. Va WA al
1T Is easy for those responsible for il IN
predict glorious outcome They could
Lot. IN fact do otherwise witnou, reflect
inS upon the wisdom of their course. Hav-
ing taken the plunge they are Obliged to
go ahead regardless of possible conse-
| quences But We whose interests are at
stake are forced to consider the facts as
| .rey exist and two of these facts are
that dividends have ceased to be paid and
! the market value of our stock has decIin
| ei from above par to $40 per share This
| alone IS sufficient to make plain the necas-
Slty Tor prompt and concerted action on the
| part OF those whose property is dwindlng
! so rapidly in value, al least in public esti-
| nation.
| Another reason for this necessity is that
| those actually in control of the manage
| ment are not heavily interested financial
\ ~ IN the property. Depreciation in yaiue
/ of the stock does not bear heavily upon
! them so long as they are able to retain
! power 1t is true that they indicate a will
| 1ngn"ss to join us in disposing of the stock
! but 1t must be noted that in doing so they
| insist upon conditions which nobody could
| he expected to comply with and upon a
| price which. under present conditions no.
| DodE could be expected to pay. The net
| result of such a position is inevitable,
| namely, no sale and perpetuation of the
! Present management and policy.
| RecoSn!zing these facts, l have endeav-
! orel to obtain the consent of a majority
| OF the stockholders to agree to sell at par.
| which | consider very fair price, and
| which | should be very glad indeed, un-
| der present circumstances. to obtain for
| the stock which l own. a large number
| of holders have already signified their as
sent TO this view, and many more will, 1
| am confident. for the simple reason that in
| he event of a sale being effected those
| who do not will have to take their chan ces
| of securing as good a price later on.
| should not, of course, undertake this work
| If l did not have reason to believe that a
| majority of the stock can be sold at the
| price named.
1T would be folly to neglect such an .p-
| portunity as now presents Itself, and l for
| one am not content to sit idly by and see
| the market value of our property continue
| to depreciate the result of the ruinous
| policy that has been inaugurated without
| doing everything in my power to preven,
| it,
The Directors Meeting.
| 4 meeting of the directors of the Sea
board and Roanoke Railroad Company wal
| held yesterday afternoon in Baltimore TO
| the purpose, 1t is said, of discussing mat
| tiers growing out of the present circum
| stances connected with the company's af
| fairs and for the examine tion of the annua
| report, which is to be presented to tn
| stockholders at their annual meeting today
1t was reported last night in .Baltimor
among railroad men and bankers that tn
| proceedings of the board were marked by
| great lack of harmony. For the first tim
| Vice President st. John was present at
| neeting Of the directors. He attended b.
invitation. 1t was rumored that Presiderl
| Hoffman, had stated that unless he re
ceived unanimous Endorsement at today
election he would retire from the presi
dency. and 1t was also stated tina: MIR. ST
John had threatened to leave the road If hi
past course in regard to rate cutting wa
condemned by the same authority. So far a
Mr.. ST. John is concerned there is n
probability that 1t will prove true, as h
has it is stated. an ironclad contract wit
the Seaboard, which has yet several year
to run. and under which he draws a salar
of $1,000 year.
| A Statement From Mr.. Hoffman,.
After the adjournment of the meeting o
directors, President Hoffman, gave out
statement bearing on the negotiations ol
the part of Cen Gill to secure options O.
the stock of the Seaboard and Roanoke
which was as follows: II do not conside
it to the interest of any stakeholder to Civ
| an option on his stock, and particularly a
one hundred dollars share, as l conside
the Seaboard and Roanoke Railroad Com
panys stock intrins!cally worth more, be
cause there are in the treasury of that com
pany stocks and bonds to the value of NOR
than the capital stock. This is entirel.
outside of the holdings of that company
which controls about 600 miles of road, o
the property, terminals and roadbed.
Il therefor say that the stock of tn
Seahoard and Roanoke railroad Is intrinsi
| cally
where a control is desired by any othe
line. more than double par. Where is ther
another case in which 1000 miles Of rail
! road are controlled by company with
capital stock of s1.3SS, 400? And is thi
: stock not worth more than 500 per share?
, barbecue and Ratification.
A ratification meeting and barbecue wi
2 be held the latter part of October at Fall
Church, under the auspices of the L. N
, , Saunders and w. F. Thomas Club of thi
city. Honorary members recently electe
are: Frederick W. Enrich. B. H. Warner