The people's journal. (Pickens, S.C.) 1891-1903, 1896-10-15
THE SEAB0ARD HAS BEEN SCOOPED.
THOMAS AND RYAN ARE THE
PURCHASERS.
The Rate Wars VIII Now Ceaae-
The New System Will be Friendly
With the Southern Railway.

The Rate Wars VIII Now CeaAc-
The New System Will be Friendly
With the Southern Railway.
Special to Atlanta Constitutions
NEW YORK, October G.-The ncws
flew through Wall street late this
afternoon that Thomas f. Ryan had
bought controlling interest in tho
Scab0ard Airline system. 1t WAS
said ne paid BIO II share for block OF
1000 shares, and thereby secured the
needed majority.
Mr Ryan and his associate, General
Sam Thomas, are the holders OF 49,
800 shares of tho Central of Georgia
stock, or they so stated to the Georgia
railroad commission Il few months ago
when that body was trying to discover
Central. Mcssrs. Ryan and Thomas
also own or hold in trust the Port
Royal and Augusta railroad, which
they bought recently at receivers
sale.
If it turns out to be true that they
have scoopcd tho ScLboard. and there
arc number Of corrobating circum-
stances, the system is to be merged
into some Of their other properties and
Will be operated in perfect harmony
with the Southern. 1t is the under
SUhuuluS oll GlS SUICcU uCfS UllaJ NIf. u.
Picrpont Morgan is tho real owner Of
al these Southern properties. The
Seaboard's purchase, if made, was to
take it out OF tho Geld as competitor
and demoralzer OF rates
MIR. Samuel Spencer, president Of
the Southern, charged recently that
tue principal owners OF tho Scnboard
| had'oilered to sell the property to him,
and that he had declined to buy. 1t
has been street talk for Il long time
that Il pool had been formed by Mr..
Holman and his friends to forco the
Southern to buy their stock. 1t may
bo that the pool has succeeded.
Whether $llO was the price tho pool
first asked is not known on tho out
side, but as the stock has been above
500 and has been as low as $3G within
the past few months, it is probable
| that SllO was not considered 1; bad
price. Recent statements OF tho
| Southern show that in its ret earnings
| for tho first ten weeks Of tho present
financial year, beginning July 1st, the
system fell behind $l90. .000 or nearly
300, 600 Il month. This was in large
measure due to the rate war inaNgur:t!.
ed by MIR. Hofmans management O;
the Scaboard.
Mr.. Hoifman's recollection ns prcsi-
dent Of the Seaooard would DO the
usual move in the event Of the com
pany's sale to Mr.. Ryan. In the present
state Of public mind in the South, it
would mako matters worse to openly
announce that the Seaboard had been
bought up by its competitors to get rid
Of competition.
Mr.. RyaL went down to Portsmouth
last night On ono OF the bay boats with
G. B. Nj. Harvey and somc friends from
Baltimore. Dispatches from Norfolk
intimate that Mr.. Ryan got in some
missionary work before the meeting
and arranged tho deal for tho block OF
loco shares. Ho was working hand
in glove with MIR. John Gill, who had
been managing the Baltimore end OF
the campaign, directed toward the
requirement OF tho Scaboard. The
common stock Of tho Scaboard and
Roanoke consists OF l0,587 shares Of u
par value Of ST ,05S, 700 and tho guar
antccG and preferred make total Of
81, ,302, 900.
1t is just possible that tho Seaboard
system and the Central OF Georgia will
be consolidated, though it is more
probable that it will be merged with
other Ryan and Thomas properties and
handled for the present as u separate
system.
1t is said that tho ontiro manage
mcnt Of the Suaboard will resign with
in thirty days.
The Sale TO Thomas and Ryan is
Fully COnflrmcu--Wh the New
Deal Means.
NEW YORK, October. 7.--Thomas T..
Ryan, in reply to an inquiry from u
representa- OF the Associated Press,
, said that he would not deny tho report
that he had bought for himself and
others Il majority OF the stock OF tho
ScabOard and Roanoke railroad
The Scaboard and Roanoke owns q
controlling interest in tho various
roads that compose the Scaboard Air
Line. Mr.. Ryan and General Thomas
have made other purchases OF railroad
property in the South recently, includ-
ing the Port Royal and Augusta, and
Port Royal and Western Carolina and
have consolidated tho two lines into
one system, tho new company operat-
! ing as tho Charleston and Western
! Carolina.
The Importance OF tho transaction
| lies in the assurance OF peaceful read
| iustmcnt Of the relations between the
Southern railway and certain OF It's
! competitors, who havo been rcspon-
sib!G for radical disturbance in rates.
Ryan and Thomas are known to have
been operating together in Southern
railroads for some time. General
Thomas built the East Tennessee,
which is now part of the Southern.
Mr.. Ryan is Southern man and q
very close friend of William G. Whit
ncy. Ryan and Thomas hold u con-
trolling interest in the Central. 1t
has been intimatcd by Mr.. Spencer
that the Southern, which is the sue
cessor of tho West Point Terminal,