The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-11-19
That Organ of Manufacturers Congra-
tulates South on Danger Thus
Escaped Saying Consolidation
Meart Monopoly of Southern


his failure to secure the controlling in
terest of the Seaboard Airline. He
says that with the object of securing the
control of the Seaboard and Roanoke
Railroad. he obtained through Gen. John
Gill. President of the Mercantile Trust
and Deposit Company, of Baltimore, OPP
tons upon about $500 shares of the
stock. Negotiations were continued with
Louis McLane, Moncure Robinson and
T.. r.. Watts and according to Mr.. Ryan,
an agreement reached. The only condi-
tons imposed by Messrs. McLane, Rob
inson and Watts. the statement says,
were that Mr.. Ryan should purchase the
stock of the Bay Line Steamboat Com
pany at price agreed upon and should
give to every holder of stock Of the Sea-
board and Roanoke road the privilege of
selling his stock at that price. 1t was
further agreed that they be allowed the
examination of the books and on that
day contract of purchase and sale was
completed and executed on which Mr..
Ryan paid 100000. The options secured
by Gill were also paid for.
Mr.. Ryan declares that on October
IL he was refused the privilege of exam
lining the books and that on Saturday
last Messrs. McLane, Robinson and
Watts declared themselves not ready
to deliver the stock which he has pur-
chased Since then they have declared
themselves unable to perform their part
of the contract With regard to the
statement that he had been acting in the
interest of the Southern Railroad in this
deal and had and would not operate the
road independently Mr.. Ryan says:
"This has never had the least founda-
ton in fact, and ] so stated to the gen.
tlemen who signed the contract at the
time of its execution. have never in this
transaction directly or indirectly repre-
scented the Southern Railroad, of any
body interested in that company, or in
terested in any southern Railroad Com
pany, whatever, or anybody but myself.
I own now more stock of the Seaboard
Company than all the directors and Of
ficers of the company put together and
expect to have something to say regarding
Its future"
ANOTHER VIEW OF THE CASE.
Baltimore, Nd, Nov. 1s.--The an
nouncement yesterday that the Sea-
board Airline deal was entirely off and
that the road would be hereafter conduct
cd as an independent line, as heretofore,
was not at first credited. 1t was only
after President Hoffman confirmed the
statement that it was generally believed.
Mr.. Hoffman declined to give any de-
tails, but stakeholder gave this view
of the case: President Hoffman's OPP
position to the sale was well known and
as soon as Mr.. Ryan's representatives
began TO buy stock Mr.. Hoffman's
friends came to his support and pur-
chased all they could obtain, with the
view to pooling it for his benefit.
Eve have really had the upper hand
in the fight from the start, but have said
nothing When the impression became
general among the stockholders that Mr..
Ryan really represented ]. r. Morgan Il
Co. the New York bankers, who control.
the policy Of the Southern Railway Com
many. and that the sale of the Seaboard
would mean its eventual control by the
Southern. we gained ground rapidly and
were favored rather than Mr.. Ryan, in
spite of the high price offered for the
stock"
In commenting upon the failure Of the
Ryan syndicate the Manufacturers Re
cord SAYS: 1.-THE failure of the New York
people to secure controlling interest In
the Seaboard Airline should cause pro-
found thanksgiving, not only through
out 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 Il serious injury
to this section, and eventually to all
Southern roads securities, admits Of no
question. In the first place, competition
is essential to the best interest of the
South, it Is essential to the success of
its merchants, manufacturers and farm
ers, it is essential to the best railroad
work for the uphuilding Of its industrial
resources and the encouragement of inn
migration. The Seaboard Airline has
given this much needed competition. No
railroad company in the country has done
better and broader work for the material
advancement of the country tributary
TO If than has the Seaboard. In the sec
ond place, the purchase of the Seaboard
would have been regarded by the South as
the gobbiing up of the last Independent
linz1Aprth of Atlanta, and this would
hayESEiyen the politicians of the Popu-
listic persuasion new fighting ground
against railroads. 1t is safe to 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.
with the details d fhp recent contest
for control ae manufacturers Eecoro
has nothing 20. II may, however, very
appropriately be Saia thac the record o.
the present administration during the las
three years Of probably unequalled busl
ness depression is one Of which any com
rany might be proud. In that time thi
company has shown a most marvellous
increase in tire magnitude Of the road
traffic, wonderful development Of pas
senger service by the establishment q
through Pullman trains between Wash
ington ana Portsmouth and Atlanta
whereas three years ago there were onl
local trains and no through passenger ser
vice, by the establishment Of Atlanta Tel
lninaIs, the enlargement Of Portsmouth
facilities with new warehouses, oHlc