The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-11-20

say that the deal was entirely off and
that the road would continue to be con-
Quoted as an independent line. they
assigned as their reason for not wanting
to talk for publication the fact that Mr..
Ryan was reported as about TO take
the matter into court and that when the
case came up it would be the proper
time to discuss it. Those who are on
the inside of things assign severai rea-
sons for the failure of the deal. rHst
the contract for the delivery OF the STOCK
to the syndicate did not appear TO De
binding. From things which members
of the McLane pool and OF the ISyah
syndicate said of the contract, II was
merely an agreement to transfer tle
pooled stock if three-fourths OF the
stock owners voted in favor or the saie'
President Hoffman got the stock IN ms
hands, and then the owners dld not vote
to sell it, They preferred to, let MN run
the Seaboard. Under the terms OF the
pool. Mr.. Hoffman has the pooled STOCK
for five years. He has enough OF 1t TO
retain control, and he is in hrmer posi-
ton than ever, and the stockholders uld
not hesitate TO say yesterday tnat tney
believed Ryan's attempt ana railure 10
get control Of the road had done II good
They say that it has more TRENDS now
than ever before.
The pool did not get all the stock as
was expected by its promoters.
did net get all the stock as ives expected.
There were many persons VINO heId Sc
curities not only OF the Seaboard and
Roanoke. hut also the Raleigh and Gas
ton. the Georgia, Carolina and Northern
IF Snnh00T0
system. Such persons were not disposed
10 part with their Seaboard and Roanoke
stock. aud thus turn the management
of the other lines into the hands of peo-
pie whom they did not know.
Gen. John Gill, of Baltimore. for years
a close business friend Of Hoffman's,
started the deal for the sale OF the Seas
board, and at one time he stated that
President Hoffman would soon be out
of the property Mr. Hoffman deter
mined not to he sold out, and proceeded
TO run a counter campaign. General
Gill had injunction proceedings brought
against the Seahoard up in Virginia TO
stop the rate war. and later began To
buy Seaboard and Roanoke stock, of
f,ring 500 a share for il. He got 200
shares oiit of total Of 1f,T00. Mr. Ryan
took this off his hands last Friday; so
General Gill appears to have no further
connection with the deal Mr.. Ryan has
hought small minority interest, and
he appears TO have been caught. Ii he
nail S1n0 share for 200 shares, he
invested S270,000 and has not half
enough stock to control.
The talk about the Louisville and
Nashville being after the Seaboard had
some foundation in fact, and there is
good reason to believe that the Louisville
and Nashville and President Hoffman
are not hostile.
OF late the Seaboard, though contend
ing against stronger competition than ii
ever before knew, has been making more
money than the management dreamed
to be possible six months ago.
ITS FUTURE POLICY.
People here yesterday, especially the
Seaboard employees, were deeply inter
ested in these meetings. They anxiously
inquired the result from all whom they
thought had any information as to what
was going on in the meeting. They now
know that it is definitely settled that Pres
ident Hoffman, Mr. St John and Capt.
MeBee will continue to manage the
system.
Whether the Seaboard will resume its
rate-cutting policy is unknown, but ii
is probable that If Messrs. Hoffman and
St. John think that they are not getting
all that they are entitled to, they will
try their old methods again. That July
rate war was disastrous to some lines,
but the Seaboard made capital out of it.
To the rate war more than any other
one thing, the Seaboard is indebted for
its increased traffic and revenue.
One thing is certain: The Southern
Railway viii have no monopoly of bust
ness in the South.