Evening star., 1896-10-27
THE SEABOARD DEAL
Not Known Definitely Where It Will
End.
L0aisville and Nashville Line May
Get the ROad-HistOry Some.
times Repeats Itself.


syndicate. the principles Of which, Messrs.
Ryan and Thomas. assisted In the reorgani-
zation Of the Southern railway-has secured
the Seaboard Air Line, and that 1t WAS
done In the interests of the owners of the
Southern. there is more than a possibility
that the Louisville and Nashville company
has. or Is about to arrange for a transfer
of the holdings Of the syndicate to them.
It will be remembered that a similar re-
port was published In The Star about a
week ago. at which time 1t attracted gen.
eral attention throughout the country, es-
pecially in the leading cities in the south.
and inquiries have frequently been made
since then at the office of Mr.. Ryan in New
York for additional information on the
subject. Most of the time, however, Mr..
Ryan has been away from his place of
business. as secretary of the Metropolitan
Railway Company of New York. and his
representative stated that he was totally
uniformed as to the intention Of the syn
dicate which was probably correct.
Mr.. Ryan reached Baltimore last even
ing and about IL o'clock this morning ne
and his associates of the syndicate. it Is
said, met the authorized repre- sentatives of
the Hoffman-McLane pool for the purpose,
1t was stated, OF completing the deal by
paying over the purchase money to those
authorized to receive 1t.
Members of the party who were asked II
there was any truth in the report that the
Louisville and Nashville was likely to wrest
the Seaboard from the control Of the South
ern, replied that there was no foundation
for the story, and 1t was intimated that the
Seaboard was to form the nucleus of
new and powerful system. which might
under certain contingencies become pow
erful competitor of the Southern, and while
there would doubtless be harmony between
the two systems SO long as it was to the
interest of both to preserve peace it would
be much easier to have a war occur than
would be the case II the Louisville and
Nashville was not extended beyond its
present limits.
II the L. and n. should at this critical
stage Of the proceedings get the Seaboard
from the Ryan-Thomas syndicate, 1t would
not be an unprecedented event in railroad
history. The Baltimore and Ohio had
precisely similar experience some years ago
with Boston syndicate. which secured Tor
ton and Baltimore stock, but which. at
the eventful moment. and upon the in
ducement of big fortune, stated by some
to be 100000. sold out to the lessee OF the
p. w. and B., and compelled the 3. and
o. to build competing line from Balti-
more to Philadelphia at the enormous cost,
it has been stated, of $16,O0O.O0O or $lI ,OOO,-
600.
The division of the Southern Railway
Company which extends from Alexandra
to Charlottesville, and then known as the
Virginia Midland, was for several years
owned and controlled by the late John w.
Garrett, president Of the B. and o., but
was sold by him to the Richmond and Dan
VILE Railroad Company at a big advance
on the purchase price, although. as it was
pointed out to Mr.. Garrett, his act would,
IL consummated, deprive Baltimore of its
most valuable southern feeder. From this
the wholesale merchants Of Baltimore have
been sufferers for many years. and there
does not seem much probability that they
will ever recover from its effects.
n 10 nndarStnOd hest
informed railroad circles that President
Milton H. Smith Of the Louisville and NASH
vile was aware of Mr.. Ryans plans to Sc
cure the SeabOard even before the offer to
secure the option on the stock Of the latter
assumed definite shape. and it Is mys-
terry to many people why. unless he was
pecuniarily interested, he should have
known anything about them, as railway
magnates do not conduct their affairs by
letting even their most intimate friends
know what they are doing unless it Is TO
their interest to so do.
Every railroad man knows. also that the
Louisville and Nashville wants to reach the
North Atlantic coast, which 1t could do by
securing the Seaboard, and which 1t can
not do in any other way except by the
building of practically parallel line. 1t
now reaches three of the most important
cities on the Mississippi river, three on the
Gulf Of Mexico and three also on the South
Atlantic, but up to this time 1t has no eX-
port point north of Savannah, Ga. If 1t
could reach Norfolk. Va, over its own lines
it would, 1t is believed, develop a traffic
that would double its present revenues,
while the expenses to do SO would be rel
atively very small.
A dispatch to The Star from Baltimore
this afternoon states that Mr.. Louis Nc
Lane, one of the heaviest stockholders in
the Seaboard, has issued a circular letter
advising all stockholders to deposit their
holdings with the Hoffman-McLanep pool. as
originally requested by President r. Curzon
Hoffman October z.
This became, it is said, developed during
the conference between Mr.. Ryan and the
other parties interested in the deal, where
upon the formal transfer of the property
was postponed for a few days.
1t was stated that the postponemept of
the completion of the deal does not indicate
that there has been any hitch in the mat
ter. 1t Is also stated that the syndicate
agreed to pay 1925 a share for all the stock
which they had not previously purchased
at low figure.