Evening star., 1898-09-29
THE SEABOARO AIR LINE
Efforts of MI. Thomas F. Ryan to Secure
Contfaling Interest.
Expected MT the Com
ing Annual Meeting of the Conn
s n
pnny-The PRndinE Suit.

i
The annual me6tin8seof the Seaboard Air
Line Company wsll be held in Portsmouth,
Va, Wednesday next, and it is expected
| the event will be attended with possibly
very interesting proceedings. Readers of
| The Star will recall that for more than a
| year past Mr. Th0mas F. Ryan of New
York has been trying to secure the man
agement of the road from Mr.. r. CurZon
Hoffman, who has been at the head of the
corporation for a number of years past
The basis of Mr.. Ryan's claim is that the
majority of the owners of the stock of the
| road agreed some months ago to sell their
holdings to him at s135 per share. but that
they are prevented from doing SO by reason
of the existence of a pooling cement
which placed the stock in the hands of Mr.
Hoffman and his friends absolutely for five
years. Mr.. Ryan has from time to time
sought the intervention of the United
States courts to compel Mr.. Hoffman and
the others to transfer the stock alleged to
have been purchased by Mr.. Ryan through
the latter but so far they have not made
much progress in that direction.
Recently Judge Simonton of the United
States court for the eastern district of Vir-
ginia dismissed suit entered by G. B. M
Harvey against the Seaboard and Roanoke
and Raleigh and CASTOR railroad compa-
MES. which is the corporate name of the
Seaboard Air Line, upon technical grounds
A day or two since, however, counsel for
! Mr.. Harvey presented new authorities and
additional facts, and, upon this representa-
ton. Judge Simonton has ordered that there
be rehearing Of the case.
Intimately Associated.
Although the suit was entered by Mr.
Harvey, it is we'll understood it has inti-
| mate connection with a pend ng suit of Mr.
Ryan, who hopes to get a favorable de-
cision on the latter and thereby secure con-
troll of the Seaboard Air Line. Mr Harvey
is said to be business associate of Mr.
Ryan, and is also said to be cooperating
with him in the fight against the present
management of the SeaboarC and Roanoke
for the purpose of having nude effective I
purchase of about s2oO.000 of Seaboard
stock which was made by the Raleigh and
CASTOR company eighteen months ago. and
which was aGjudged to be Illegal. The suit
is also for injunction to prohibit the
votes of said stock being ca at by the Ra-
leigh and CASTOR company and others, at
tie stockholders meeting of the Seaboa I'd
company next week.
The chief feature of the case rs shown
in the supplemental bill, Is In the charge
that the majority Of the stock of the
Raleigh and CASTOR company Is owned by
the Seaboard company; that the two COM
panies have the same boards of directors
and that the officers, agents and employees
of the Raleigh and CASTOR company are
appointed and controlled by the Seaboard
company. 1t is alleged in the papers filed
that MIR Hoffman. president and his
friends, by virtue of tteir official position
as directors, caused the Raleigh and Cas-
ton company to use a part of the proceeds
OF an issue OF bonds to purchase s20O, 900 of
Seaboard stock. HhisJstock was purchased
| 1t Is alleged, from parties who had signed
pooling agreement which contained a COW
enant not to selAtheustock for five years
The claim is nadt that the owners of the
stock had been flducad to sign the agree
ment upon the representation that it was
for the purpose of making a sale of stock
OF all signers at Si35 per share to Thomas
r. Ryan, and not for The purpose of having
1t tied I'D for fse years, and who We're
therefore, threateninei to bring suit them
selves to DISSOLVE ttfe pool They were
Dacihec 1t is alleged, by having their stock
purchased by thedtaie1gh and Castor COM
pany. vi
a.# Other Charges.
| The bill furtherftharges that Mr.. Hoffman
| and his friends. ,tth having this stock pur-
| chased by the Raleigh and CASTOR company
| the purchase amounting to about one
| fourth Of the amount pooled-had three
objects in view First, to silence dlscon-
| tent among members of the pool: second
| to place in their hands the power to veto
| the sale at any time within five years, and.
| third, to increase them at the regular
stockholders meeting of the Seaboard ami
| Roanoke Railroad Company and to cast
| a large number of votes in favor of their
| own reelection.
| The contention on the part Of the COM
| piainant is that in view of the fact that
| the Seaboard and Roanoke company prac-
| tically owns the Raleigh and Gaston any
| Seaboard stock which the Raleigh and
| CASTOR company may purchase, assuming
| that it has the right to purchase under
these circumstances. really belongs to the
| Seaboard company itself. 1t Is further
| claimed that IL is treasury stock and can
| not be voted.
|