The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-12-27
RYAN REPLIES TO WILLIAMS.
WHY HE OPPOSES sEABOARD RE-
ORGANIZATION PLAN.

said 1t Was Proposed to Put n Large
Mortgage Indebtedness on the
Property, Not Dollar of Which
Will BE Spent in improvements.
Syndicates to De Reimbursed and
Large Commissions to he Paid-Be-
lieves the Plan Unwise.
New York, Dec. 26.-Thomas F. Ryan,
one of the principal stockholders of the
Seaboard and Roanoke Railroad, has is
sued the following telegraphic reply to
the published telegram from John Skel-
ton Williams. president of the seaboard
and Roanoke Railroad, in the controversy
over the control of the Seaboard Air Line
system:
New York. Dee. 26-John Skelton VIII
liams, president of the Seaboard and Ro-
anol1e Railroad Company, Richmond, Va:
report of the court proceedings had al Ra-
leigh on Thursday last, and observe that
your representative there read in open
court a copy Of a telegram sent to me by
you on Dec. 12, 1899, which have not
heretofore answered.
'I did not reply to it when received be-
cause its terms forbade further negoda-
tions then. 1t declared, to be sure, that
you had made all the efforts, suggestions
and propositions that any fair-minded man
could reasonably desire But the PROPOSE
ton was embodied in your preliminary plan
Of consolidation presented to me on Oct. %,
by which was invited 10 cooperate in
plan involving the issue of $1S,67OOOO of
bonds on the combined properties to be
used for the following purposes:
To Reimburse syndicates.
"You proposed to take $1S, 900 of these
bonds to reimburse your various syndi-
Gates for The securities they had bought to
control the system.
''You proposed to give $2,2S5.OOO of these
bonds in exchange for Georgia and Ala
bama stocks on which I believe dividend
has never been paid
with $16O0,OOO you propose to purchase
or retire certain shares of Seaboard stock
and stocks in some other roads held by
minority stockholders.
"You proposed to use 81, 10000 to retire
Car Trust notes and $1,COOOOO to pay for
the South Carolina extension, leaving
for miscellaneous requirements.
"In short, you proposed to place on
these roads an additional mortgage in
debtedness of $12, 900, burdening them
with an additional annual interest charge
of nearly $4,000, not one dollar of the
proceeds of the sum of these bonds to be
spent on the property, but the entire
amount of coo to be used by you
to reimburse your syndicates for moneys
paid for stocks, which, with the exception
of those of the Seaboard and Roanoke
and the Bay Line, have not paid a divi-
dend for years.
Having thus paid your syndicates dol
lar for dollar in bonds, you further pro-
posed to issue TO them a bonus in the
stocks of the reorganized company of more
than $23, 900, 900.
Some Heavy Commissions.
"This was your plan as you presented
it to me on Oct. %, but subsequently 1
learned what you did not at the time dis
close, that your firm, John L. Williams
& Sons and Mr.. Middendorfs firm were
to have as a commission 100000 of the
new stocks in addition.
You describe this plan as wise, con-
servative and equitable You call it an
honest effort to work out a reorganiza-
ton. You say 1T means much for this
whole section of the country / can read
lily see what it means to you personally
and TO your syndicates, but so far from
regarding it as wise or conservative or
equitable it seems to me wholly incon-
sistent, with a proper financial property
II did not believe you would persist in
such a scheme. Indeed, 1 noted that you
had entitled it a Preliminary plan,' and
remembered that you had stated at con-
ference at the Astoria Hotel on Nov. %
in the presence of my attorneys and your
attorneys, that your purposes were not
definitely fixed. / had no idea that it
would be your final plan until l learned
of the proceedings of the stockholders
meeting of the Seaboard and Roanoke
Company on Dec. 10, aG Portsmouth, Va
l regard other statements in your tele-
gram as Inaccurate, but il Is not necessary
to answer them in detail at this time
Il have treated your communica tions
as confidential, including this plan of con-
sohdation and your telegram describing
it. but since you have thought ii proper
TO read The telegram in court and publish
it broadcast, I think it necessary 10 say
that this analysis of the plan shows plain
ly that il is neither fair nor equitable and
that it cannot be pursued without grave
danger to the interests which ii is your
duty TO protect. Thomas f. Ryan"
WILL ENTER AN AGREEMENT.