Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-12-22

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tenn with those iof the South Bound
railroad. the Georgia and Alabama rail-
way and the Florida Central and PEN
lnsular Railroad Company, upon such
fair and Just terms to the stock
holders Of such properties as
may be agreed upon by them.
and they hereby authorize and en-
power the president and directors Of
this company to join in such agree
ments, contracts, merger OF consollda
ton. or other measure as may be
legally necessary or proper to bring
about the closest physical connection
and corporate union OF merger of such
properties, for the accomplishment of
the creation of the system so proposed"
The meeting was then adjourned till
January 18th next, when final action is
expected to be taken.
MIR. WILLIAMS TALKS.
Baltimore. Dec. 21.-when President
John Shelton Williams, president of the
Seaboard Air Line, heard of the action
OF Judge Purnell. he said it was only
what he expected.
Every step which has been taken in
carrying through this consolidation"
he continued, has been under the adj
vice of the ablest counsel and the va
rious actions which have been taken
have not only been ratified by the
stockholders Of the several companies
IN general meeting. There is no single
step which has been taken to which
the slightest objection can be legiti-
mately made.
Il have just received q statement of
the earnings of the Seaboard Air Line
Tor the month of November, which
shows an increase at the rate OF about
SlO00 n day over last year. which was
N5O ia, - 1T,
CAPITALIZATION NOT EXCESSIVE.
Mr.. Williams was asked what he had
to say In regard to the recent state
ments that the capitalization of the
new Seaboerd System was excessive.
Thc total capitalization OF the Great
er Seaboard SYSTEM" said Mr. Will
llams, under the proposed plan Of con-
solidation, will be less than one-half of
the capitalization per mile OF the
Southern Railway. The total bonded
debt of the Greater Seaboard System
Will be about $4,000 IL mile Of road
owned, against Il debt on the Southern
Railway of about $4,000 u mile OF road
owned. The preferred stock of the new
system will be about $4,000 q mile,
against $4,000 a mile Of road owned on
the Southern Railway, while our COM
mon stock will be about $4,000 q mile,
against 100000 on the Southern Railway
iot cttGI Hiifc Ol TOlu owned.
I'm other words the total capitaIiza-
ton of the Seaboard will be about $685.
600 mile. including bonds and stocks,
against a. total capitalization on the
Southern Railway Of $1,000 n mile of
road owned. These figures speak for
themselves"
ADVANCE IN RATES.
Washington, d. c., Dec. o1-A hear
ing was begun to-day by the Interstate
Commerce Commission IN the matter of
changes In freight classification and
advances in freight rates by carriers
using the official classification.
Many complaints have been filed with
the commission alleging that discrimi-
mating changes In freight classification
by carriers have been agreed upon to
take effect OH January !, 1900. To de-
termine this question the hearing of to-
day was held.
AT the opening of the hearing Mr.. C.
~. Gil. OF New York, chairman OF the
"oflic.al classification committee" said
the railroads were without knowledge
oil the persons who had requested the
nearing and asked that thew he called
upon to state. wherein the proposed
changes were unjust Mr.. Gill main
famed that the proposed advances in
freight rates We're due to the increased
cost OF railroad plants and mainte-
nance and the advances had been an
Piled TO classes of freights that could
well pay them.
In the course of long examination
py MI w. A. Day, attorney for the
commission Mr.. Gill gave No rnoeons
for the proposed advances upon snecial
articles or classes of freight. eycept The
genera reasons Which applied to all
freight.
( RAILROADS NEEDED MONEY.
Judge c. A. Prouty, a member of the
commission. instituted line of in
CURRY, the questions or the answers
Indicating that in 1887 the railroads
paid more for steel rails and other
articles of equipment than they had
to pay now. In view of these facts
he desired to know why the classifica-
ton committee deemed it necessary to
increase the rates
Mr.. Gill replied as he had prey
iously, that in the Judgment of the
committee articles on which advances
were made could we'll stand them. and
that the railroads needed the additional
revenue which the advances would give
them. +.
Mr.. +. s. Monnett, attorney general
of Ohio, questioned Mr.. Gill as to the
cost of shipping petroleum. endeavor-
ing to elicit from him some statement
to the effect that the Standard Oil
Company was favored by the railroads
at the expense OF the small shippers.
Mr. Monnett said that on less than
car load lots of petroleum the pro-
posed classification increased the rate
269 per cent, depending on the dis
lance. This, he said, was discrimina-
tion which would break up the small
shipper Mr.. Gill explained that his
committee had nothing to do with the
carload rates on petroleum.
Without reaching any conclusion, the
hearing was adjourned until tomorrow
morning.