The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1899-12-29

To President Williams sswise, Con-
and Equitable Proposal
for Consolidation of the Seaboard Air
Line.

New York. December 26-Thomas +.
Ryan. one OF the principal stockholders
of the Seaboard and Roanoke railroad.
has issued the following telegraphic re-
ply to the published telegram from
John SHELTON Williams, president of the
lSeaboard n Roanoke road. in the
controversy over the control of the
ISeaboard Air Line system:
New York. December IS.
John SHELTON Williams, President
Seaboard and Roanoke Railroad Com
pany:
Il have just received from my at
torneys a report OF the court proceed
Idings had at Raleigh on Thursday last,
land observe that your representative
There c in open court a copy OF a
Telegram sent by you TO me on Deem
Der IL. 1893, which / have not hereto
fore answered.
Il did not reply TO it when received
because its terms forbade further ne
ggotiations then 1t declared, TO be sure.
that YOU had made all the efforts, sug-
.gestions and propositions that any fair
minded man could reasonably desire;
out the proposition was embodied in
your preliminary plan Of consolidation
presented to me on October 23rd, and
10y which L was invited to cooperate
i'm a plan involving the issue OF s19. s70,-
1000 of bonds on the combined proper
ties to be used for the following pur-
poses:
You proposed TO take s13, 343, 900 Of
these bonds to reimburse you various
isyndicates for the securities they had
bought to control the system.
You proposed to give $2,2S5,00 OF
these bonds in exchange for Georgia
and Alabama stocks, on which l believe
Ia dividend has never haan maid
With 81, SOC, 900 you proposed to pur-
ichase oil retire certain shares of Sea-
board stock n stocks in some other
roads held by minority stockholders.
You proposed to use 81, 300, 900 TO re-
tire car trust notes and 81, 000, 900 to pay
for the South Carolina extension, leav-
ing Sal go, which you describe as a
balance for miscellaneous require
Iments.
In short. you proposed to place on
these roads an additional mortgage in
ldebtedness of SIP, 523, 900, burdening
them with an additional annual inter-
lest charge of nearly $500, 600, not n
Idollar Of the proceeds Of the sum of
these bonds to be spent on the proper
Ity, but the entire mount of ST., 523, 100
ito 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 n dividend for
years.
Having thus paid your syndicate
dollar for dollar in bonds, you further
proposed to issue to them a bonus in
1.-THE stocks of the reorganized company
Iof more THAI s23, ZOO, 900.
This was our plan as you present
led it to me on October 23rd, but subse-
iquently l learned what you did not at
the time disclosed, that you firm, John
Il. Williams q Sons, and Mr.. hidden
doris firm, were to have as a commits
lSion S 1000, 600 of the new stocks in
addition.
You describe this plan as wise, con-
lServative and equitable You a it
IAN honest effort to work out a reor-
Iganization. You say it means much
for this whole section of the country
| car readily see what it means to you
personally and to your syndicates, but
so far from regarding it as wise or con-
lservative or equitable, it seems to me
wholly inconsistent with a proper
financial polio
PERSIST in such a scheme. Indeed, /
noted that you had entitled it a
preliminary plan and remembered
that you had stated at a conference at
the Astoria hotel on November 22nd in
the presence of my attorneys and your
attorney that your p were not
definitely fixed. l had no idea that it
would be our final plan until I learn
led of the proceedings of the
Iers' meeting of the Seaboard and Roam
Ioke Company on December 18th at
Portsmouth, Va 1 regard other state
Iments in your telegram as inaccurate,
but it is not necessary to answer that
i'm detail at this time.
Il have treated your communications
Jas confidential, including this plan OF
consolidation, and your telegram de-
lscribing it, but since you ave thought
lit proper to read the telegram in court
land publish it broadcast, / think 1T
necessary to say hat this analysis OF
THE plan shows plainly that it is Eeith-
Ter fair nor equitable and that 1T cannot
Ibe pursued without grave danger to the
Interests which it is III duty to pro-
ltect. THOMAS RYAN"