The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-12-27
PLAN OF CONSOLIDATION
RYAN DECLARES IT NOT "FAIR
AND EQUITABLE"
SAYS THE PLAN WAS A SURPRISE TO HIM
He Had Regarded it as Preliminary Only Until
He Heard Of the Proceedings Of the ck-
holders of the Seaboatd and Roanoke
Railroad at Portsmouth.
Railroad at Portsmouth.

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 Road, in the controversy
over the control of the Seaboard Ain
Line System:
New York, Dec. 20, 1899.
"John Skelton Williams, President the
Seaboard and Roanoke Railroad Conn
pany, Richmond, Va:
Il have just received from my attor-
neys report of the court proceedings
had at Raleigh ON Thursday last and
observe that your representative there
read in open court copy of a telegram
sent by you to me on December 18th.
1899, which l. have mot heretofore am
swered.
Il did not reply to it when received
because its terms forbade further neg0-
tiations then. 1t declared, to he sure.
that You had made all the efforts, sug-
gestions and propositions that any fair
minded man could reasonably desire.
But the proposition was embodied in
your preliminary plan of consolidation
presented to me ON October 23rd and
by which / was invited to cooperate IN
a plan involving the issue Of S19,670000
of bonds ON the combined properties to
be used fer the following purposes:
''You proposed to rake $fSS.343.000 n
those bonds TO reimburse your various
syndicates for the securities they had
bought to control the system
You proposed to give $2,2S5. 900 of
these bonds in exchange for Georgia and
Alabama stocks, ON which l believe a
dividend has never been paid.
with $1,GO0,000 you proposed to pur-
chase or retire certain shares of Seaboard
stock and stocks in some other roads
held by minority stockholders.
''You proposed to use $1,300,000 to re-
tire Car Trust notes and $1,000,000 to
pay for the South Carolina extension,
leaving S141,000 which you describe as
balance for miscellaneous require
ments.'
in short, you proposed to place on
these roads an additional mortgage I'M
dcbtelness Of S12,523,000 burdening
them with an additional annual interest
charge of nearly S500.000, not one dollar
of the proceeds of the sum of these bonds
to be spent on the property, but the en-
tire amount0f $12 900 to be used by
you to reimburse yolIr ssyndicates for
moneys paid for stocks. which with the
exception of those of the Seaboard and
Roanoke and the Bay Line have not
paid a dividend for years.
Having thus paid Your syndicates dol
lar for dollar i'm bonds, you further pro-
posed to issue to them a bonus in the
stocks of the reorganized company of
more than $23,000000.
's'This was your plan as you presented
it to me on October 25rd, but subse-
quently | learned what you did not at
that time disclose, that your firm. John
L. Williams and Sons, and Mr.. hidden
DORIS firm, were to have as Il commits
sion S2,0O0,000 of the new stocks in ad-
dition.
~You describe this plan as wise, con
scrvative and equitable. You call it
AN honest effort to work ont Il reorgani
zation. You say 1t means much for this
whole section of the country [ can
readily see what ii means TO YOU per-
sonally and to your syndicates, but so far
from regarding it as wise or conservative
or equitable, it seems to me wholly in
consistent with 4 proper financial policy
Il did not believe that you would per-
sist in such a scheme. Indeed, | noted
that you have entitled it a preliminary
! plan and remembered that you had
stated ut Il conference at the Astoria
| Hotel on November 22nd, in the presence
Of my attorneys and your attorney, that
your purposes were not definitely fixed
/ | had no idea that it would be your fixed
! plan until / learned of the proceedings
Of the stockholders meeting of the Sea
] board and Roanoke Railroad Company
mn December 10Th at Portsmouth, Vir-
! ginia / regard other statements in your
| telegram as inaccurate, but it is not
necessary to answer them in detail at
| this time
| Il have treated your communications
| as confidential. including this plan of
consolidation, and your telegram describ-
/ ing it, but since you have thought it
proper to read the telegram in court and
publish it broadcast, l think it necessary
/ to say that this analysis of the plan
shows plainly that it is neither fair nor
equitable and that it cannot be pursued
without grave danger to the interests
| which it is your duty to protect.
(Signed) THOMAS f. RYAN"