New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-05
THE .SEABOARD AIR LINE.
MR.. WILLIAMS REPLIES TO MR.. RYAN
ANSWER OF THE LATTER.

John Shelton Williams. president of the Seaboard
Air Line, on Wednesday wrote letter to Thomas
F. Ryan, of this city, who has been prominently
identified with the interests which opposing
the proposed consolidation of the Seaboard Air Line
properties replying to the latter's criticism
of Mr. Williams's management The reply reached
the newspaper offices yesterday, and after
ward came answer from Mr. Ryan. Mr. Will
iams says among other things:
You charge that $685. 900 Of consolidated per
cent bonds of the new system were to be used 10
rem our various syndcates for the securities
m 70 be untrus for o g9a knew that Of this S
retirement of first mortgage bonds, bearing and 6
per cent interest, which had rot been bought for
should be surrendered in exchange for the new
stock to the holders of the old bonds as set forth
il in my letter to you Of Noysmber 1888 mat
been By Baj hs 81 Fascay IN
per cent bonds. were to be issued for the retire
ment of the entire capital stock of the Florida
capital stock Of the Georgia and AIabama Rail-
amounting to more than and the
issue on account of the Florida Central and PENN,
to the total of bonds be issued for these
properties aggregate less than the face amount OF
so that the total amount of new securities would
be less than the face amount of the old securities
intend to extingush.
proposed to issue for the acquisition of the entire
capital stock Of the +. G. and and the G:
annum, or about 100000 less than the actual sur
ment of all their present liked Charges for the
past fiscal year while they were operated as
would result from consolidation.
Gb the ssem e e be 81 of per e 6
capital stocks OF ROADS which 1t is deemed desir-
corporation to pay for stock acquired of another
earnn Of the and the hot
ing December Is. and also for the week ending
the corresponding weeks last year. when the
F. C. ana r was beng operated IN close accord
show the individual strength of the F. C. and P.
Mr.. Ryan commented on the amount of new stock
of the consolidated company which 1t is proposed
shall be paid to the Richmond bankers for services
given by them in connection with the consolida-
ton. Mr. Williams replies that the compensation
is much less than has been heretofore given in
transactions of similar magnitude.
Finally, Mr. williams offers to buy all Mr.. Ryan's
shares in seaboard and Roanoke and those of his
friends at $500 share if he does not like the con-
solidation scheme.
Commenting Mr.. Williams's letter, Mr.. Ryan
said among other things:
Mr. Williams does not touch the objections to his
telegram of December e. Those objections remain
ing now unanswered, their force is admitted. The
the Hf naa on y p[ Mr. Eng
muncations to me- oral and written were held by
WilliamIs's attorneys read in open court the text
9, in which he referred these communications,
asserting that they contained all the propositions
that any fair minded man could reasonably desire
His attorneys immedia tey warned that this
telegram confidential, but they said that it
not, and that other matter was. and that
all the communications that had passed between
me and Mr. Williams would, they rudely put it,
soon the light of day."
What | assert is that Mr.. Williams, receiving
salary president Of the Seabo3rd and Roanoke
Railroad is trustee for the stockholders of that
road and is bound to administer the roads affairs
for the equal benefit of every stakeholder and has
right to place himself in any position which
conflicts with the interest of that road. Here
the questions to which Mr.. Williams should give
specific
Have any of the stocks that were in the treasury
of the Seaboard and Roanoke prior TO his becoming
the president of that road been removed OF
the treasury and If so, why were they removed,
where have they been removed and who has pos
session OF them now?
Have they been sold, and If so, did Mr. Williams
buy them himself, were they bought by any syn
dictate in which he is interested, or is he Interested
directly or indirectly in their purchase?