The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-10-05
Mr.. RYAN RESPONSIBLE
1.-THE Article Was Intended to Iniure
the s. A. Z. Securities"
Mr.. WILLIAMS THREATENS CRIMINAL SUI
Says Nj. Rryan lis Simply Trying 10 Graf ~
His Own Malice, and Garry Cut His
Own 0esplcable Purposes by Stik-
Ing at a Great Property"
Especial to News and observer)

Especial to News and Observer.)
Richmond. Va, Oct 4.-President John
Shelton Williams, of the Seaboard Air
Line Railway, this afternoon gives out the
following statement:
1.-The article on 'Seaboard Finances
which was printed at length in the New
York Times last Friday and more briefly
in other newspapers received my imme-
date attention. 1t surprised me because
1t was hard for me to comprehend that
any human being could weave together
such a mass of vicious and deliberate
falsehoods. l have made careful inves
tigation before replying to these articles
! am convinced that they are parties to
a scheme to injure Seaboard securities
This is one of the most vicious, shame
less and audacious5 attempts in the history
of finance.
1.-The articles referred to say that GER
tain allegations and reports regarding
the organization and condition of the
Seaboard system were offered in court at
Norfolk during the argument there last
Thursday and that their introduction
was 'strenuously resisted by counsel for
the Seaboard. Judge Leigh R. Watts and
Judge L. l.. Lewis, of counsel for the
Seaboard, and Mr.. Bowden, clerk of the
court, who were in court nearly all day
know nothing of the allegations and
reports referred to and have no recollec-
tion or record of them. Mr.. H. L. Bond,
Jr., of counsel for the Seaboard, tells me
that Mr.. w. H. Page, of counsel for T.
F. Ryan the plaintiff spoke in the course
of his argument toward the close of
having an affidavit purporting to be
from Haskins and Sells covering a re-
port from them. AS this was in no way
pertinent to the point at issue, which was
merely a technical question whether the
proposed supplemental bill offered by Mr.
Ryan was a proper one, no attention was
given it. So far from the introduction
of this matter being resisted none of the
counsel for the Seaboard referred to il
in any way. The attack upon the Sea-
board organization and myself was OBJ
scurely sneaked into court to give pre-
text for putting it into the newspapers
1t is directly contradcted by the figures
and facts Every material allegation in
it is direct and fragrant falsehood, in
tended to deceive the public and to injure
us. The assertion that the average in
come of the roads in the Seaboard systAn
for the past five years has been INSULT
cient to pay more than per cent on one
third of $33, 100000 of new bonds is OBJ
viously and absurdly misleading. Be-
tween two and three hundred of the most
important miles of the system have not
yet been in existence a year. The shall
low malice of the pretence of estimating
the earnings OF united and continuously
increasing system from the earnings five
years ago of number of detached lines
and fragments of lines is obvious. Even
by this method, however, shameless doc
toring was resorted to. For all the roads
of the system, the report makes the aver
age annual surplus 1884, 900. The actual
surplus of these roads for 1899 as shown
by Haskins and Sells own report itself
was 1868 130. over twice the average The
report on it's own showing credits the
roads with less than one-half of their
earnings in 1892 According to the truth
taken from official statement the actual
surplus earnings of the several properties
embraced in the Greater Seaboard system
last year was $1,170,0 900 or more than
would be necessary to pay all interest
charges on all outstanding underlying
bonds and all divisions of the system That
is to say on all bonds of the system prior
to the new AS besides rental as the
interest on all new bonds outstanding is
only 1914. 0O6. 1t is clear that the COM
pany has in the past year before the
consolidation of the system was effected,
earned some 50, 1000 900 more than enough
to pay full interest on all bonds-old and
new. These results were accomplished
before the completion of some two or
three hundred miles of new main stem
of road which must increase the earnings
of the company greatly. This 81 40 900
IN Ia ~ aor 1ir1Uu 10
more than four times the alleged average
referred to by Haskins and Sells. These
figures are enough to illustrate the
method by which the report was prepared
and prove its motive | will also state
that the books and accounts of all the
roads embraced in the Seaboard Air Line
system for several years past have just
been subjected to the most exhaustive
examination by MessrS. Patterson, Sells
and Dennis, certified public accountants
of New York, who substantiate the report
of the management of the road. The
allegation that the bonds outstanding on
the entire system will be over $4,000 in-
stead of $19, 900 mile as frequently and
publicly stated by me makes direct issue
of veracity, which l gladly meet. say
on my own personal and official respon-
Sibility that this allegation purporting
to have been made by Haskins and Sells
and presented in behalf of Mr. Ryan is
a liza false statement, deliberately
made with intent to deceive and injure
No other word is adequate. / use it re-
gretfully but advisedly. because | must
There are 2,542 miles of road owned and
the bonds outstanding under our plan
of reorganization will be $49, 256, 900. That
is simple sum in division and any one
can work it. OF the twenty roads which
go to make up the 2542 miles, the Sea-
board Air Line Railway already controls
100 per cent of the capital stock OF
thirteen companies between SO and 100
per cent. OF four more between 80 and
100 per cent. OF the +. G. and P, and
nearly all the G. and A., leaving only one
road. 81 miles long. of which 1t controls
between rs and so per cent, and of which
latter road Ryan has about 20 per cent