The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-01-05
HE VIOLATED CONFIDENCE
AND NIADB MEASUREMENTS,
SAYS MR.. WILLIAMS.
GREATER SEAB0ARD'S EARNING CAPACITY
Mr.. Williams Says il Could Pay Dividends on
Proposed Bond Issue and Leave Sur
plus of Four or Five Hundred
Thousand Dollars.
Baltimore, Mo-, january


Mr.. Thomas +. Ryan, of New York,
who has been prominently identified with
the interests which are opposing the
proposed consolation of the Seaboard
Air Line properties, recently gave out a
statement, by Associated Press, in which
he made structures upon the personal
management of its President, Mr.. John
SHELTON Williams, and upon the general
plaG of consolidation.
In reply to this statement which was
III the form of a telegram from Mr..
Ryan, Mr.. Williams has tonight given
10 the Associated Press the following
letter, which, as stated by him, he has
sent to Mr.. Ryan in reply:
Thos. +. Ryan,
New York. \. Y:
Your Speciously worded manifesto of
last Tuesday, which you put in the
shape of telegram to me- was read by
lne for the first time in New York in Il
morning paper ON last Wednesday, and
later | received it by mail from my
Richmond office. whittier you appear to
have sent it the night before at the time
you gave it to the press.
This telegram assumes 10 be q reply
TO my telegram TO you of two weeks
previous. but you pass over the most
serious charge contained in my telegram
Of the 18th ult.
In your telegram you distort and make
public use of information which | freely
gave YOU concerning our plans and
purposes. including our tentative PLAN
of consolidation j informed you iii
all of our interviews that our plans had
not been crystalized. and that they were
still open to such notifications or alter
ations as might seem to be wisest and
best to our Syndicate committees when
the plans should be brought up to be
finally passed upon. l. therefore. asked
you to regard all this information as en-
'irely confidential, and though you prom
.sed faithfully to do so, as late as No
vember 9th, AIT our conference at the
Hotel Waldorf, where there were also
present Mr. St John and your attorney
Mr.. Page. you have deliberately violated
your pledge. and have sent to the press
for publication Il Sarbled statement
which included items drawn from the
statements which l thus gave to you in
confidence.
You charge that $13.343 900 of con-
solidated four per cent. bonds of the new
system were to be used Ito reimburse
our various syndicates for the securities
they bought TO control the system. =
You knew this TO be untrue. fer YOU
knew that of this S13,343, 900 bonds
nearly five millions We're to be used III
the retirement of first mortgage bonds,
bearing five and six per cent. interest,
which had not been bought for the pur-
poses of control, but which we had ar
ranged should be surrendered i'll eX-
change for the new fours, dollar for dol
lar with a certain amount of new stock
to the holders of the bonds, as set forth
i'm my letter to you of November 4th,
1899. so that the actual fixed charges of
the System would have been by this Elk
change radically reduced.
The balance of S13,343,00O. or say
$685., 600 in four per cent. bonds, We're
to be issued for the retirement of the
entire capital stock of the Florida Cen
trail and Peninsular railroad. and the