The times. [volume] (Richmond, Va.) 1890-1903, 1900-01-05
Made Public Use of Information Given
Him in Confidence.
HIS CHARGES ARE UNTRUE,
The Issue OF 4 Per Cent. Bonds to be
Used in Retirement OF . and Per
Cent Bonds. and Stock of Flor
ida Central & Peninsula L. Il.
Allowance 10 Richmond
Bankers less than Usual.

BALTIMORE, MD, Jan. 3.-Nr. Thomas
Il Ryan of New York, who has been
prominently idcnufed with the interests
which are opposing the proposed consoii-
dation of the seaboard AIRLINE proper
ties, recently gave out a statement by
rhe Associated Press, in which he made
structure upon the personal 1nanasement
of its president, Mr.. John Shelton Will
1iarns, and upon the general plan OF con-
solidation.
in reply TO this statement, which was
in the form of a telegram from Nr. Ryan,
Mr.. Williams has tonight given to the
Associated Press the following letter.
which as stated by him, lie has sent to
Mr.. Ryan in reply:
Thos. L. Ryan, New York y. Y:
Your speciously worded manifesto of
last Tuesday. which you put in the
shape of 4 telegram to me. was read by
me for the first time in New York in L
morning paper on last Wednesday, and
later, ! received il by mail from my
Richmond office, whittier you appear to
have sent il the night before At the time
you gave il TO the press.
This telegram assumes to be reply
TO my telegram 10 you OF two weeks pre-
l-ious. but you pass over the most serious
charge contained il my telegram OF the
18th ult.
In your telegram You distort and make
public use Of information which freely
save you concerning our plans and
purposes including our tentative plan
OF consolidation. ] informed YOU in All
urr interviews that plans had not
.aeen cr.ystalized. and that they were still
oTcn 10 such notifications or alterations
as might seem to be wisest and best to
our syndicate committees when the nlans
ssilouId be brought up to be finally passed
anon /, therefore, asked you TO regard
all this information as entirely contideiit-
ial, and though you promised faithfully
TO do SO, as late as November 9Th, at our
conference at the Hotel Waldorf, where
there were also present Nj. ST. John and
Your attorney, Mr.. Page. YOU have Dc
liherately violated Your p!edge, and have
sent 10 the press for publication a Earp!ed
statement which included items drawn
from the statements which thus gave 10
c-ou in confidence.
CHARGE UNTRUE.
You charge that $l3.343,v0a of consoli-
dated four 1;cr cent. bonds of The new sys-
lem were 10 lse; used ITO reimburse our
various syudicares for tie securities they
bought 70 control tie system. You knew
Ibis TO be untrue. Tor YOU knew ihat o.
-his SlS.S43 CnO bonds nearly five millions
were to be used iIr the retirement OF ffSt
mortgage bonds, bearing nve and Sin per
cent. interest. which had not been bought
Tor the purposes OF control, but which
we had arranged should be surrendered
in exchange for the. new Tours, doiiar 4or
dollar. with certain amount OF new
stool; 10 the holders of the old bonds, as
set forth in my leter TO YOU OF November
i. 1879, so that the actual fixed charges
of The system would have been by TINS
exclIanre radically reduced.
The balance OF $l3S!S.o00 or say SS,SS5,-
600 ir four per cent. bonds. wer2 10 be
issued fUl, the retirement OF the entire
capital stock pf che florida Central ana
Puuinsular railroad. ana the entire capi-
tai stock of the Georgia and Alabama
railway, amounting 10 mole man thirty
million dollars. and tlls total amount ol
new stock. which We proposed TO issue on
account of the Florida Central and Penn
sula, and the Georgia and -Alabalna STOCK
added 10 the total amount Of bonds TO be
issued for these properties aggregate less
than The face amount Of ihc old securlties
which we thus propose 10 retire. so mat
The total amount Of new securities Wouia
he less than the face amount of the old
securities nov outstanding "a these prop
critics. and which we intend TO eNtlnguisA
which we proposed 10 issue for the acqui-
Stiun OF the entire capital stock Of the J.
c. * p and the G. * a. railways.
amounts 10 scarcely $S50,G01 per sannum.
or about Sl0c.G0a less than the actual sur
plus net earnings Of these properties alter
the payment OF all their present il-ec
charges for The past fiscal year, While
they were operated as separate properties
without the benefits which would result
from consolidation.
The actual earnings for the last fiscal
wear of the roads already finished. which
arc TO be inciutcG in the Greater Sea-
board system, were large enough TO nay
fun interest on their present bonded
debt. and also on al the new 1 aeG
cent. bonds which it is proposed to issue
on The consolidated system, and Yet
leave q surplus OF some four or five hum
dred thousand dollars in addition. These
1igtres you had before y-ou at the time
you sent me your misleading telegram
OF December 25tt.
NOT UNUSUAL
You criticise The issuance of -'er
cent bonds b. the system for the pu--
pose OF acquiring the capitai stock of
roads which it is deemed desirable TO
consolidate. The Issuance OF bonds BY
corporation TO pay FOR stock acquired of
another corporation, as you we'll KNOW, Is
not unusual. The New York Central
.sst!!bau recently purchased l-ahc S!ioic
stock. issuing two thousand of its own
bonds FOR each one thousand of Lake
Shore stock and also bought the stock Of
the Michigan Central. Issuing a,l5o OF
!ts bonds Tor each Sl.0oa CT sock. and.
in the recent street railway consolidation
in Baltimore some S.5.o1t!0oa of new
4 per cent bonds we're put out in eN-
change Tor the stocks of the several d.
viaional lines. 70 the ADVANTAGE and sat
iEfaCtilN Sf all concerned The Atlantic
Coast-Line Company not long ago issued
S5,eeo.csp or bonds in retirement OF an
equal amount Of its own stock.
At our interview OF, November sth. you
told me that you had been Informed
that forty per cent OF the business of the
+. G. s. T. r. Il. came from the South
ern Railway. ! told YOU that statement
.lakall. III tix.s.si