The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-01-05
WILLIAMS ANSWER TO RYAN.
HE MAKES CHARGES OF A BREACH
OF CONFIDENCE.

Charges That Ryan Tried to Pros
! cure Liquidation.
Baltimore, Md, Jan. AIR. Thomas r.
Ryan of New York. who has been prom-
! ncntly identified with the interests which
are opposing the proposed consolidation OF
the seaboard Air Line properties, recently
gave out a statement, by Associated Press,
in which he made structures upon the per-
sonal management of its president. Mr..
John SHELTON Williams and upon the gem
eral plan OF consolidation.
| In reply to this statement which was
in the form of a telegram from Mr., Ryan.
Mr. Williams has tonight given to the
Associated Press the following letter.
which, as stated by him, he has sent to
Mr.. Ryan in reply:
Thos. f. Ryan. New York, N. Y: Youn
! spcciously worded manifesto of last Tues
day, which you put in the shape of a tele-
gram TO me, was read by me for the first
! time in New York in a morning paper on
| last Wednesday, and later received IL
| by mail from my Richmond office, whith-
| er you appear to have sent It theAniaht
| before at the time you gave ID 20 the press.
| This telegram assumes to be a reply to
my telegram to you of two weeks pre-
/ Vious, but you pass over the most serious
! charge contained in my telegram of the
| 18th ut.
In your telegram you distort and make
| public use Of information which I freely
gave you concerning our plans and pur-
| poses, including our tentative plan of con-
solidation. Informed you in all of our in
| terviews that our plans had not been crys-
| taized, and that they were still open tu
| such notifications or alterations as might
| seem to be wisest and best TO our syndi-
| cate committees when the plans should
| be brought up 10 be finally passed upon
| /, therefore, asked you to regard all this
information as entirely confidential, and
though you promised faithfully to do so,
| as late as Nov. 9, at 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 garbled statement which
| Included items drawn from the statements
which l thus gave 10 you in confidence.
Objects of the bond Issue.
You charge that $i3si3.oOo of consolidated
4 per cent bonds of che new system we're
| Q be used 10 relmbnrse our various syn
dfcates Tor the Securities they bought 10
control the system" You knew this to be
| untrue, for you knew that of this S13.3i3 coo
| bonds nearly $5O0O.000 were to be used In
| the retirement of first mortgage bonds,
! bearing and per cent. interest.
which had not been bought for the pur-
| poses of control. but which we had ar
/ ranged should be surrendered in exchange
| for the new fours dollar for dollar, with
| q certain amount of new stock 90 the hold
ers of the old bonds, as set forth in my
letter to you of Nov. A. 1899, SO that the
actual fixed charges of the system would
have been by this exchange radically re-
| duced
The balance OF Sl3,S430OO, or say $685.
| 600, In per cent bonds, were to be issued
| for the retirement of the entire capital
| stock of the Florida Central and Peninsu-
| lar Railroad, and the entire capital stock
| OF the Georgia and Alabama Railway,
amounting to more than $50, 900 600, and the
| total amount of new stock, which we pro-
| posed to issue on account OF Florida Gen.
| trail and Peninsular and the Georgia and
| Alabama stock added to the total amount
| Of bonds 10 be Issued for these properties
| aggregate less than the face amount OF
| the old securities which we thus propose
to retire, so that the total amount of new
| securities would be less than the face
! amount of the Old securities now OUT
| standing on these properties. and which
| we intend to extinguish.
smaller Interest Charges.
The total interest charges on all bonds
| which we proposed to issue for the acqui-
| sition OF the entire capital stock of the
| Florida Central and Pennsnlar and the
| Georgia and Alabama Railways, amounts
| to scarcely 900 per annum, or about
! 500 900 less than the actual surplus net
earnings of these properties after the pay
ment OF all their present fixed charges for
the past fiscal year, while they were oper-
ated as separate properties without the
benefits which would result from consol-
idation.
The actual earnings for the last fiscal
year OF the roads already finished, which
are to be included in the Greater Seaboard
System were large enough TO pay full in
terest on their present bonded debt. and
also on all the new 4 per cent. bonds
which II is purposed to issue on the con-
soiidated system and yet leave surplus
OF some 10000 or 100000 In addition.
These figures you had before you at the
time you sent me your misleading tele-
gram of Dec. rs.
You criticise the Issuance Of per cent.
bonds by the system for the purpose or
acquiring the capital stocks Of roads which
II is deemed desirable TO consolidate. The
issuance of bonds by a corporation to pay
for stock acquired Of another corporation,
as you well know, Is not unusual The
New York Central Railroad recently pur-
chased Lake Shore stock, issuing 1900 OF
us own bonds for each 1000 of Lake
Shore stock and also bought the stock
of the Michigan Central, issuing $1,l5O OF
its bonds for each $1,000 of stock, and, In
the recent street railway consolidation in
Baltimore some si5.0O0.O00 Of new per
cent. bonds were put out in exchange for
The stocks OF the several divisional lines.
TO the advantage and satisfaction of all
concerned. The Atlantic Coast Line Com
many not long ago issued 5000 900 of bonds
In retirement Of an equal amount of its
own stock.
Increase of Earnings.
At our interview on Nov. you told me-
that YOU had been Informed that 40 per
cent. OF the business of the Florida Cen
trail and Peninsular Railroad came from
the Southern Railway. told you that
statement was wholly incorrect. The re-
lauonship previously existing between the
Southern Railway and the Florida Central
and Peninsular Railroad was severed on
Dec 10, last. The earnings OF the Florida
Central and Peninsular for the week end
ing Dec Is. and also for the week ending
Dec g. show a very handsome Increase
over the corresponding weeks last year,
when the Florida Central and Peninsular
was being operated In close accord with