The Savannah morning news., 1901-11-15
CHANGES IN SEAB0ARD.
Rival RumOrs Place Its Control in
Southern and New Company.

Southern and New Company.
Rumors of a change in the financial
control of the Seaboard Air Line and
for some days.
A Northern railroad man, whose po-
sition places him on the inside of many
railway deals said yesterday that he
understood the financial control of the
Seaboard is now in the hands of the
Southern Railway, and that President
John Shelton Williams is only nominal
ly the head of the Seaboard interests.
! Another rumor, contained in Rich
mond dispatch to the Atlanta Constitu-
ton, has It that the Seaboard has pass
ed into the control of a new company,
called the Seaboard Company, and
granted articles of Incorporation in
Trenton, N. j., the home of big cor
porations. The new company, 1t is said,
is to secure possession of the stock
and bonds of the Seaboard owned by
the dominant interests.
The Richmond dispatch says that
for this purpose the new com" my VIII,
it is understood, secure I'll stocks
| owned by John S. Williams & Sons and
Company of Richmond, Va; ]. W..
Middendorf & Co., the Continental
| Trust Company, William A. Marborg
| and Townsend, Scott & Co., of Balti-
more. c. Sidney Shepard, of New Hav-
en-; William F. Cochran of Yonkers, N.
Y; Pemberton, McAdoo & Co. and La
| denburg, Thalman & Co., of New York
city.
The new company is chartered with
| he ,-ieyh
to build and operate railroad lines,
steamship lines, telephone and tele-
graph lines, and to deal in bonds and
mortgages. The authorized capital of
| the company is S5,000000.
| The present plan contemplates the
| issuance of $250,000 of capital 1t is pro-
| posed to acquire 100000 shares OF the
common and preferred stocks of the
Seaboard Air Line Railway out of the
whole issue of the two classes of $780,
900 shares.
There is now outstanding about $19,-
100000 of the preferred stock and $685.
100000 of the common stock.
The cmopany will be vested with alb
solute control of the Seaboard system.
The interests WHO turn over their
! stocks to it will be the controlling spir-
its. 1t is learned that the basis of
exchange provides for the issuance of
4 per cent. debenture bonds of two
classes. For Seaboard preferred stock,
class A will be given, and for Seaboard
common stock class B will be issued
In both instances the exchange is par
for par.
The stockholders will also receive
stock in the company 1t is stated
! that the Seaboard company will only
issue $500 shares of stock of the par
value OF 500 a share. For every 100
shares OF Seaboard stock of either IS.
sue one share of stock in the new COM
| pany will be given in addition to the
! debenture bonds
Another proposition mentioned is for
| $50 900 shares of the par value of 81. In
the latter case the exchange for Sea-
! board Railway stocks would be share
! for share. This centralizes the control
! of the Seaboard Air Line system and
makes it impossible for a rival to Sc
cretly buy either a majority or a large
minority interest in the property. This
! permanently established its independ-
! ence in the hands of Messrs. Williams.
/ Middendorf and their associates.
! President of the Seaboard was too i'll
! to be seen II was stated, but when the
! Baltimore special was shown 10 him at
! his home he said il contained all the
facts he could give out. He added that
! he had no further statement TO make.