The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-13
'SEAB0ARD STOCKS BOUND
It is Stated That This deal is Carving
Out the Policy Of Closer Union
of Roads TO Prevent De-
moralization in the
Rate Situation.
(By the Associated Press.)

New York, Aug 12-The long expected
announcement that the Seaboard Air Line
had passed at last, practically into new
hands was made today by Ladenburg;
Thalman & Company, who issued a state
ment showing that interests representing
the Rock Island and st. Louis and San
Francisco had secured representation in
the Seaboard directorate and board of
voting trustees.
The official statement was as follows:
"Ladenburg Thalman Company an
nounce that they have completed negotia-
tions whereby new and important interests
have become identified with the Seaboard
Air Line Railroad Company B. F. Yoa-
kun and H. Clay Pierce and B. f. GUM
ness, of Ladenburg, Thalman & Company.
and Oakleigh Thorne, president of the
North American Trust Company, have
been elected voting trustees of the Sea
board Air Line Railway. President John
Shelton Williams also announces that B.
F. Yoakum, H. Clay Pierce, Oakleigh
Thorne and S. B. Vanvorst have been
elected directors o. the Seaboard Air Line
Railway"
Mr.. Yoakum is president of the st.
Louis and San Francisco Railroad. for
which company ]. p Morgan & Company
are fiscal agents.
The official announcement of the deal
also said
"The change of personnel of voting trus-
49, ,E4 H. IL n
Company does not mean the purchase Of
that company by Rock Island or Frisco
interests, although the Frisco lines ex-
tend into Birmingham and are a part of
the Southern situation. 1t does. however,
emphasize the fact that all the great rail-
way systems are carrying out the policy
of more closely cementing the railway
transportation interests of the cou
which will greatly retard and it is h,
entirely prevent Generalization of
rate situation or the unnecessary consi
ton and duplication of property.
Attention is called to the fact
with the discontinuance of any fun
construction by the Scaboard Air Lin,
value of the properties are greatly
hanced. And another gratifying fac
of the future disposition of the railways
of the United States is that this deal does
not call for any financing or supplying
of new money"
one of the voting trustees when asked
to state the real significance of the daaf,
sad that it meant a "better understand
ing among interests that have at various
times conflicted."
The policy of the Seaboard Air Line for
a time was one of absolute independence;
so much so as to make it at times mimi
cal to the interests of opposing roads ira
versing adjacent territory Today's devel-
opments it is thought, will do away with
such trouble in the future.
The new directors take the places Of
f. r. Pemberton, of this city; r. c.
Davidson, of Baltimore; e. b. Addison, of
Richmond, and w. w. Mackall, of Sa-
y2nnah
The most important point in the agree
nent between the Seaboard Air Line and
the st. Louis and San Francisco inter
ests Is that it gives the latter road an
outlet to tidewater at six or seven inn
portant points. These include Norfolk,
Wilmington, Savannah, Charleston,
Brunswick, Fernandina, Jacksonville and
ST. Augustine. Further down the coast
the San Francisco Railroad will have an
outlet at Cedar Key.
The difference between the so-called
M9egan interests. represented by the
Southern Railway and the Seaboard Air
Line people, during the last few years
has been sharp one. The effort o.
Thomas Ryan and his associates to get a
foothold in the Seaboard or. as some sug
gested control of that company was ac-
companied by runners at the time that he
was acting in the interest of the South
ern but this was strongly denied. The
laws of some of the Southern States ex-
pressly preclude one company from con-
trolling a competing road. This rendered
it impossible for Mr.. Morgan 70 turn
the Louisville and Nashville road over
to the Southern. Instead of that 1t went
to the Atlantic Coast Line.
The Seaboard made strong bid Tor
the Louisville road, and when it was re-
fused even a part ownership in it, it was
intimated that other alliances would be
made, perhaps with the Gould people
In contrast with the old time rate cut
ting which the Seaboard INDUCED in, it
has been significant that in receEt years
Continued on Fifth Page.)