The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-08-19
sEAB0aRD AlR LINE G0BBLED
1t will Now be Controlled by
Rock Island System, But J.
P. Morgan is the Real
Power Behind Deal.

Power Behind Deal.
New York, Aug. 12.-The long ex-
pected announcement that the Sea-
board Air Line had passed, at last,
practically into new hands was made
today by Ladenburg. Thalmann &
Co., who issued statement showing
that interests, representing the
Rock Island and st. Louis
and San Francisco, had Sc
cured representation in the Sea-
board directorate and board Of voting
trustees The official statement was
as follows:
sLadenburg, Thalmann & Co. an
nounce that they have completed nego-
tiations whereby new and important
interests have become identified with
the Seaboard Air Line Railroad Com
pany. B. T. Yoakum and H. Clay
/ Pierce and B. F. Guinness, of Laden
burg, Thalmann & Co., and Okleigh
Thorne, president of the North Ameri:
can Trust Company, have been elected
trustees of the Seaboard Air Line
Railway. President John Shelton Viii
liams also announces that B. F. Yoak-
um, q. Clay Pierce, Okleigh Thorne
and s. B. Van Worst have been elected
directors of the Seaboard Air Line
Railway
Mr.. Yoakum is president of the St.
Louis and San Francisco Railroad, for
which company J. 2. Morgan & Go.
are &scal agents.
/ The official announcement of the
deal also said:
The change of personnel Of voting
trustees of the stock of the Seaboard
Air Line Company does not mean
the purchase of that company
by Rock Island or Frisco inter
ests although the Frisco lines
extend into Birmingham, and
are part Of the Southern situation.
It does, however, emphasize the fact
that all the great railway systems are
carrying out the policy Of more closely
tcementing the railway transportation
interests Of the country, which will
greatly retard, and it IS hoped, entire
| " prevent the Generalization of the
rate situation or the unnecessary con-
struction and duplication of property.
Attention is called to the fact that,
with the discontinuance of any further
construction by the Seaboard Air
Line, the value of the properties are
greatly enchanced. And another graft
| fyfpg fact at this time, and which is
further evidence of the future disposi-
! tion 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 special significance
| Of the deal, said that it meant a bet
ter understanding among interests
that have at various times conhicted. !"
| The policy of the Seaboard Air Line
| for long time was one Of absolute in
dependence; SO much so as to make 1t
at times inimical to the interests OF
opposing roads trayersing adjacent
| territory. Today's developments, 1t is
! thought, will do away with such tfou-
bic in the future.
The new directors take the places OF
r. r. Pemberton, of this city: 4. O..
Davidson, Baltimore; E. B. Addison,
Richmond, and W. W. Mackall,. Sa-
vannah.
The most important point in the
agreement between the Seaboard Air
Line and the st. Louis and Frisco
! interests is that it gives the latter
road an outlet to tidewater at SIX or
seven important ports. These include
Norfolk, Wilmington, Savannah,
| Charleston, Brunswick, Fernandina,
Jacksonville and st. Augustine. Fur
| ther down the coast the Frisco Road
1 will have an outlet at Cedar Key.
The difference between the so-called
Morgan interests, represented by the
! Southern Railway. and the Seaboard
Air Lire people, during the last few
years, has been a sharp one. The effort
of Thomas F. Ryan and his associates
| to get foothold IN the Seaboard, OF
as some suggested, control Of that
company, was accom- panied by rumors
at the time that he was acting in the
interest of the Southern, but this was
strongly denied. The laws of some Of
the Southern States expressly preclude
one company from controlling a com
peting road. This rendered it impossi-
BILE for Mr.. Morgan to turn the Louis
vile and Nashville Road over to the
Southern. Instead of that it went to
the Atlantic Coast Line.
The Seaboard made strong bid for
the Louisville and Nashville Road,
and when it was refused even a part
/ nership in it, it was intimated that
other alliances would be made, perhaps
with the Gould people.
| In contrast with the old-time rate
cutting which the Seaboard INDUCED
in it has been significant that in re-
cent years it has had sort of silent
understanding to maintain rates. so
that all of the railroads in Southern
territory would be able to get as much
profit as possible out of their traffic.
The Seaboard Air Line Railroad
Company, operating 2,611 miles of
road, was formed under the laws OF
Virginia in 1900, to succeed the old
Richmond, Petersburg and Carolina
/ Railroad. The system now extends
from Richmond, Va, to Tampa, Fla,
with connections to Montgomery and
/ to Birmingham, and east to Charles
ton, Wilmington and Norfolk. Under
Ia traffic agreement with the Pennsyl-