The Savannah morning news., 1903-08-13
Deal Made for the Harmonizing of Conflicting
Interests.
NOT AN OUTRIGHT SALE TO ROCK ISLAND OR FRISCO.
Though II Gives

! 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
to-day by Ladenburg, Thalmann &
! Co., who issued statement showing
that interests representing the Rock
Island and the st. Louis and San
Francisco had secured representation
in the Seaboard directorate and board
| of voting trustees.
The official statement was as fol-
! lows: "Ladenburg, Thalmann & Co,
announce that they have completed
| negotiations whereby new and i'm
| portant interests have become identi-
fed with the Seaboard Air Line Rail-
road Company. B. E. Yoakum, and
H. Clay Pierce and B. F. Guinness, of
Ladenburg, Thalmann & Co., and Ok
leigh Thorne, president of the North
American Trust Company, have been
elected voting trustees of the Seaboard
Air Line Railway. President John
SHELTON Williams also announces that
B. F. Yoakum, H. Clay Pierce, Ok
leigh Thorne and S. B. VanVorst 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. P. Morgan & Co.
are fiscal agents.
Not Bought Outright.
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 interests,
| although the Frisco lines extend into
| Birmingham, and are a part of the
| Southern situation. 1t does, however,
| emphasize the fact that all the great
| railway systems are carrying out the
| policy of more closely cementing the
railway transportation interests of
the country which will greatly re-
| tard, and it is hoped entirely prevent,
| generalization of the rate situation or
the unnecessary construction and du-
! plication of property.
| Attention is called to the fact that
! with the discontinuanoe of any fur
| Their construction by the Seaboard Air
| Line the value of the properties is
! greatly enhanced. And another graf
flying fact at this time and which
is further evidence of the future dis
| position of the railways of the United
| States is that this zeal does not call
| for any financing or supplying of new
money"
To Harmonic Interests.
One Of the voting trustees when ask
ed to state the real significance of the
| deal, said that it meant better I'M
Outstanding among interests that have
| at various times confiicted."
The policy of the Seaboard line for
a long time was one of absolute indie
pendence; so much so as to make it
/
opposing roads traversihg adjacent
territory. To-day's deve. 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 Baltimore: E. B. Allison,
Richmond, and w. w. Mackali, Savan-
| nah.
The most important point in the
agreement between the Seaboard Air
Line and the st. Louis and Frisco in
! terests is that it gives the latter road
an outlet to tidewater at six or seven
important ports. These include Nor
folk, Wilmington, Savannah, Charles
! ton, Brunswick, Fernandina, Jackson
| Vile and st. Augustine. Furtehr down
| the coast the Frisco road will have
an outlet at Cedar Key.
The differences between the social
ed Morgan interests, represented by
the Southern Railway and the Sea-
board Air Line people, during the last
few years, has been a sharp one. The
effort of Thomas f. Ryan and his as
sociates to get foothold in the Sea-
board. or, as some suggested, control
of that company, was accompanied by
runors 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 competing road.
/ This rendered it impossible for Mr..
Morgan to turn the Louisville and
( Nashville road over to the Southern.
Instead of that it went to the Atlantic
/ Coast Line.
] senboard Wanted l.. q N.
! The Seaboard made a strong bid for
! the Louisville road, and when II was
refused even a part ownership in It,
/ II was intimated that other alliances
would be made, perhaps with the
4 Gould people.
! In contrast with the old time rate
cutting which the Seaboard INDUCED
/ IN, IL has been significant that In re-