The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-08-16


Island, 1t did not necessarily follow that
the capital released by the sale of the
Frisco to the Rock Island has been en-
ployed to buy the Seaboard Air Line and
turn that property over to the Rock
Island too.
1t was learned today from an official
source that II. Clay Pierce and B. f.
Yoakum negotiated the Seaboard Air
Line Frisco deal. and as d consequence
the following five members of the voting
trust will vote together in favor of the
Frisco system whenever the opportunity
for such action presents itself: b. f.
Yoakum, II. Clay Pierce f. s. Guinness,
Oakleigh Thorne and c. 8. Shepard. 1t
was learned that the Seaboard Air Line
had been offered within the last few days
to j. p. Morgan g. Co.; also that for the
present at least there will be no change
In the management of the Seaboard prop
erty. When the proper time comes the
road will be turned over to the Frisco
Nothing of an official character has been
given out concerning the terms of the
transfer of the Seaboard Air Line to the
Frisco and affiliated interests. The vot-
Ing trust has six years to run. The opin-
ion of railroad men in general is that. as
the management of the Rock Island Fris-
co has already clearly demonstrated an
aggressive and wide-awalke policy, the
will be of decided benefit to the south.
A story was current in Wall street to the
effect that the changes In the trusteeship
of the Seaboard Air Line were directly
brought about by the decline in price of
Virginia and Carolina Chemical securities.
This decline was itself brought about by
the expansion of the company at home
and abroad forcing 1t into the Wall street
money market, where 1t borrowed recently
Sc, 100000 at per cent for one year, plus
a 10 per cent commission. The loan is
really for six months, with the right to
renew. but the 10 per cent commission
stands, although there Is no commission
for the renewal of the loan for the second
six months.
1.-THE situation is eminently satisfactory
to me and the arrangements by which the
new interests have been brought into the
property have been carried through by
Messrs. Ladenberg, Thalmann & Co. with
my cordial cooperation" This was the
statement dictated by John Shelton Will
liams president of the Seaboard Air Line,
in answer to a question as TO whether
report was true that he was dissatisfied
with the new interests which have secured
control of his road Mr.. Williams was
shown a statement issued by one of the
Wall street agencies. which said that a
large amount of stocks of the Seaboard
had been acquired by friendly interests
and that the control of the road was to
remain where ii Is.
"That Is substantially correct he an
swered. "and | am free to say that the
report that the deal will adjust many ulf-
ficuties and that 1t will insure the AMIGA
BILE operation of all the southern roads
is also substantially true"
Although no official statement on that
point has been given out, 1t Is known that
President WIliams will continue to be a
factor In the Seaboard Air Line affairs
Oaklegh Thorne. president of the North
American Trust company, and one of the
new members of the voting trust said
that there was complete harmony among
the parties in interest He said his firm
was acting as bankers only.
Baltimore Sun: The arrangement by the
Rock Island Railroad company with the
Seaboard Air Line. in addition to the
Frisco, brings into existence a monster
aggregation which extends from Chicago
to Denver and Fort Worth In one direc-
ton. from washington city to Tampa and
Birmingham in another direction, and
from st. Louis to Oklahoma City, to
Kansas City and the Rio Grande river,
to Memphis and Birmingham in a third
direction. 1t vies with the Gould or Wa
bash system In the breadth OF its aspi-
rations. having connections with all the
chief Atlantic ports and extending
through the gulf states to the Missls-
sippi and far beyond. 1t may be said 10
approach the status OF an east and west
trunk line. In 902 the Chicago, Rock
Island and Pacific railway owned 3219
| miles, and. with leased lines. operated
1909 miles OF road The acquisition of the
st. Louis and San Francisco gave 1t 309o
| miles more and the Seaboard Air Line
has a mileage of over 1900 miles, so that,
with recent building purchases, etc, the
Rock Island aggregation controls about
| $4,000 miles. 1t will doubtless be a push
| Ing and aggressive element in the south
| ern field.
Baltimore American During the ex-
| element yesterday it was intimated that
| the deal may have a wider Significance
| than the arrangements with the Rock
| Island interests and that the Gould In
| terests in the southwest may be concern
| ed. There have been some negotiations
looking to a joint arrangement between
| the Gould lines, the Illinois Central and
| the Rock Island interests, 50 that New
| Orleans and Birmingham, objective
points for the great southwest systems,
! would be reached by a harmonious agree
ment by all these interests.
In the event of the Seaboard being
made party to this plan, the Atlantic
seaboard will be opened up to the lines
of the southwest and give the Seaboard
its long-desired outlet to New Orleans,
| via Memphis, Tenn, to the west Bir-
mingham, Ala, is now one of the centers
| of attraction, since the DEAL as the con-
| nection to the Frisco line can be made
hat afRr A..