The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-08-14
THE CHANGE IN THE sEAB0ARD.

community of interest" is effected, which
will bring the Rock Island road into
| control of the Seaboard. The Virginian-
Pilot thinks it presages making Norfolk
and Portsmouth the Eastern outlet of a
ns-continental trunk line system. 1t
says that ''the achievement of George
Gould in securing a tidewater terminus at
Baltimore, New York and New Orleans for
his Wabash system, has been equalled
by the Seaboards alliance with the Nor
gan interests and it adds:
''This port is the most northern of all
| the others, but it is nearer Europe than
any of the more Southern, and the recent
purchase of all the water front property
between the present Seaboard piers and
the Marine Hospital Creek on the Ports
mouth side, lend color to the report that
mammoth export depot will be esta5
lshed at this port by the Seaboard and
its allies
The Richmond papers say it will give
the Seaboard an entry into st. Louis and
makes through line from Mexico at E!
Paso, Texas, to New York by way OF
Richmond, as well as a line to the Atlantic
at Norfolk and Portsmouth. There seems
| to be a general acceptance of the state
melt that the change means there will
be concord between the Seaboard Air Line
and the other big Southern roads, and the
deal means the elimination of competi-
ton in Southern Railway traffic and con-
+,,,1 -, Ia
Seaboard, so it is said, will maintain its
identity without change of name or man
agement. The Baltimore Sun says, "whilc
it is announced that the Rock Island in
terests have secured representation in the
Seaboard, it was the general impression
ia Baltimore that they have acquired a
controlling interest," 1t adds:
For some time there was free selling Of
Seaboard stocks. and much of 1t is said
to have gone to New York. 1t is thought
ty some that the Rock Island men were
doing the bulk of the buying and finally
made proposition to Mr.. John Shelton
williams. of Richmond, and Mr.. ]. w.
Middendorfer, of this city, to purchase
enough of their holdings to give them con-
Mr. Middendorfer controlled the road and
it is believed that they have disposed OF
large bulk of their holdings. Rumor
has it that the price paid is around 20
for common stock and about 80 for pre-
ferred
"Mr Middendorfer, who is vice-presl-
dent and a director of the Seaboard, was
asked if these figures were correct:
CT cannot say anything about that,
was his reply. Mr.. Williams and myself
took hold of the Seaboard and worked
hard to make it the great system It Is
today. 1t was big proposition to handle,
and the result was of great benefit to Bal
timore banks and brokers particularly
were given the opportunity to make
money. Since we took hold of the Sea-
board prices of seats on the Baltimore
Stock Exchange have advanced from 5000
to $40 900. I always said the Seaboard
was good system, with bright future,
and l knew what l was talking about.
The Baltimore Suns story of the deal
adds interesting details to the story print
ed yesterday morning, and throws some
light on the transaction. We make room
for it below in full:
New York, August 12-Once more the
railroad map of America has been redrafS-
ed The Seaboard Air Line, it is stated
by financiers here, has lost its identity as
an independent system, and the Rock
Island has emerged as the controlling in
terest in the new ownership.
| This most recent affiliation, which III
cludes a perfect understanding with the
Mexican Central. makes the consolidation
by far the largest railroad system on the
Western Hemisphere, having voice IN
the policy governing $4,000 miles OF rail
road and gives it entrance to the great
cities of the Atlantic Seaboard.
New interests which are now affiliated
with the Seaboard are the st. Louis aud
San Francisco Railroad, owned by the
Rock Island; the Mexican Central railroad
and Ladenburg, Thalman & Co., bankers.
who represent the new interests IN the
Seaboard and are also the fiscal agents
OF the Mexican Central
The passing of the Seaboard to this new
community of interest is the first change
in great railroad property, due directly
to the slaughtering of fictitious prices IN
the stock market There were institutions
and bankers in the large cities of the
South which have felt the iron hand OF
|
BALTIMORE INTERESTS INVOLVED.
Louisville and Nashville stock was
bought extensively around $50 before the
control of the road passed to the Atlantic
Coast Line, Virginia Carolina Chemical
decline entailed loss on bankers IN Bal
timore and Richmond. The decline In
Southern Railroad Seaboard Air Line,
Baltimore and Ohio and virtually every
Southern favorite threatened to carry
down in a tide of destruction fortunes that
had been accumulated and used as Il
basis of credit in the uprush of security
prices which preceded the present rich
mems panic
The Seaboard was the safety valve of
this situation. Large interests stood
ready to take the property at a reasonable
price, if the men who controlled the road
would sell. Tentative propositions a year
! ago had been made for the purchase OF
} the property by the st. Louis and San
, Francisco. Terms were not satisfactory
to B. F. Yoakum, president of the Frisco
and the negotiations ended
1t was again to Mr.. Yoakum that bank
ers turned Tuesday night when they were