The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-10-11
YOAKUM IS
IN CONTROL
Has Command of Seaboard
for Seven Years.
"A UNIQUE SITUATION
Voting Trust Does Not Own Majority
Of Stock, but It Does Control 1t,
and Viii DO So Until
August 1910.
A UNIQUE SITUATION
(spec1n1 TO The rlmes-Dlspatch.)

(Specrnf TO The Times-Dlspatch.)
NEW YORK. October 10.-One Of the
bankers associated with B. It. Yoakum
in st. Louis and San Francisco makes the
following statement in reply TO current
rumors that the connection of that rail-
road organizer with the Seaboard Air Line
the road:
Ben Yoakum Is In absolute command
or Seaboard Air Line, and Will continue
&c for seven years. whether the road Is
sold to Rock Island or not lie docs not
own the road. or any large part of 1t,
and so far as l know has no intention
OF buying control. He holds 1t in tho
same way thatJ p. Morgan holds South
ern Railway and Erie. He Is head of
voting trust that has absolute admins
trative power on the system, without re-
gard to the location Of the majority OF
the stock.
Statements recently made by Messrs.
Williams and Middendorf TO the effect
that they own and control Scaboard are
perfectly correct SO far as stock owner
slip goes. Mr.. Williams Is president, and
will probably remain SO until he feels
like giving it up. l know that there Is
rot the least opposition to his presidency
Oh the part of the voting trust. That
group of men would be very sorry to
see Mr. Williams. withdraw from Sea-
beard. They want his cooperation In the
administration Of the system, and be-
lieve they will get it. Mr.. Williams Is
not only an able and energetic railroad
man, but he Is a banker with high
prestige and strong following IN the
South.
THE PROFIT.
people ask what profit there can be
for Mr.. Yoakum in taking the leadership
of that voting trust unless ne also owns
very large share In the road. The ques-
ton is silly. It might far better be asked
with regard to Mr.. Morgan and Erie or
Southern. Every. railroad man knows
that the maker Of a railroad, whether he
own it or not makes money and earns
It honestly The patronage alone that at
taches to such power is worth millions
when the road controlled is as big rs the
seaboard. Does any one, for instance.
imagine that the only money made by
Mr.. Yoakum out of Frisco was the profit
on the shares he bought below twenty
and sold to Rock Island for securities
worth sixty even In this market? II
such was the case, how did Mr.. Yoakum
become a millionaire before no sold those
shares? Bankers and railroad men under
stand these things."
The above statement clears up some
of tho mystery attaching to this strange
transaction. The reason 1t has been such
a mystery. is simply that It Is unique.
There has been p1entyNof rumor and guess
about It, but little tangible fact or clear
and concise statement from the parties
Interested. There is, moreover, mani
fest desire on the part of all concerned
to do and say nothing that Will In any
way n1ure the prestige or Interfere with
tho fortunes Of Messrs. Williams and Md
dendorf. A clear official statement on the
matter might very we'll be translated by
the public and the press into something
Injurious to these firms. The actual facts
do not reflect either upon the fortunes or
the ability OF the individuals or firms
mentioned.
THE FACTS.
The actual facts are as follows:
The voting trust, consisting OF eight
members, absolutely controls, the for
tunes of the Seaboard Air Line. The adj
ministration is In the hands of the Execu-
tive Committee, whose chairman Is d. +.
Yoakum, also head Of the voting trust.
There are no contingent liabilities IN
the shape of loans by individuals or nrms
which can wreck the road It stands
absolutely beyond the possibility OF re-
Ownership or even reorganization, unless
conditions should arise to bring down
the lOIluuCo VI tiiuAsaSA"An 49, -
immensely powerful and wealthy.
The voting trust does not own the road.
The dominant influence In the voting
trust does not own enough stock to-day
to make it even a fighting minority IN
electing the Board of Directors, II such
election were carried out In the usual
way on the votes of stock actually held.
The voting majority OF the trust does
hold an option, or, rather, several options,
on large block of stock, below 10000
shares, at an average price below twenty
fol the common and thirty for tho pre-
rerred. AS a matter of fact, the prices
of tho stock bought and held IN various
ways by this interest are lower than any
prices that have ever been published IN
this connection. The exercise of all OPP
lions, however, would not place THIS IN
terest In ''stock CONTROL
GREAT SYSTEM
1t Is the intention of the voting trust
to make seaboard a great system. Much
work and a great deal of money Will DO
required. There will be no haste. Nothing
will be done ut present or under present
conditions. The people who Will DO re-
sponsible for the making of seaboard
are confident of the highest success.
They point to tho condition of Seaboard
as compared with Frisco in 1897, when
Yoakum took office as vice-presldent.
1t is open to Rock Island or any other
railroad to make an offer for seaboard
and take 1t at the price named by the
voting trust any time up to August, 1904,
The price named is not low one. II the
new interests take up all their options
they will be able to deliver considera-
BILE vote after August. 1904, but whether
they do or not they will still remain iN
control until August. 1910.
For tho present the transaction rests
It Is decidedly unique the only deal at all
similar being the pooling Of Frisco con-
troll for five years with Union Trust OF
st. Louis, and In that case the pool held
more than a majority of the stock. IN this
case 1t holds very small minority,