The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-08-13
SEABOARD SYSTEM ONE
WITH THE ROCK ISLAND
Announcement of the Deal
Startles Richmond Market.
POLICY TO BE UNCHANGED
Likewise the Management Will Remain
as it is Now So Far as Consistent
With the Increase of Traffic.
Much Stock Held Here.

"loSil SNOSh T1CIu
The announcement OF the acquisition OF
the control of the Seaboard Air Line Rail-
way system by the Rock Island system,
madng practically one continuous line
from Ell Paso, Texas, through the heart
of the South. and along the Atlantic coast
on to New York, and with Western lines
extending to Denver and Kansas City,
was received with general surprise in this
city yesterday, and caused the stocks OF
tho Sea board everywhere to jump upward
at rate most gratifying to stockholders
here.
Tho Seaboard Is largely Richmond In
stitution, and this city Is the headquar-
ters of the road, which now becomes part
of great system Of 1890 miles. with
half dozen outlets on the Atlantic coast.
Coupled with the announcement OF the
big deal comes the statement that there
will be no change In the management
and policy OF the Seaboard except such
as will greatly enhance the value and
Increase the traffic of the line and con-
tribute to tho advancement Of Richmond.
The stock OF the Seaboard Is largely held
in this city. though by comparatively
few holders. The practical elimination OF
competition and the obviatio OF the ne
hereafter can but have the effect Of great
ly enhancing the value OF the stocks Of
the road.
TO the thoughtful reader OF the dlplo-
matte announcement sent out 1t means
neither more nor less than that the Sea-
board Air Line Railway has been ac-
quired by and added to the system OF the 3
Rock Island, through the intermediary
of the st. Louis and San Francisco. AS
the New York News Bureau expresses
it. THE seaboard Air Line has been ac-
quired by friendly interests
AS the situation now stands. five new
directors Of the Seaboard Air Line Rail-
way have been elected, four OF whom are
voting trustees. Four of the old directors
are voting trustees. making an equal
division. Ernest Thalmann. Of Laden
burg; Thalmann & Company. of New
York. was already director of the Sea-
board, and among the new directors and
voting trustees Is Mr.. B. s. Guinness, of
Ladenburg, Thalmann e Company.
MORGAN IN II.
The question Of greatest interest In con-
nection with the acquisition of the Sea-
board by the st. Louis and San Fran
cisco or Rock Island system. is as to
whether Mr.. ]. Pierpont Morgan IS con-
nected with the controi Of the Rock Island
system. It is generally understood that
this great nnancler Is the master of the
situation, and that the long war between
the Seaboard Air Line Railway and the
Southern Railway is at end. for the rea-
son that their interests and practically
their ownership are now Identical. It
means the elimination of competition In
Southern Railway traffic and control Of
rates by one great company, and Il
means practically continuous route
from FL paso on the Rio Grande and
Mexican border. through the heart Of the
Industrial South by way of Its chief Nttes
and commercial centers to the Atlantic
seaboard at Norfolk and by way OF Rich
mond and Washington to New York. This
makes a great railway system OF 1890
miles, of which the present seaboard Air
Line Railway system contributes but
1900, These figures speak for them
selves, showing that the seaboard has
been practically acquired by purchase
OF controlling interest In Its stock by
the larger system. BY the acquisition OF
control of the Seaboard the Rock Island
will be brought through Birmingham to
Atlanta and Richmond. and thence to
New York. gives 1t an outlet on the At-
lantlc. The Rock Island route from FL
Paso runs through Texas and Oklahoma
and Arkansas to Little Rock, across to X
Memphis thence south to Birmingham
and Atlanta and northward to Richmond,
WASHINGTON ana 4NeW 10TH.
THE DIRECTORATE.
The old directors of the Seaboard Air
Line Railway are John Shelton Williams.
of Richmond: j. NJ. Barr. of Portsmouth,;
Va: James II. Dooley Of Richmond; J.
w. Middendorf. of Baltimore; w. A. Mar
burg OF I3atimore; c. Sidney Sheppard.
of New York: Ernest Thalmann. of New
N. c. or these Mesrs. Williams. Shep-
pard, Doolsy and Marburg are voting
trustees. The new directors are r. r.
Yoakum, president Of the st. Louis and
San Francisco. which Is part OF the Rock
Island system; IT. Clay Pierce. of New
York; B. s. Guinness. of the hrm OF
4adenburg, Thalmann & Company. of
New York. Oakleigh Thorne and S, d.
Van Wort. All of these except Mr.. Van
vort become voting trustees.
The Seaboard Air Line Will maintain It's
Identity as such without change OF name
or of management, further than the in-
dcated changes in the directorate. These
are described as friendly interests" The
Seahoard management. 1t Is stated, VIII
remain as at present.
What is OF most interest to VirginianH
and Richmonders who are interested in
the stock of the, Seaboard Is that the ar
rangement just entered into VIII greatly
enhance the value Of that property and
greatly reduce its operating and mainte-
nance expenditures, 1t simply means that
the Seaboard will cease to war with great
railway systems, having itself become
part of one, thus giving 1t uninterrupted
through connections from Mexico to New
York. The beneficial effect to the Sea-
board of the amagnmatlon Is sufficiently
attested by the fact that the mere an
caused Seaboard stocks to
jump three points net, and this. too, at
a time when there is great depression In
the stock market. A large amount OF the
stocks OF the Seaboard are held In this
city which is the headquarters OF tha
line.
OFFICIAL STATEMENT.
Here Is a statement wired out yestep-
day. emanatlng from Dow. Jones ana
Co. of New York. and regarded as q
nrar ticallN nfnniaI statement from the