The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-08-14
SeabOdrd'S S New Alliance
Means More Dividends
THAT THE OPINION
OF FINANCIERS
Increase of About Three NIL.
lions In Tariff.
MEXICAN CENTRAL MAY
BE INCLUDED ALSO
A Great international Railway System
Will Probably Result from the Deal.
The GouIds Believed to Be
Observation-Disclosures
Filed in the
South.

The great railway deal by which tho
seaboard Air Line Railway becomes part
of the largest railway system on the
western hemisphere and with ample
financial backing, was the topic Of most
absorbing and universal interest in Rich
mond yesterday among flnanciers and
bankers and in railway circles.
The magnitude of the railway system
thus far formed is just beginning to be
fully felt and appreciated, as the vast
ness Of the combination and some idea
Of Its meaning are comprehended. 1t
makes sweeping changes In the railway
map of America, and In the majestic
game Of modern railway acquisition 1t
ranks as a. gigantic and momentous trans
action.
The benefits resulting from the for
nation of this great transcontnental
system Of railways will be largely, IL not
chiefly, shared by the South. for the
Baltimore American, editorially. takes
rather pesslmistio view OF the transac-
ton, admitting that 1t Will! not greatly
increase the commercial Importance Of
that city, but will give an impetus to the
cities and seaports farther south. I'm
puestionably Richmond, which will re-
main. the headquarters Of the Seaboard
system, and all Eastern Virginia. will be
large benehciaries OF the deal. The shops
OF the system will remain at Portsmouth.
1t is stated upon high authority, and
the general offices of the line will not
be removed from Richmond. The harbor
of Norfolk and Portsmouth, with Its fine
steamship connections, will make a most
advantageous terminal. The value OF Vir-
glna holdings of tho stock will be greatly
enhanced and appreciated In value.
MUCH LARGER BUSINESS.
At the banking house OF John L. VIII
liams Sons yesterday. 1t was stated that
the deal would give the Seaboard Air
Line Railway about $3.00o.00o OF additional
business annually, and that this practl-
cally insures dividends on both tho pre-
ferrcd and common stocks Of the road.
Last year the Seaboard earned q four
per cent. dividend on It's common stock.
Through freight service to and beyond
Richmond from the West and far South
west will be established soon, and very
probably through passenger train service,
thus making Richmond much more I'M
portant railway center and increasing Its
commercial Importance greatly. The great
advantage to the SeAboard Air Line as
result OF the arrangements just erected
will he In the diversion of freights from
the st. Louis and San francisco and the
Rock Island systems to the Seaboard ALT
Line.
Mr.. John Shelton Williams. the pres!-
dent and chief architect Of the greater
Seaboarb system, and one OF the most
conspicuous and influential figures In ne
gotiaung the large transaction, Is stu
In New York. and will not be IN Rich
mond for several days, so 1t was stated
yesterday by his brother at the banking
house of John L. williams Sons.
A member of the firm, when asked yesL
terday as to the prospective effects OF the
deal upon the employees Of the system,
conceded that 1t would mean dispensing
with representatives OF one or the other
of tho lines wherever there are two rep
resentatives, one for each system. ana
other retrenchment measures. In order to
reduce the expense OF operation OF tho
greater system and to reap the advantages
of the now agreement and the practical
elimination OF much OF the past competi-
ton In which the Seaboard has figured.
These changes In the personnel OF tho
road will be made gradually at some time
In the future, when it can be seen whore
retrenchment can be had to advantage.
and without detrlment to the operation
of the system. SO far as announced or
intimated, however, none of these changes
will affect Richmond, but generally those
cities where the Rock Island and st
Louis and San Francisco lines have traf-
hc agents.
ACTIVE TRADING.
There was, quite a deal OF trading yes
terday on tho Baltimore and New YORK
stock markets, though not so much as on
Wednesday, The stocks did not score any
net advances on the opening quotations
for either common or preferred stock.
but the substantial advances following the
announcement OF the transaction wore
we'll maintained. showing the stability OF
the Increased value of the securities.
There is, little or no dealing In railway
stocks in this city except through the
New York and Baltimore exchanges,
A statement of the Seaboard's financial
condition for the fiscal year ended June
30, 1903. was recently made public. as fol-
lows:
Gross earnings from railways. sl2lbS,-
e22s, ,25; increase. sl,0SS, 1895; gross earn
ings from water lines, s5S,599.57; increase
SIS, ,262 40: total earnings from operations
s12 7o6527,S2; Increase, Sllg6,7l2. 10; operat-
ing expenses and taxes, s9,3ls. 1880; Ia
crease, sl,lT455S.75; net earnings, $751;
74s03; decrease, $47,si6S0; other income
dividends on stock owned. &c). $s68l.-
So; decrease, s50074l2; total income, ~
473. .7SO74; decrease. s2,eeIs2,
Deductions from ipcome-Interest on
funded debt, S2,4sl,t0o: interest on equip
ment trust obligations. Sl0i, ,667s9; de-
crease. ST, 2aa2.TS rentals, 1890: diyidends
pald on guaranteed stock OF proprietary
companies, S6,3o7; decrease, s263,67; other
Saeducunns. s5,t2i4; decrease, S,S0o0t