The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-08-16
SEABOARD-FRISCO DEAL.
STILL ABSORBING TOPIC

Leading papers of the country con-
tinue to discuss the recent Frisco-Sea-
board deal, and no well informed paper
fails to understand the vast Importance
of Birmingham in connection with the
railroad situation. Comments and gossip
follow:
Wall Street Journal: The change in
control of Seaboard Air Line was really
brought about through the necessities
Of two of the principal holders of the
stock. These necessities were in the
shape OF maturing loans which they
could not meet. In negotiating a basis
upon which these loans would be pro-
tected these interests agreed to sur
render five out of nine trustees In the
voting trust of Seaboard Air Line The
loans We're taken care of by Ladenhurg,
Thalmann q Co., for consideration.
This firm negotiated the terms upon
which the new trustees were to be given
their position. The voting trust of the
Seaboard Air Line stlll stands fer eight
years. In the loans which Ladenburg,
Thalmann & CO.. guarantee. the pre-
ferred and common stocks figure at 20
and 20 respectively.
The new interests i'm the Seaboard rep
resent St Louis and San Francisco, con-
trolled by the Rock Island company.
Seaboard Air Line is not therefore con
trolled by any other railroad. There has
been established a community of inter-
est that Is certainly strong enough to
eliminate Seaboard Air Line so far as
rates are concerned and to practically as
sure for so long as the present arrange
ment lasts a perfectly harmonious opera
ton of Seaboard Air Line and Frisco.
That the John Shelton Williams inter-
est will not continue dominant in Sea-
board as In the past may oe taken as
fact. If there should arise a question be-
tween the interest mentioned and the
new interest in the property Frisco
would outweigh the Williams interest.
From traffic standpoint, the alliance
Is the natural result of the Louisville-At-
lantic Coast Line arrangement Sea-
board has secured a western connection
corresponding to Louisville and Nashville
In the case Of Atlantic Coast Line. 1t
has been recognized from the outset that
such connection was Inevitable unless
Seaboard intended to submit to become
mere local coast line For that reason
Seaboard bid for Louisville.
From Frisco standpoint the Atlantic
coast connection may or may not prove
of immense value. Direct traffic to an
Atlantic port, the advantage of having
an ally throughout the coast territory
and a connection with several important
traffic centers In the coast region are the
principal advantages gained. From
standpoint OF revenue only, 1t does not
appear that any great advantage has
been gained, as Frisco at Birmingham
was in position to obtain all privileges
from Seaboard without any purchase.
Ever since the Seaboard Air Line COM
menced its Birmingham extension 1t has
sought an ally which would aid 1t In the
question of. through freights to the Mis-
sissippi region. Meanwhile since the Rock
Island people had purchased the St Louis
and San Francisco system, they mani
tested a decided inclination to extend
their road from Birmingham to the Attain
tic coast.
When the Seaboard interests heard of
this desire on the part of the Rock Is
land party they concluded that an agree
ment between the two systems would be
most satisfactory to the Seaboard Air
Line.
Such an agreement has now been made
and made on terms very favorable to the
| Seaboard Air Line.
The new agreement allows the election
of b. r. YoalSum. II. Clay Pierce, b. s.
Guinness and Oakleigh Thorne as voting
| trustees of the Seaboard. The other vot-
| ing trustees are John s. Williams, James
H. Dooley, C. s. Shepard and NJ. A. Mar
burg, all four of the Williams party. and
| as the voting trust has six years to run,
| the Williams faction, with four voting
| trustees opposed to four other voting
| trustees. can effectually prevent the con-
| troll of the road passing to any system.
New York Special to the st. Louis
Globe Democrat:
A statement published In Wall street
today to the effect that the st. Louis and
San Francisco interests are represented
by only four of the eight members of
the newly arranged voting trust In con-
troll of the Seaboard Air Line has Great
| ed misunderstanding 1t was said In one
| well-informed quarter that because the
| interests who sold the Frisco to the Rock
! Island were also interested in the Mexi-