The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-12-11
SEAB0ARD STOCKHOLDERS
WON'T AGREE TO NEW LOAN
So Declares John SHELTON Williams.
Who Discusses Company's Affairs.

So Declares John SHELTON Williams
Who Discusses Company's Affairs.
Baltimore. Md, Dec 10.-The Balti-
more Evening News of this evening
contains the following interview with
John Shelton Williams:
1.-THE Seaboard Air Line Railway is
responding handsomely to the pros
porous business conditions which now
prevail in the Southern states. The
continued development of the South is
certain, and nothing but gross mis-
management can prevent the earnings
of the Seaboard Air Line Railway from
increasing heavily. The surplus earn
ings which the road is showing Just
now are at the rate of 100 per cent.
more than per cent. dividends of the
preferred stock.
THE weekly earnings of the com
pany, which are showing most salts
factory results, are not being publish
ed, as was formerly done, for reasons
best known to the present officers.
The representatives of the New York
management have recently circulated
report to the effect that Baltimore
stockholders generally in the Seaboard
have parted with their holdings. This
statement is, of course, untrue, and
misleading. ! believe that large ma
jority of the stock is still held outside
of the voting trust.
1t is rumored that a scheme is now
under consideration to require the Sea-
board Company to borrow S., 900, 900 or
$lO,0OO,OO0 more l. am not acquainted
with the details of the plan but l will
say most emphatically that the sys-
tenn does not require the money, and
If an attempt should be made by the
New York parties to force the system
to Jeopardize its position by borrow
ing money from them which it does
not require, and to scale the stock of
the railway company, appropriate
measures will be taken by the stock
holders.
The company will receive from the
trustees $1,500 900 first mortgage bonds
per annum for several years to come.
which Will be available for improve
ments and betterments. These funds,
together with the surplus net earnings
of the company, which President and
General Manager Barr stated some
months ago should amount to about
$l,5O0,0OO the first year after the open
ing of the Birmingham line. would
Iurnlsh the company approximately
SS,OOO,OOO year, whereas Mr.. Barr
stated over his signature about a year
ago that one-half of this amount. or
$l'oOOOOO per annum, was as much as
the company could advantageously ex-
pend for Improvements and better
ments.
Inc Atlanta and Birmingham line
was opened for freight business this
week and the strain and drain which
the construction of this road has in
VOWED on the rest of the system and
due largely to gross mismanagement
(the Atlanta and Birmingham road
having already exceeded it's estimated
cost by about $4,000, 000) ceases, and the
AtIanta and birmingham Air Line
should hereafter become a source of
large revenue to the company.
To illustrate the fictitious argu
ments which have been brought for
ward as an excuse for calling for more
money for the Seaboard Air Line sys-
tenn it is interesting to recall that
several months ago. while the Sea-
board market was being manipulated
Tor the purpose of depressing values
ana untrue statements as to the COM
pahy finances were also being circu-
lated a budget was prepared to show
financial wants of the system for the
next few years. This statement in
cludes one item of about $2.500. 600 for
regarding and revising portions of the
main line. The company's new bonds
at that time were selling on about an
. per cent. basis, or worse, Indicating
mat this expenditure would involve a
cost of about 100000 a year for in
terest, and yet, when the officers of
the company were questioned and
pinned down as to the benefits which
would be derived from this expenditure
and the annual saving in expenses
which 1t would bring about, they were
forced to admit that the amount to be
saved would probably not exceed s40.-
700 per annum; in other words. the
amount which the proposed expendi-
ture would probably cost the company
in interest was five times as much as
the probable saving which it was ex-
pected to effect.
1 simply mention this to illustrate
the character of the alleged financial
requirements for the sake of which il
was proposed four months ago to ask
the stockholders to consent to the
scaling of their stock 40 or so per cent.
1t Is. of course, within the power of
outside stockholders by concerted ac-
ton to absolutely prevent the carry
ing out of any such unjust and vicious
scheme"