The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-12-11
ON THE SEABOARD
Mr.. Williams Gives an
Interview and Talks
at Length.
Special to News and observer.)

Especial TO News and Observer)
Baltimore, Nd. Dec. 1O.-The Bal
timore Evening News of to-day con-
tairis the following interview with
ohm Shelton Williams.
The Seaboard Air Line railway is
responding handsomely to the pros
porous business conditions which now
4,reva1l in the Southern States.
The continued development of the
south is certain, and nothing bue
sross acknowledgements can prevent the
earnings OF the Seaboard Air Lll.1
Ad1Iway from increasing heavily. The
surplus earnings Wnlch the road is
showing just now are at the rate or
100 per cent. more than 4 per cent.
l.Vldends on its preferred stock. Ine
weekly earnings of the company which
are showing most satisfactory results,
are not beng published as was form
erly done, Tor reasons best known to
the present officers. The representa-
ives of the New York management
nave recently circulated a report to the
acct that BALTIMORE stockholders gem
orally in the Seaboard have parted
With their holdings. This statement
S of course untrue and misleading.
L believe that large majority of the
stock is still held outside of the voting
Il L.
aow under consideration TO require
the Seaboard company to borrow five
Or ten million dollars. more. l am
not acquainted with the details Of the
plan, but / will say most emphatically
chat the system does not require the
money and if an attempt should be
made by the New York parties 10
force the system tn jeopardiZe its po-
ition by borrowing money from them
yKro does
the stock of the railway company, ap-
propriate measures will be taken by
the stockholders. The company viii
receive from the trustee $1.500.000.
First mortgage bonds per annum for
several years to come which Will be
available for improvements and better
ments. These funs together with the
surplus net earnings of the company
which President and general manager
Barr stated some months ago should
TO about $1,500,000 the first
year after the opening of the sBirn-
Ingham line would furnish the COM
pany approximately 100000 year
whereas Mr.. Barr stated over his sig
nature about q year ago that One-half
of this amount or $1,500,000 per an.
mum was as much as the company
could advantageously !eXnend for i'm
proyements and betterlWnts. The At
lanta. and Birmingham line was opened
for freight business this week, and the
strain and drain which the conStruc-
ton of this road has involved on the
rest of the system due largely to gross
mismanagement the Atlanta and Bir-
road having already exceed
ed its estimated cost by about 49,
500,000) ceases and the Atlanta and
Air Line should hereaf-
ter 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
system, ii is interesting to recall that
several months ago while the Seaboard
market was being manipulated for
the purpose of depressing values and
untrue statements as to the COM
panys finances were also being cir
culated budget was prepared to show
the financial wants of the system for
the next few years. This statement
included one item Of about $2,50O,O0u
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
that this expenditure would
involve a cost of about 100000 year
for interest, and yet when the officers
NJ the company were questioned and
ninned down as to the benefits which
would be derived from this expendi-
ture and the annual saving in express
which it would bring about they were
forced TO admit that the amount TO
be saved would probably not exceed
$40, 900 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 1t was
expected to effect l simply mention
this 10 illustrate the character of the