The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-09-11
Delivery Of Stock to RyaR-Baif
Syndicate is Completed
cHIDES THE MANAGEMENT
Mr.. Williams Says the Syndicate Man.
ayers Have Undergone Change of
Heart Regarding Drastic
Reorganization Plan.

Baltimore, September 1c-(Special.)-
The following is complete statement
given to the press here this afternoon re-
garding the Seaboard Air Line situation
which will be of interest:
Mr.. John Shelton Williams, who was in
Baltimore today announced that Messrs.
]. William Middendorf & Co. and John
L. Williams s. Sons had completed their
deliveries to the Ryan-Blair syndicate
of 100000 shares of Seaboard Air Line
railway stock the amount of stock de-
llvered being $1,000 shares of the preferred
and 5000 shares of common stock
My information" said Mr.. Williams,
lis to the effect that at the time we made
this sale to Mr.. Ryan, the Ryan-Blair
syndicate in their efforts to keep down
the prices of Seaboard stocks lost very
large portion if not nearly all of the o.
coo thousand shares of stock which they
received as bonus with the $2,20O,0oo
Seaboard year 5s. which was the
amount of these bonds eventually taken
by their syndicate and which weie uE-
der written by this syndicate last wiz
tes.
IF the statements recently made by
members of this syndicate to the effect
that they had bought no Seaboard stock
except the stock received with the S-year
5 per cent bonds and 10000 shares pur-
chased from Messrs. Middendorf and VIII
liams are correct, the. 81 indicates entire
holdings of Seaboard stocks at the pres
ent time must amount TO but little more
than one-fourth of the stock of the COM
pany outstanding.
Lost Large Amount of Stock.
This syndicate lost large amount of
stock at between and IL for the COM
mon and between IA and 20 for the pre-
ferred, while endeavoring to keep down
the prices during the time they were ne
gotiating for and hoping to buy the Mid
denhorf- Williams holdings for which they
subsequently paid Is and 26.
This is no doubt" said Mr.. Williams,
'as to the stock which was thrown on
the market by the Ryan-Blair syndicate
for the purpose of manipulating prices,
for l have identified many of the stock
certificates which were sold through GER
tain New York brokers employed by the
syndicate managers as being the same GER
tificates that were delivered by the COM
pany to the Blair-Byan syndicate on ac-
count of their subscription to the three
year 5 per cent bonds. Notwithstanding
the fact that 1 had been given the most
solemn assurances last winter that this
stock so received by the syndicate was
not to be used for the purpose of manip-
ulating or raiding the market, but hat
1t would be held by the syndicate for a
long pull so as to reap the benefit of the
enhanced value which would come with
the growth and development of the prop
erty.
"On June 2S, 1904. an article was pub
lished in the Boston News bureau which
l am reliably informed came from L.
Jefferson Coolidge, Jr., one of the syn
dicate managers which said, The Sea-
board Air Line company is in need of $5,-
100000 of new money and the plan to
form a holding company whereby it will
be possible to raise this additional money
is practical and will undoubtedly be car
ried out whether or not Mr.. Williams
favors it,.
Turn SomersauIt.
Now that they have succeeded in pur-
chasing the stock owned by Messrs ].
William Middendorf & Co. and John L.
Williams & Sons, the syndicate managers
have turned a complete somersault ami
have undergone a most miserable change
Of heart and mind, for am informed that
adoption of their drastic and thoroughly
unnecessary reorganizing plan was the
only alternative to a receivership, now
after having purchased our $14000,00
block of stock they blandly state that
they feel that a general reorganization of
the property will not be necessary, and
that the amount Of money which will be
required for the ensuing year In addition
to the current receipts instead of being
several millions of dollars will probably
be about eleven hundred thousand dollars,
which they now inform the stockholders
can be raised by the sale of per cent
treasury bonds or by temporary loans,
whichever may be most advantageous to
the company
Furthermore this 81, 100000 is all or near
ly all for improvements and betterments
the other receipts of the company being
estimated by them to be sufficient for the
completion of the Birmingham line for
the retirement of nearly s7O0 900 of the
principal of car trusts and for the pay
ment or interest on all other bonds, rent
ais and other charges
The expenditures for improvements
and betterments on the system for the
past four years has been on an average
of about 100000 per annum.''
Mr.. Williams concluded by saving that
he had not been advising his friends to
sell their Seaboard stocks even on the
present advance because he believed that
1t was fully within their power and the
power of the other outside stockholders
to maintain their rights and to secure
Tor the company eventually the manage
ment which 1t so greatly needs and which
is SO essential for its best interests.