The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-06-26
MORE MONEY
NOT NEEDED :
Affairs 81 the Seaboard Not Sucll
as to Call for Any New
Financing.
VIEWS OF STOCKHOLDERS .''
They Think The Road Can be
Made Profitable if There Is
!. Proper Management.

The affairs OF the seaboard Air Line
have been attracting much attention In
financial circles In Richmond, Baltimore
y and New York for several days, because
Of the discussion OF the matter OF reor.
ganlzng the company and forming a
holding company. This idea, according to
atlyiccs from New York, has been practi-
cally abandoned.
Mr.. John Shelton Williams. chairman
OF the board OF directors, Is clearly OF
the opinion, as shown by his statement
printed In The Dispatch that the
road Is In good condition. and does not
need reorganization or to provide for more
money. He and his friends take tho view
that no additional financing is needed,
and they insist that there Is no reason
why stockholders should be called upon
to give up any OF their stock.
The same position Is practically taken
In the following communications
Editor Of The Times Dispatch:
Sir,--Referring to an article In Tho
Times Dispatch OF June "a. 1901, entitled
More Money TO Improve Seaboard. = the
following comments thereon are from the
standpoint OF the stockholders, who are
asked to surrender moro than one-thlrd
Of their holdings to be given as a bonus
to secure q new loan. and to make them
more clear, tho prominent statements of
the article are copied verbatim and COM
mentcd on In order as follows:
First. "That large amount OF money
2 will have to be spent to bring 1t up to a
standard to compete with the Southern
Railway
It completes with the Southern Rail-
way now. and successfully, wherever It
has equal access to traffic. and needs
no Improvement to continue successful
competition with the Southern. unless
more equipment is necessary to handle
the traffic to which 1t already has ac-
cess in competition with that road.
Second. "The Seaboard Air Line has
had little spent for improvements during
s the past three years"
II this Is true. what has become OF the
appropriations made for new equipments
and improvements. which 1t has been
said amounted to 100000. during the
past three years Of Mr. Bars adminls-
trntlon7
g Third. Very good statements OF earn.
ings were made simply because tile road
was operated without regard to main
tanning It's physical condition.
Not long since It was officially stated
that net earnings had been small be-
cause Of heavy operating expenses. due
to expenditures for improvements. and
that llenceforth net earnings should show
gratifying increase.
Fourth. TT has now reached point
in which something must be done to
provide new equipment and motive power.
to eliminate curves. reduce grades. and
renew Worn out rails.
This would indicate that the Sea board
has been operated without any new loco
motives or cars, notwithstanding the
large additions to both. which have been
reported annually. It would also indi-
cate that the original construction OF
the roads, comprising the seaboard sys-
tenn must have been extremely faulty.
AS matter OF fact the maximum grades
and the mamimum curvature on the Sea-
board arc less than those OF the South
ern Railway.
Fifth. Earnings are now falling off.
and from present indications, after pro-
vidrg for fixed charges, the road will!
earn a surplus OF less than $4,000"
Gross earnings are not falling off, but
have steadily increased as shown by the
statements published monthly In the
newspapers. and IL net earnings are de-
creastng to the extent stated. notwith-
atanding the large Increase in gross earn
ings, the operating expenses must be ex-
cessivc, and to say that the cost OF ope-
rating Is excessive, but includes no ex-
penditures for improvements III the physl-
cal condition of the properly, is a scath-
ing indictment OF the mana cement. for
other Southern Railway properties Of tho
same or less gross earnings per mile.
are being profitably operated.
IL the present management is incapa-
BILE Of accomplishing results why not
change 1t, rather than ask the stock
holders to surrender more than a third OF
their stock. to be given as bonus for
new loan. without any assurance that
they Will be better off year hence than
tas& are now.