The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-09-11
WILL. JAMS ON THE
SAL AFFAIRS
Deliveries to Ryan-BIair
Syndicate Complete.
WHAT 1T NOW HOLDS
Mr.. Williams Says the Syndicate Has
Turned Somersaut in Declaring
That the Reorganization They
Once Advocated is Not
Necessary.
Especial to News and observer.)

Baltimore, Mr., Sept 10.-Mr. John
Shelton Williams. who was in Balti-
more today, announced that Messrs.
j. VIM, Middendorf & Company and
John l.. Williams & Sons had com
pleted their deliveries to the Ryan
Blair syndicate of 10000 shares of
Seaboard Air Line Railway stock, the
amount of stock delivered being 65,-
900 shares OF the preferred and $4,000
snares or the common stock.
My information said Mr.. Will
iams, 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 a very large portion, if not
nearly all of the $4,000 shares, of
stock which they received as a bonus
with the S2,200,000 Seaboard three
year SIS, which was the amount of
these bonds eventually taken by their
syndicate and which were underwent
ten by this syndicate last winter. If
the statement recently made by mem
bers Of this syndicate to the effect
that they had bought no Seaboard
stocks except the stock received with
the three year per cent bonds and
10000 shares purchased from
Messrs. Middendorf e. Williams are
correct; the syndicate's entire holdings
of Seaboard stocks at the present time
must amount to but little more than
one fourth of the stock of the COM
pany outstanding. This syndicate lost
a large amount Of stock between Z and
II for the common and between IA
and 90 for the preferred, while en-
deavoring to keep down tho prices dur
ing the time they were negotiating for
and hoping to buy the Middendorf-
Williams holdings, for which they sub
sequently paid Is and Is.
'"There is no doubt" said Mr. Will
liams. "as to the stock which was
thrown on the market by the Ryan
Blair syndicate for the purpose of ma
nfpulating prices, for I have identified
many of the stock certificates which
were sold through certain New York
brokers employed by the syndicate
managers as being the same certifi-
Gates that were delivered by the COM
pany to the Blair-Ryan syndicate on
account of their subscription to the
year per cent bonds, notwithstand-
ing the fact that ] had been given the
most solemn assurances last winter
that this stock so received by the syn
dictate was not to be used for the pur-
pose Of manipulating or raiding the
market. but that 1t would be held by
the syndicate for a long pull so as to
reap the DciicIt W bIlS C1IIlfLliSCn NoluO
which would come with the growth
and development of the property.
"On June IS, 1904, an article was
published In the Boston News Bureau,
which l am reliably informed, came
from II. Jefferson Coolidge, Jr., one of
the syndicate managers, which said
The Seaboard Air Line Company is in
need of $b,ao0.aoc o: 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 carried out wheth-
er or not Mr. Williams favors it,
'Now that they have succeeded in
purchasing the stock owned by Messrs.
j. VIM. Midden6orf & Company and
John l.. Williams e. Sons, the syndi-
cate managers have turned a COM
plete somersault and have undergone
a most remarkable change of heart
and mind for l am informed that
Blair and COMPANY who threatened
that the adoption OF their drastic and
thoroughly unnecessary reorganization
plan was the only alternative to a re-
ownership, now after having purchas-
ed our $14,000,000 block of stock.
blandly state that they feel that o
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, In
stead of being several millions of dol
lars will probably be about eleven
hundred thousand dollars which they
now inform the stockholders can be
raised by the sale of 4 per cent treas
ury bonds or by temporary loans,
whichever may be most advantageous
to the company Furthermore this
eleven hundred thousand dollars is all
or nearly 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 100000 Of the principal OF
car trusts and for the payment of In
tarest on all other bonds, rentals and
other charges.
"1'he expenditures for improvements
and betterments on the system for the
past four years has been on an aver
age of about 100000 per annum."
az have not been advising my
friends to sell their Seaboard stock,
even on the present advance, because
believe that it Is fully within their
power and the power Of the other out
side stockholders to maintain their
rights and to secure for the company
eventually, the honest and capable
management which it so greatly needs
and which is SO essential for It's best
interests.