New-York tribune., 1905-02-10
SEAB0ARD LINE PLANS.
Rival Baltimore Committees Meet
and announce Policies.

opposition. The Endorsement of the plan was made
by the protective committee. composed of Gus
tavus Ober. H A. OrTlck, Frank S. Hambleton,
Townsend Scott and Simon Stein. This committee
issued the following statement
At meeting Of the seaboard Air Line Line Protec-
0 ys Committee he. held to-day It feSided and 70 com o
sheraton Of tb pan of eonsoiidaton and deposit
agreement OF the seaboard Air Line. dated Janu,
personal Investigation of the requirements Of the
USu, nne HeanoaIo Ar ane ne tpe nn he nromnt
~ ratified by every stockholder by the deposit OF
mental Trust Company Of Baltimore or the Morton
tb or t & nrdne is eR9e1e9ture Of
81 10000, the system will be placed in position not
80 0nnae ne Thah IS
ciently and economically than at present, whlcn
necessarily will accrue to the advantage or every
stockholder
A member of the committee stated that between
seventy thousand and ninety thousand shares Will
be influenced by this action and that before reach
ing its decision the committee assured that no
change would be made in the plan.
The other pooling committee. having in charge
the interests of the holders of about sixty thousand
shares of the stock of seaboard Air Line Rail-
way Company. is composed of c. Ruhstrat, c. Nor
ton Stewart and James L. Seman of Baltimore.
and Frederick f. Noting. of Richmond. This COM
mttee issued a statement denying specifically the
accuracy Of publication that the opposition to the
RyanBlair plan is confined virtually to ]. SHELTON
Williams. alleging that Mr. Williams does not con-
troll influence the committee in any manner; that
the purpose Of the committee is to take of the
interests of the owners of the sixty thousand
shares of stock now behind 1t and of others who
may Join; that the date of February 15 arbitrarily
named by Messrs. Ryan and Blair, is of no oonse-
quence significance at all so far the rights
of stockholders OF the seaboard Air Line are con-
cerned that almost complete surrender Of their
rights is demanded of stockholders a condition
of their assent to the Ryan-Blair plan, and that
the committee is advised that no such surrender OF
their rights is necessary in order entitle them
u,Dra 1rrifl1 rl,oI5a
benefits which may accrue from the Ryan Blair
plan. The statement which is signed by all tbs
members of the committee. closes follows:
We are willing to meet Messrs Ryan and blair OF
businesslike spirit but We are not to be buiidozed
or intmidated by anybody.
Owing TO the large number of inquiries which
have been received by the consolidation committee
regarding the plan of consolidation which 1t would
be impossible to separately, the committee
has prepared general letter covering the principal
points which have been made the subject OF in
quirY and has sent 1t to the security holders It
the committee reafirms Its contention that there
should be reduction In the amount of cash to be
raised-namely S7.625,oO9 1t comes to this conclu-
sion after a careful examination of the resources
earnings and physical requirements of the property
and it is also OF the opinion that every dollar
pended will produce more than dollar, only in
earnings but in improving the credit of the COM
pany. and thus adding to the value of all OF its
securities
DETAILS OF THE PLAN
AS to the rate of dividends on the new second pre-
ferred stock the committee maintains that the rate
decided on is all that judiciousy be allotted for
that purpose. There should be neither increase
OF interest charges of the outstanding captaI
stock. Under the plan the par value of the pre-
ferred stock is reduced from s24O00OOO to SSOO0OOO
and under the present charter the preferred stock
holders have the right to receive per cent divi-
dends-that is Se60000-before the common stock
1 holders ha
cefves per cent and the preferred receives 2 per
! cent additional that before the common stock
| can receive more than per cent the preferred
stock holders will receive per cent on the whole
%4WOG0. which amounts to $4O000 which is
$6OOOO more than per on the new second pre-
! ferred stock The additional payment under the
! plan to the present preferred stock holders of
| A2O,0O before the common stock holders receive
! any thing is considered by the committee as a
proper compensation TO the preferred share holders
since they surrender the same proportion of stock
as the common stock holders. and give UP the right
to receive at some future time additional dividends
OF $3.50 600 year.
AS to the formation of new voting trust the
committee states that it desires to do solely what
! make a voting trust obligatory but permifz NJ r.
! should the stockholders desire to make one The
! voting trust. Unless a majority OF the deposft-
ing stockholders entirely apart from the reyo Iers
of the committee themselves express 0 wisb tba5
a new voting trust should be established the com
The committee considers the suggestion that tho
! preferred should be underwritten at fixed price
/ with a commission to the underwriters Upon such
portion as shall not be taken by the stockholders
as me present plan and not so advantageous the
The sale of first preferred stock at a discount Of
7S3 boR per re cent t and and commission Of 2 per cent
ed to the committee would make the amount Of
| dividends payable ahead Of the common stock the
same as under the committees plan. while provid-
! ing ABOUT $1,OO0,co less cash
! The object of the committee in brief the letter
says. is TO supply the company with sufficient cash
resources Ior lts requirements so that the officers
| TO financial matters. as in the past properly
! involved in the management of large railroad
| property.
THE COMPANY's NEEDS
Tho letter of the committee is accompanied by
one from N. s. Medrum. first vice president and
treasurer. setting forth in detail the financial re-
| quirements of the company In the first six months
Of the present fiscal year to December 81, 1904 il
was necessary to borrow $3.50 600 to meet pressing
obligations Of the company. These notes are still
outstanding at five days notice and bear 8 per
! secured by $5GO000 of the first mortgage bonds OF
! the company, ana the remainder is unsecured. The
the prospects that they would increase in value
! with tho success of the plan. The company has
be paid that the credit of the corporation be estab
! lished and IT be placed on an equal footing with
competitors in the purchase of supplies. There re
also current unpaid vouchers of over S75000O. Ex-
gregating s877sIl have been authorized bV fse
board of directors One hundred and hve thousand
| dollars must be expended to replace 100 cars de-
stroyed which were under equipment trust obIi-
! cations. The company owes $759s0 on account OF
pete the Atlanta and Birmingham Air Line s4SS zoo
VIII De required. but should bonds be sold the
amount will be reduced to S22 000. New rails 10 an
amount of $594494 are required the Rich
divisions that the sixty-pound rails IN use on
! those main lines may be released for on branch
sary equipment. Which viii cost approximefeiv
Sl82 30 freight yard oon IN sayapnah must be