The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-10
KINGS BUSINESS COLLEGE

willing to abide the public verdict on
the result.
THE one matter in this circular in
which he makes a direct accusation
of alleged feet against us is that Of the
Savannah ard StateSboro railroad, and
that demands immediate and serious
attention. His charge is that my firm
received a comm ssion Of $4,000 of
Savannah ana Statesboro bonds for
securing the endorsement.
This charge is false ana here are
the facts tD prove it TO be so: The
Savannah and StatesbOro road was
purchased several years ago by my
firm, Messrs. Middendorf & Co, and
associates in order to secure To the
Seaboard Air Line Railway the benefit
Of that company's business. This was
only one of the many instances in
which we invested large sums Of our
own money in our effort 10 provide
branch lines and feeders for the Sea-
board without requiring the Seaboard
to provide the funds for securing the
business.
''In the summer of 1903, ! informed
the board Of directors that my firm
and associates found it desirable to
realize or their investment in the s.
Il 5. r. II. and if the Seaboard Air
Line Railway desired either to pur-
chase it or TO guarantee its first mort
gage bonds, that they would be VIII
ing to turn it over to the Seaboard
Air Line Railway on whatever terms
the board OF directors Oh the SeaDoard
Air Line Railway might think fair
| and proper. but that if the Seaboard
did not wish to make this arrangement
we might find il desirable to sell the
road elsewhere.
'Thercupon a committee composed
of James NJ. Barr, then vice-pres dent
1 A.
w. w. Mackail, of Savannah, and Maj.
| James H. Dooley of Richmond, then
chairman of the executive committee
of the Seaboard, was appointed to look
into the matter and report to the
| board of directors them recommends"
/ tons. This committee made its re-
| port which was signed by Mr.. Barr
himself, after he had made q careful
| examination of the property, its physi-
cal conditions, and with q full llnoWI-
edge OF the case an arrangement was
! concluded under which my firm and
| their associates agreed to surrender
| 100000 of first mortgage six per cent
/ bonds of the Savannah and StateShOrO
! road which they owned and accept in
! lieu of them $1S5.000, new five per
cent bonds of the s. * S. r. 4. to be
guaranteed b. the Seaboard Air Line
| Railway, turning over at the same
time to the Seaboar1 Air Line Rail-
way 81 per cent of the entire capital
stock of the Savannah and Statesboro
Railroad for the nominal sum of one
hundred dollars, all of the capital
stock of the road as we'll rs all OF it's
| bonds having been owned by my firm
and associates.
In brief, we gave to the Scaboard
the control Of the savannah aad
StatcsDoro road and stock which
earned last year per cent in cpnsid-
GRAFTON of its Endorsement Of 5 per
cent bonds, replacing q larger amornt
Of per cent bonds. The arrange
ment obviously was for the advantage
Of both roads. We did not charge or
receive a dollar of commission there
for My firm and Mr.. M ddendorf still
OWE the savannah and Statesboro rail-
road stock. originally held by them
and not given to the Seaboard Air Line
Railway.
says He VIII Expose Mr.. Barr.
1T has been my unpleasant duty. in
protecting the interests of Seaboard
stockholders to detect and expose Mr..
Barr miS-statementS of facts, de-
nials OF truth, on several occasions and
to direct attention to the Incompetence
CIR disloyalty OF his management It.
is roW my duty to my firm and to N.Y.
self to present the stockholders proof
OF my charges and assertions against
him. which / shall do as above init
mated as soon as the necessary docu-
mentS can be consulted and arranged
incidentally, / shah disprove all the
assertions and insinuations with which
he seeks TO divert The attention from
A rfsQ Of l,s h