The news & observer., 1905-12-28

part to get even with Mr.. THOMAS f.
Ryan in the Equitable Life Assurance
Society transaction
Mr.. Ryan, it will be recalled Sc
cured a controlling interest in the
Equitable companys stock. Mr.. Har-
riman asked for a participation in this
control, which Mr.. Ryan refused. This
is believed to have aroused a feeling
of resentment in Mr.. Hartman which
might carry him to almost any ex-
treme in thwarting other business ven-
lures OF Mr.. Ryan.
AS is well known, the control of the
Seaboard system now practically rests
with Mr.. Ryan and with Blair & Co..
the New York bankers. Mr.. Ryan
has long had an ambition to control
the property and his efforts to that
end commenced even before the Will
liams- -Middendorf syndicate coup
which acquired the old Seaboard COM
pany stock at 5000 a share from the
former owners, represented largely
by Mr.. r. Curzon Hoffman, then presi-
dent of the road, and the late Louis
McLane, who was chairman of the
board of directors.
Mr.. Ryan had secured an option on
a large block of the stock, it was
thought at S12O, and when the road
finally passed to the Williams Mid
dendorf interests he waged a relent-
less legal battle from court to court.
Regardless of decisions against him,
he came back again with new claims
and new features, which were taken
up and argued through court after
court.
In most of these decisions the iudg-
n.ent was against Mr.. Ryan, hut he
. fought on vigorously.
Finally mutual friends il tervened.
and through their mediation an ar
l itration was suggested To settle the
dispute. The litigants finally agreed
and the late Daniel S. Lamont. Sccre-
tary of War in President Cleveland's
second cabinet, was chosen as the ar
bitter He determinel that Mr.. Ryan
should be paid 1920 share for the
stock he held in the old SeaboarI sys-
tenn. This was agreed to by Messrs.
Williams and Middcndorf. the money
was paid and the litigation ceased.
ceased.
The syndicate then proceeded and
did succeed in connecting up the
properties as they now exist.
This was only an indication of Mr..
Ryan's desire to get the Southern
railroad field and of his bulldog per
tinacity in carrying out any plans he
might have in view. He apparently
never lost sight of the deSirability of
the ownership of the SeabOard prop
erty. Biding his time. he finally saw
the financial embarrassment or
Messrs. Williams and Middendorf in
1902. He watched the situation close
ly and ultimately succeeded in acquir-
ing a control of the Seaboard stock
with Blair 4. Co. This was his pri-
mary purpose, it was thought, and ne
was quick to seize the opportunity
when it came. He had been previous
ly buying Seaboard stocks. and short
ly before the downfall of its promoter
he had obtained a considerable LOT
of bonus stock by advancing needed
money. with collateral trust bono
as security
With all his efforts and indefati-
gable work, however, Mr.. Ryan was
unable to corral all of the outstand-
ing Seaboard stock. About 100000
shares remained out~.lC 81 this was
sufficient to prevent a unification of
unfinished construction. such as the
Atlanta and Birmingham road. and
the making of a concrete system on
which a general capitalization and
bond issue could be placed. This Oh
stacle was overcome in q measure by
a final pooling of the stock held by
Ryan and Blair into a holding COM
pany under the laws of New Jersey.
1t provided for a Capitalization of
36000.000 of common stock-$1S,-
000,0 900 Of first preferred and $1S,-
100000 of second preferred. Still the
100000 shares Cf the original Sea-
board stock outstanding had to be
reckoned with.
Baltimore Bankers View.
! Here, it was suggested Mr.. Har-
riman saw his opportunity when II
became necessary to punish Mr.. Ryan
for his action in the Equitable mat
ter.
Mr.. Ryan regarded the SeaboarJ
system us an especial pet. He had
long wanted it. and once acquiring it
naturally did not want to give it up.
Discussing this phase. a local
banker said:
"Of course none of lis know Wheth-
er or not Mr.. Hartman or Mr.. Gates
are behind Messrs. Williams and Mid
dendorf in this matter. but indications
point strongly in that direction.
1.-THE question is naturally asked
how these strong interests are going
to oust Mr.. Ryan from his control
without securing a majority Of the
Seaboard Company's $36.000.000 Of
common and SIS, S,000,000 of first pre-
ferred. both of which have voting
power.
1--WE all know that the banking
firms of Williams and Middendorf
have been buying large blocks OF the
holding company, or the Seaboard
Company, stocks for several weeks
past. 1t would only be of conjecture
to say what amount they have ac-
nuired. but | am told that from 30,-
600 to 10000 shares of common
stock alone have been taken off the
market by these firms. With the hold
ing in the new company and with an
ownership of nearly all of the unas-
sented stock the impression is they
may go into court and seek an ac-
counting of all that has been done bv
the Seaboard Company since its for
nation.
1.-THE Southern States have strin
gent laws regarding the control and
operation of railroad lines. l have
reason to believe that these laws es-
pecially in the Carolinas and in Geol :
gia. have been closely studied of late
by some interests. Whether this knowl
edge was sought for future use against
the present management of the Sea-
board system or not / am not pre-
pared to say. This investigation. how
ever was not idly prosecuted. and the
future alone will develop the cause
for it.
tscoop after ttIig came tIe large