The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-02-10
PUBLIC STATEMENT BY THE
RICHMOND BANKER.
Most Ut the Misfortunes Attending the
S~eaboarsi's Properties Due to the
Mismanagcmcnt. instantaneous and
Faulty Calculations Of the PreSi-
dcnf-A Reply to the Charge Com
corning the Savannah and States
boru Railroad
Especial to The Mexsenxer.)

following statement in .cpty to he
published statement Of ]. ~. .arr. prs.
ident of the Seaboard Air Lane:
This matter is far large- thar Ss;s
personal question between NJ. Harr
and myself. What have said Of a,m
ers that the Seaboard properties. under
s!s control. were not tntv1iEently aud
fairly administered that ats
n,.nt and reports have not -tvsa these
properties fair opportunity II demon
tsirate thehS real worth. AM tisat most
Of the misfortunes attending :lrm srerC
the direct results of his niIslaanake-
ment. mis-statemeats ana faulty Cat-
tcui2t!ons. These charges constitute the
real and the only important issue.
Nothing Is to pc gained oy IN END
Hess discussion OF the matters OF detail
or by prolonged determinations. Mr..
barr cannot disprove what / have
Isaid of him by falsely charging. as &c
~ceiving commissions on savannah and
iStatesboro bonds. with 'skinning ,Ic
.iSeaboard. or with attempting 10 lease
tA bAifAt4iR fi 4AANaii4ANAA4 = 1 Il R"N AAfS
TO a property in which We are interest
Jed. All these are aside from the izsu,.
apparently he is trying to divert at
I~tention from that issue by forcing us
lon the defensive. He will not be allow
ed 10 do this.
1T is impossible on this short notice
land in newspaper space To anaiysiZc
and reply in detail to Mr.. Bars sophis-
ttcal d~efenses. That viii be done Ak
quickly as possible. j will be willing
to abide The public verdict On the result.
The one matter in this circular in
which he makes a direct acquisition or
Ialleged fact against US is ina OF tee
savannah and Statesboro railroad.
that demands immediate and serious
~Iattention. His charge is that my lrm
lrece,ved q commission of &25, 600 of SAL
~vannah and Statesboro bonds for Sc
touring the endorsement. This chaIgt
iis false and here are the facts 10 prove
lit to be so:
The Savannah and S~tatesboro .
Twas purchased several years ago by
my firm. Messrs. Middendorf and 90.
land associates, in order 10 secure To
1.-THE S~eaboard Air Line railway the bec-
eft Of that company's business. This
was only one of the many tan
i'm which we invested large sums of
Jour own money in our effort TO provide
Ibranch lines and feeders for the Sea-
Hoard without requiring the Seaboatd
Ito provide the funds for securing the
business. In the summer OF 1903, L
Informed the board OF directors that
my firm and associates found 1t te-
lsirable TO realize on their investment
the Savannah and Statesboro rail-
lroad and il the Seaboard Air LIN rail-
way desired either to purchase it or
to guarantee its first NOR gage bonds,
they would be willing ID turn it over
Ito the Seaboard Air Lin railway On
Whatever terms the boar1 of directors
ICf the Seaboard Air Line railway might
think fair and proper, BID. that If the
ScaboaTd did not wish 10 make this
arrangement. that we might find Il
desirable to sell the road elsewhere
iThercupon a committee composed Of
James N. Barr, hen vice president anG
general Of the S~eaboard, ~
wv. Mackall. of Savannah. and Major
flames II. Dooley. of Richmond. then
chairman of the executive committee
of the Seaboard. was appointed to look
Into the matter and report TO the board
Iof directors their recommendations.
This committee made its report. which
iwas signed by Mr.. Barr himself. after
he had made a careful examination OF
the property, its physical condition.
land with a full knowledge OF the case.
ian arrangement was concluded under
(which my firm and their associates
agreed to surrender $4,000 OF first
snn - m Gt- "a nans 1.nrlz "a K.An
savannah and Statesboro which they
~Iowned, and accept ic lieu OF them Sis5.-
Zoo new five per cent bonds of the Sa-
Ivannah and Statesooro railroad. To be
guaranteed by the Seaboard Air Lin
hallway. turning over at the same tine
to the Seaboard Air Line railway. fifty
cne per cent of the entire c2pital stock
Iof the Savannah II Statesboro rail-
lroad for the nominal sum Of one hum
''dred dollarE. all Of the capital stock or
the road as well as all of it's bonGs,
~Ihaving been owned by my firm and as
Isociates.
"In brief, we gave to the Seaboard
1.-THE control Of the and Statec-
lboro road and stock which earned last
lyear 5 per cent. in consideration of ITS
endorsement Of five per cent. bonds.
replacing a larger amount OF six per
lcent, bonds. The arrangement obv.-
IousIy was for the advantage OF bo.n
roads. We did not charge or receive Il
dollar of commission therefor. My firm
land Mr.. Middendorf still own Savannah
land Statesboro railroad stock, oriEi-
|nally held by them and not given TO
the Seaboard Air Line railway.
ut has been my unpleasant duty, IN
protecting the interests OF the sea-
board stockholders. TO detect and ex-
lpose Mr.. Barr's mistatements OF facts
land denials OF truth on several cca
lsions. and to direct attention TO the
lincompetency or d~isloyary of mis- nan
Iagement.
1T is now my duty 40 my firm an
to myself TO present the stockhoidsr
Iproof OF my charges and assertions
iagainst him. This / shall do as above
Itntimated, as soon as the necessary