The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1905-01-03
ROCK ISLAND AFTER 5. A. L.
Oil and Morgan May Lock
Horns-Jolan shelton Williams Says
: Road Is Not In yeed OF The Plan
Proposed Ey Blair 8 Co.

Hos1is-Jolin shelton Williams Says
: Road Is Not In Need OF .iae Plan
Proposed Ey Blair 8 Co.
Mr.. John Shelton Williams. former
president of the seaooard AIR Line. was
lin the city this morning. Regarding
the proposed financial plans. he said:
The Seaboard AR Line Railway IS
absolutely rot in reed Of any financial
rsorgs nizstion. In June last, when the
,Fyan-Blair syndicate proposed a insn-
cial plan whsch feau:red the Seaoo>ri
10 borrow from il on a n year lie
tn1aad note 5000. bT9 or $40. 600. 900 which
the company dill rot need. and which
sinvosved the heavy scaling OF SeaboaTi
Air Line railway stocks and their ex-
change for stocks IF a holding company
regarded Ii As 2 trap. and told Ms
srs. RYAN and Blair the scheme was nm
possible and could not be put through
without material notifications and
changes. When We sold the Willians-
lMiddendorf block Of stock TO Mr. Ran
In August / informed Mr.. Ryan that the
sale would carry with 1t no acquieseace
on nv part in any financial plans ne
might bring forward. but that / would
hold myself entirely free to oppose any
ell%Ai al IL luQEfEEEF
might work injustice and be det.Inan-
tai to the interest of the company's
shareholders and the public.
Within ten days after the purchase
by that syndicate of our block of stock
Blair and Company stated tina they no
longer felt that a financial reorgaui=a-
ton OF the system would be necessary.
/ p~ublically called attention to the in
Consistency OF their position n the
fact that no financial reorganization
had been really desirable at any time.
near that they have now turned a
double back somersaa.t and are 3rapar-
ing to bring forward q plan for fnan-
cial reorganization which on Angus.
80 they stated was really unnecessary.
The fact of the whole matts~ is tina.
the Ryan-Blair syndicate is uadcrtak-
inE at the present time to contro. Ia.
S~1ioard Air Line railway through n
voting trust, withouc the ownership If
"a majority of the stock and ii is en-
l~deavoring to devise some sche ne oy
Which it can tighten its grip upon 4
rr".f rty and secur a larger amount ,:
hCnus stock at the cost of tn sock
lhoIders without being required To ray
iwcat it IS worth.
TO ISSUE STATEMENT.
! Il shall IN due coursn an
analysis Of the situation in order that
stockholders may have before them ac-
tual facts and figures, without being
required to accept the loose and I'M
trustworthy statements regarding the
company's condition n requirements
which are being circulated for a pu--
pose.
the net earnings of the mpar
for 1905 over and above fixed charges.
if the company is properly managed,
ought to exceed 81, 500, 900, and in July
the company will receive 81, 500,O 900 more
of first mortgage 4 per cent. bonds
available for improvements and better
ments. Next year and the year fol-
lowing the company will also receive
81, 500, 600 of first mortgage 4 per cent.
bonds for betterments. If the net
earnings for the next four years only
amount to 81, 500,0 600 a year, these net
earnings, together with the first mort
gage bonds WHICH will be received from
the trustees, viii provide the company
with a fund Of nearly $40, 900, 900, which
will not only give the all X
requires for improvements and better
ments but should permit the payment
of dividends"
MORGAN VS.. ROCKEFELLER.
The belief that there are two sides in
the movement to finance the Company
and that one side is represented by the
Blair-Ryan interests and the other By
Ladenburg, Thalman & CO, has created
considerable speculation as to who is
behind these representatives. Report
has it that both are backed by powerful
railroad interests. Behind the Blair
Ryan crowd is reported to be ]. P. Nor
a & Co., with a plan TO take the Sea-
board into a community-of-interests
scheme with the Southern Railway and
the Atlantic Coast Line. Ladenburg,
Ihaiman & Co, are reported as repre-
seTting the Rock Island system, which
has for several years had its eye upon
the Seaboard as an outlet to the south
Atlantic and Florida gulf coast The
~so-called Standard Oil crowd is in con-
troll Of the Rock Island properties.
For a while Blair & CO., were identi-
fed with these interests, but some time
ago Mr.. James A. Blair retired from the
management of the st. Louis and Saa
francisco, a Rock Island property.
Since then the financing of the Rock
Island has been handled chiefly through
ISpeyer & Co. Just Hhy MT. Blair left
the Frisco cement is not known
in local financial circles but il Is init
mated that a disagreement arose and
that the bone Of contention was the
Seaboard Air Line. The Blair interests
IN this property, ii is said, refused to
turn over control to the Rock Island
System, which was already represented
in the Seaboard management. The re-
port that J. p. Morgan is behind the
blair crowd would seem TO explain the
assumption Of such a position by the
Blair interests. This would not be the
first clash hetween the so-called Stand
lard Oil and Morgan interests. They are
lat odds in the Northern Securities Com
ipany over the method Of distributing
1.-THE assets of that company and have
iconflicted in other channels.
REPORTED FINANCIAL PLAN.