The comet. (Johnson City, Tenn.) 1884-1916, 1905-05-04
SEAB0ARD BEHIND CARTER.
A Clear Statement of the Status Of the
Big Deal.

Big Deal.
The Baltimare Herald, which has
kept in close touch with the railway
and Clinchfeld corporation develop
ments in this section, has the follow
ing information, showing the exact
status of the deal which Mr.. George
l.. Garter, of Bristol, has been main
ly instrumental in putting into effect ;
The decision of Judge Goff, in the
United States circuit court at Rich
mond, clears the way for ANOTHER i'm
portant coal and railroad development
in Southwest Virginia. This decision
ends litigation that aimed to prevent
the sale Of the properties of the Clinch-
field corporation to a syndicate formed
by Blair & Co., and Thomas T. Ryan,
of New York, says the Wall Street
Journal. This syndicate is understood
to be working in the interests of the
Seaboard Air Line, as the bankers in
charge of it dominate that property.
The coal and railroad development
scheme means an expenditure of over
$40, 100000.
The Clinchfeld corporation was q
holding company for the stocks of the
Cranes Nest Coal Co., and the South
and Western Railway. The coal COM
pany owns over 100, 900 acres of coal
lands in Wise and Dickinson counties,
Va. ,and has several mines in operation
on the property. The s. & W. is
partially built line, designed to connect
the coal property with the Seaboard
Air Line in Forth Carolina, and to
reach over that system Southport, N.
o., at which place property has been
bought to make it the Atlantic sea-
board outlet for the coal to be shipped.
This means a new tidewater competi-
tion in the bituminous coal trade tc
Norfolk, and the Chesapeake & Chic
and the Norfolk & Western railroads
at that port; to Baltimore and the Bait
imore & Ohio, pennsylvania and Wa.
bash lines, and to Philadelphia and the
coal roads which reach that city. The
undertaking of such scheme by Blair
& Co. and Thomas F. Ryan and their
associates is, therefore, a move of large
significance. Its value to the Sea-
board Air Line is in giving heavy
tonnage to its lines in the South At
lantic states, which now depend chiefly
upon agricultural products for local
business.
The litigation was due to rival syn
dicate which sought control of the prop
critics owned by tn, Clinchfeld corpor-
alton, but was distanced in the finish
by the Blair Ryan syndicate. The lat
ter bought the stocks of the Cranes
Nest Coal Go. end the s. & W. Ry.,
paying the -Clinchfeld corporation
about So, 500, 900 for them.
The rival syndicate was represented
by Hollins & Co., of New York, and the
Union Trust Co., of Baltimore. Eu-
gene Zimmerman, c., H. & d. Ry. was
interested with this syndicate, and his
connection suggested the extension of
the Detroit Southern through Ohio to
these coal fields forming a new coal
route to the lakes-a possibility that
yet may materialize.
1t was also common report that the
Southern Railway wonld furnish the
outlet to the south to this project. The
move made by this syndicate was to
buy control of the stock Of the holding
company-the Clinchfield corporation.
This was coincident with the action of
the directors of that corporation in
selling the properties to George L..
Carter, OF Bristol, who, in turn, sold
them to the Blair Ryan syndicate.
Instead of holding stocks of the coal
and railroad properties, the Clinchfeld
corporation, when the Hollins syndi-
cate took possession, had the cash re-
ceived from the sale OF these stocks. A
receivership and an injunction were
resorted TO to break up the deal, but the
court decided that the ClinchAeld cor
poration had been formed to sell the
properties and that the directors were
we'll within their rights in making the
deal.
A rather interesting feature is thai
the Union Trust Co., through its pres
ident, George Blackstone, originated
the whole scheme, and tried to get the
Seaboard to take the property severa
years ago, but the management wal
not then in shape to do SO. In the in
terval it proved weight on the trus
company and caused it trouble in tht
panic in Baltimore in October, 1908
Now followers of the trust company
get out with cash and interest, and |
good thing passes from Baltimore t.
New York.