The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-07-30
~
'W|Ll|AMS.& SONS
AGAIN A AFTE| [. ||i
Circular Contends That Those
Refusing to Surrender Stock
Profitcd.
ANALYSIS Of OWNERSHIP L
Ryan-Blair Party Really Repre-
ANALYSIS or OWNERSHIP ' I.F 81 L ;
Ryan-Blair Party Really Repre-
yscnts But Qne-Third En-
ISL tire Capital Stock.

u .
The banking house Of John L. Williams
and Sons, Of this city has just Issued
avery interesting and strongly written
circular letter, attacking the Ryan.Blnlr
syndicate, which has tho control OF tho
scabonrd AIR Line Railway stock and
which recently formed the "scabourtl
Company" In this letter the Mcssrs.
Williams forcefully contend. and sustain
their contention with figures, that those
who refused to surrender their stock to
the syndicate ana held on to ~ will
profit handsomely by this action Il S
In the icircularsit ls stated on indirect
information from reliable sources that
the total amount .of preferred stock do
posted with the reorganization commit
z tee was ,2O55l,ooo, or SO per cent? and
Of thc common stock 80. 7Cs, Ooo, or 30 40
per cent, leaving s3.S41.ooo OF preferred
stock and s723s.2o OF common stock out
side OF tho "Seabonrd Company" or a
total Of sl0,570, 200 non-assenting railway
stock. tl u u. f
Tho circular then embodies balance
sheet, showing the assets and liabilities
OF the Seaboard Company. The circular
then proceeds:
This balance sheet shows that II the
holding company should for any reason
( be llquldatcd according to the Ryan Blair
plan. practically the only asset held
against the $29a57.Go0 OF "Seaboard" hold
Ing company" common stock gu stand-
Ing would be SO, 7Gb,so0 railway common
e stock, or enough. In the event that there
are no expenses to be deducted, ITO give
I, back TO each holder OF 70 shares OF Sea-
board Company stock about 80 per cent.
In irailway stock. or. say. "a shares That
is to say. a man who deposited 100 shares
OF railway stock under the Ryan Blair
plan only gtts back, In case OF dissolution
OF the company. about "A shares OF rail-
way stock. instead OF the 100 shares OF
railway stock surrendered by him when
he consented to go into the plan.
II Is thus shown that the holder of 100
shares OF Scnboard Air Line Railway
stock. who. contrary to our urgent advice.
deposited his stock under the Ryan Blair
plan, has alrcady lost Is per cent OF the
value OF his stock through unnecessary
81 scaling and has accepted Is per cent. Of
4 the stock OF the ''Scnboard" holding
Company" upon which smaller dlvi-
dcnds must be expected share for share,
than upon tho stock he surrendered.
The Circular then incorporates n table
4 showing, or alleging 10 show. what tho
dividends n,ayN be declared on the Sen
board Air Limo Railway common stock
Il will enable the holding 10 pay, first to
tho holder or the railway common steel.
and secondly to tho holders OF the Sea-
board Companys common stock ex-
changed at the agreed rate for
RAILWAY common stock According
to this calculation. those holding
@ on TO their railway stock and
refusing 10 exchange IT for that OF
the Sea5oard Company Will receive a
considerably larger return in dividends.
The circular thus states the result Of the
computation OF the .llesars. Williams:
The above table shows that when the
railway pays 2 per cent on common
stock, the income which the non-depos-
ting stockholdcr will receive will be at
least g. per cent more than that TO
bd ircceived by the man who put ibis
stock in the Ryan Blair Holding Conf
pany. When the railway pays 3 per cent
r on common stock. the holder of aboard
Railway stock has advantage
OF 52 per cent. and wsen the
railway pays per cent. on
lts common stock, the income on tho
more than that received by The holder
who unfortunately for himself went In
under the Ryan-Blair plan.
Similar tables contrasting the returns
on the preferred stock OF the Seaboard
a Company, and OF the Seaboard Air Line
Railway Company, are submitted. show
ing thattho who refused to turn In
Their stock in tie reorganization have
the better Of those who did in srbst.ln-
tial revenue. This conclusion IS thcn
stated: IS s4 k.
The net result Id that this holder OF
Sen board Air Line Railway preferred
stock who accepted our advice and he'd
Ia
rays five per cent. on Its preferred stock.
receive eleven per cent, moro Income:
when 1t pays five and ono-half rser cent.
twenty-five per cent, more income, and
when 1t pays six per cent. heifwill re-
ceive thrty-three and third rer
cent. more income than the holder who.
needlesslyt consuming to be scaled, put
his stock Under the Ryan Blair plan!
The circular then contends that the
scaboard Company Is out off from raising
moro money for working capital under
present conditions, for tho reason that
il Ia pledged not to sell any treasury
stock Of any kind under par Then to!-
lows table of stock holdings showing
tho interests In tho Seaboard Company
and their relative holdings The Ryan.
rlalr syndicate have 100000 shares and
z Indenbl,rg, Thalmann & Company. laO,-
900 shares OF the total OF 100000 shares
TITS further shown that there Is heavier
ownership OF seaboard stock IN the South
and In baltimore, After some calcnla-
(, lions the circular proceeds as follows;
IF tho foregoing estimates as 70 tho
holdings OF Senboard stocks are corrert'
and thoy arc believed to be approxi-
matoly 80. 1t will BIO seen that the Ryan
Blair party really represents less Ilan
ono. third of tho entire capital stonlt o.
tic company, the remaining two-thra as
/, Ming owned principally by shareholders
In Maryland and the South and ny mem
bers of the board who were stoekho'uel , ,
before the advent Of Messrs l'y''h NV
Blair In tho company.
Old Market Little Dull,
tr,,o pcenns n the Old Market yes.