The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-03-01

stated, established g night or ACTOR
exist. This was the rock upon which the
two sides split.
The Argument.
Extensive argument was made by boih.
The railroads generally were apparen.iy
opposed to any restriction OF the votlfis
trusts. out realizing that they would
probably have to face Legislation OF some
sort before the General Assembly ends
preferred the Phlegar bill to the Sears
substitute. Mr.. Alfred p Thorn, general
counsel of the Southern Railway, the
last voting trust OF which was formed
In 1892 before the Cation law, 10 expire
IN 1901. appeared before the committee.
Mr.. Robert l.. Scott. of Richmond, rep
resentlng the Norfolk and Western. and
Mr.. j. Normal Powell. OF Bristol, and
Mr.. Mark Potter. of New York. 10Th
representing the Seaboard Air Line We're
also in attendance. on the other stde,
fayoring the Sears proposition. Mr.. John
and WIS represented by counsel, Mr.. a.
G.. BraXton. of Stanton, and Mr.. James
Jcffries. of Norfolk.
Mr.. Thomas argued the bills at length
ano Mr.. Braxton and sir. Jecries spoke
IN favor of the the Sears substitute.
On behalf Of the New York interests
ment concerning the formation OF the Sea-
board voting trust to the effect that the
trust was formed prior To the passage
OF the Cation bin In May, 1855, and that
come interested In 81 until November,
1895. The apparent object of the state
Inent OF Mr.. Potter Was to show that
Mr.. Ryan and his associates relied upon
the Cation validating act wlfen they adj
vanced the money.
sEeagsns tor himself and his associates,
Mr.. Williams aired the Seaboard troubles
at some length, making a statement OF
what he conceived to be certain wrongs
which nave been done and are still being
done to him by Mr.. Ryan and his asso-
Gates Under the voting trust.
Mt. N1liiams said that he had himself
formed the Seaboard voting trust sey-
Cation bill. and admitted. in response 70
questions. that II II were controlled, by ms
friends he would be ~ favor OF ho.aing
took particular note of this admission
Continuing. Mr.. Williams said that Mr.;
Ryan and his a ,aa, ahsn secured ,Ssy ad ron,r9i
about s2,o0o.ooo, which was repaid in 1904.
In the meantime a large amount OF money
but for this they received in addition to
bonds and notes a large amount OF stock.
The opportunity to subscribe to these
offered to all the then existing stock
holders. but the circumstances We're sucn
That the Williams party We're unable 70
II was fatty declared by the former
president of the road that Mr.. Ryan mas
stosk a ms f tpg@sf him 10 Vhiiilnes a nHSo otl, ers
to sell at heavy loss under threat Of q re
ownership. According TO Mr.. Williams
Mr.. Ryan promised to dissolve the trust,
but afterwards refused to do SO. Ieellrias
that he would hold on to 1t, even though
three-fourths of the Stockholders de-
manded n dissolution. 1t was further
asserted by Mr.. Williams that Mr.. Ryan
is avowtdly retaining the voting power
because 1t is useful to him in connection
with his other properties.
At no time during the discussion was it
directly stated that the Williams party,
IL the Sears substitute Were adopted, con-
templated under it al attack on the
validity of the voting trust now protected
by the Cation law, but this was decidedly
the drift of the entire argument. On the
advice of Mr.. Braxton Mr.. Williams de-
clined to go into this matter when ques-
toned by the committee.
The end OF the hearing was late IN
coming The committee Will to-day re-
port the Sears substitute with the recon-
incubation that it do not pass. It Will ut
the same time report the PhleGnr bill
favorably. Sentiment Is much divided.
and there will be Il sharp struggle on
the floor of the Senate when Mr.. Sears
Will make a vigorous fight for his sub
stitute.