The Washington herald., 1908-01-03


from the Western grain fields TO the
South Atlantic seaboard.
While this talk was IN the air the
financial world was startled one day 10y
the announcement that the old Seaboard
Air Line, the Georgia and Alabama, and
the Florida Central anG Peninsular rail-
roads had been combined under the name
Of the Seaboard Air Line Railway. THAT
was in 1900.
williams and Ryan Clash.
When Mr.. Williams and his associates
bought the old Seaboard Line they
bought a quarrel with 1t. That quarrel
was one between the former owners OF
the property and Thomas F. Ryan. II
developed into a contest for the control
Of the road. and there were hot doings for
q while, with many verbal and legal
scraps. 1t is said that Mr. Ryan spent
100000 in litigation at that time, but Mr..
Williams defeated him at every turn
Finally the latter quit end sold his hold
ings.
The next fight was to get into Rich
moud. That was no sooner won than an
other and bigger one was on hand. Be
fore Mr. Williams had been fighting men
somewhat of his own size; now he had 70
tackle a giant The new antagonist was
the Pennsylvania Railroad and other im-
pOrtant corporations controlling the Rich
mOEd, Fredericksburg and Potomac Rail
road. and the goal sought was the en-
trance Of the SeabOard into Washington,
d. c.
Mr.. Williams went TO the Virginia legIs-
lature ard asked for a charter to build
new road from Richmond 10 Wash
ington Hell never get IT, said his
critics. "The State Of Virginia Itself
owns part Of the stock Of the Richmond,
Fredericksburg and Potomac. and it won't
be anxious 90 encourage a compel tor.
Williams. however. did an unprecedented
thing He went personally 10 the leeis-
lature and made an address to its mem
bers. He appealed TO their State pride
to their love of fair play; he demanded
Justice for himself as a son of tle Old
Dominion His elOQuence won out Euj
again he did not have 20 build the new
line. the threat was enough. He was
allowed 10 go into Washington over the
existing line and the Seab0ard was given
an equal ownership IN il with the other
corporations.
williams bucks Morgan.
Shortly after this Mr.. Williams became
known in Wall street as the man who
had "bucked" Morgan. The latter then
was the undisputed king Of the financial
world Williams undertook no less a
thing than the buying up OF the Louis
vile and Nashville road, with J. Pier
p0nt Morgan as the other bidder lie
failed. OF course, and the road passed
into the hands of J. p. Morgan * Co,
and later the Atlantic Coast Line Rail
road.
The financial world looked for some
punishment to be visited upon Mr.. VIII
Hams for his audacity None came. He
announced that If any discrimination was
shown against the Seaboard by the new
owners OF The Louisville and Nashville
he would build a parallel road. just by
way OF showing bis sincerity the exten-
sion of the SeaboaTd westward 10 BiTm-
ingham was undertaken. the East and
West Railroad Of Alabama bought up
But nothing happened. The Louisville
and Nashville was good. and for relaxa-
ton Mr Williams went West and made
alliances with the ST. Louis and san
Francisco and the Chicago. Rock Island
and Pacific systems.
Bankers Meet Trouble.
But the two firms of Jshn I. William,
& Sons and J. William Middendorf &
Co, the latter the successor OF hidden
dorf, oliver & Co, had many irons in
the fire. the Louisville and Nashville
venture had been a costly one, and the
generally. In October, 1915, news came
that the two houses were embarrassed
and would have 20 ask extension from
their creditors. Ten months later Ryan
got back into Seaboard affairs with q
vengeance by baying out the hidden
dorf-Williams hoidings-i40,000 shares in
all S Davies Warheld, president OF
the Continental Trust Company, was the
mediator between the two men. Messrs
Williams and Middeudorf resigned as
directors of the Seaboard, and seemed to
be out for good. just as Mr.. Ryan had
seemed 20 be ouJ four years before that
But cnly a few months went By before
Mr. Williams began a series Of open at
tacks upon the management Of the prop
erty- Some of them seem to have been
borne out by the confessions in the ap-
plic3tiOn for the reCeivership. Some OF
them will still be heartily denied by the
RyaH-Blair interests.
Holding Company in Charge.
In January. 1876, a plan was formu-
lated by which the stockholders were
inviteG TO exchange their stock for the
stocks Of new holding company under
the title Of the Seaboard Company. The
plan was submitted by a committee com
posed Of prominent fnanciers On this
committee was MI s. Davies Warfeld
president Of the Continental Trust Com
pany Of this city. In May. 1880, modi-
fications were made in the original plan
In July of the same year announcement
was made that the plan had become
operative, and that over S2ib per cent OF
the stock had been exchanged under the
modified plan. The Seaboard Company
was then given a controlling interest in
the cOmpany's stock.
The authorized capital stock OF the
.Seaboard Air Line Railway has a par
value of 500, and So, $4,000 has been
issued. All the stock is held in a voting
trust until April. 1870 the trustees being
given the discretion to dissolve the trust
before that time
The incorporation Of the Seaboard Com
pany took place under the laws of New
Jersey on May 15. 1905. The new concern
set forth its intention of reorganizine
the finances of the SeabOard Air Line
Railway, and its stock has a par value
of 500. Including the common, first pre-
ferred and second preferred stock, $50,
900025 was isued. All classes Of stock,
according to the charter have equal vot-
ing power. The Seaboard Company has
been paying dividends of per cent a
year on the first preferred stock.