New-York tribune., 1908-01-03
SEABOARD RECEIVERS.
S. d. Warfeld and II. l.. W'tl'oms
Named By Judge Pritchard.

,ake Immediate nossession of the property of the
Seaboard Air Line Railway. The bond Oh each was
placed at $50 0oe. The receivers are ehpo"eieu "
borrow money If necessary, to pay such rental as
may becom. dine b,lv cars etc, and pay for labor
and suppies but not for any other purpose without
an order of the court having primary JuFlsac'io,i
They are ordered to pay forthwith al iiis'"i
/ r1ents and interest due and payable on Januaiy
l. 1908, notes of trust. equipment certhcates anu
all coupons and interest maturing on January =
1903 on the first mortgage bonds of the Seaboard
Air Line and embraced roads. sucb as ule f'dieieh
& CASTOR the Raleigh & Augusta AR Line inc
Georgia, Carolina and the consohoateo h0''s
bonds of the Carolina Central
John S. williams & Sons, OF which hrm H. L.
Williams is a partner expressed themselves as
well satisfied with the present situation whch tiey
believe will quickly lead to complete reorsaiiiA
ton of the management and readJustmeht u 'i''
finances of the road.
The title of the IN which the decree Is en-
tered is. ..seaboard Air Line Railway, complainant
agt the Continental Trust Company, as trustee
under the first mortgage made by SeaDoafo iA'i
Line Railway, defendant
John Shelton Williams former president OF the
Seaboard Air Line made the following statement
tonight:
In no spirit Of boasting but as evidence for those
who Interested in Seaboard securities tna' @ rtH
founded. ask attention to the fact thae if he re-
suits of its financial and operating management in
recent years have been fulfilled exactly .,
from re the Control of Messrs Ryan Blair and Cool
idge into hands Of officers of the court Is 1 NOT
an event which should cause stockholders alarm
or discouragem This is not a case Where>t ttle
ton IS the logical result OF forces which have been
at work during the last four years. II Is IS hoped f
and platform which may look to the speedy y, re- e;
habaon Of the system ana the ts farrSs n oat a 81
factory results TO all security holders OF every
ike politics makes strange bed fellows.
My confidence in the possibilities Of the system. l
oaendar onPfr year ls The seaboard Air Lne Rail
wa 6no d1 o0 On this basis of earnngs-over $50 900
mile-the system ought TO be operated at an ex-
On this basis net earnings for the last year would
been s5oooo or nearly 10000 90 IN eTeess bs
ness conditions and the tremendous deveIopment
which has ii ta g2ng s1e eopy 19e By the
Seaboard Air Line system, the arrest OF Whlch oe.
results still more favorable than these may be
confidently expected.
Baltimore, Jan. 2-R. Lancaster Williams and 8
Davies Warfeld who appointed receivers OF
the Seaboard Air Line Railway at Richmond to-
day are bankers of this city, MI Wll1anas oeits
q member of Mddendorf, Williams & Co. ana MI
Warfeld president OF the Continental Trust |om-
panv Mr.. Warfied. who is a director OF the sea
board chosen TO represent the majority IN
terests in the property, while Mr.. Williams VIII
look after the affairs Of a considerable minority,
led by his brother, John Shelton Williams OF Rich
mond.
|. The effect of the receivershp Tor tHe nedood'u
Air Line will be far reaching in Baltimore.
where the securities Of the company are more
largely dealt in and held than in any other trao-
ing centre, not even excepting New YORK. Ihe
bond issues placed the property since II has
been merged into one system aggregate S33''oVVo'
~ which amount It is estimated nearly $25 00o is
held here Baltimore bankers dee4are that there is
no necessity for nervousness on the part or the
bondholders over the receiyership action
An effort is being made by local bondholders IN
tna n
rasenfation in the receivershp and they are urging
Gustavus Ober a banker of Baltimore, as third
receiver. Edwin G. Baetjer. counsel for commit
tee of local bondhoIders went to Richmond TO urge
the TO appoint Mr. Oher 10 act Win MeSolS'
Warfeld and Williams.
Judge Lacombe in the United States Circuit
Court yesterday appointed MessTs. warned ana
Williams receivers for the Seaboard Air Line RAN
way for this federal district and fixed the bond OF
each at $4,000 The action is ancilary to the SUIT
instituted IN the federal courts of Virginia where
the same two receivers were appointed. 1he ap-
pIication for the receivershp made by the
road Edward B. Whitney acted as counsel for
the railway.
The receivership proceedings came as a surprise
to Wall Street. although those who were familiar
with the affairs of the Seaboard Company
not Surprised at the action. The roads securities
are not listed the Stock Exchange. but are dealt
In on the curb, and for several days past there
has been practically market for them. On the
news OF the receivership the stock and bonds were
offered down sharply, but not a single sale was
recorded. The stock of the Seaboard Com
pany the holding company for the Seaboard Air
Line Railway, which sold at in the curb market
on Tuesday quoted at ga bid, 10 asked, while
the first preferred 20 bid. so asked and the
second preferred was offered at 80. Those quota
titons were. however merely nominal, as no one
cared to trade in the securities. The first mort
gage As We're 80 bid a decline of 1919 points from
the last sale.
Ernst Thamenn OF Ladenburg. Thalmann & Co..
who is of the directors of the Seaboard, said
that plan of reorganization would be made pub
, lie in the near future. There was report that
J.adenburg ThaImann & Co. which firm. with Blair
4 Co, has acted the SeabOard's bankers, would
reorganize the road with German capital, but Mr.
Thalmann said that he could not affirm deny
this at present
Asked whether dissensions among the directors
had caused the application for a receivership to be
! made Mr.. Thalmann made an emphatic denial.
adding that everything harmonious between
the Blair-Ryan majority interests and the minority
represented in the receiyeTship by John Shelton
/ Williams, whose brother is OF the receivers.
| It was remarked in Wall Street that now for the
first time many months the officials of the road
would be able attend to business instead Of
| appearing almost continuously before state
! railroad commission to oppose reduction in pas
senger or freight rates. IL the general opinion
that the bitter warfare waged against the Southern
last year by the various state legislatures
was largely responsible for the recevership pro-
ceednCs.
! There was a rumor that the seaboard system
would pass the control of the Rock Island
| in the near future, but there confirmation
! to be had The Rock Island reaches Birmingham.
Ala as does the Seaboard, and a merger of the
/ two systems would give the Rock Island access
| TO the Atlantic Coast at Savannah and Norfolk.
This runlor probably from the fact that B. F.
| Yoakum, chairman of the board of the Rock
! Island, is also director of the Seaboard 1t
| Is hardly likely however, that any road in the