The Washington herald., 1908-01-03

Richmond, Va, Jan, John SHELTON
Williams, organizer and first president of
the Seab0ard Air Line, left this city to-
night for New York Relative to the
granting Of a receivership and the ap-
pointment Of receivers to-day, Mr. VIII
liams said tonight in an interview:
In no spirit Of boasting, but as evl-
dence for those who are interested in
ISeaboaTd securities that my opinions on
the affairs Of that system are we'll found
ed, ! ask attention 10 the fact that my
predictions of the course Of the property
and the results Of its financial and oper-
ating management in recent years have
been fulfilled exactly
'The passing Of the Seaboard Air Line
system from the control Of Messrs.
Ryan, Blair, and Coolidge into the hands
of officers of the court is not an event
which should cause stockholders alarm or
discouragement. This is not a case where
the unexpected has happened. but the
present situation is the logical result Of
forces which have been at work during
the past four years
Wants All to Unite.
1T is hoped that all interests NAV now
unite on some plan and platform which
may hasten the speedy rehabilitation of
the system and the carrying on Of the
business out of some schemes which will
produce the most satisfactory results 10
all security holders Of every class and
without unjust discrimination.
Business. like politics. makes strange
bed fellows. Probably I shall be re-
quired 10 work for the restoration Of the
Seaboard with men of whom I have said
very harsh things publicly and who have
injured ME deeply The interests Of my
feIiow-stockIoIders and OF the Seaboard
property and the Southern country in
which it is "a v.tally important factor
outweigh with me any personal griev-
anccs / may have. ] expect to put these
+ grievances aside, az least until this work
is done
so long as the Ryan-Blair interests
may give evidence Of honest purpose 10
build up the property and protect and
promote the interests OF the STOCKHOLDERS.
they viii have from me hearty c0-0peTa-
ton. I can work with these men to a
good end and for a good cause, quite as
hard as I fought them while I believed
they We're doing wrong or following Un-
wise politics. My confidence in the possi-
billtics Of the system under proper man
agement is mistaken.
Air Lines Earnings.
For the calendar year 1867 the Seaboard
Air Line and its affiliated lines earned ap-
proximately $l9.010G00 On this basis Of
earnings. over $4,000 per mile, the system
ought to be operated an an expense ratio
Of 20 per cent. or less On this basis net
earnings for the past year would have
been S5.500.900. or nearly S2,W0g00 in ex-
/ cess of fixed charges.
with the return Of normal business
+ conditions and the tremendous develop
ment which had been going on vigorous
Iy for the past ten years in the entire
territory tTaversed by the Seaboard Air
Line system, the arrest of which de
velopmeut can only be temporary, I be-
Ieve that results still more favorable
than those may be expected.
Il hope and believe il viii he the policy
Of the receivers 10 make the Seaboard
I deserve the good viii and confidence Of
the public with which # viii do business.
and that such Will result in fair treat
meut from government and State aU-
thOrties.
Receivers Are Named.
Judge Jeter c. Pritchard, of the United
States Circuit Court for the eastern dis
trict, entered the decree naming s. Davis
/ Warfeld, of Baltimore, Nd, and r. Ian
caster Williams, Of Richmond, receivers
Of the Seaboard Air Line The bond Of
the receivers is fixed at $4,000 each, con-
diuoned on faithful performance Of duty.
and with sufficient sureties 70 be approved
by the court
The receivers are fully empowered. au-
thorized. and directed to take immediate
possession of all and singular property
of the corporation in all States. and to
continue the operation of the said rail-
road system, and to run and operate the
said railroads and such other property
as is held by the corporation. and in
! such manner as will in their judgment
produce the best results. and 10 exercise
the authority and franchises Of the COM
plainant, and to conduct systematically
the business and occupation of "a com
mon carrier Of passengers and freight.
Powers Of Receivers.
The receivers are also ordered TO direct
and protect ti,o railroad property. as it
has formerly been controlled, so that it
may advantageousIy be used and devel-
Oped. They are empowered 10 employ ana
discharge and TO fix the compensation of
such employees, counsel lawyers. superin-
tendents, agents, &c, as are needed to
assist them in the discharge of their duties.
The title of the case in which the de-
cree is granted is:
'SeaboaTd Air Line Railway. complain
ant, against the Continental Trust Com
pany as trustee under the first mortgage
made by the SeaboaTd Air Line Railway.
defendant The receiveTship is granted
on a consent arrangement, opposing coun-
sci unanimously agreeing In the friendly
settlement of all differences among the
stockholders"
Drama OF Finance.
The receivership marks the climax to
. one Of the most astonishing and dramatic
stories in American finance, of which
other chapters are to come. By a curious
coincidence the first action taken leading
to them was taken December 80. 1907, and
I the clamping down Of the Ryan-Blair
party on the property December 30, 1903.
! Tt was four years. almost to the hour,
from the seizure TO the surrender of the
| system by Thomas Fortune Ryan. The
property was acquired in one panic, in
1903 from those who established #, and
was relinquished to the courts after an
iother panic in 1907.