The morning journal-courier., 1908-01-03
CONFIDENCE IN
 THE SEABOARD John Skelton Williams Looks for Speedy Rehabilitation
 of the Crippled
 Railroad.
WORD TO STOCKHOLD DERS
Receiyership Should Not Cause Them Alarm or Discouragement- Possibilities of the Sys-
 tenn Great.

Richmond, Va, Jan. 2.-The Seaboard Air Line system was put into the hands of receivers here to-day through the action of Judge Pritehard of the Unit ed States circuit court, who was hur- riedly summoned from Asheville. N. C., to take cognlzance of the applica- ton for a receivership. Judge Pritch- ard appointed as receivers R. Laneas- ter Williams of Richmond and $. Da- vies Warheld of Baltimore. Both men are identified with banking houses in Baltimore, Mir williams being of the firm of Middandorf, William & Co. and Mir. Wariield is president of the Con- tinental Trust company. Mir Williams also is a partner of the firm of John T.. Williams & Sons of this city. The bond of each was fixed at $50,00O
 The title of the case as filed is "The Seaboard Air Line railway, complain ant, against the Continental Trust company trustee under the first mort gage made by Seaboard Air Line rail way, defendant"
 Judge Pritchard's decree gives the receivers immediate possession of the property, which embraces the main stem Portsmouth. Va, to Tampa, Fla, with numerous branches to coast points on the east and Atlanta, Mont gomery and Birmingham on the west, a total of 2,3S2 miles.
 Tonight John Skelton Williams, a member of the voting trust, whose views as to the finances of the road all along have been at variance with those of the Ryan interest, gave out a statement calling attention to the re- ceivership as being the fullllment of his predictions.
 He says; The passing of the Sea board Air Line system from the con trol of Messrs. Ryan, Blair and Coolidge into the hands of officers of the court is not an event which should cause stockholders alarm, or discour- agement. 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 year It is hoped that all interests may now unite upon some plan and platform which may i look t0 the speedy rehabilitation of the system and the carrying out of some schemes which will produce the most satisfactory results to all securi- ties holders of every class, and with out unjust discrimination. Business, like politics, makes strange bedfel- l lows.
 My confidence in the possibilities of the system, under proper management Is unshaken. For the calendar yea 1907, the Seaboard Air Line rallwa, and it's afiilia ed lines earned approxl mately Sl9,0O0 lO0 On this basis of earnings, over s6.O0O per mile, the sys- tem ought to be operated at an expen diture ratio of approximately 70 pe cent. or less. On this basis net earn ings for the past year would have beer s5,7Oo,00O or nearly s20O0,000 in exces. of fixed charges. With the return oi normal business conditions and the Ire. mendous development which has heer going on vigorously for the past ten years in the entire territory traversed by the Seaboard Air Line system, tn, arrest of which development can onll be temporary. I believe that result. still more favorable than these may b ! confidently expected"