The semi-weekly messenger., 1908-01-07
.sEAB0ARD AIR LINE RA|LROAD
. GOES into HANDS Of RECE|vERS

and Southeastern railway, the Florida
West Shore railway and the Plant City
Arcadia and Gulf railway and adds:
1t thus appears that while the in
crease in gross earnings from opera
ton for the year ending June 90, 1906.
over the preceding year was 81. .598,076,
the increase for the same period IN
sos, 1885; and while the increase in
gross earnings from operations for the
year ending June 30, 1907, over the
preceding year was 81 ,404 ,162. SO, the in
crease In operating expenses and taxes
was s2.514 1898 or more than s1,1OO,-
900 in excess of the Increase in earn
ings.
Atlanta, Ga, Jan. "A petition was
presented in the United States cir
cult court late this afternoon, asking
that receiver be appointed in the
Fifth United States District for the
Seaboard Air Line Railway. The pc
ttiOn named S. Davies Warfeld and
X. Lancaster Williams. In response
Judge Pardee issued an order decIar-
ing these noea receivers fer the road
in this a.@.e and within a.. other
states w:c5ih judges Pardo0's J1rie'ic.
ton, cArsnI5nz oTcr Georgia. ti2Ja.,a
Mississippi, Louisiana and Texas.
The order Of Judge Pardee III sub
stance is identical with that issued by
Judge Pritchard
Baltimore, Jan. Z R. Lancaster
Williams and S. Davies Warield, who
We're appointed receivers OF the Sea
board Aair Line today, are bankers of
this city, Mr.. Williams being a mem
Der Of the banking house of Midden~
dorf, Williams & Company, and Mr..
Warf1eId is president of the Conti-
nent al Trust Company
Mr.. Warfeld, who is a director Of
the SeabOard, was chosen to represent
the majority interest in the property,
while Mr. Williams will look after the
affairs Of considerable minority, led
by his brother. John Shelton Will
Iiems Of Richmond
The effect Of the receivership for the
board Air Line today are bankers Of
reaching effect in Baltimore, where the
securities OF the company are more
largely dealt IN and held than in any
other trading center.
The bond issues placed on the prop
erty since it has been merged into on"
system aggregate $33, 49,, 900, of which
amount it is estimated nearly $4,000.
900 is held here. Baltimore bankers
declare that there is no necessity for
nervousness on the part of the bond
holders over the receivershIp action
II they will take the announcement,
cpOlly and quietly await developments, |
it is declared, it will be much more I"
their intimate advantage than TO rus
into the tmarket now = sell.
Persons close t. ..e inside 9. IT,, |
property are or rGpOken in the opinion !
that the G~curity hOl>.e~3, hr-h stock |
anC lends. will ce.Gl4. Tie say uv |
holders OF any OF the underlying |
bonds have any fear Of default at any |
time in the interest.
One of the assets Of the SeabOard il |
the Baltimore Steam Packet Company |
better known as the old Bay line |
The operations of this line it is saio {
will not be affected by the receiver |
ship.
An effort is being made by local bond |
holders Independent of the Williams
interests, to secure representation in
the receivership, and they are urging !
Gustavus Ober, a banker of Baltimore
as a third receiver
Attorney Edwin G. Baetjer, counsel |
went to Richmond to urge the court
to appoint Mr. Ober to act with Messrs
Warfield and Williams
Neither of the receivers is in Balti>
more today. Mr. Williams is in Rich
mOnd and Mr.. Warfield left for that
city this morning.
New York. Jan. 2.-Judge I.aCombe.
in the federal court today. appointed
S. Davies Warfield and R. Lancaster
Williams receivers for the Seaboard
Air Line railroad in the southern dis
trict of New York
The placing Of the Seaboard system
in the hands or receivers today fol-
lows a statement OF the compan's earn
ings showing s3,132,S3G on hand with
which to meet fixed charges of 3d.
IT'S 434. deficit OF S4259S
1t has been known for several days
that some steps would be necessary
IT, protect the properly in view Of its
inability to meet its fixed charges and
the receivership was agreed upon at a
conference held in Washington yester
1ay at which there were present rep
of both the majority and
minority stockholders.
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