Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-02
RECEIVERS NAMED
FOR THE SEAbOARD'
.
Action Taken in U. S. Circuit
Court at Richmond.
DROP IN EARNINGS CAUSE
S. Davies Warfield and r. Lancaster
Williams the Men.
NO SERIOUS RESULTS EXPECTED
Income Simply Was Not Large
Enough to Meet the Fixed
Charges Of the Road.

S. Davies Warheld. president
of the Continental Trust Com
pany of Baltimore, and r. Lam
caster Williams, brother of John
Shelton Williams, former presi-
dent of the Seaboard Air Line
railway, were appointed receivers
for the road in Richmond today.
The appointment was made by
Judge Jeter c. Pritchard and
Judge Waddill, sitting together in
the United States district court.
Application for the receivership
had been made to Judge Waddill
yesterday, but he thought it best,
because of the extensive territory
over which the road operates, tor
have Judge Pritchard pass on
the matter. Accordingly, Judge
Pritchard was hurried from Ashc-
vile, N. c., on a special train.
RICHMOND. Va. January Judge
Pritchard, Judge of the United States cir
cult court, entered a decree today NAM
ing s. Davies warfeld Of Baltimore and
r. Lancaster Williams of Richmond as
receivers to take immediate possession OF
the property of the Seaboard Air Line
railroad. The bond Of each was fixed at
$500
PNy ia hn nu--
cred to borrow money If needful to pay
such rental as may become due. purchase
cars, etc. and pay for labor and supplies.
but not for any other purposes without
| an order of the court having primary
Jurisdiction. They are ordered to pay
forthwith all installments and interest
that was due and payable January l.
1908, notes or trust equipment certit1-
Gates and all coupons and interest matur-
ing January 1, 1908. on the first mort
gage bonds of the Seaboard Air Line and
embraced roads, such as the Raleigh and
CASTOR, Raleigh and Augusta Air Line.
the Georgia Carolina and the consolidated
mortgage bonds of the Carolina Central.
The language Of the decree regarding
payment Of interest Is that the receivers
ARE hereby ordered to pay forthwith all
instalments and interest that was pay
able January l, 1908. of or on any equip
ment, notes or equipment trust certifi-
Gates of the Seaboard Air Line, or Of all
its subsidiary companies; and all coupons
and interest maturing, or that matured
January 1, 1908, on the first mortgage
bonds of the Seaboard Air Line Com
pany. the Raleigh and Castor railroad.
the Raleigh and Augusta Air line, the
Georgia, Carolina and Northern railroad
and the Florida Central and Peninsula
Company; and of the first consolidated
mortgage bonds Of the Carolina Central
railroad and of the Georgia and Ala
bama and Of the Florida Central and
Peninsula Railroad Company, and the first
mortgage bonds Of the Florida West Shore
railway, and the first mortgage land
grant extension bonds Of the Florida Gen.
trail and Peninsula Company"
The receivers are directed to borrow,
money to make such payments; The
mediate possession of all and singular
the property Of the corporation in all
states, and to continue the operation
of the railroad system and to run and
operate the said railroads and such
other property as is held by the cor
poration, and in such manner as Will
in their judgment produce the best re-
and franchises OF the complainant, and
to conduct systematically the business
occupation of a common carrier Of pas
sengers and freight.
Stockholders Satisfied.
They are also ordered to direct and
protect the railway property, as 1t has
formerly been controlled, so that it may
be advantageously used and developed.
They are empowered to employ and
discharge, and moreover to fix tine COM
pensation of such employees, counsel,
lawyers, superintendents, agents, ETC.,
as are needed to assist them in the dis
charge of their duties.
In reply to inquiries by representative
of the Associated Press John s. Will
liams & Sons, one of the partners OF
which firm, r. L. Williams, was made one
of the receivers, expressed themselves as
very we'll satisfied with the present situa-
ton, which they believe VIII quickly lead
to a complete reorganization of the man
agement and readjustment Of the finances
of the road and so enable the property TO
resume its position in the upbuilding OF the
south They view the present arrange
ments as a union of all the interests In the
system in which heretofore thSre have
been strong antagonisms, and as the pre-
liminary step toward harmonious action
for the development and the earning OF
profits.
The title of the case in which the decree
is entered is Seaboard Air Line railway,
complainant. against the continental
Trust Company as trustee under the first
mortgages made by the Seaboard Air
Line railway, defendant.
Seaboard's Annual Report.
The annual report of the Seaboard is-
sued recently showed that the railway
was unable to pay its interest and rental
charges The gross income of the COM
pany last year was ST, ,204. 1924, and the
operating expenses and taxes amounted
to s14, 1O3, 1880. leaving net earnings from
operation amounting to s.. 1O1 .033.94, to
which must be added income from other
sources amounting to $31. .S02.66 which
gave total net income of 81. 132, $500.
This latter sum was all the company had
to meet interest charges and rentals
amounting to 81, 17J, 434 SO: in other words,
its report showed deficit on this item
of fixed charges amounting to $42,59S.O6
The actual deficit under charges which
was shown by the company's own report
to exist July 1 last was 1904 1920.
The October statement however, SHOVE