Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-01-02
Seaboard Air Line Taken
Over by the
Court
TO PROTECT INTERESTS
Row Among Owners May Have
to Do With Failure to
Meet Obligations.

R Richmond, Va, Jan. 2.-R. L. Can
caster Williams of Richmond and S.
Davies Warfield of Baltimore were to-
day appointed by the United States
circuit court receivers for the Sea-
board Air Line
Action Was Expected.
New York. Jan. 2-The placing of
the Seaboard Air Line system in the
hands of receivers today follows a
statement of the companys earnings
showing a deficit of $4,000. 1t has
been known for several days some
steps would be necessary to protect
the property in view of its inability
to meet its fixed Charges and the re-
ceivership was agreed upon at a con-
ference held at Washington yesterday
Capital Is sG2,OOO.O00.
New York, Jan. Application was
made late yesterday for the appoint
ment of receiver for the Seaboard
Air Line railway company. a corpora
ton with capital stock of $62 ,000. 900
and bonded Indebtedness of $685.
100000 and operating 2.611 miles OF
and Norfolk 10 Atlanta and Tampa
The application was made in the
first place before Judge Edmund Wad-
dill of the United States court for the
eastern district of Virginia at Rich
mony yesterday afternoon. Judge
Waddill referred the petitioners to
Judge Pritchard of the United States
circuit court
Based on States Action.
The reasons for the application for
a receivership are understood to be
based upon the anti-corporation cru.
sade which in North Carolina has re-
suited in radical action against rail
: roads in other states in the south
which has shown itself in numerous
laws for the reduction of traffic rates
The company's earnings, as a re
suit OF these enactments and the gen
eral depression in the business and
financial world. have fallen off greatly
in the last few months
Move is Unexpected.
The directors of the company have
had several meetings in this city dur
ing the last few days and have dis
cussed plans for carrying the compan!
through its difficulties, but the appli
cation for the receivershp was entire
ly unexpected in railroad and financia
circles.
The Seaboard Air Line railway com
pany is controlled, through stock own
ership, by the Seaboard company
which was incorporated in 1905 to ac
:, quire and hold the capital stock o
the railway company in accordance
with plan to provide cash for i'm
provements and liquidate the floating
debt of the railway company.
Ryan and blair Control
The holding company owns NOR
than four-fifths of the stock of tn
railway company. The company i
controlled by interests affiliated wit
Thomas F. Ryan and, Blair &c Co. G
this city 1t has authorized capita
stock of $72,000,000 consisting of SIS
100000 first preferred, S1S,000,000 SET
ond preferred and $50 100000 common
There is outstanding $6,3O0.OOO c
first preferred about S16,000.000 {
second preferred and about s2S,500 90
common.
Ousted President Fights.
The plan of the organization of tn
holding company and all the ster
transferring the control of the railwa
company to the holding company wei
contested vigorously by. John Skelto
Williams, former president of the Sc
board
Mr.. Williams inherited large stoc
ownership of the road and 1t was h
contention that the control of the COZ
pany was taken from him and his a
sociates by sharp financiering.
He brought many actions in Il
courts to sustain his contention, b
made no impression on the organic
ton as perfected by the Ryan-Bla
interests.