Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-02
NEW YEAR SURPRISE.
Radical Action Against Roads.
SEQUEL to Anti-Corporation Crusade.

EAh SO
Radical Action Against Roads.
Sequel to Anti-Corporation Crusade.
NEW YORK. January I'm the rail-
road business the new year was inauSu-
rated by the application for the appoint
lnent of receivers for the Seaboard Air
Line Railway Company. a corporation
with capital stock of $62,00OOo0 and
bonded indebtedness of SjS,0 900. and
operating 2,611 miles of road extending be-
tween Washington and Norfolk to Atlanta
and Tampa.
The anti-corporation crusade in North
Carolina has resulted in very radical
action against the railroads, and in other
states in the south has shown itself in
laws for the reduction of traffic rates. The
CompanyS earnings, as a result of these
enactments and general depression in the
business and financial world, have fallen
off greatly in the past few months The
directors of the company have had sew
eral meetings in this city in the past few
days, and have discussed plans for carry
ing the company through its difficulties.
Blair & Co. and Ladenburg. Thalmann
& Co. bankers of this city. both of whom
have acted as fiscal agents for the Sea-
board. gave out a statement yesterday In
which they offered to pay the interest
coupons due January 1 on the bonds of
various of the subsidiary companies and
equipment trusts and equipment bonds of
the Seaboard Air Line Railway Company
maturing yesterday or today The offer
was made after long conference between
representatives, of the banking houses
and Seaboard Interests yesterday after
noon.
Bankers Statement.
In view of the impending defaults by
various subsidiary companies In payment
of interest on bonds. the statement of the
banker says. and n order that the in
tegrity of the Seabpard Air Line railway
systsN1 may be maihtained pending an op-
portGAt.>>for the formulation of proper
plans N DE adjust ment of it's affairs. the
underskNd offer to purchase the fellow
SeaBoard and Roanoke Railroad Com
panyrfrsS1mortgag per cent bonds.
RalefsR aDd CASTOR Railroad Company
rst~m0rtgage % per cent bonds, Ra-
leigh and Augusta Air Line railway
Nrst mortgage 6 per cent bonds Caro-
Hna CentraL Railroad Company first
onsolidatspmortgage per cent bonds,
eelt b..fsos. Georgia and Alabama rail-
roAd Company first mortgage 5 per
ceTt bonds, Georgia and Alabama Rail-
waN first consolidated mortgage 5 per
nNoonds. FLORIDA Central and PENN
sulan Railroad Company first mortgage
J1pef cent bonds, Florida Central and
Peninsular Railroad Company first
mortgage land grant extension per
cent bonds, Florida Central and PEN
insular Railroad Company firss consol-
idated mortgage per cent bonds, Flor
ida West Shore Railway Company first
niortgaSe per cent bonds.
Also - the holders of such of the fol-
lowing named bonds and certificates as
mature january l. 1908. viz:
Seaboard Air Line railway AZ per
cent gold equipment bonds, series C;
Seaboard Air Line railway equipment
trust certificates, series X, and to hold
ers of coupons maturing January 1.
1908. representing interest upon said
gold equipment bonds, series c. and
dividend warrants, representing divi-
dends. payable January 1, 1905 upon
said equipment trust certificates series
X.
The notice specifies that the coupons
must be presented for payment at the
Morton Trust Company. on or before
February - next. Meanwhile, it is ex-
pected. plan will be formulated for
the reorganization of the company.
Control of the Road.
The Seaboard Air Line Railway Com
pany is controlled through stock owner
ship by the Seaboard company, which was
incorporated in 1905 to acquire and hold
The capital stock of the railway company
i'll accordance with plan to provide cash
for improvements and to liquidate the
floating debt of the railway company
The holding company owns four-fifths
OF the stock of the railway company.
The company is controlled by interests
affiliated with Thomas +. Ryan and Blair
x Co of this city. 1t has an author
lied capital of S72.O0OOOO. consisting of
SlS.UoOG0 first preferred, $4,000, 900 second
preferred and $50 900 600 common. There
is outstanding $3.50, O0O1 first preferred,
about H6.OD000 second preferred and
about SIS. 100. 600 common.
The plan for the organization of the
holding company and all the steps OF
transferring control of the railway COM
pany to the holding company were con-
tested vigorously by John SHELTON VIII
liams, formerly president of the Seaboard
NJ. Williams inherited a large stock
ownership in the road and IL was his con-
tention that the control of the company
was wrongfully taken from him and his
associates. He has brought many actions
in the courts to sustain his contention
bu. has made no impression on the organi-
cation as perfected by the Ryan-Blair
interests.
Officers of the Company
The officers of the company are: Presi-
Gent. w. A. Garrett; directors. James A.
Blair. II. Rieman Duval, n. S. Medium.
II. Clay Pierce. Ernst Thalmann, Y. Van
der Berg, b. F. Yoakum, New York; T.
Jefferson Coolidge, jr., Boston: Thomas
r Ryan, Oak Ridge. Va: Townsend
Scott. s. Davies Warield, Baltimore; c.
Sidney Shepard. New Haven; George w
Watts, Durham, n. c.; James H. Dooley
Richmond: w. A Garrett. Norfolk: Nor.
man b. Ream. Chicago. The railway COM
pany is a Virginia corporation and its
general offices are in Portsmouth. Va.
First Voted Stock.
The Seaboard Company has paid divi-
dends only on its first preferred stock
since the organization of the company
This stock is . per cent non-cumulative
until 1910. thereafter cumulative Divi
dends were paid in July, 1906. and Jan