The news-democrat. (Providence, R.I.) 1906-1909, 1908-01-02
SEABOARD AIR
LINE RAILROAD
CONTINUED from Page onc.>


The receivers are directed to borrow
money TO make interest payments. The
receivers are also directed to take imme-
diate possession OF "all and singular the
property of the corporation in all states
and TO continue the operation or the rail-
road system and TO run and operate the
said railroads and such other property
as Is held by the corporations and in such
manner as will in their Judgment produce
the best results, and TO exercise the au-
thorty and franchises OF the complain
ants. and TO conduct Systematically the
business occupation of a common carrier
OF passengers and freight"
LIABILITIES LARGE.
New York. Jan. 2.-In the railroad busi-
ness the new year was inaugurated by
the application for the appointment OF
receivers for the Seaboard Air Line Rail-
road company, operating 2Sli miles OF
road
The company's earnings. as result or
the rate laws enforced in the South and
general depression In the business ana
financial world, have fallen off greatly ip
the past few months. The directors OF
the company have had several meetings
In this city in the past few days and
have discussed plans for carrying the
company through it's difficulties.
Blair & Co. and Ladenburg. Thalmann
a. Co., bankers OF this city, both OF whom
have acted as fiscal agents for the Sea-
board, gave out statement in which
they offered to pay interest coupons due
Jan 1 on the bonds OF various OF the sub
sidiary companies and equipment trust
and equipment bonds of the Seaboard AIT
Line Railway company maturing.
The offer was made after long con-
ference between representatives OF the
banking houses and Seaboard interests
yesterday afternoon.
al xxytfl
the Continental Trust company OF Bal
timore and the New York Trust company
OF this city to extend its slS.0O0.000 issue
of mortgage and collateral trust per
cent bonds due that month to May. 1911.
The company has outstanding $2s,S9o, 900
OF preferred stock and $S7.0Oo.0c0 of COM
mon stock. On June 30. 1906. the road
had a funded debt OF $63, 600 1t owns
1882 miles of road. and the total OF owned
and operated lines is 26l1 miles. The
main line extends from Richmond. Va.
and Portsmouth, Va, to Tampa, Fla, In
the numerous branches.
| 1t was organized under it's present cor
porats title In 1900 Some time later a
holding company. the Seaboard company.
was formed. with s720O0,00o capital, TO
manage the securities of the system.
The Seaboard was I'm the thick of the
Southern rate war IL at first refused TO
submit to the 2-cent-a-mile rate fixed by
August j. NJ. Barr. ex-president OF the
road. declared under oath at the federal
inquiry in this city that the rate was
confiscatory. The road finally submitted
to the rate. The government recently
took steps to prosecute the Seaboard for
being In the alleged bitumnous combine.
BALTIMORE SURPRISED.
Baltimore, Jan. News OF a plan to
ask for q receivership for the Seaboard
Air Line came as q big surprise to the
holders OF Seaboard securities, OF whom
there are many in this city.
On Monday conference was held be-
tween some OF the officials OF the road
and local interests at which the financial
condition Of the Seaboard was discussed,
and at this meeting 1t was intimated that
receivership would be necessary.
The interest on several issues of under
lying bonds OF the Seaboard was due yes
terday. Several days ago It was said that
the interests controlling the property
found that difficulty would be encounter
ed i'm obtaining sufficient funds for the
payment OF the coupons and a plan was
devised whereby they are to be bought
in.
HAS s3,i32,ooO CASH
New York Jan. 1.-The placing OF the
Seaboard Air Line system in the hands
of receivers today follows statement OF
the company's earnings showing s3,1S2. 1886
on hand with which TO meet fixed charges
of $3,f75,4 4s4, deficit of A2bss. IL has been
known for several days that some steps
would be necessary TO protect the prop
erty in view OF it's inability to meet Its
hxed charges and the receivership was
agreed upon at conference held In
washington yesterday at which there
was present representatives Of both the
majority and minority stockholders.