The Washington herald., 1908-01-02
AIRLINE IN TROUBLE
SeabOard Will Apply for Re-
ceiVerS To-day.
CANNOT MEET ITS EXPENSES
Directors Blame Adverse LegisIa-
tion in the South Principally for
Deficit of $4,000 In Years Busi-
ness-ImpOssibIe for Company to
Pay Rentals and Interest on Loans.

Pay Rentals and Interest on Loans,
Danville. Va. Jan. 2-Samuel Inter
meyer and other counsel for the Seaboard
Air Line reached Danvine on a special
train from Richmond at 1870 last night.
At ? o'clock this morning Untermeyer
denied that Judge waddir of Richmond.
has been asked to name a receiver for
the road He refused TO say if his visit
to Danville was to get Judge Prltchard
10 name receivers.
Judge Pritchard is now on his way to
Danville, on train that is delayed
Untermeyer and his associates are
awaiting his arrival
Baltimore. Md. Jan. 1-Applicau0n will
be made tomorrow for the appointment
of a receiver for the Seaboard Air Line
Rumors to this effect, which had been in
circulation all day, were confirmed to-
night by a prominent Baltimore banker
and stockbroker. who is a director in the
railroad. The papers have been drawn.
and the action was decided on to-day.
The company will not default on its
bonds, as a New York firm Of bankers has
agreed to take them up. Report has il
that the papers asking for the appoint
ment OF receivers would be filed by the
railroad company itself, and that Messrs.
s. Davies Warfeld. president Of the Con-
tinental Trust Company, OF Baltimore.
and Randolph Williams. of Richmond. are
the men agreed upon as receivers.
MI WarheId represents the Ryau-BIa
interests, which are supposed 10 be in
control Of the property. and Mr.. Williams
is the choice of the followers of John
SHELTON Williams, Of Richmond. whose
valiant but unsuccessful fight for control
Of the road several years ago against
Thomas F. Ryan Of New York. and his
associates furnished great excitement in
the financial circles.
The papers asking for the appointment;
Of receivers VIII, It is stated, assert that
on account Of drastic anti-railroad legis-
lation in certain Of the Southern States.
inability 10 make prompt collections, due
to the recent financial depression, and
heavy expenditures for improvements. the
road finds itself unable TO meet its obu-.
cations.
Decide at Meeting
The directors of the road, among whom
are Messrs. S. Davies Warfield and Town
send Scott, of Baltimore held a meeting
in New York to-day. Another conference
was held to-day at the New Willard
Hotel, Washington, between Samuel Tn
teTmeyer. the New York corporation law
yer who, it is understood, has prepared
the legal papers in the matter. and John
SHELTON Williams.
The reported agreement on the part OF
the Ryan-Blair interests TO have Ran
dolph Williams as one Of the receivers
is taken to indicate that the faction con-
trolling the property has recognized the
necessity sf securing the cooperation OF
the Williams people in order to make
the railroad a paying proposition. The
news created a great deal of excitement
in Baltimore
Despite the fact that to-day is a legal
holiday, many local fnanciers spent the
at their Offices and kept the
telephone and telegraph wires between
here and Richmond, Washington, and
New York hot with inquiries about the
matter
1t develops that on Monday a confer
ence was held between some Of the off,
cials Of the road and local interests. at
which the financial condition of the Sea
board was discussed, and at this meeting
II was intimated that a Teceivership
would be necessary. The interest on sew
eral issues OF underlying bonds of the
eaboard is due to-day.
Several days ago it was said that the
interests controlling the property found
that difficulty would be encountered in
sufficient funds for the pay
ment Of the coupons, and a plan was
devised whereby they are to be bought in.
To Look After Interests.
1t is expected that a committee will be
formed to look after the interests Of the
holders Of the extended three-year 5 per
cent bonds Of the Seaboard This COM
nittee VIII probably consist of Messrs. !
F. S. HambletoD. Fred G. Boyce. jr |
John B. Ramsay, B. n Baker, A. H. S. |
Post, and Douglas H. Gordon, of Balti- |
more
These gentlemen represent a large ma |
lority OF the Seaboard three-year Ss. It |