Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1908-01-02
RECEIVERS FOR THE eEABOARD
AIR LINE.

company spilled Wednesday afternoon
In Richmond to U. 8. District Judge
Waddill for the appointment Of re-
ceiysrs, and subsequently, agreed to make
application 10 Judge Pritchard, Of the
United States Circuit Court, and thereby
obyiate the necessity of securing ancil-
liary DEGREES in each of the court dis
tric.s through which the lines Of the
company operate. The application fol
receivers is made by agreement OF all
interests involved. With this end 10
view, Judge Leigh K. Watts, general coun-
eel of the Seaboard, Mr. Untermeyer,
and other attorneys, LETT for Danville al
6:50 O'Clock Wednesday evening on 8
special train to meet Judge Pritchsrd at
that point, it having been learned that
he was on his way to Richmond to con-
slider the matter tomorrow. Judge
Pritchard arrived at Danyille at 12:45
O'Clock. He was Immediately closeted
with the attorneys. The party left at
9 o'clock this morning for Richmond,
where the announcement of the receive
ship will be made.
The application for the appointment
of receiver for the Seaboard Air Line
Railroad Company, corporation with
capital stock of S62, 900, 900 and
bonded Indebtedness OF S58, 900, 900 and
operating 2,6ll miles Of road extending
between Washington and Norfolk to
Atlanta and Tampa, was entirely unex-
pected in New York financial circles.
The reasons for the application for .
receiversbip are understood to be based
upon the aati-cofporaiion crusade, which
10 North Carolina has resulted in very
radical action against the railroads, and
in other States ofthe South has shown H.
self ia laws for the reduction OF traffic
rates. The company's earnings, as a re-
suit of these enactmen.s and general
depression in the business and financial
world, have fallen Oft greatly in the pas
few months.
The directors of the company have had
several meetings in New Yorl, in tbs
past few days and have laid plans fol
carrying the compeny through lis diff
fculties. 1t vas known that the diff
fculties were great, but the application
for receiverShip was entirely unex-
pected in railroad and financial circles
1t is understood that the receivers
agreed upon are Messrs. 8. Davies War
field, president Of the Continental Trust
Company, and 4. Lancaster Williams.
The last annual report showed that
the Seabosrd was unable TO pay its in
terest and rental charges.
The gross income of the company last
year was SIT, 204, 1872 "a and the operst-
ing expenses and taxes amounted 10 $l4,
103, 14S. 80. leaving net earnings from
operation amounting to So, l0l, 033 "a,
to which must be added income from
other sources amounting to $3l, 802. &c,
which gave a total net income of 49,
1872, 1886. so.
This latter sum was all the company
had to meet interest charges and rentals
amounting to SO, l75, 4S4. &c; in other
words, its repor! showed deficit on this
item of fixed charges amounting to $42,
500 06.
The read was formed the winter Of
1899 by the consolidation of q number
of small railroads, the consolidation
being carried through principally by
John L. Williams 4 Son, of Rich
m md, of which John SHELTON Williams
is the head.
During the process of the merger the
efforts of Mr.. Williams we're opposed 10y
T0omss F. Ryan, then largely interested
ia the southern Railway. Numerous law
suits were begun Dy the Ryan interests,
but 10 the end the Williams people won
out, and the combination was COM
pleled, Williams being chosen president.
The loss of this position in 1904 by
Mr.. Williams is regarded as the direct
r suit of this struggle with Ryan, the
latter being responsible for the opera
tons which forced Willians' resignation
and al but ruined the firm OF John l..
Williams & Son and the allied Baltimore
firm OF J. William Middendorf e. Com
pany.
10 1908, the company needing funds,
RYAN agreed, through his associates,
Blair q Company, of New York, 10 sup
ply the money. Old scores were 10 be
forgotten and every one was to work in
harmony. The result was a loan Of
s. 500, 900 by Ryan TO Williams, for
which security was given worth many
times the amount borrowed.
The houses of Williams and hidden
dorf held approximately $14, 900, 900 Of
the stock OF the Seabosrd. BY the terms
Of his loan, Ryan was given power TO
name a msj)ritY of the voting trustees
who covered the road.
Using this power, he voted another
Ian Of IS, 600, 900, forming a syndicate to
uude,write The stock, at the same time
they offered $l2, 500, 900 treasury stock
as a bonus, Securing 81, 200, 600 Of the
issue, they used the bonus stock to beat
down the market price Of the stock until,
to cave themselves from bankruptcy, the
Williams and Middendorf interests we're
compelled to sell for SIS a share, the
Ryan interests, Of course, purchasing the
stock,
In this way, from the Williams inter
esls and other stockholders who had
been frightened into buying, they be-
came possessed of $50, 600, 600 worth OF
the stock Of the road.
The first result of this action WAS to
force the resignation Of Williams from
the presidency.
Duel Expected.