The Washington herald., 1908-01-05
MAY PROBE THE SAL
Commerce Commission Max
ing an Inquiry.
NOW INTERESTED
Representations Made to Executive
that Interests of stockholders
williams Denies Trying to Interest
GouIds I'm Connection with Wabash.

1t is understood that an unofficial in
vestigation of the Indebtedness of the
seaboard Air Line is being made by the
Interstate Commerce Commission with a
view to determining whether there is
ground for any subsequent action by the
commission In an official capacity.
a member of the commission stated yes
terday that he was looking into some Of
the indebtedness features Of the system,
merely TO ascertain whether the charge
that the road had been thrown into the
hands OF receivers to further a plan of
getting rid of certain Indebtedness by
scaling down the securities. had any foun-
dalton. This member of the commission
was not prepared at the time to say
whether any such conclusion Is warrant
ed, but it Is understood that before his
inquiry is completed that fact will be
settled
The commissioner stated that II the IN
official inquiry developed any ground for
this charge. the affairs of the system
might be subjected TO a searching inves-
tigation, similar to that which the Chi
cage and Alton passed through last year.
It was stated that the commission was
clothed with authority to make such an
investigation, and it Is probable it Will
be started, II any substantial evidence
Of crooked financial dealing with respect
10 the receivership is found
Representations TO President.
The fact was also learned yesterday
that representations had been made to
the President that the interests Of the
stockholders of the seaboard system
might suffer by the receivership, unless
the indebtedness of the system should
be thoroughly threshed out and the just
rights OF all established. II would lie
within the legal duty of the President TO
order an investigation into the affairs OF
the Seaboard Air Line, through the In
terstate Commerce Commission. similar
to that ordered from the White House
in the famous Hartman deal. II IS sug-
gested that the President may have al
ready communicated something TO the
commission which leads up 20 the unOf-
fetal inquiry mentioned by the member
OF the commission.
According to the statement issued by
the attorneys IN the case, the Seab0aTd
| Air Line system owes tl.S00000 on out
standing and overdue vouchers. In addi-
/ ton 20 this there is a floating indebted
/ ness of 1890, coo making $4,000 in
! debtedness, IN addition 10 the unpaid IN
/ .-~,.- ,t,s- sross ry..,t{oraa su fHa rnfF4fou
/ for the receivership. which amounts 70
/ S76i, 600. II Is explained in the statement
Of the attorneys that the company, being
pressed by its creditors, found it necessary
TO file the petition for the receivershtp to
/ protect the property from immediate and
/ hopeless disintegration.
New Attorneys Appointed.
Justice Jeter c. Pritchard, who APP
| pointed she receivers. has authorized the
employment Of the following attorneys
in the case to assist the receivers: Sam
uel Untermyer. Of New York. at the sug-
gestion Of Receiver Warheld; Eppa Hut
ton, jr.. at the instance Of Receiver Will
/ Jams. and ex-Judge L L. Lewis and A. c.
! Braxton especially, TO represent the
/ court,
/ John SHELTON Williams was in Wash
1 ington yesterday. on his way from New
York TO Richmond. He is quoted as say
/ Ing that he does not share the feeling
Of some Of the stockholders concerning
la scaling down of securities. He is said
/ to have mentioned especially the 4 per
cent bonds and the collateral per cent
/ bonds, and 20 have expressed the hope
that they would be paid in full. principal
and interest Mr.. Williams also denied
/ the story that he had been seeking while
/ In New York to interest the Goulds in
/ the Seaboard system. with view TO con,
soldation with the Wabash system in tbs
! proposed reorganization.
/ Mr. Williams characterized this and
other stories relative TO the securities OF
/ the system as false rumors circulated &c
/ inture the company and discredit its
management in the past year or so. He
/ expressed the belief that the system
would emerge from the receivershiJ
/ stronger. and better than ever, with nc
material loss 10 any investor in the So
/ cuTitIes OF the system.