The Montgomery advertiser., 1908-01-03
RECEIVERS
 ARE NAMED Warfie1d and Williams
 Are Selected. TAKE IMMEDIATE POSSESSION To Straighten Out Affairs of Sea
 board Air Line. Federal Court Judges in Different States Through Which the Road Has Lines, Agrees on same
 Receivers.
TAKE IMMEDIATE POSSESSION

Richmond, Va, Jan, 2-The Seaboard Air Line Railroad system was put into the hands of receivers here today, through the action of Judge Pritchard, of the United States Circuit Court, who was hurriedly summoned from Ashe- ville, N. C., to take cognizane of the application for a receivership.
 Judge Pritchard appointed as receiy- CTS R. Lancaster Williams, of Rich mond, and D. Davies Warfield. or Baltimore. Both men are identified with banking houses in Baltimore. williams being of the firm of Midden- dorf. Williams and Company, but War field is president of the Continental Trust Company. Mir. Williams is also a partner in the firm of John & wn- Hams and Sons of this city The bond of each was fixed at $50,000.
 The title of the case as filed is ''the Seaboard Air Line Railroad, com plainant, against the Continental Trust Company, trustees, under the first mortgage made by the Seaboard Air Line Railroad defendant"
 Judge Pritchard's decree gives the receivers immediate possession of the property, which embraces the main stem from Portsmouth, Va, to Tampa, Fla, with numerous branches to coast points on the east and Atlanta, Mont gomery and Birmingham on the West, a total or 2,3SZ miles.
 Tonight John shelton Williams, a member of the voting pool, whose views as to the finances of the road have all along been at variance with those of the Ryan interests, gave out a statement calling attention to the reecivership as being the fulfillment of his predictions. He says the present situation is the logical result of the policy pursued by those in con 4wal Attr hn faxu Q nd welcomes Judge Pritchard's decree as foreshadowing the uniting of all inter ests on some plan that will bring about a speedy rehabilitation of the road and produce results satisfactory to all security holders.
 A Dramatic Incident.
 The preliminaries to the appointment of receivers for the Seaboard form a dramatic incident quite unique in rail- road history. Decision to put the road into the hands of receivers was reach ed at conference in Washington on Tuesday night, between members of the voting pool and creditors of the forces concurring. New Years day. application for the receiyership, was made to Judge Waddill in this city. but he referred the party to Judge Prit- chard of the United States Circuit Court. who was at his home in Ashe- vile. N. c. Responding to an urgent request by wire. the Judge started at once for Richmond and was met at Danville, Va, last midnight by about a dozen Seaboard attorneys, who had gone there from Richmond by special train for a conference
 The special train with Judge Prit- chard on board returned to Richmond arriving after a fast run at ' o'clock this morning. After their sleepless fc~hk nA ufr nff relaxation, however, the party only al- lowing themselves a nasty breakfast before they presented themselves be- fore Judge Pritchard to have put into effect, the arrangement reached at the midnight conference for the passing of the crippled road with its $72,00O, 900 capital and $5S, S,000,000 liabilities out of the control of the voting trust into the hands of two men. The necessity for prompt action arose from the maturing of heavy liabilities January 1st.
 This afternoon Attorney Edwin G. Baetjer, counsel for a committee of Baltimore bondholders independent of the interests represented by Messrs. Williams and Warfield, appeared be- fore Judge Pritchard and submitted a motion for the appointment of a third receiver. He urged no objection to the appointments already made, but asked that Gustavus Ober. a Baltimore bank CT be made a third receiver
 In continuing the motion until Janu- ary 14. Judge Pritchard observed that if another receiver was to be appoint ed he thought he should be chosen by the court indeuendent of any sug- gestion from the interest making the application.
 Language of Decree.
 The language of the decree regard faG ant nf into fa receivers "are hereby ordered to pay forthwith all installments and interest that was payable January l. 1908, or on any equipment notes or equipment trust certificates of the Seaboard Air Line, or of all it's subsidiary compa- nies and all Seaboard Air Line bonds all bonds, coupons and interest matur- ing or that matured January 1. 190S on the first mortgage bonds of the Sea board Air Line Company, the Raleigh and Gaston Railroad. the Raleigh and Augusta Air Line, the Georgia, Caro- lima and Northern Railroad. and the Florida Central and Peninsula Com pany. and of the first consolidated mortgage bonds of the Carolina Gen. tral Railroad. and of the Georgia and Alabama. and of the Florida Central and Peninsula Railroad Company. and the first mortgage bonds of the Flor ida West Shore Railway and the first mortgage land grant extension bonds of the Florida Central and Peninsula Company.
 "The receivers are directed to bor- row money to make such payments The receivers also are directed to take immediate possession of all and sim sular' property of all the corporations in all States. and to continue the op- eration of the railroad system. and to run and operate the said rail- roads Iand such other prop erty as is held by the corporation and in such manner as will, in their judg- ment produce the best results and to exercise the authority and franchises of the complainant and to conduct sys- tema tically the business occupation of a common carrier of passengers and freight"
 To Protect Property.
 They are also ordered to direct and protect the railway property as it has formerly been controlled. so that 1t may be advantageously used and de- veIoped. They are empowered to em- ploy and discharge and moreover to
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