The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-03-29

4
Ths possibility that the seaboard
Company, which controls the Seaboard
| Air Line Railway through ownership
OF large majority of the latter's
stocks given In exchange for shares
| Of its own issue, Will be dissolved at
an early date, has aroused lively inter-
I est In Baltimore and throughout the
| South.
There is probably no railroad in the
United States In which there are 30
many Baltimore stockholders as in the
eaboard Air Line, or, more properly
speaking. the staboard Company and
the mere suggestion OF the dissolution
Of the holding Company necessarily
would create widespread interest In
this city. -
Whatever may have been the neces-
sity for calling the 9eaboard Company
into existence In May, 1905. II per-
formed Its function long ago. and Its
further existence cannot be justified
either on the ground that 1t IN needed
to finance the Railway, or that II In
necessary In order TO maintain control
OF the railway by the present dominant
interests.
The searoard Air Line Railway since
the organization OF the Seaboard Com
pany. six years ago, has passed
through a receivership and having been
IESoI 44AAtAC0 Wltn0dh QfrEA08ut1 UHtGk
ed stronger physically and financially
than ever before In its history.
Flrst. Glass Condition.
Its treasury IL in strong condition,
and that the Railway enjoys nrst-cIass
credit 10 emphasized by the fact that
recently # sold s1S,ooo.o0o Of refunding
I per cent bonds upon Q per cent
tina securities took an option upon an
additional 1+.6000.0 900 Of the same issue
OF bonds at a price that reduced
slishtly the cose OF ths money to the
Not only In the seaboard Air Line
reaiiEing the greatest prosperity since
the formation Of the greater system.
but the indications are that Its earn
Ing power will steadily increase ~ q
result of the tremendous develop
ments Of the South. particularly the
section served by 1t.
The increase In gross earnings from
operations in the current fiscal year
ID estimated ct 3i.50o,o0 At q h1lni-
mum. To realize the significance Ok
this 1t 10 necessary to remember that
the earnings Of tho Seaboard Air Line
In the fiscal year ended June 3, 1910,
broke all previous records.
So much by way OF showing that
the Seaboard Air Line In amply able
to provide for it6 own needs without
the aid OF an intermediary In the
shape of a holding company. Now.
to show that the Seaboard Company
- not even necessary for the purpose
OF retaining control OF the railway In
tho hands Of the present deminant
interests.
The cnnchfieid Corporation owns
t2l.00o.oo0 par value of the various
classes Of stocks OF the seaboard Com
! ma M hn 49,
ton 10 absolutely controlled By the
same interests that control the Sea-
board Company. In other words. II
the end sought were perpetuation OF
control OF the railway 1t would be
Just ~ effective through the Clinch.
feld Corporation and its friends q
II In now through the eeaboard Com.
; pany.
The eesboard Company.
The 6sahoard Company was or
ganized Mt q time whom the eeahoaxd
, Air Line Railway was In desperate
Strata The former advanced the
railway $s.aso.soo cash and accept
ed notes Al security. Early Ia 1907
these notes were surrendered to Inc
/ railway. which issued in exchange
general mortgaGs so-year per cent
bonds, and In the reorga nisation Of
} the Sesboard Air Line railway thees
! bonds wers cancelled and In Her
thereof ts.ese.ooo Tin settlement fol
. both principal ana interest) was IL.
] sued.
The exact coalition of the finance,
; Of the 6eaboard Company 10 no,
. known. but from sources thorough,
trustworthy Il ID learned that tn
/ company has in its treasury abou,
: 100000 in cash In addition to III.
adjustment bonds
The capitalization Of the seaboarf
. Company consists Of.
Common stock .3aG,5&y.77s
tAgainst which is held $2s.-
$4,000 .. A. L. com
mon stock.
Against which In held SAL
n a33So0 8. A. l. pre-
ferred stock.
First preferred stock. s,sso, 500
: The nrut preferred stock 10 q fire
T and only lien on the 16,ae6,o00 O,
) Ssaboard Air Line Railway adjust.
). ment 5 per cent. bonds. and abou,
/. 100000 In cash In the treasur,
> which belongs exclusively to the hold.
, ers OF 6~aboard Company nrs& pre-.
( ferred stock. The adjustment bondl
E st the present market value (abou
!, 7s) are worth sb.247.0o0. Add e
a this the cash In the treasury and IN,
. total In sS,14T.O0o, which would 5.
available for distribution among tn,
holders OF the sS,3s0,s00 flrst prefer
red stock In the event 81 the disso,
luton OF the Seaboard Company.
This sum would be sufficient TO pa,
$3.50 for each stare OF the tlrst pre-
! ferred stock. or sls.60. more thar
: the price Il now commands in tn,
1 market. The redemption price OF tn,
stock 10 par and interest. but II 4
nat likely holders would bubble owe,
: the difference In. the amount the,
2 would receive and the amount they
are entitled to receive.
second Preserved Stock.
The preferred stock Of the Sea,
board Air Line Railway In the treas
ury Of the company would IN thu
event Of dissolution OF the latter e
to holders OF the second preferred II
9 the proportion Of las l-3 shares fol-
!, each 100 shares Of company stock
! and the common stock Of the Sea
: board Air Line would 90 to the hold
: ars Of the common stock Of the com
). pany In the proportion OF 1O3.7t
!. shares for each 100 shares OF com
: pany common.
Thus far there has been no con
icerted action among the stockholderi
. iof the Seaboard Company for the dis
solution Of the corporation. hut tina
such an outcome would b. highly rat
I Iisfact0ry to Baltimore and other larg,