The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-05-26
Transfer Of Stock Not
Made So Far as Banker
Is Advised.
NO COMMITMENTS
ON EITHER SIDE
Financial Circles Excited Over
Report That Syndicate Is Pre-
pairing to Take Over Cumber-
berland Company's Hold
ings-South Con-
trolls Road.

"As far as my information goes.
no such transaction has been made"
said John shelton Williams yesterday
10 a reporter for The Times Dispatch.
upon beng asked for statement
touc hing the reported sale by the
Cumberland Corporation of 10000
shares of Seaboard Air Line stocks,
to Middcndorf. wiliiams d Co. and
! allied Richmond bankers. When ask
81 If such a transaction was likely to
/ he made. Mr.. Williams replied:
There arc no such commitments on
either side as far as know" Beyond
this he had no comment to make OH
the New York dispatches. according to
/ which the Cumberland Corporation
has parted OF is about to part with
its Seaboard Air Line holdings. and
that purchase OF these stocks by
MidJendorf, Williams & Co. of Balt
more and John t. Williams Sons.
/ OF Richmond will again place officials
( of these banking houses in control of
! the railroad
/ New Syndicate Rmmored.
\ persistent rumor obtains, how
| ever. that new syndicate. composed
of tho Baltimore and Richmond bank
! ing houses named. and perhaps others
/ has been formed which has taken over
or is preparing to take over the Sea-
/ board holdings of the Cumberland
Corporation. Such q transfer would
place these bankers again in control
! OF tho stock which they sold to the
| Ryan Blair interests. and, aided by
the large blocks OF stock which they
holl independently. would place them
again in the asccndancy as regards
the MANAGEMENT of the system.
In the absence of positive contradlc-
! ton from the persons most interested
the formation of syndicate such as
described seems a reasonable assump-
| ton. And since the ownership OF a
| controlling interest In the stocks OF
! corporation is equivalent to being
| In command OF it's affairs. the Sea-
| board Air Line Railway. II the report
| ed transfer is substantiated, seems in
! fair way To have new governing
head-proba bly, John Shelton Williams.
or one Of his associates
some Cumberland Hintory.
The Cumberland Corporation. which
is owned by the Ryan Blair interests.
holds. or until recently held, 10000
shares OF Seaboard stock, of which
10000 shares were acquired from
John l. Williams & Sons and Middcn-
I dorf. Williams & Company. The Cum
berland holdings include also a block
OF $1,000 shares, which were purchased
from the same interests and were ac-
quired by these In connection with
| their subscription to the Sea board
SEnolcdte In lFOi.
Contrary to common report, the
largest holdings OF Seat lard stocks
are In the South. chiefly in Maryland
and Virginia. According to the latest
list OF stockholders, Approximately
s25.ooo,oo0 in Seaboard Air Line Rail-
way stocks stand in the name of resi-
dents of Maryland. Virginia and the
South. This amount includes the hold
ings of Middendorf. williams & Com
pany and John 1. Williams & Sons
The holdings of the Cumberland Cor
poration represent about 35 per cent.
of the total stock of the railway.
Stocks Held ms Security.
The Cumberland Corporation has a
l5.ooo.o0o note issue which natures
on June Is. Among the collateral and
now pledged with New York trust
company, security for this note is
sue is the block OF 10000 shares OF
Seaboard stocks already referred to.
which were originally acquired by the
Ryan Blair interests. in the manner
described. and by them turned over
to the Cumberland Corporation, which
they control.
other collateral for these notes in
cludes certain stocks of the Clinch-
field Coal Company. and preferred and
common stocks of the Carolina. Clinch-
field and Ohio Railroad.
Middendorf. Williams & Company. OF
Sons. of Richmond. It is stated. have
the largest single holdings of Seaboard
stock outside of the Cumberland Cor
poration. New York. New England,
Chicago and Western holdings aEgrc-
gate Approximately s14.00O.o00. and in
clmde the large blocks held by Laden
burg. Thalmann & Company. the Shep-
ard estate and Northern directors.
Big Holding Company.
At the time OF the recently an
nounced removal of the principal office
of the Cumberland Corporation from
Max Meadows to Wytheville in this
state. II was stated that the concern
was no longer tho holding company
! for Seaboard AIR Line stock. The sun.
; position is that a that time, several
weeks since. the transfer was in con-
| temptation.
| The Cumberland Corporation. which
retains the stock OF the Carolina.
I Ciinchfeld and Ohio Railway and the
I Clinchfeld Coal Corporation. was domi-
/ ciled in Fort Chiswcll District. in
Wythc county, because of the low tax
rate there. The county rate is very
! small. and the district levy in Fort
| Chiswell was lower than elsewhere In
| the county. The presence OF the big
| holding company in the village of Max
Meadows has brought to the district
alone something like $4,000 a year.
With this fine schoolhouses and per-
manent highways have been built and
the district has blossomed like n rose
Ryan Interests Control.
| George l.. Carter, who engineered the
inception and construction OF tho Caro-
lima. Ciinchfeid and Ohio Railway and
/ the immense Development OF the Clinch
field coal holdings In Russell and
Dickinson countless was leading fs-
ure In the Cumberland Corporation.
He represented the Thomas r. Ryan