The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-08-10

htsHy productive IN cotton ana to-
bacco. will admit OF the Seaboard',
: running time to the South being short
ened. win create line with maximum
grade OF only one-h half OF one per cent
as compared with one and one-half
J per cent, the maximum grade of the
present line to Savannah. and which
will permit the increase of the full
trainioad 127 Ia per cent
In effect this will give the Seaboard.
through South Carolina, from Hamlet.
IN. c., to Savannah, Ga, two lines
(the other line running via Columbia)
each one self-supporting in its own
territory and thus will be obviated the
necessity OF double-tracking the HAM
l1et-Columbia line where traffic Is con-
Igested. The territory to be opened up
between Charleston and Savannah Is
generally well adapted to the grow
ing OF vegetables, corn, rice and sea
island cotton. and will put the Sea-
board Immediately into Charleston s
Heaviest vegetable producing sec
ltion.
Securities to BE Issued.
THE Seaboard Air Line Railway
COMPANY (the new company, will
have its first and consolidated
SetuTiItS an 6ulboiASCu AHSNS
of $30O, 100000 variable interest rate
and maturity bonds. This mortgage
will be Immediately a first lien on the
AIS miles of main line track between
Hamlet and Savannah. via Charleston,
Lanes and Georgetown, s. c., and on
the lines running from McBee. s. e.,
located on the Hamlet-Columbia ilne
to Florence. Poston. Sumter and Tim
lmonsyille S. c. There will be pledged
4 no
a majority (s22,3s1,oo0) of the out
! standing per cent refunding bonos
of the Seaboard Air Line Railway.
There will be presently Issued un-
der the new first and consolidated mort
| gage S22,s9300 of six per cent, thirty
year gold bonds, part are to be USED
in exchange for underlying bonds OF
| constituent properties. The balance has
been sold, the proceeds to be used Tor
the construction of the new line from
| Charleston to Savannah, for the retire
ment of equipment trust obligations
I falling due the year ending June 10,
1916 for the retirement of the $S.etd-
| 600 three year notes due March !, 1916,
for the acquisition of certain new
property. and for improvements ana
! betterments etc.
TT was believed to be to the best
| interests of the property to make i'm
! mediate arrangements for the near IT.
ture as we'll as present financial re-
! ouirements. In the financing OF the
nations at war interest rates have al
ready materially increased, necessita-
/ ting the procuring Of large amounts OF
money for American enterprises on an
/ increasing basis.
Subject to the carrying out of agree
ments for the exchange of bonds or the
underlying railway properties to be
| consolidated with the Seaboard Air
| Line railway, arrangements have been
| made for the sale of the bonds of this
issue (Series AZ as above stated
Finance Committee TO Act.
The directors have left the details
In connection with the general plan
10 the finance committee OF which Mr..
Warheld is also chairman. The Con-
tinental Trust Company, Baltimore, was
appointed as agent of the railway 70
carry out the details of the consoii-
datton The new issue of bonds have
been sold to banking syndicate head
| ed by the Guaranty Trust Company,
National City Bank, Chase National
Bank, Bankers Trust Co, New York, The
Continental Trust Co. Baltimore. and
other financial institutions in New
York Baltimore, Chicago, Boston, Phil
adelphia, Pittsburg, st. Louis, Cleve-
land. Cincinnati, San Francisco, MIL
walkee Detroit. Atlanta Savannah
Louisville, Columbus, Ohio Seattle.
Denver New Orleans. Syracuse, Roches-
ter. Wilmington, Newark and Albany
warfleId Congratulated.
Mr.. Robert F. Maddox, the we'll
known banker. of Atlanta, Ga, one Of
the directors after the meeting said:
Mr. Warfield today was congratu-
lated by his fellow directors In hav-
ing worked out comprehensive plans for
the Seaboard which will be recognized
as a decided financial achievement. As
an evidence of the thoroughness and
skilfuIness of his work he has nego-
tiated In these times the sale of many
millions of the new bonds to make
effective the results Of his efforts and
foresight He has thus helped out the
entire southern country in devising
mean for the greater development OF
the seaboard All Line and the South.
and he has placed the railroad in
firm position financially
Mr.. Frankling Q. Brown, OF the Arm
of Redmond & Co. bankers. New York.
another director of the Seaboard. said:
mfr. warneld has accomplished a
fine piece of constructive work for the
Seaboard and the South, as we'll as for
the security Holders Of the railroad"
Well Received I'm Financial Circles.
The success of such a large UNDER
taking in these times by Baltimore
nancial circles. II was pointed out that
Mr.. warhelds plans had their inception
three years ago when he acquired for
himself and associates the large block
of Seaboard preferred and common
| stock then owned by the Cumberland
| Corporation controlled by the then So
called Ryan Blair interests, and II is
said he is now the largest single owner
of Seaboard stocks
BY this purchase he brought the
| South into a commanding position IN
the Seaboard. and not only was the
entire executive management located
in the South. but among others enter
ing the board of directors were sIeh
we'll known southern men as Robert
| f. Maddox, Atlanta, Ga; Mills B. Lane.
| Savannah. Ga; A. Fl. Woodward Biz
| mingham. Ala; J. p Taliaferro. Jack
sonviIle, Fla: George w Watts. Dur
ham ~ c.. Fergus Reid Norfolk Va;
w. J. Harahan and Charles r. Capps,
Norfolk, Va. president and vice. presi-
dent respectively; 7 w. Middendorf.
and Townsend Scott Baltimore. and Mr..
warfie1d who became chairman OF thA
board and of the executive and finance
committees.
/ The directors believe this program
will be recognized not only as one
/ of the most important pieces of con-