The Daily times. [volume] (Richmond, Va.) 1886-1889, 1888-04-16
THE TERMINAL COMPANY
IHE DISSA TISFIFD STOChHOI IDERS
REPLYTO THE HIN1GFNENT.
Reasons why they Think a Change T. Neces-
sary-The Recent Manifesto of the Dlrec-
tors IulIy Considered Action of the
New and Old Boards


ing 10 change the management, 10 the re-
cent manifesto OF the directors party
New YORK, April -, 1883.
To the Sto,IAoldeys ri The Riclmond and
Ucr pint IGm,Hd Raa,cay and Ware
houso CoDpaay,
On March 18Th We published an adyer-
tisement in the New York papers in
which we said that we had been informed
that the directors of the Terminal Com
pany had borrowed money 10 meet the
payment OF the January dividend on the
preferred stock and the February interest
on the collateral trust bonds, and asked
the stockholders TO sign call for gene.
raj meeting
Tho directors took no notice Of
this advertisement until the presi-
dent OF the company publicly admitted
I'm letter addressed 10 MS that
our information had been correct,
ana that he himself was convinced that u
call for general meeting of stockholders
WAS imperative. and when about the
same time he officially announced at a
directors meeting that the call had
already been signed by over 1870 600 shares
Of stock. the directors found it necessary
to appoint Committee on Explanations,
consisting of Mc-srs Bricc, stone, and
Lauterbach, which drafted the cXlraor-
dinary statement recently published in
The daily papers as am advertisement and
sent in lhc form of % circular 10 the
siocR holders A. This statement might
perhaps appear plausible 10 stockholders
ignorant of the true state ot affairs, we
deem il advisable to answer it i'm detail.
First then as 10 the insiuualion That
we are not stockholders To this We re
plv that 10 is untrue. Each az us is a
large stockhOlGer, and as such is, By the
way. much interested in learning whether
It is the stockholders money which is so
layishlv expended i'm lengthy advertise
ments and circulars for the purpose OF
exculpating the directors from the charges
made by the stockholders themselves.
Ncxl we find mi-slatcmeut charging
that two of Your committee are inter
estcd in thc Norfolk & Weston. While
II is well known that Mr L W Clark
has large interests in that company, a.
well as i'm other companies throughout
the country. Mr. Libbcy never did, and
does not nOw. own any share Ot stock or
bonds of the Norfolk 4 Western. and
never WAS. and is nOtn now, ia amy manner
interested in that company BIZ the less
the present Board says about The Norfolk
& Western aud the diversion Of traffic 10
its line the better.
PURCHASE OF EAST TENNESSEE STOCK.
Before the Terminal purchased the
East Tennesscc's i;st preferred stock,
the East Tennessee and Norfolk q West
ern had traffic contract, by which the
traffic of the East Tennessee was carried
over the lines OF the Norfolk x Western.
The chief inluccmcHt offered t0 ihc Ter
minal company for The purchase OF the
50 600 shares of that stock was that after
such purchase the East Tennessee would
send lis traffic over the Western North
Carolina, and thus enable the Terminal
Company 20 make good its Western North
Carolina securities. viz Sl3:j 900 FIRST
consolidated mortgage bonds. S4llO,OOO
second consolidated mortgage bonds,
s.. 1Gs. 300 preferred stock and S3 l6s 300
common stock 1t is doubtful whether
the East Tennessee preferred stock could
ever have been sold 10 the Terminal Com
pany by Messrs Brice, Thomas, Moore
and their associates If II had not been for
this ilduCement held out
Very soon, however, after the purchase
was made, one OF your committee, then "a
director Of both the Terminal and East
Tennessee Boards, was informed by an
officer high in charge in the East Ten
nessee Company, that shippers would not
ship their goods over the Western North
Carolina. and that the road was not then
and might never be able 10 handle the
traffic 10 advantage on account OF its
heavy grades. The Western North Caro-
ina. according To the last Richmond x
Danville report, earned gross in 1856, be
fore the Terminal had bought the East
Tennessee, Sj23. i40 4, and its operatin
expenses were $43S, ,3jG3j, leaving mel
earnings of 1884 - Compared with
the earnings for the year ending Septem-
Der Both, 1887, of $3.50 Jg9.4O and eXpen
ses of 1915, ,24974, leaving net earnings
of SS4 349 GG, this with an increase ol
$13G. .sjs 90 in gross receipts, The net
earnings were diminished The amount
used for betterments during the last year
not mentioned with expenses was $3.50,
394.j9 These figures do not indicate that
he present management will be able to
make good our Western North Carolina
securities.
The circular goes on To say that YOU
acquired control OF the first preferred
stock of the East Tennessee at an eXpen
diture of six and one ha.f million of dol
lars" but it fOrEets 10 remind you tha
although YOU acquired The majority o
the stock at that eXorbilant price yor
did not pet what the word majority us
ually conveys, for the very persons who
sold YOU the majority OF the stock with
held the control, by a clause cunnlngll
inserted in the collateral deed.
The effect of this clause is that the Ter
minal, instead of being allowed TO elec
eight out OF the fifteen members oi th'
East Tennessee Board can only elect
majority Of seven.
THE GEORGIA COMPANY.
As far as the Georgia Company Is con
celned. We do not deny that some of th
gentlemen connected with the mOyemen
are interested in the Georgia Company
but the principal fact for our purpose
that they own large amounts OF Termina