The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-09-21
EAST TENNEssER's CONTROL.
Gen. Alexander Believes What He Sees
in the Papers about It.

IN the Pap6rS a ABOUT 1t.
Gen. Alexander was asked Yesterday if he
could give any additional information as to
the Richmond Terminal acquiring pre-
ferred stock Of the East Tennessee, Virginia
and Georgia railroad, and in reply he said
that he had no knowledge Of the fact other
than what had appea ed in the papers, aud
that he believed to be correct.
Gen. Alexander in his statement more
particularly referred to the report of the acee
ton of the Richmond Terminal, as outlined
by the New York papers of last Wednesday,
in which the Richmond Terminal interests
are said to have been quietly Absorbing the
Junior securities of the East Tennessee,
Virginia and Georgia railroad and to have
acquired the controlling power. An official
announcements was made to the Stock Ex-
change by Mr.. lnnan that the Richmond
Terminal had made arrangements to ac-
quire 20, 900 shares additional of the East
Tennessee first preferred stock in exchange
for Richmond Terminal stock, in the fol
lowing communication:
To the President of the Netv York Stock En-
change:
SIR--I desire TO notify you that in pursuance
or resolution of the board of directors the
company has issued IS, 900 shares additional to
its common capital stock for the purpose of ac-
quiring, by exch nge or otherwise, &c, 600 shares
OF the first preferred stock of the East Tennes-
see, Virginia and Georgia Railroad Compa ~;
salu exchange or purchase to be made at the
rate Of 81 shares of the common stock for one
share OF the preferred.
JOHN H. INMAN President
The peculiar status of the voting power of
the different classes of stock goes far to
explain abe Importance Of tins action of the
board of directors of the Richmond Termi-
nal. Wheu the East Tennessee was reor-
gained May rs. 1886, $57 900 900 worth of
stock was authorized, $l1 900, 900 first pre-
ferred stock, $500, 900 second preferred,
and S27 ,500,0 600 common. The first pre-
ferred stockholders were entitled 70 elect,
according to the terms of reorganization,
eight out of fifteen directors n the first i've
years, unless two full dividends should be
paid on the first preferred for two successive
years
The Richmond Terminal acquired sthe
voting control of the company Ia 1897 BY
purchasing So, 500, 900 of the first preferred
stock. A dividend OF per cent. was paid
on the fist preferred Dec. 10, 1888, but the
prospects of the road were sucn that the
Richmond Terminal people foresaw that
dividends would probably have again to be
paid In 1889 on the first preferred. TIL
voting control would, under those circum-
stances, pass to the junior securities. In
Oct Der, 1888, the property was leased to
the Richmond and Danville, a road owned
by the Richmond Terminal, under a ninety
nine years contract, DuG the lease was de-
ciared invalid by the courts, and the COM
paay was directed to operate its road under
an Independent management
Since that time the directors Of the Rich
mond Terminal have not concealed their
purpose to acquire the absolute control of
the East Tennessee stock by purchase. and
have been quietly increasing their holdings.
A director of the East Tennessee is quoted
as saying that he did not see how dividend
of per cent. on the first preferred stock,
amounting to $780, could be prevented
by the Richmond Terminal, as the earnings
warranted it, The annual meeting of the
East Tennessee is held on the second Wednes-
day in November, 50 that the time for Sc
curing the stock by the Richmond Terminal
is limited. 1t is believed. however, that the
purchase Of the 10000 shares of first pre-
ferred ought to be sufficient, with the pur-
chases of junior securities already made, TO
answer the purposes Of the Richmond Ter
minal