The sun., 1889-12-07
F. C. HOLLINS'S FINANCING.
HIs EFFORTS TO REGAIN CONTROL or
THE ST LOUIS AND CHICAGO ROAD


A Spirited RonahoIders' lEeeting-A Re-
organization that Seems 10 BE IN Dan
Eer-Somo Plain Distinctions,
Frank O. Hollins, whose methods Of doing
what may. by courtesy. be called business
have been recently exposed in TIE SUN called
a number OF his friends together yesterday AZ
ternoon to tell them how he is progressing
now that the public understands him better
than Il did. II will be remembered that Frank
c. uollins is one OF committee OF three that
has been trying TO reorganize the 81. Louis and
Chicago Railway In the interest OF the first con-
solidated mortgage bondholders. He became
a member OF that committee naturally because
he sold the bonds and still retains an interest
In certain number OF them. which the COM
pany claims were fraudulently issued by Frank
G. Hollins & Co. as its fiscal agents. The other
members OF the reorganization committee are
Mr.. George Coppell Of the banking house Of
Maitland. Phelps & Co., and Mr.. d D. Withers.
Frank @. Hollins started out apparently with
the idea that he could control the roorRanized
property, and to that end agreed to raise the
money necessary to pay OF the lien OF the first
mortgage bondholders. which, according to
decree OF foreclosure recently entered, would
require t577000. The other members Of the
committee seem to have been willing to allow
him to do the flnancierinG. They had no use
for the road, but wanted to get their money
back They claimed. and 30 do some Of the
other bondholders, that Frank O. Hollins d 90.
statements. Their experience with him, how
ever does not seem to have deferred them
from further dealings with him;
Committee must complete Its purchase OF the
St Louis and Chicago Railroad. made at the
Soders @ has at last BEEN vrtaiS h9s 1ed as
3. Frank c. Hollins called the consolidated
hondholders together yesterday, TO tel them lsn,
money to com plete the purchase. The,meeting
which was held In his office, was an informal
al d whom ASS@ Ssrs
him Mr. D. Withsrs attended an IN Peeai r Hal 81
s5aSSS5 SSeS nessssars to sSRplets the pprchssS
We're We Unwilling % to do anything themselves. and
at the same time we're trying to stop him from
doing anything He gave them credit @ tadEs iSr In
every way possible they had sought to damage
director in the Bank Of the State Of New York.
whore Frank Q. Hollins q Co keep an account,
curtail the firms accommodations
Mr.. Withers denied nll of these statements.
and gave Frank O. Hollins to nderstand that
them. He also said that 1t was true that the
majority of the committee would not complete
the WORK OF REORGANIZATION In conluncllOn Win
Hollins. Frank c. Hollins replied that he would
not abandon his interests that friends Of his
had subscribed $20O.Q0O toward the purchase
money; shat he would put up SlQ0 900 in first
class security with the Holland Trust Com
pany which concern, he said. Is the custodian
of tho $200.000 his friends are going 70 put np
and would turn In q contract OF j. W. Selig-
man to take $4,000 Of the bonds OF tho new
company, making total subscription OF $780,
600. But to make the arrangement operative
he wanted Messrs. Withers and Coppeh TO put
up $50,000 apiece. The fund would then be
$4,000 short and he did not say how that
amount was to be raised. Mr. Withers replied
such arrangement. Frank. @. Holllns went on
TO say that neither Mr.. Withers or Mr.. Coppell
knew anything about the property, and that
MIR. Edgar NJ. johnson of the law firm OF Hoad-
ly. Lauterbach & Johnson. whom they had
was ignorant and incompetent This last al
lusion was unquestionably inspired by. the
manner in which ME. Johnson withdrew from
retired that Hollins failed to keep faith with
his associates to such an extent that he was
to tell Hollins to his face that he was
an Internal rascal.
Frank c. Hollns took the ground that the
having paid ten per cent Of the pur-
chase money at the sale of the road. was re-
sponsble TO the bondholders to complete the
purchase: and with the view OF trying to make
Messrs. Coppell and Witners accept that re-
sponsibility he appointed o committee OF three
OF his confreres to consult with a majority of
the committee. and il necessary to proceed
against them in behalf Of the bopdholders to
make them nut up nart OF the purchase
many bonds were represented at the meeting,
but the chances are that a majority OF them
were not represented. That point is unim-
Dortant, however. as the only signIfcance OF
Frank @. HollinS that he is getting toward the |
end OF his rope.