The sun., 1891-10-31
RICHMOND TERMINALS FATE.
THE PRESENT MANAGEMENT TO BE
.... DETHRONED.

"us
Es Norton Take the Fresideacy-The
Georgia csasr=s Dsss. yyAssh sss- Zee.
Provided for by speyer n Co.. the First
Step N Smithers's Rrogrnmme-susithers
Got Rich Financierlag Louisville and
NsshviIie-Ea East Tennesssee 20 60 Il Alone.
At last THE suS is able to foreshadow the
Impending fnte OF the Richmond and West
Point Terminal system. which during the
INST year or two has burst into prominence as
the most extensive railroad combination
in this country. It's decline has been
a. rapid as its growth. and tho flnan-
cial world has watched tho developments In
tho property during the pnst few weeks more
keenly tliun any security on the list. The
Union Pacincs troubles over its floating debt
were small compared with the disasters which
threaten the Richmond Terminal system: for
no such dangers Of disintegration monaced
tho former.
Il seems to be settled that John II. In
man and his friends will retire from the man-
asement and practical railroad men will take
charge OF the Richmond Terminal system.
running II either as whole or as separate
roads. This is what Mr.. Inman has been nego-
tntine for SO long. and It shows the extremes
to which tho company was put 1t furnishes
a sufficient reason for the strict secrecy
which has been maintained.
No better proof is needed OF whit the great
banking institutions think OF the managers OF
the Richmond Terminal system than the fact
that none Of them could DO found that would
consent 70 handle the floating debt OF the sub
ordnated roads In the system as long as Mr..
Inman continued to run the concern.
The climax was reached when Mr.. Inman. Of
his own accord called upon Mr.. H.W. Smithers.
A. ,~f Ero MI fnrf fNr
sistance. Mr.. Smithers looks upon the flnan-
cierins Of railroad properties in distress as
moro chtld's play. and he has achieved a
good deai Of noeoriety during the past few
years by the magical success he has
had in getting foreign institutions to
swallow up undesirable floating debts. Tho
latest instance was the Louisville and Nash
villc, which Mr.. Sn,thcrs several years ngo
lifted out OF tho miro and placed upon its feet
again. He accomplished this wonderful trans-
formation through Mr.. FIX. Norton. the late
President. whom he put In charge OF tho road.
Mr. Smithers has wrought tho same magic
change in many other roads, including. 1t is
said. Tho Mexican National and Mobile and
Ohio. He is also said to have been interested
in Wabash AFFAIRS representing some OF the
Observation-Disclosures.
When Mr. Inman turned to Banker Smithers
"a the great healor. probably he didn't think
that tho latter's terms would be so exactinc.
Dir. Smithcrs's short answer was. in effect:
If Itake hold OF the debt, you will have to
step ont and let me run the road"
Mr.. Smithers would not touch the property
unless he could put his old friend. Ex. Nor
ton, in charge as President. Mr. lnman had
the first negotiations with Mr.. Jacob Fl. Schiff.
who is ut the head Of the banking house Of
Kuhn. Loeb 4 Co.. which. with Speyer & Co..
represent Mr.. Smithers in America Mr.. SchiH
made known to Mr.. Inman the demands Of Mr..
Smithers, and nczotions went SO far that the
latter has come to New York in order to per-
feet the deal
Mr. Smithers has already taken up the float
ing debt OF the Georgia Central through Speyer
4 Co, aud this fact lends color to the belief
that the deal has been clinched. sur
rendering absolute control of the system.
before Mr.. Inman will make the, unpleasant
nat thS a and e
noatng debt havs not yst been fully settled
position to dictate his own terms.
deal for nandps the &c Cen
Services come high, and he does not care to
sneysr e. Locked eyer i6 the o. ssssts e tS 2,
Of the Savannah and Western Railroad.
loan loan Of a hetwsen s4GSpooo and s5ooo 900 % or
ths ztent the ss af6 of Hs sssfga een
ertion OF purchasing the s7,1O00O0 bonds at
nay @ asse,s as sH" Of par in the hs
Of the Georgia Central. but something like
S1O.0O0ODO Is said to have been pledged for
Probably the terms for handling the floating
T ss ass e. nofsa not e. d H.
ons IL IN h nS Of fsa@ The sfSsia
Terminal system after the fashion OF the
London bankers previous railroad ventures;
American sens Of the word. but rather an in
termedlq9ry who has acquired large clientele
nancs cs'r" or refaliI!t,te. He has no e!aborat-
Ssna5ae1s 5saf safT W Witt # s s uaW sa9 s
Consequently u director Of the Richmond Ter
minul Company. who reluctantly verified the
1ses 81 a the dsa WAS not much out OF tho way
T,:WLo is this fellow ~. yon talk 50 much about?
hs hers ne tann hs
Do 1oatine & del debt i shey see 1t. we iqat havs to
diratc. which. will tide the company over. But
kcVeEul american lilstNutlOHS VIII ulNO nuSo u
hend.'
This. stntsmcnt was an unIntcntional admis:-
sion Of Smithcr.'s having charge Of tho deal,
for. as mentioned. hs Is an intermediary for
tator " tho situation md really their better.
And the American houses referred to arc
SI,cyer 4 co. aud Kuhn. Loeb & Co. who arc
acting az agents for Smithers and indirectly
for lis clientele in Europe.
A great deal has been said during the past
few weeks abuut tho differences in the Board
Of Directors, of the Richmond. Terminal
Conipnny. It is we'll known that there
efforts ,oto f. :H,ne M to an up1dderstandins 1ds
however. practically control the. COM
md the fs pt norty n # Is saa has
Mr. Innnn nndSei'taklnG tho deal with
eevernl meetings Of the Board lately; but
thcrrnt hDout his dealings with
Nj. sTithers. AZ the Weeting Yesterday they
mention tho h9atIns debt. 4 few formal things
annual meeting in December
A yre,t dsni was said about alleged differ
and tho refusal o: the latter to help the Ter