New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-26
TO REORGANIZE TERMINAL.
. APPOINTING A COMMITTEE.
STOCKHOLDERS Asked TO REFLECT THE MAN
AGEMENT PENDING PLAN OF
ADIUsrMEN'

ADJUSTMENT.
The directors of the Richmond Terminal Company
Yesterday formally recognized the accuracy OF the
recent summary ~ the company's condition maze by
The Tribune. by appointing committee to aid in per-
fectilg the best plan FOR tho permanent adjustment
of the company's affairs. The contest for supremacy
in the future has been postponed By resolution that
authorizes President John H. Inman to solci. proxies
from stockholders, TO he voted at the annual meet
ing In Richmond. Va, December d, H. approval OF
the appointment OF the adjustment committee ana
In continuance Of the present board Of directors i;
Is provided, however, That II any plan shall DO
ratified by the stockholders special election shall be
held TO provide permanent management. The COM
mittee. named Il follows: Eckstein Norton,
formerly president OF the Louisville and Nashvile
Railroad william saloman, Of Sreyer Co.: Jacob IL.
Schlf, OF Kuhn, Loeb & Co.: Frederick p. olcott,
president OF the Central Trust Company; Charles B.
fa;rchld. president OF the Newton security and
Trust Company and Louls Ftzecia d. president OF the
Mercantile Trust Company The committee has power
TO substitute other members add TO the number.
George +. Baker president OF the Fourth National
Bank has been invited to JON the committee and
he has taken the matter under consideration.
The Terminal directors hav. been two days In
struggling with the question cf what should he done TO
the Integrity Of the system. As regards the con-
test between Mr.. lnmaE and Tie Brice Thomas faction
yesterdays action simply pospones the fnal issue
IL Is significant that the directors have called in
representatives Of the banking interests which are
understood have refused further assistance in the
financing Of the company. until there had been rcal,
zaton that the present capitalization must be reduced
TO effect solid reorganization IL is not believed
that this stop would have been taken If general
agreement had not been reached looking 10 sacrifices
tine part OF the stockholders and the collateral trust
bondhOlders IT was denied yesterday that any lines
had been fixed upon for the reorganization OF tie com
pany. II Is doubtful if the committee Can submit a
plan that will not involve struggle In the courts.
The preferred stockholders strong in their claims
that the Richmond and Dsnville stock held in trust
for them cannot be reached by the Terminal Company
in any way, while of the holders OF securities
that enter into the system and owners of the floating
debt OF the constituent companies have been legally
advised that all assets of the Terminal however they
may be located, would be subject to the claims OF
creditors in case IL became necessary TO enforce such
claims.
The Official form Of the circular given out yesterday
at the Richmond Terminal Office starts with this pre-
amble: In view Of the attacks which have recently
been made the management and credit OF TINS com
pany," etc. The named the committee Z" hav-
ing consented 20 carefully inquire into and examine the
condition of your properties and to aid your company
in perfectng the best plan for the permanent adjust
ment of its affairs the ncOsed proxy, If signed and
returned TO me president nman will be voted at the
annual meeting as TO secure the action OF the above
named gentlemen. In the manner Indicated ana Tor
directors The present directors desiring to cooperate
In an adjustment OF the companys affairs, have con
sented serve if reelected pending the formulating
OF plan by the committee. Whenever the plan snail
have been adopted by the committee and board IL Is
intended TO invite the stockholders to approve and
rafy the same and to hold an election for permanent
management"
President Inman made this statement TO the press {:
"The general financial condition Of the past year
and the attacks upon our companies have depressed
their securities The result IS the railroad companies
have been unable sell securities based upon engage
mens they had made prior to the period of depression
and to pay for equipment and improvement.
"A large floating fndebness has In this way been
created Int each OF important railroad systems
Is solvent and they have In their treasures large
amount of securities. The Terminal Company owes no
floating debt whatever. . - ..,
After matireiy considering the whole situation.
we felt II wise to invite the gentlemen whose names
eDpear in the circular to mid MS In perfecung uie
hest plan for permanent adjustment o! our afairs
The names Of these gentlemen are so well known IN
financial circles they require no comment. .
/ am convinced from O careful study OF the rail-
roads comprising the Terminal System that they are
very valuable and that under wise and conservative
plan for paving their floating debts. providing
sufficient fund for equipment and betterments and OF
more perfectly consolidating their operations, their
earnings can be increased and higher range OF values
established for all lines Of our securities