New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-19
THE FATE OF TERMINAL.
A REORGANIZATION INEVITABLE.
FIXED CHARGES TO DE REDUCED-sEcJRIuEs
SHARPLY Decline

SHARPLY DECLINE.
Prices of the securities and stock Of the Richmond
and West Point Terminal Company adjusting them
selves to the prospect Of a reorganization of the
pany and scaling down Of its capitalization There
has been steady decline at the stock Exchange in
the last year, and yesterday there some sharp
movements. The preferred stock fell TO "a IL against
SIS Tuesday, but rallied to SO "a. The common
stock fell to 10 5s, and rally to IL 1-s, showed
net loss of per cent. The collateral trust per cent
bonds declined . Is to SO rs, and the per cent
bonds Oft "a per cent at Sc L. Wall Street
was flooded with inquiries as to the cause OF the &c
preston, and specific explained it, There
was to be meeting OF the directors Of Richmond
Terminal, but quorum obtairsd President
John II. 1nman and General ThOmSs at Knox
vile, Tenn. 20 attend the annual meeting of the East
Tennessee Virginia ard Georgia Railroad. one of the
controlled companies. II was said that only formal
matter was to before the Terminal board, which
had no reference 10 the general condition OF the
property The NewYorS directors were loud in their
derals that there had been any developments to
warrant the fall In the Terminal securities
1t is considered certain In wellnforned circles that
the Richmond Terminal must submit TO reconstruc-
ton. The common belief is that assessment must
be suffered by the common stock, and that the col
lateral trust bonds must be converted into some form
preference stock. 1t be that any definite
plan is under consideration by the directors. for 1t is
understood that differences OF opinion exist to the
best method OF protecting the future OF the company
President Inman has been working hard to finance
the affairs of the organization while preserving 1t in
It's present integrity but the long and steady decline
in the securities has reflected the opinion of many
bankers who have studkd the system that IL is i'm
possible to avoid use of the knife in cutting down
fixed charges The recent arrangement OF the float
ing debt OF the Central of Georgia relieved the Terminal
management 0: pressing financial questions and II is
not believed that the company Is confronted with any
immediate problems But this transaction has not
cd
OIL sound basis. When that is accomplished Wall
Street will feel relieved at the removal of e.ment
which for long time has suhced at Intervals to dis
tract attention from the growing favor with which t
general stock market regarded
The annual meeting Of the Richmond Terminal will
be held i'll Richmond on December 8. BY that time
the plans for reorganization will doubtless have taken
shape. The following estimate for the year ending
November 30, 1891, made yesterday by Dow,
Jones & Co.:
ast Tena.see. Virginia and Georgia dividends i5s2ss
Total revenue ...............siO05 sos
Interest collateral 1880 600
Interest collateral $50 600
other expenses llooVc
Total expenses $500 900
Dividend Of per cent on preferred $4,000
Deficit for year S234 l02
1t is not believed that any ACKNOWLEDGMENT Of the
Richmond Terminal system need follow the adoption OF
any plan for reducing fixed charges. point bearing
this question relates to the terms by which the pre-
ferred secured by the pledge of Richmond and
Danvle stock There is provision in the trust that
gives the preferred stock any right to take the stock
control OF the stock of the Richmond and Danvie
The trust deed provides that. I'm the event OF
the payment Of the . per cent dividends on the
Richmond Terminal preferred stock the deficiency shall
ala I'D MT of he fnPA nf NH
years. provision in the trust allows the Terminal
Company 10 issue substitute any other security but
the trust must remain the same THIS provision reads
Should the Terminal Company for any reason. at
time before the retirement Of said preferred Stock,
stock the said 2500 shares and the dividends hereon
increase and proceeds thereof shall be held owned,
Sn the sa sa uss s eooe provided a. secunS
for the Of The BnP' or d toE ss
The possibilities presented by the financing of the
ment and cement OF the trusts by which the
control OF 50 many important Systems Is held wilI
Of conducting the reorganization.
Knoxville, Tenn, Nov. 1s.-The East Tennessee vir-
gnis and Georgia stockholders met here to-day Pesi
dent FELTON,. samuel Thomas and Jshn II. Inmsn were
present. Stock 10 the amount OF 312,073 shses was
represented, Mr.. Inmsn holding 81 ,9oo mostly by
proxy. The only work done to hear the presi-
dents repsrt and THEN adjourn to December IS, it
the wish TO meet after the Terminals meeting u
be held at Richmond December g. In an l1i.rvew Mr.
Imam said that the report to change Of manage
in the East Tennessee, Virginia and Gcorgias
affairs false.
Chattanooga, Tenn. Nov. 1s.-President Inman, OF
the Richmond Terminal. here this evening. having
come from Knoxville where the stockholders Of the
East Tennessee met to-day. All further question Of
the Richmond Terminal controlling the Fast Tennessee
was set nj rest Ly President Inman voting majority
Of the stock and pcsponng the election Of East Ten
nessee directors until after the meeting Of the Terminal
which December g. This done in order TO
allow the Terminal stockholders 10 the directory
If they lit. President Imam says he knows OF
official directory changes. He thinks the Richmond
and Danville meeting called for December will also
b. without directory election to await the outcome
Of the Terminal election Concerning reports from
Ncw-iork passing the dividend Mr.. Inman said the
question OF dividend not discussed ana not
likely to be until the customary time about Deem