Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-11-01
RICHMOND TERMINAL
TIE PRESENT MANAGEMENT TO BE
pETHRONeD.
lana, Has Msds . Deal with Banker
essithsrs, OF London, to Hsno's
the Floating Debt.
New York Sun.l

New York sun.l
At,ost thu Sun IL able to foreshadow the
impending fate of the Richmond ana "es'
Point Terminal system. which during the
mast wear or two hiss burst into prominence
A the most extensive railroad combination
in this country. Its decline has been as
rapid as its growth, and the financial ~or'a
has watched the Developments in the pro-
pertv during the past few weeks more
teenlv than any security on the list. Inc
Union Pacifjc's troubles over ITS noating
debt were small COMPARED with the r oisas-
teya which threaten the Richmond lerni-
nal system. for no such dangers OK disinte-
grafton menaced the former. uru
IL seems TO be settled that Jonn H. III
man and his friends will retire rom .no
management. and practical raiitoa To.ne;
will take charge Of the kicnmond teIihi-
nal system. running it either as whole or
90 senerste roads. This is what Mr.. In,
man has been negotiating for so long. anu
!, sho,vs the extremes to which the CON-
nany was put. 1t furnishes q sufiiclent
reason for the strict secrecy which hSs
been maintained.
sMiTHERs THE BANKER.
Tho climax was reached when Mr.. In
man Of his own accord called upon Mr. n;
w Sm,thers. the banker of London ana
frankfort. for assistance. Mr.. Smlthers
looks upon tho fnAnciering OF rallroao
properties in distress as mere cniid'S pay
and he has achieved a good deal OF noto-
riety during the past few years oy the
magical success he has had in getting ior-
eien institutions to swallow up unuesIIs.
HE floating debts The latest instance was
H. I'ouisyilIe and Nashville, which Mr..
Smithers several years ago Lifted out
of the mire and placed upon IT'S feet again.
He accomplished this,wonderiul trsnsior-
nation through Mr.. Ex. Norton, the iate
president, whom he put IN charge OF the
road. A..
Mr.. Smthers hos wrought the SANE
magic change in many other roaus, III
Guiding, it is said, the Mexican Nati9hai
and Mobile and Ohio. He IL also said 10
rave been interested IN Wabash affairs. re-
presenting some Of the Englifh bond
When Mr.. Inman turned TO Banker
Smithers as the great healer. probably ne
didn't think that the latters terms woui1
he so exactlng. Mr.. Smitherss short an
sWer was, in effect: -,
IF | take hold Of the debt. you VIII
have to step out and lot me run tne Ioad,
Mr. Smithers would not touch the
property unless he could put his, OLD
friend, TX. Norton, in charge as president.
M. Inman had the first negotiations with
Mr. Jacob II. Schiff, who Is az the head Oh
tbe.banking-house of Kuhn, Loeb x Co,
which. with Speyer & Co., represent DIT.
Smithers in America. Mr. Schih ihaae
known to Mr.. Imam the demands OF Mr.
Smithers and tncgotions went so lar
that the latter has come New 1ofk III
order to perfect the deal.
THE GEORGIA CENTRAL.
Mr.. Smithcrs has already taken up the
floating debt of the Georgia Central
through Speyer X Co.. and this TACT lends
color to the belief that the deal has been
chnched. surrendering absolute control OF
the system. II 30. 1t Is only question OF
time before MIR. inman will make the I'M
uleasant announcement. 1t is very posi-
bic. however, that tho price and commits
sions for handling the Richmond and Dan
Vile and Georgia Pacific floating deot
have not vet been fully settled. But 1t IS
admitted that Mr.. Smithers ID IN posi-
ton to dictate his own terms.
From the deal for handling the Georgia
Central debt IL will be seen that MT.
Smitherss services come high, anu ne does
not care to touch anything that hasn
| millions in it," Speyer d Co. looked
over the assets OF the Georgla Central That
were left II the treasury. including sl,UOO,-
O0O bonds mostly or the Savannan anu
Western railroad. They agreed TO take the
bonds and certain steamship property as
collateral on loan OF between Si;OOo,Ooo
and IS 900, 900, or the extent OF the noating
debt of the Georgia Central. IL IS twelve
| months loan at per cent. interest and
per cent. commissions. with the option OF
purchasing the S7,O00.000 bonds at 70 at
ihe end OF the period. There were
ORIGINALLY assets of S27 100000 par IN the
| treasury OF the Georgia Central, but some
| thing like S1O,O00,0O is said to have been
| pledged for previous loans.
FLOATING DEBT.
| Probably the terms for handling the
floating debt of the Richmond and Dan
Vile and Georgia Pacific. which amount
| to nearly $4,000, 900, will be fully as liberal
| as the Georgia Central arrangement. 1t -
| not difficult to imagine clean profit OF
several millions in this job of hnancierlng
| the Richmond Terminal system after the
| fashion of the London bankers previous
railroad ventures.
Mr.. Smithers is not exactly banker IN
| the American sense of the word, but rather
an intermediary, who has acquired q large
| clientele. among European institutions Tor
| drumming up paying investments and cor
| pOrations to finance or rehabllltate. lie
| has no elaborate bank building. 1t Is said,
| for his headquarters, with which TO draw
patronage. Consequently director OF the
| Richmond Terminal Company, who reiuc-
family verified the fact of the deal. was
not much out of the way when he asked /;
Who il this fellow you talk 50 much
about? didn't even know that he was in
the banking business. l guess there are
| banking-houses on this side which can
| carry the Terminals floating debt If they
see fit. We don't have to 90 to Europe,
although / may say that several European
houses have agreed to join the syndicate,
which will tide the company over. But
| several American institutions Will also
have hand"
mission of SmIthers's having charge of
the deal. for, as mentioned, he Is an in
termedlary for foreign banks, but at the
| same time the dictator of the situation
and really their better. And the Ameri-
can houses referred TO are Speyer x 90.
and Kuhn, Loeb q Co.. who are acting as
agents for Smithers and indirectly for bis
clientele III Europe.
DIRECTORS DIFFERENCES.
A great deal has been said during the
mast few weeks about the differences In
the Board of Directors of the Richmond
Terminal Company. 1t is well known that
there are three antagonistic elements, and
ell efforts TO come to an understanding
| have failed. Mr.. Inman and his friends,
however, practically control the company,
and the minority, 1t is said, has been III
vited to get out. This accounts for Mr..
Inman undertaking the deal with MIR.
Smithers by himself. There have been
several meetings of the board lately, but
| Mr.. Inman. it IS SAID, has not .vouchsafed
anv information tbereat about his dealings
with Mir. Smithers. At the meeting yes
terday they expected to hear from MIR.
Inman, but he didn't mention the floating
debt. A few formal things were done. and
the books were closed for the annual meet
ing i'll December.
4 great deal was said about alleged diff;
ferences between Messrs. lnman and
Thomas and the refusal of the latter to
help the Terminal out OF its difficulties
through tine East Tennessee. Virginia and
Georgia. which the Terminal used to con-
troll. but does not any longer. The Termi-
nal owns good deal OF the preferred stock