New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-12-04
RAILROAD INTERESTS.
TERMINALS COMMITTEE STOPS WORK.
TO AWAIT THE ACTION OF OBSERVATION-DISCLOSURES

TO AWAIT THE ACTION OF sToCKHoLDERS-THE
GEORGIA PACIFIC LEASE MUST BID BROKEN.
The committee appointed by the directors Of the
Richmond Terminal Company to examine Its affairs
extensively and prepare comprehensive plan Of re-
adjustment has decided to do no further work until
after the meeting Of the stockholders next Monday.
The decision reached at meeting yesterday at the
Office OF Eokstein Norton. at which all the members
were present. IL Is stated that the committee feels
that II needs the authority Of the stockholders back OF
IL to make any work II does satisfactory to the
who have been asked TO give their time to the labor Of
Strengthening out the Terminal tangle No IntmatIOns
have been given that the stockholders will epudlae the
action Of their directors in selecting the committee but
the members of the committee feel that they need not
run the risk OF wasting time, in view Of the possibility
OF such an outcome
This decision has eonnec with the steps taken
on Wednesday night by the preferred stockholders to
form committee for self protection member OF the
adjustment committee said yesterday: we are glad
to see the preferred stockholders organize Their
ample should be followed by the security holders as
thereby the negotiations for reorganization will be
facilitated
There IS something curious about the action of the
committee In suspendng further work. in spite of the
explanation advanced. 1t may possibly indicate that
some OF the Terminal interests less anxious than
they were previously TO submit the financing or re-
organization to WHO will slft everything to the
DOltOm UT POSSIBLY there Is need 10 impress upon
stockholders the importance OF voting President In
mans proxy II the services OF the rescue committee
not TO be lost II Is understood that the bankers
who have looked into the affairs Of the company are
satisfied with the condition OF OF the constituent
properties IT is evident. however. that the Richmond
and Danville company will. in the opinion Of those
who have considered the question, be compelled to
break the lease Of the Georgia Pacific be carried
down by that system. The Georgia Pacific owns 500
miles OF road. 1t leased 10 the Danvllle in No
vember, 1888, the lease TO run twenty years from
January l. 1889. The rental is for the net earnings.
the Danvillc company to make mp any deficiency to
meet fixed charges. The deficit for the year ending
June 80, 1890, nearly 100000. The Georgia
Pacific in June last leased the Central Railroad OF
Georgia, guaranteeing per cent on the stock The
Georgia Pacific has proved to be great drag on the
Richmond and Danve, but no mention of breaking
the lease has been suggested.
The floating debt OF the companies in the Richmond
Terminal system estimated at between 80 900 O0oand
Sl1 900 600 including about 81, 100000 for Richmond
and Danvlle S4,500000 for Georgia Pacific and less
than So 600 900 for East. Tennessee, Virginia and
Georgia. There IS little doubt that the adjustment
committee is convinced OF the need OF reducing the
Capitalization OF Richmond Terminal or providing
fresh funds by voluntary contributions. To avoid a
Acknowledgement Of the Terminal system Ii seems III,
evitable that sacrifices must be made by the STOCK ana
bond holders.