New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-04-17
WILL TERMINAL GO DOWN !
The REORGANIZATION PLAN IN DOUBT.
SIGNIFICANT STATEMENT FROM MESsl'>
FAHNESTOCK AND TArPEN-IS THE
NATIONAL. Rank PARTY HOSTILEI

FAHNESTOCK AND TArPEN-lS THE
NATIONAL BANK PARTY Ho5TiLEf
Wall Street yesterday thought 1t saw the CLEAN OF
. knife somewhere near the Richmond Terminal pi'n
Of reorganization. There some persons WHO
thought they smeled blood on the pavement. lheoo
Ideas must be erroneous, because 1t Is hard 10
that the plan would be done 20 death In the mousse
OF Its friends. The motions grew out OF the iono"s
Official statement made late In the afternoon py H. -
Fahnestock, of the First National Bank ana freueoN
d. Tappen president Of the GaIlaun National BANK
who are members of the Olcot reorganization meehs
"There has been 10 meeting Of the committee since
the application was made some ten days ago 10 hs'
the certificates on the Stock Exchange. Chhiflhai'
Olcott has been i'll, and is out OF town. Mr. ray ne'
of the committee, has gone abroad Mr. Eihs' '"e
secretary. Is absent from the city on visit. Anu
Mr. Bulge who has been an active member Vi .0
committee has not been downtown to-day ms
figures issued by Secretary Ellis in the committee
new advertisement OF the 14th Inst were inc p",
deposits Of Terminal stocks and securities Us rei
IN him by the Central Trust Company, as aepON'o''
As to the large amount Of underlying securl.ie
which are stated In the advertisement as m''"e w.
deposited under the reorganization plan. we hu upon
inquiry that the total amount OF underlying o'"u,
of the East Tennessee. Richmond ana D''i,io ' "
virginia Midland companies which were uepo
up to the close OF business on Inc I4'h "es''s
S913OOO."
H. c. Fahnestock in addition said'
uThe success OF the plan far consists III locatns
The holdings of the several classes OF Ierhii" o'"
and bonds and in associatng their ho"o''' '
fashion, In an effort 10 rehabilitate thelF piop','
But so far the progress in obtaining O"'io ~ w
issue OF valuable security, such as the propoou new
4 per cent bond, has not been success. Inc ho'o
.rr ~ n majority OF the Terminal stocks possess
practically only the powers already III 'hc ii"nu' "
their board of directors to pledge all their equities ~
the stocks they control as security LOT nc" io"" "
agreed form. The theory oil the reorganA'''o" No"
mttees plan was to obtain voluntary cohees'ioh
60 ho bolders NJ mortgage bonds of the two systems
which should first assure important redueuoh Vi
existing fixed charges, and second Oy u'"ie %
propertlcs and pooling together their mortgages e"0
a practical blanket mortgage which should cover every
thing The serious obstacles In the way are tho gen
erl belief that the superior securities are ALREADY goo
to their agreed interest the fact that in the absence
of the deposit OF least majority OF each important
issue the committee secures no power 10 coeice
minority Therefore the concession must be entirely
voluntary and only II voluntarily made VIII IL DC
elective
The foregoing announcements were unexpected
a,er the large deposits of Richmond Terminal secur
ties up to Thursday. Secretary Eis OF the reofeah'
ization committee left this city 1Or loroh'o oh
visit feeling that important step nad peeh maue
toward the successful carrying out OF the piah inc
,one OF the statement made by Messrs fahneslocN
and Happen unavorabe affected Wall street meh VINO
looked upon 1t as indicating hostility on the part OF
what IS known as the First National Bank interest.
Some persons went far as TO predict th't IL nc''
the death OF the Olcott plan but these were lehos
OF the scheme. who coDtended that u dio no. hooee
srly follow that the First National party wouid come
ont openly against the reorganization, and While te
success Of tire plan might be delayed it was not De
stroyed The feeling of large element In the S'rcet
WAS expressed BY banker who Is largely interested
in the Terminal organization, who SAID
Although the Ocott plan favors the Richmond
,n+b a
il the plan will not go through long litigation VIII
ensue necessitatng receivers for about twenty-five
different roads and branches. ana the failure VIII
result IA dlsmcmberInent OF uls large
and valuable system Inc secret opposi'io"
party are doing all they to Illustrate the
Intentions OF the Olcott plan, and they have iittie
game of their own, which means the wreckhs Oh
The properties in their present shape and the getting
the control OF the system by freezing out tho hcoo
Terminal and other Junior security holders, bu' 'e
committee should be wideNwake to that 1act ana Us
they have the control of the Richmond and Dan
Vile and the East Tennessee, Virginia ana ueorgR'
they should not lose any time in relieving inc
managers who are only tools of the opposition gang
and In placing at the head OF the system sum
per=ons as will work In the interest OF all the security
holders and contribute to make INC pa"
success. The time is certainly passed for playing
double game and the sooner there is clear open ana
frank understanding Of the parties IN interest 'he
better IL will be for all holders Of the Richmond anu
Danville East Tennessee and Richmond Terminal Sc
curities.' , -
II became evident yesterday that there would soon
he lining ND Of forces that II could be known on all
hands what street interests favored, and what ones
really wished the failure, Of the Richmond lcr
minal plan. There is likely TO be some clashng OF US
tmony as to certain facts. The implication
which some persons thought was contained IN INC
Fahnest ockTappen manifesto that the advertiser an
nouncement Of the deposit of securities was mace wth-
ont authority by Secretary Ellis met by counter
statement 1t was asserted that while there had peh
10 formal meeting Of the reorganization commipsso al
Of the members excepting Mr.. fayne, who Is on MS
way 10 Europe had been TO the Central trust TOnl-
many and had approved the announcement. our
members Of the committee are said TO have gwen
written authority to Mr.. Ellis Another point Is MADE
that the amount Of underlying securities WHICH
is mentioned by Messrs. Fahnestock ana zap
non does not all that have come
70 10" the Central Trust Company, although the
grs may be correct respects the particular issues
Nntbing c0ud be learned here 10 the motive for
tbe s1it brought in Knoxville, Tenn to place the East
Tennessec Virginia and Georgia in the hands OF re,
osivcr General samuel Thomas Is at the South, but
HE friends here repudiate the i3slnuaton that he Is
connected with the movement secretly. The SUIT is
NOT fsfbered BY any Of the opposition party In tms
city INT The enemies Of the plan hail 1t as step whch
viii help to obstruct the reorganization proceedings