Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-08-10
r. & o. AND THE TERMINAL.
Condition OF the Various Bonds and Sc
Notwithstanding to BE Done.

W DC Dob's
The directors of the Richmond Terminal
and the Richmond and Danville will meet
on Wednesday the 10th. says the New
York World of the preceding date, and try
10 get some sort of order out of the chaos
into which matters have drifted. Every
day gees rising tide of opposition to the
multiplying of committees tnat make sug
gestions and go no further through want
of power, push, or personsal interest.
Yesterday John Bloodgood issued call
for holders OF the per cent. Richmond
Terminal bonds tQ report at his Office for
concerted action. He says OF the situation
of their bonds:
The default on the per cent. collateral
trust bonds on the 1st of August Demon
strates that there will also be default in
tho interest on the per cent. collateral
trust bonds maturing September LIST.
The unpledged assets of the Terminal
Company, now loaned TO the Richmond
and Danvllle Railroad Company, should
be in the treasury of the former CON-
pany. and if there would add greatly to
the value of the per cent. bonds. The
cash value Of these assets is estimated in
the neighborhood of Si,OOO.OOO,, or about
40 per cent. on the per cent bonds now
outstanding.
IF the per cent. bondholders do not
act vigorously to protect themselves the
securities deposited in the Central Trust
Company 10 secure their bonds might be
sold at auction under foreclosure OF the
mortgage at great sacrifice. In such al
event the loss TO the per cent. Collateral
Trust Bondholders would be very great.
The securities loaned TO the Richmond
and Danville and hypothecated by the
company might also be sold, and the per
cent. bondholders realize very little on a
forced salen
It is not unlikely that the Clyde -Mabon-
Strong Committee may be pushed aside
because of their inactivity on this point.
A large holder of Richmond Terminal
stock and bonds was asked what he
thought of the company's situation and
the prospect Of successful reorganiza-
tion. He said;
Too many committees. am told there
are more than a dozen Of them. The men
who dominate these committees have con-
flicting interests; some have interests that
directly conflict with the best interests of
the roads which make up the Richmond
Terminal system. SO long as this condl-
tion continues there can be no re0rganiza-
tion that will place the property on a
sound financial footing.
1t is boast of one man who owns
line of steamers running in direct compe-
tition to the Richmond Danville railroad
that be intends TO reorganize the Rich
mond Terminal Company, and he has sue
ceeded IN estranging some of the most
powerful financial men in this country and
Europe. who were inclined to take up tho
business with reasonable hope of sue
cess. Meanwhile the unfortunate security
holders. like MIcawber, are waiting for
something TO turn up, while almost daily
new committees are announced.
What would you think of a PROPOSE
tion from the owners of the Great North
ern railroad TO reOrganize the Northern
Pacific IN the event of default on the
bonds OF the latter company? Well, 1t
would be about as sensible and business
like as placing the Richmond Terminal in
the hands of rival steamboat owner.
The Terminal Is suffering from three
very bad disorders-eyiz., too much tinan-
ciering in the past. too much Wall street,
and too many reorganization plans. Un-
less Its affairs are speedily placed in the
hands of men who are bonn- fde owners Of
its securities and who have no other in
terests to serve disaster must inevitably
follow