Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-06-29
THE BUSINESS WORLD.
Drexel, Morgan 4 Co. Back Out Of
the Richmond Terminal Scheme.
REFUSED THE NECESSARY POWER.
1t Looks Now as if the Great System Is
Doomed to Disruption.
FIRES, FAILURES AND RAILWAY NEWS

NEW YORK, June 28.-Drexel, Morgan &
Co. to-day sent letter to W. E. Strong, the
Chairman of the Richmond Terminal Stock
holders Committee. The firm says i. has
made careful scrutiny of the affairs of the
Richmond Terminal system, and believe an
equitable reorganization possible, and one
that would make the property financially
sound. Then the letter runs thus
The complication and difficulties which
must be met in this connection make 1t
necessary, We need scarcely add, that we
should, as your Representatives, and as far
WSiOs for or
reason, desire to thwart the successful car
rying out Of such reorganization. With this
In mind. we deemed 1t essential before any
action on our part that majority OF each
class of stock and bonds of the Richmond &
Western Terminal Railway and Warehouse
Company be deposited with us for the pur-
pose of reorganization, and that all litfga-
tion should be put under our control, and
under the control Of persons of our selec-
tion, substituted for the receiver now in
possession of the properties.
Therefore. upon learning OF the appoint
ment OF recofvers Of the Richmond and Dam
vile property BY the United States Court,
we applied to W: P. Clyde to know whether,
the stock under his control would be trans
ferred to us and the present receivers resign
In favor Of Mr. Spencer. stating that such a
course was essential. He declines to give us
any such assurance and our conversation
with him leads US to doubt his loyalty to any
reorganization plan whatever. although he,
as one OF your committee, signed the request
to us to undertake the same.
As, In our opinion, IL is essential to the
success of any plan that during the reor-
ganization the properties involved be under
our control. as already mentioned, and as
the position taken by Mr.. Clyde makes this
impossible, we are obliged reluctantly to
decline the invitation to undertake the re-
organization.
The Post says:
The grounds assigned by Messrs Drexel,
Morgan Co. in their refusal to undertake
the Richmond Terminal reorganization
fully confirm the suspicion which has been
growing OF late, that controlling interests In
the several railroads which make up the
system are in reality averse to any outside
reorganization. The very interesting COR
respondence on the subject shows either
that the terms suggested by the bankers
bondholders, or else that the bondholders
had resolved, under any circumstances, to
cut loose their own companies from the
general system and take their chances alone.
IN either case, the present situation points
unmistakably to the disruption of the Rich
mond Terminal system.
The Committee of Fifteen met this after
neon, but adjourned until July without
action. The letter of Drexel, Morgan & Co.
was discussed, but the committee made no
expression as to its views. Members of the
committee still think Drexel, Morgan & Co.
will undertake the work of reorganization.
An order was signed by Judge Bond at
Baltimore to-day authorizing the receivers
to issue receivers certificates to an amount
not exceeding 100000. The money will be
used to pay the operating expenses of the
pointment of receivers and the car rentals
and interest obligations of the leased lines