The times. [volume] (Richmond, Va.) 1890-1903, 1892-06-30
rHE TERMINAL MIDDLE.
Why Drexel, Morgan ~ Co. Declined to Re
organize the Company.

organize the Company.
NEW YoRE. June 9.-Thepersons interested
in the fate Of the Richmond Terminal Com
paDy and its constituent roads were apparently
considering the situation to-day. All those
seen said nothing would be done now until
after the fourth. which would give time Tor
all concerned to think the matter over thor
oughy. Messrs. Drexel, Morgan d Co. de-
cined 10 discuss the question. Their
letter. they said, contained all they had
81 say on the subject, and 1t spoke Tor Itself.
They also declined 10 give out for publication
the correspondence mad with Mr. Clyde and
TO which he referred in the statement issued
by him last night Mr.. Clyde, they said.
could give out the. correspondence ne
liked: they had no objection 10 his doing SO.
Mr. Clyde declined. however. this morning
tO make the correspondence public.
The following statement concerning the
latest phase of the Richmond Terminal trou-
bic, which was made this morning by gen
tleman intimately connected with the system
aud in a position TO know what took place,
represents the views Of those security holders
who favored reorganization by Drexel Nor
gan d Co.. and are still OF the same opinion,
was verified by a reporter Tor the Evening
Post.
TIE RECKIyERsHlP A SURPRISE.
III understand" he said. that the Rich
mopd and DanyiAe reeeiyershtp came TO
D-exel. Morgan & Co. like a thunderbolt IN q
clear sky The day after they heard It they
conferred with MIR Clyde in order TO find out
its meaning. They wanted 20 know from
him whether he would be prepared 10 turn
over the receivers 10 them aud recognize
whether he was willing TO deposit his securities
without knowing what the plan Of reorgaza-
tion would be, in other words. put himself on
level with other security holders and with no
preferred claim ia any reorganization. Noe
having heard from him on Monday afternoon,
as expected. Drexel, Morgan Co.. in view
OF the near approach of interest payments
on July lst. and in order that they might not
be considered responsible IN any way for
delay in meeting these payments. decided TO
state the facts in the case IN formal letter
declining 10 make the reorganization.
The position which Mr.. Clyde now occu-
pies throws the responsibility for any rupture
~ the svstern on him aud has led TO various
criticisms. One is that he has obstructed the
reorganization of Drexel, Morgan x Co.. ia
order To undertake reorganization Of his own,
In which Richmond and Danyllle VIII hgure
as the principal company and TO the support
of which the others must contribute. 1he
other criticism is that Mr.. Clyde as the owner
of the water transportation lines is especially
interested in destroying the efficiency Oh the
Richmond and Danyille main line because IL
is ia direct opposition 70 his steamship line.
The belief that be may attempt reorganiza-
ton is supported by the fact that he hes pre-
yiousiy reorganized the property and made
money out OF 1t.
BURNING QUESTION.
The question before the Terminal securi-
tv holders is as 10 what would become or
them if the roads in the system become inde-
pendent property The lives and skies have
a lien on iunior securities as rule. All they
can do is 10 put them at auction and divide
the proceeds. If this is done, It IS question
whether there will be much 10 divide. As 10
the nreferred stock. il has no lien on the col
lateral ON the hack OF IT, and cannot stand in
the WAY of tho execution Of mortgages on the
propertv represented by this stock. As 70
the common stock. ii is generally eoncsded
that il has no show at ali, except IN re-
organization.
An official of the Danville Company makes
the point that Drexel, Morgan & Co.; IN ask
ing for the control of the recelverships are
putting themselves in a very delicate posi-
ton in assuming that the courts can DO con
trolled The answer 10 this is that DreXel,
Morean a Co. simply ask that they De
put In the position that Mr.. Clyde occupies
in the suits under which the receivers
had been appointed. If IN that position
they will be prepared TO further their own
claims as representatives Of the security mold
ers. Drexel. Morgan h Co. seek position
not different from that assumed by the Centrai
Trust Company or the First National BANK
people. when they undertook reorganization.
Those in control OF the properties were com
PEELED 70 step out. Drexel, Morgan GO;
wanted 10 be in q position where they could
not be hampered by the opposition OF any
single interest IN the properties.