The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-28
TERMINALSLAST CHANCE
DREXEL, MORGAN 81 90. TO TRY
TO SAVE 1T.

They VIII Make Thorough Exarni-
nation of the Physical Condition of
the Property and It's Future Needs.
A Profitable Alliance With Other
Roads Among the Possibilities.
NEW YORK, May 27.-The movement
which has been agitating Wall street re-
Gently looking TO the possibility of intrust-
ing the reorganization of the Terminal
company to Drexel, Morgan & Co., culmi-
mated most successfully this afternoon. A
gentleman prominently identified with this
movement from its inception gives inter-
esting facts explaining the deal. He says
that for some months past there has been a
large element of Terminal security holders
who believed that the property could not be
successfully reorganized without enlisting
the aid and cooperation of some powerful
banking interest, and no such bank
ing interest in this country
stands as we'll equipped for the
task as Messrs. Drexel, Morgan & Co.
Many Of these security holders gave quasi
support to the Olcott plan rather than put
straw in the way of its success, but they
never believed heartily in it. IL is gener-
been identified with this element of security
holders, and have guided their actions more
or less from the very beginning. The Cal
houns advised, however, that nothing be
done precipitately, but that patience be
exercised In waiting until the Oloott COM
mittee confessed its failure.
MEETING HELD.
AS soon as that confession was finally
made a conference was make at the bank
ing house Of Messrs. Kessler & Co. At this
meeting the plan of the Calhouns and their
intimate associates was given definite shape
in the form of letter addressed to Drexel
Morgan & Co. This paper was then quietly
circulated for signatures and met with
favor everywhere. 1t was at this juncture
that the Thomas-Strong~Clyde committee
called meeting Of stockholders at the Office
Of Work, Strong g. Co. and submitted in
outline a plan for reorganization without
the special aid of any banking element. 1t
was suggested at that meeting that there
was no reason why the necessary reorgan-
ization could not be accomplished without
paying any bankers 81. 900 900 or more for
their cooperation. The morning after this
meeting it leaked out that there was au-
other movement on foot entirely different
from anything that had yet been suggested.
This was something in the nature of an un-
expected bomb in the Thomas-Strong-
Clyde party.
PLEASED THE STREET.
AS soon as it was definitely learned that
Drexel, Morgan & Co. were the bankers to
be approached on the subject, Wall
street insisted that no plan could
stand In opposition to that, and
nobody appreciated this more than Messrs.
| Strong, Thomas and Clyde themselves, to-
gether with those who had been co-operat-
ing with them. The Thomas-Strong-C Clyde
mil han NhnTN 1In
by calling another meeting of the stock
holders and recommending the very line of
| action that had already been put in motion
by the Calhouns and their friends. Accord
ingly letter was at once addressed TO
Drexel, Morgan & Co., signed by the
original committee of three, viz: Messrs.
Clyde, Thomas and Strong, and likewise by
teen, which had been appointed to
cooperate with them. Before this docu-
mont reached Drexel, Morgan & Co., how
ever, one from Spencer Trask, Messrs
Calhoun, Kessler, Bloodgood and others,
had been presented, bearing over fifty
signatures. These names, 1t is said, repre>
sent a large majority of the Terminal Sc
curities. By this curious double action on
the part Of both factions the petition to
Drexel, Morgan & Co. was made practi cally
unanimous, and they have to-day addressed
both parties formal letter. accepting the
responsible trust rendered them.
HARMONY ON THE SURFACE.
Under this latest denouement all the differ
ing elements have been seemingly brought
into the utmost harmony, and the prospects
for the substantial rehabilitation OF the Ter
minal property are better tonight than
they have been since its trouble begun.
Drexel, Morgan & Co. g Identification with
the property will tend to establish public
confidence at once and make a line of credit
for all the Terminal securities, which they
have seriously lacked for some time. 1t is
in the most perfect fitness of things that we
see the probability of Sam Spencer, a
thorough southerner and man Of conspicu-
Gus railroad ability. prominently connected
with the Terminal system.
As the examination will include the
present financial and physical condition of
the property, as we'll as proper considera-
ton of its future need, the bankers require
ample time to make it as thorough as possi-
BILE in order to reach a sound basis for any
reorganization. AS Mr.. Pierpont Morgan
is on his way across from Europe, no i'm
mediate action will be taken A well>known
bank officer said to reporter for the EUen-
ing Post to-day that it is understood that
Drexel, Morgan & Co. will be able to bring
about a profitable alliance between the
Richmond Terminal system, the Reading,
the Baltimore and Ohio and the Chesapeake
and Ohio roads. M. j. V.