The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-08
DEBTS OF THE DANVILLE.
HOLDERS OF UNDERLYING BONDS
UNITING FOB PROTECTION.


DeDosi: OF the Securities in Default
Win tie Mercantile Trust Comp any
suzges.=d--he Policy OF the Old
. Regime IN Favor Of the West Poins
. Terminal Company s. Against the
Dzcvils
BALTIMORE. Nd, Nov. The commit
Zee T tds underlying bondholdsrs Of the
Richmond sui DanvilIe system have issued
a. important address 70 the underlying
bo1dholders IS follows:
After careful inFesti CATION and most
thoughtful Consideration the committee ap-
p1-1-sl 70 lo5z after the interests Of the uude~-
.r-1R bonds II the Richmond snd Danviiie
system. tes c11riIis1 that Il Is sbsoiuteI =
necessary mat the holders Of the UNDERLYING
roads, and more especial = Of those upon which
there lEs Deel defiant Of interest. shall ioiu
together for Jhe protection Of their mutual in
teres-s AMI enforcement Of their lust am legal
AIMS The policy Of the parties heretofore
controlling Toe kicnmond and Dauvihe com
pzIg clearly Indicated Al interest in
the bonds and stocks Of the Rich
mond and West Point Terminal and Warehouse
Company paramount to any they may have
hsld h the securities Of the Richmond and
baaVlie company. or OF such underlying bonds
ana shares as may be indorsed or otherwise
guarantee oy the Richmond and Danvi.ie com
pany The securities deposited as collareral for
company are almost entirely subordinate and
junior liens TO each and every iodorsemsut and
GUARANTEES Of the Richmond and Dsnviile Rail
road Company, and cannot Be enforced until
gour prior claims are satisfied
A PLAN OF OPERATION.
The Richmond and DanTille underlying bond
holders committee have adopted the following
general plan Of operation which shall guide 1t
10 its future work
/. That this committee proposes to act for
all divisional bondnolders OF the Richmond and
Danvlile system, omltJinZ none, and that it
VIII call for pooling OF bonds Of the various
divisions, only when in the Judgment Of the
committee, It may be necessary in order to
carry out its general purpose.
2. That in the judgment of this committee it
Is for the best interests Of the Dondholders of
the roads in the Richmond and Dsnville system
that the integrity Of the system should be pre-
served aud that II it should become necessary
to sell the property for the payment of It's
debts. it should be sold as an entirety: but
should the committee deem 1t wise, or should
the majority of the interest of the securities in
oe aut on any OF the divisional properties
which NAV be deposited with the committee, 50
request. then the committee will endeavor TO
secure a separate sale OF such divisional prop
erty aud II need be, to mature q plan for the
purchase and separate reorganization of such
divisional property
3. That the committee viii undertake to repre- -
sent 10 the pending litigation the interests OF all
bondholders whose bonds may be deposited
| with them, and will take whatever steps it NAV
| deem necessary to protect their rights and
/ secure payment of interests according TO the
| legal prOprietes
/ 4. That the work Of this committee shall be
| directed and confined solely to the protection
| and preservation Of the interests of the holders
4 of such bonds Of various issues called for as
may be deposited with the committee.
| DEPOSIT OF BONDS INVITED.
! In pursuance Of their plan the committee
hereby invites the holders of bonds in the Rich-
/ mOnd and Danvile system. now in default to
/ deposit the same with the Mercantile Trust and
! Deposit Company of Baltimore on or after Nov.
/ 10, under the terms of an agreement prepared
| by the Richmond and Danvile underlying bond
/ holders committee and lodged with said trust
! company, from which, or from any member Of
/ the committee, copies can be obtained. The
! bonds at present in default as follows:
] HeorRa racine railroad COmGany COnSOll-
/ dated second mortgage fives; Columbia and
! Greenville Railroad Company second mort
| gage skies; Dauville and Western railroad
/ first mortgage tiyes; Asheville and Spartan
/ burg first mortgage skies; Clarksville and
! North Carolina Railroad Company first mort
| ga e SKIES; oxford and GAINESVILLE Railroad
! Company first mortgage skies; Richmond aud
/ DanvIle nsolidated mortgage gold SKIES;
! Richmond and Danville debenture mortgage
skies; Richmond and Danyille consolidated
/ mortgage fives.
The payment Of g. per bond will be REQUIRED
at the time OF deposit Of the bonds for the pur-
pose Of meeting the incidental expenses of the
committee. The committee earnestIy advises
and recommends holders Of the above bonds to
unite with them in3 this action Your
claims are enforceable and can be maintained
II you are firm and act together the securities
guaranteed by Endorsement or otherwise will
doubtless oe protected in any plan of reorgani-
cation which may he proposed, or if not you
can protect yourselves II, the contrary,
you are Indifferent and neglect this op-
portuuty, be assured that yonr claims
will, as far as possible be ignored. The com
miltee reminds al underlying bondholders,
whether their bonds have been defaulted on or
not. of the fact that the very best bonds In the
system were attacked in the Olcott plan. and
that all tue indications point to an effort to
a oil 10 H. Iii
bonds for the benefit of the holders of Terminal
bonds and stocks