The times. [volume] (Richmond, Va.) 1890-1903, 1892-04-19
AMOUNT OF SECURITIES.
Mr.. Fahnestock's Charges of Misleading
Statement Observation-Disclosures Ro-
organization Brought Ont.

i NEW lOhh, hpIu io.-In iOhONtus oeoec-
ment and correspondence was made public
this afternoon in the matter Of the point
raised by Mr. II. c. fahnestock OF the Rich
! mond Terminal reorganization committee,
that the last formal announcement Of
! the committee is misleading as to tho
amount of underlying securities deposited
under the plan with the Central Trust Com
pany.
Mr.. S. Ellis. who is the secretary Of the
Richmond Terminal COMMITTEES, says. | re-
turned TO the city to-day. having been absent
since Thursday night. With reference 70 Mr..
Fahnestock's objection 10 the forin OF the adj
yertsement the Central Trust Company
had been for several days receiving
large amounts Of the securities under
the plan and the clerks were taxed to
their utmos, TO merely receive the securities
and issue the temporary receipts. III was I'M
possible at the close of business Thursday 70
count all the securities, aud the efforts OF the
Trust Company were devoted almost exciu-
siyely TO the work OF counting ana ar
ranging the Richmond Terminal securities,
the first thing to be done being to get IN that
class OF securities. The uncounted under
lying securities made n formidable pile on the
desks of the Trust Company, and 1t appeared
to every one who saw them that there must
be large amount OF them.
ASSURANCES FROM OIHkhS.
In addition, the Trust Company had re-
celyed written assurances from responsible
persons that they would deposit underlying
securities of upwards of one million dollars
winch were in transit Accordingly the adj
vertisement was prepared statlng tnat
very large amount had been de
posted At the instance or Mr.. Fahne-
stock the word very" was stricken out
and the advertisement so amended was APP
proved by the signatures of MIR. Fahnestock
and every member of the committee except
Colonel Payne, who is on his way 10
Europe On the following day Mr..
Fahnestock wrote to the trust company,
asking 1t to give him the amounts of the
higher grade bonds of the East Tennessee,
Richmond and Danville and Virginia Mid
land issues which had been deposited. His
request was complied with; but the reply did
not, of course. cover all the underlying Sc
curities deposited nor those pledged to be de-
posted relating merely TO those specially
asked for.
Owing to the holiday season. my absence
and that of several members of the commit
tee 1t was mpractcable to hold a meeting 10
consider Mr. Fahnestock's objection. but one
will be held tomorrow morning.
The question what is or is not a large
amount may well be one as to which opinions
differ. Some might hold that. in itself, the
amount deposited is large but that in relation
70 securities not yet asserting it IS small.
For my part. | consider the deposit large,
considering the fact that no special effort has
yet been made by the committee to bring IN
at this stage of the reorganization any but
the Terminal securities themselves"
THE OTHER OBJECTIONS.
The published statement that some other
members of the committee hadi ndorsed Mr..
Fahnestocks attitude could not be confirmed
to-day. SO far as he learned from interviews
with each member of the committee the only
two who have addressed Mr.. Fahnestock on
the subject are Mr.. Bulge and Mr.. Tod.
Mr.. Bulge writes as follows:
APRIL 16, 1892.
III. G.. Fahnestock ESQ:
Dear Sir. " our letter of the 18th instant
was handed 10 me last night. On reflection
YOU will no doubt perceiVe the proprlety Of
addressing Yourself 10 the committee if you
desire 10 have any alterati on made. and |
Will submit your letter to the committee at its
next meeting, which will probably take place
on Monday or Tuesday next.
lSigned Yours truly. HENRY BUDGE.
The following is an extract of Mr.. Tod's
letter in reply 10 one received by him from
'Fahnestock yesterday
SOUND BgacH. CoSN. April H. 1892.
"As | do not know and cannot imagine
upon what grounds the term large amount
was employed. desire 20 inform myself con-
cerning the matter fully before putting my
hostility To. the committee or its secretary
Il cannot doubt that the use of the words
by the party or parties responsible for them
was inadyertent or in good faith, and. IN any
case. | strongly deprecate any action except
by the committee as such. The plan has been
already sufficiently embarrassed by o prevail
ING. but trust unfounded. popular impress
sion that the committee lack harmony and
common purpose"
ANOTHER REoRGANIzATION PLAN.
In the matter of the Richmond Terminal
REORGANIZATION il is learned that another plan
has been prepared. which provides for the
cutting of of the three years coupon on the
Terminal fyes and skies and the cOnces-
sion of three years dividends by the hold
ers of the preferred stock and the
placing of an assessment of 10 per
cent on the common stock. 10 also
provides for the cutting down of interest
charges on the branches which do not now
earn their interest The parties back of this
plan say they expect after the explra-
ton OF three years that the company would
be in q solid financial position. and would
thereafter have no trouble IN meeting It's IN
terest and dividend payments.
1t is expected that Chancellor Gibson will
order some other pers 10 be substituted for
W. G.. Oakmun as president of the ast Ten
nessee road Mr. Olcott chairman OF the re-
organization COMMITTEES. s detained at his
home in New Jersey by sickness. and - not
expected 10 be able to discharge his duties
for some weeks.