New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-17
THE PLAN ABANDONED.
CHAOS IN RICHMOND TERMINAL AGAIN.
UNDERLYING SECURITY HOLDERS BALK TIN
OLCOTT COMMITTEE.

UNDERLYING SECURITY HOLDERS BALK TIN
oLcoTT COMMITTEE.
The Richmond Terminal Reorganization Commits
tee, popularity known as the OlcOtt Committee,
| which has been struggling for weeks with the
complicated problems which it called upon to
| solve, yesterday announced its inability to cope
with existing circumstances. The committee issued
a circular declaring the Olcott plan imperative;
or, what is much the same thing, announcing that
there had not been sufficient deposit of under
lying securities to warrant the committee in decar-
ing the plan effective. Parties interested in the
preservation Of the system asked to take such
action to that end they might think best, tho
committee in the meantime announcing it's willing
ness to retain the custody of the securities al
ready deposited subject to the will Of the certG-
cate holders.
The circular was follows:
Holders of underlying securities having failed to
deposit amount sufficient to constitute basis for
the proposed issue OF bonds and to enable the com.
dee 70 to the an a ds the s ssrsss
Of the Central Trust Company and OF the securities
and s company @ and f'"' @ axy
uons OF this TACT In the absence OF adequate assent
stockholders OF the Richmond Terminal Company and
the holders OF other inferior securities may be neces-
clared objects Of the committee and of the plan pro-
posed by II, 1t cannot be adopted modification
IS made to give opportunity to all parties interested
in the preservation Of the properties to take such
trail Trust Company Is willing in the meantime TO
retain the custody OF the securities already deposited
ana the committee will continue In existence only SO
long as the interests OF the certificate holders shan
require. H
At the same time that the Olcott committee
was in session a meeting Of security holders was
held at the offices Of Work, Strong Il Co. 1t was
distinctly stated that this meeting was not In
IN fha
on the committees work expressed. About
100000 shares Richmond Terminal common stock
and large holdings Of the bends and underlying
securities were represented. committee con-
| sisting of Messrs Strong, Thomas and Clyde was
| appointed to consult with the Olcott committee
and report at another meeting of the security
| holders to be held tomorrow. Those present or
| represented at yeserdays meeting Charles
| Head < Co., Donald Gordon Il Co., 5. +. Johnson
& Co., George Low, Edward Sweet Co.,
| w. L. Patton L. Co, NJ Body & Co., Work, Strong
| & Co., w. Y Mortimer, White, Norris q Co.,
Spencer Trask & Co.. Moore d. Schey, Myers &
| Rutherford, General Samuel Thomas, P. Clyde
| and IIeman Clark.
The Olcott committee was formed about fivd
months ago. 1t had been proposed TO assess The
| common stock Sl5 share, plan that would have
yielded SlO,5OO,0O0. meeting Of the stock
holiers was called and resulted in the appointments
| of reorganization committee composed Of
| Frederic p. Olcott, Oliver H. Payne, Frederick
ID. Tappen, William II. Perkins and Henry Bulge.
with G.. S. Ellis secretary After prolonged
investigation OF the affairs of the Terminal Com.
pany and its auxiliary corporations, this committed
| formulated plan Of reorganization which con-
| templated the formation Of guarantee syndicato
| to provide over $3O,000,000 to meet the foatine
| debt and car-trust obligations of the system md
the maturing Indebtedness of the Georgia Central!
When the Georgia Central was placed in the
hands OF receiver a change in the plan was
necesstated, the financial needs Of the other
companies would not admit of delay pending the
adjudicatio of the Georgia Central litigation.
| Accordingly the securities of that road were
stricken from the plan. The committee had: in
| the meantime been enlarged by the addition Of
the names of II. c. Fahnestock and ]. Kennedy
Tod Changes in the system had also been made
eliminating in the retirement of John H. Inman
from the presidency and the election of Walter
q. Oakman 10 that place.
A guarantee syndicate was formed which
pledged the contribution of $14,5Ss 900 to pay
OF the floating and car-trust obligations and for
other reorganization purposes. The new officers OF
the company reported that it needed 81 100000 al
once TO meet current interest and that its treas
ury was empty. a threatened receivership was
| aveIted by cash subscriptions Of that amount from
individuals and banking houses. the only security
they received being three-lnonths' note given
jointly by the Richmond and Danville and the
Richmond Terminal companies
\ large ma jority of the Richmond Terminal Sc
curitics have been deposited with the Central Trust
Company under the terms of the plan, but reit-
Grated entreaties and threats have failed "a bring
in the underlying securities. The impossibility Of
securing the cooperation of those holdings led To
the abandonment of the plan yesterday.