The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-08
TERMINAL In A BAD FIX.
rHa DANGgR OF A SMASH
GREATER THAN EVER.

rrna East Tennessee and Danville Fac
+,ons Showing an Inclination to Cut
Their Roads Loose-Hustling Neces-
sarv by all the Roads If Maturing
obligations are to be Met.
Npw YORK, May Tt developed to-day
chat a subcommittee. consisting OF F. d.
Tapnan. J. Kennedy Tod and II.
Bulge, were appointed at yesterdays meet
inc of the Richmond Terminal reorganiza-
tion committee, ostensibly for the purpose
of taking energetic steps to induce the hold
ers of underlying bonds to deposit their SO.
,rrities under the present plan, but 1t Is
generally understood that the suboommit-
tse was really appointed for the purpose of
drawing up new plan, which will provide
for the levying of an assessment on the
stock and funding of interest on the Termi-
nal collateral bonds.
GIVEN A SCARE BY FORMER DIRECTORS.
The action of the former directors of the
Fast Tennessee and Danville roads is said
20 have hasteued the committee in taking
this STEP Several OF the heaviest holders
Of the floating debt of the companies named
were personally requested by Chairman
Olcott to deposit large amounts of UNDER
living securities which they held. They
rsfnsed 70 deposit their securities, however,
and announced that they intended to de-
mand the return of their seats in the
directories of the boards which they had
given up at the request Of the reorganization
Committee. John II. Iuman, who resigned
from the East Tennessee board at the re-
quest Of the committee and was succeeded
bv W. P. Clyde, will probably request that
MIR. Clyde resign in his favor next week.
Other changes of like character are ex-
pected to follow.
INMAN INTERVIEWED.
Mr. Inman, in speaking of the matter,
said: "I am financially interested in the
East Tennessee property, and, as my inter
ests exceed those OF Mr.. Clyde, | expect
that he will make room for me. / am, of
course, more heavily interested in the DAN
willie property, but The movement of the
Danvile by Mr.. Oakman is satisfactory to
all interests, and l do not expect
there will be any change there
l think that il the committee
do not meet with success within ten days or
80 Gen. Thomas, c. McGhee and a group of
his friends will take charge of the East
Tennessee and the First National Bank
party and their associates will take care of
the Danville. The two companies will both
require aid in the nextfe months, thu, Dan
vile needing about 100000 and the East
Tennessee about $500, 900 to meet maturing
charges.
TERMINAL TO BE TURNED LOOSE.
1t is stated by others interested in the
companies named that the Terminal COM
pany will be allowed to drift for itself.
The interest due on Aug on the Ter-
minal 6s will, it is said, probably be de-
faulted on and the holders Of
~
floating debt say they do not
think the interest payments on the Rich
mOnd Terminal bonds aud the dividends on
preferred stock will be resumed for some
years. OF course, this may be averted by q
quick response to an assessment on the
Richmond Terminal common stock, and it
is expected that the committee will take
speedy action in that direction.
THE FIGHT FOR THE TENNESSEE.
KNOXVILLE, TENN, May THE case
against the East Tennessee Railroad Com
pany on a motion for an injunction against
Its becoming party to the Olcott plan aud
for receiver came up before Counselor
Gibson to-day. The complainants were un-
willing to go to hearing on their original
bill, aud therefore obtained leave and fled
at the hour Of hearing an amended
bllI making the Terminal and Dan
vile companies, the Olcott committee and
she East Tennessee directors defendants.
Inc glst Of the amended bill is that the
Olcott committee has obtained absolute
control of the Terminal, Danville and East
tennessee companies and has power to vote
majority of the stock in all three COM
psnies; that President Oakman and the
East Tennessee directors are tools and
creatures OF the OlcoUt committee, have
aod!cated in IGs favor, and operate
the East Tannessaa road
under Its orders, and that
therefore thev are unfit persons TO act as
directors, and are doing nothing to protect
t1e stockholders; that the funde of the
East tennessee company have been dissi-
pated; that it owes large demand loans, is
IN default for large bills matured for cur
rent expenses, aud is 100000 short on its
earnings for the fiscal year 1922. Mr..
OsKman's letter, April 25, to the Olcott
committee is made an exhibit to the bill.
A RECEIVER WANTED.
a receiver is asserted to be necessary, as
continued management OF the present di-
.sscVors .s threatens bankruptcy and ruin to
Sse ~ stockholders. The chancellor fixed
may g as TIE day when motions for in
junction and receiver will be heard by him
Lere' The amended bill also seeks to re-
move the present board of directors and
prevent either the Olcott committee or the
tterlLalhai. or any other person for their
,e eeneSnt, from voting the stock now held by
Ei9 SIe terminal or held or controlled by the
o4cot1 committee. The amended bill is
ealqently framed upon the proceedings
SGsalnst the Central railroad of
ueoLgla, although there are no similar
TT9lsVltutlonal or statutory provisions in
denuessee to those in Georgia forbidding
foundations or forbidding one corpora
s stoh 10 make contract with another tend
.a .ns 70 aeleat or lessen competition to their
teSpecuve businesses. The receivership
boo. H0A0 10 Aiioio ouSa-
IN AN i.lr answer setting up falsity and putting
80 .a,A issue the truth of every charge of in
VII 9Incy' mismanagement or malfeasance
va 70 put IN as soon as it can be pre-