The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-04-19
TERMINAL SECURITIES.
An Explanation as to Mr.. Fahnestock's
Complaint,

New York, April IS.--The following
was made public this afternoon In the
matter of the point raised by H. G. Fahne-
stock of the Richmond Terminal reorgani-
zation committee, that the last formal an
| nouncement of the committee is misleading
| as to the amount Of underlying securities
deposited under the plan with tho Central
Trust Company. George s. Ellis,
who is secretary of the Richmond
Terminal, says: ut was impossible
at the Fclose of business Thursday
to count all the securities and the efforts OF
the Central Trust Company were devoted
almost exclusively 30 the work OF counting
and analyzing the Richmond Terminal
securities. The first thing to be done was to
get In that class of securities The un-
counted underlying securities made
formidable pile ON the desks Of the trust
company, and it was apparant to every one
who saw them that there must be large
amount of them. In addition the
trust company had received written
assurances from responsible persons that
they would deposit underlying securities of
upward of 81 ,000, 900, which were in transit.
Accordingly the advertisement was pre-
pared, stating that a very largo amount had
been deposited. AT the instance Of Mr..
Fahnestock the word Every" was stricken
out and the advertisements SO amended was
approved by the signatures of Mr.. Fahne-
stock and every member OF the committee
except Col. Payne, who Is on
his way to Europe. On the fol-
lowing day Mr., Fahnestock wrote to
the trust company, asking it to give him
severally the amounts of higher grade
bonds OF the East Tennessee, Richmond and
Danville and Virginia Midland issues, which
had been deposited. His request was COM
piled with, but the reports did not, of
course, cover all the underlying securities
deposited, or those pledged to be deposited,
relating merely to those especially asked for
lowing to the holiday season, my
members of the committee 1t
was impracticable to hold meeting to
consider Mr.. Fahnestock's objection, but
one will be held tomorrow morning. For
my part, / consider the deposit large, CON
sidering the fact that no special effort has
yet been made by the committee TO bring
in at this state of the reorganization any but
the Terminal securities themselves"
The published statement that some other
member Of the committee had indorsed
Mr.. Fahnestock's attitude could not be
confirmed to-day.
TALK ON THE STREET.
The Richmond Terminal scheme occupied
a good deal of attention in Wall street to-
day as a result of the statement by Messrf.
Tappan and Fahnestock. which was sent in
these dispatches Saturday. The Post saws
it was said to-day, by interests which have
been prominent in the reorganization plan,
that the resignation Of those two members
OF the committee would be requested, but
to-day Ii became known that another mem
Der of the committee had written to Mr..
Fahnestock lndorsing the action
taken by him on Saturday.
This would make any changes
| now almost impossible, Mr.. Fahnestoek
said: The work of the reorganization com
mittee had apparently been assumed by
MessCs. Bulge and Ellis, and they do not
seem 60 have cared for our advice or
| assistance Changes in the various ad-
vertising notices have been made SO often
without consulting the rest of the COM
mittee that we thought it time to assert
our rights. On that account Thursday q
advertisement was referred to the com
mittee, with the amount OF de-
posits left blank, and the de-
posits OF the underlying securities
were referred to as very large. | signed
this notice. and 80 did other members of
the committee, but first insisted that the
word very" should be eliminated.
wanted the figures of the underlying sscuri-
ties given with the same franknass that toe
figures OF the Terminal securities were
treated with, and on Friday 1 insisted that
the Central Trust Company should furnish
the figures of deposits of Vir-
ginia Midland, Danville and East
Tennessee bonds. When l obtained
the figures, wrote to Mr.. Bulge insisting
on the advertisement being changed, but
did not get any response. The plan still
exists, but as far as the syndicate is con
cerned, IL must be remembered that it was
formed to take up a first mortgage bond
and 30 far the committee have nothing on
which to base first mortgage bonds. Mr..
Fahnestook would not say whether he in
tended to resign from the committee or not
A NEW SCHEME.
From other sources. very prominent in the
history aud past and present management
OF the company, it Is learned that another
plan has been prepared providing for cutting
off of three years coupons on Richmond
Terminal IS and 6s, and the concession Of
three years. dividends by the holders of
preferred stock, and the placing of an
assessment Of 10 per cent. on the present
Richmond Terminal common stock. It also
provides for cutting down of interest and
charges on those branches which do not
now earn interest. The parties back of this
plan say that they expect that after
the expiration OF three years that the
company would be in q solid financial
position and would thereafter have no
trouble in meeting its interest and dividend
payments 1t is expected by some parties
that Chancellor Gibson will order that some
other party be substituted for W. G.. Oak
man as president of the East Tennessee road.
Mr.. Olcott, chairman of the reorganization
committee, is detained at his home iu New
Jersey by Sickness and is not expected TO
be able to attend to business yet for some