Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-05-18
THE BUSINESS WORLD.
A Limit to Bondholders' Forbearance
Is Sometimes Reached.
VIDE THE TERMINAL COLLAPSE.
Several More New Propositions We're Sub
mitted Yesterday.
FIRES, FAILURES AND RAILWAY NEWS

NEW YORK, May 17.-Reterring to the
collapse of the Richmond Terminal plan of
reorganization, the Post, in its financial
article, says:
The episode will not be without its uses.
The tendency of railroad reorganizations In
the last decade has been more and more
toward discrimination against the bonds
and in favor Of the stocks. For this the
great consolidation of power in the hands of
shareholders was responsible; but the
principle was anomalous, because the
very purpose of reorganization is , to
That the bondholders should sacrifice some
nominal advantage in order to escape the
expense and risk of receiyership, is only
right; but it is equally just that the stock
should pay well for its privilege of con-
tinued existence. The Richmond Terminal
episode marks clearly the line of concession,
beyond which bondholders will not go, and
it Is well that the line has been marked.
The bankers who draw up the new plan
will have far less reason for misjudging the
investors temper.
A long conference of parties identified
with the Richmond Terminal system was
held to-day in President Oakman's office,
and at the meeting several propositions were
made in connection with steps for the
new reorganization, but no information in
regard to these propositions was given out.
General Thomas said, before the confer
ence began, that he could arrange the reor-
ganization with an assessment of or per
cent on the preferred stock. The new plan
would involve the reorganization OF both
the Danville and Terminal companies, as he
considers them identical; but the East Ten
nessee will go along as it is, without being
concerned in the affairs of the other COM
panies.
John H. Inman was asked by banking in
terests if he would accept the presidency of
the Terminal Company, but he gave posi-
tive refusal to the request. He will, how
ever, re-enter the Terminal Directory, and
in few days it is expected General Thomas
will resume the office of President OF the
East Tennessee Company.
The Tribune says:
1t is universally admitted that the Ter
minal stockholders will be called upon to
in order to keep the system together. Some
persons interested in the system thought
that S. share would be sufficient. 1t
is contended that under the Terminal
posed, and probably an attempt will
be made to secure voluntary contributions;
but, on the other hand, 1t is not impossible
that in case of backwardness on the part of
the stockholders the question might be
pressed as to whether the stock was fully
paid up, or, In other words, whether any of
1t had been issued without sufficient con-
Ii the latter were proved to be
the case. the stockholders could be held
liable, it is asserted, for the full deficiency
OF debts left by any foreclosure proceedings.
A representative of the First National
Bank interests in Richmond Terminal said:
There have been two good results from
the work of the Richmond Terminal Com
mittee so far, although they have been
reached by rather prodigal waste of time.
One is that Richmond Terminal securities
have been lodged where they can be easily
reached when wanted; the second is that
strong people have been led to a close
study of the Richmond Terminal properties,
and stand ready now to formulate reason
able and busineSs-like plan.