New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-05-01
A CRISIS IN TERMINAL.
LETTER FROM PRESIDENT OAkMAN.
FINANCIAL NEEDS OF THE sYsTEM-DANGEk

FINANCIAL NEEDS OF THE sYSTEM-DANGER OF
APATHY AMONG SECURITY HOLDERS.
Although no official announcement was made yes
terday 1t semiOfeially given out That the ""'o
for the deposit OF Richmond Terminal securities uhder
the Olcott reorganization plan, which expires TO-
morrow would not be extended without the imposiuon
OF q penalty Of about . per cent As the heors".'a"
ton Committee controls about s75.O0OOoo out Oh tne
SOL 100000 securities there is no need lot sPc',a
consideration Of delinquent holders The ume io' inc
deposit of the underlying securities does not expire
until Friday There Is some apathy on the part OF
these security holders. The friends OF the reorsaHa
ton say that these holders do not realize the DANGER
menacing them. There several rival railroao III
terests which would doubtless like to pick up pieces oi
the Terminal system on their own terms.
The Louisville and Nashville Is believed TO haVe
an eve upon the Georgia Central the Norfolk ana
Western coud find use for the East Tennessee systeh
and the Virginia Midland might have attractions LOT
the Cleveland, Chicago Cincinnati and ST. LOUIS n
dsntegation Of the Terminal system would doubtless
facilitate these changes but the security holders OF the
constituent properties might find their position more
unfortunate than it would be under the reorganiza
ton plan.
4 letter of President W. c. Oakman, OF the Ken
mond Terminal to +. =. Olcot, chairman of the Re-
organization Committee calls attention to the nnanciai
strain which now is excrted upon the company Ill
maintaining its cohesveness. Tile Richmond ana
Of 81 900 900 on the joint note Of the Danvlle ana
Terminal companies This obligation falls due on June
l. and no provision has yet been made for its pay
Other obligations are coming due, and 1t is believed
that collapse Of the whole Terminal system with the
inevitable train of reccivershps and eaons. woald
be threatened in the event OF the holders OF underlying
securities refusing to assist the process Of reorganlza
tion Mr. Olcott is still unable from llheath to give
his attention fully TO the situation, but j. Kennedy
Tod il acting chairman and is working hard TO arouse
security holders realization of the need of prompt
action The letter of Mr. Oakman the subject is
appended
al bec to present TO the committee Of reorganization
the annexed memorandum of the estimated require
ments of the Richmond and Danvie Railroad Company
To and including July I, 1902 In addition 10 the
stated requirements there is an amount OF unseuleo
vouchers outstanding from the operation OF the georgia
Central Railroad aggregating about S3OOOoo, inc
larger portion Of which counsel advise we VIII Do
held liable to pay. 1t is evident consequently ul"
measures must be taken in season TO protect the COM
pany from embarrassment and l most earnestly beg
that the committee will hasten its operations 10 such
extent as to provide for maturing obligations
1.-THE floating debt of the Richmond and Danviile
is secured in great par by pledges OF co'ateras De
longing 10 the Richmond and West POINT lerihina
Railway and Warehouse Company, winch Is aso hai
dorser upon the notes issued TO the syndicate maturing
June l. and the embarrassment OF tue former must IN
eytably involve the latter company. III mas no III
come 10 meet its liked obligations when they mature
exceptinC through the operation Of the three railroad
systems In which II is i'er~s'"d. Of when me "eoiga
Central is in the control of the Cnitcd states IEup,
The East Tennessee Virginia and reOiga l.ali aH
Company will also need sum apprONliiaIs E1U1oUo
over receipts from operations to carry II over july II
"Unless provision is made for the financial need OF
the companies In season most se'l0a danger
e9ed a. ana ND s omn,n s become alarmed crisis may at
any time be precipltatcd'