The times. [volume] (Richmond, Va.) 1890-1903, 1892-05-01
AN APPROACHING CRISIS
~ RICHMOND TERMINAL ArrAIRs.
He Says the Financial Needs Must
be Provided For.

New YORK. April SO-Iuterest in the Rich
mond Terminal plan Of reorganization has
been revived by the fact that the extended
time for depositing securities Of the company
with the Central Trust Company exp,ses on
Monday. AS the reorganization committee
has secured control Of about S75. .0O0.0 .0C0 out
Of the sgl .00O,O 900 Of Richmond Termi-
nal securities outstanding it is not
probable that the time will 10 ex-
tended as regards that class of securities
without penalty 1t IS understood that the
penalty after the close of business on Monday
will be per cent. The time for depositing
underlying securities expires on May 9TH. =
1t is understood here that large part Of
the opposition to the plan Of reorganization
comes from interests that are bent upon the
dismomberment OF the system. The LOU
villo and Nashville people are believed ~ De
eager - secure the Georgia Central road ana
the Norfolk and Western. il is believed.
would like to secure the EastI ennessee sys-
TEN. The Big Four" road is said TO Do alter
tie Virginia Midland.
a FINANCIAL CRISIS.
The financial need Of all of the constituent
companies arc rapidly approaching orsis.
which 50 far has been ayerted bY the nope
that the reorganization committee would
succeed in its efforts TO prevent totai col
lapse Of the system. Because there have
been no defaults the bonlhOlders appear 10
consider that the companies are solvent. out
It isideclared that their appearance OF soVeh-
cy Is deluslve. for Interest Is being paic upo u
many OF the obligations with borrowed
money. and the ability of the Terminal 'Oiil-
pany and Of the corporation 1t contro's ~
borrow any more Is about exhausted.
ALErrER PROM PRESIDENT oAKMAS.
As bearing upon the financial needs OF the
system the following letter from President w;
&. Oakman. of the Richmond Terminal and
the allied companies to the reorganization
april 25. 1892
IF. p. Olcott. Esq. Chairman, etc:
Dear Sir-I beg 10 presentto the committee
OF reorganization the annexed memorandum
OF the estimated re- luirements OF the 8lch-
mond and Danville Railroad Company to
and including July ], 1892. In ad-
dition to these requirements there is
an amount OF unsettled vouchers out
standing from the operation Of the Ge rgia
Central railroad, aggrega'ing about SsO0.OO0,
the larger portion of which our counsel ad-
wise we will be held liable to pay. II IA evil
dent. consequently. that measures mnst be
taken in season % protect the company from
embarrassment. and most earnestly beg that
the committee will hasten Its operations 10
such extent as 10 provide for maturing obh-
cations
THE FLOATING DIET.
The floating debt Of the Richmond and
Danville is secured in q great part by pledge
of collaterals belonging 10 the Richmond and
West Point Terminal Railroad and Ware
house Company which is also indorsers upon
the notes issued 10 the syndicate. maturing
June lst. and the embarrassment OF
the former must inevitably involve the
latter company. 1t has no inc, lc to
meet its fixed obligations when they i'ature,
excepting through the operation OF th'- three
railroad systems in which IT, is interes hy
Thieh 4 8 Georgia Cunt'al Is l. li4o Coo q, IL
the Jnit.d States courts. The East Tennessee.
Virginia and Georgia Railway Company Will
also need a sum approximatlng -5OO1JJ over
receipts from operations TO carry Il over July
l. 1882.
Unless provision is made for the financial
need Of the companies IN season most seri-
Gus danger is threatened, and should the
holders Of the demand obligations OF the
two companies become alarmed a crisis may
at any time be preciptated.
Yours truly.
wv. q. OABMAN President"