Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-06-18
THE SYSTEM INTACT.
HOW THE APPOINTMENT OF RE-
CEiveRS IS REGARDED.
Opinion Respecting Results In Commsr-
cfaI and Financial Circies-A Serious
Fear Dissipated.

Opinion Respecting Results IN Comm"F-
cial and Financial Circles-A Serious
Fear Dissipated.
The placing Of the Danville system in tho
hands Of receivers and the quiet manner
IN which this was accomplished was tho
subject of general comment ON the streets
yesterday. However. the not CONCLUSION
was that the move was good one as well
for the business interests of Richmond as
for the esccurity-holdors of the road.
When the news of the proceedings be-
fore Judge Spear reached here 1t engen-
dercd serious fears in business circles that
separate receivers would be appointed ior
the different lines composing the DanVille
system. with the result of breaking up
traffic arrangements and disorganizing
completely shipping facilities. But, as a
leading merchant aud member OF the
Chamber of Commerce SAID yesterday. and
his view was concurTed in by number OF
others largely Interested IN tine southern
trade, the system remains intact and kich-
mond cannot be hurt by the turn affairs
have taken.
In financial circles the opinion was ex-
pressed that the present situation was re-
lief and would materially assist IN the re-
organization of the system on a sound
basis. A capitalist who has large interests
al stake, when asked yesterday by DIS
PATCH reporter who would fight the pro-
ceedings. replIed that he did not suppose
any one would, certainly no would not.
REPEATING LITTLE HISTORY.
Another gentleman who Is intimately
acquainted with the affairs OF the system,
in reply to questions from DIsrArca re-
preventative as 10 the meaning OF the whole
step, said that IN order 10 make the puDIlc
understand the situation be would have TO
repeat a little history. He then made the
following statement:
From the very best information that
can be Gathered il seems that the orders
entered by Judge Bond and the different
United States Judges in North Carolina,
South Carolina, Georgia, and other
southern States IN which the Richmond
and Danyiile Railroad Company IS opera
ting. were made at the instance Of It's
friends and with the view on their part on
preventing the possibility OF u receiVership
In the proceeding heretofore instituted
before Judge Emory Spear, the United
States Judge for the Southern District OF
Georgia.
About ten DAYS ago counsel represent
ing parties Interested in the Central Rail
road Company of Georgia presented bIl
III Judge Spears court, asserting that the
Richmond and Danyiilo and Terminal
companies were largely indebted TO the
Georgia company; that II was unable 10
pay its debts, and asking the appoin. ment
OF receiver. The proceedings under TINS
bill were adjourned until the 18th. and the
friends of the Richmond and Danyllle, re-
calling Judge Spears action IN connection
with the suit brought 90 enloin the Ter
minal company from voting the STOCK oil
the Georgia Central Railroad Company at
the meeting of the stockholders. and by
which Injunction q minority or the STOCK
is held by other parties. was enabled %
turn out the directory friendly % the Dan
vile interests and assume complete con
troll of the road, were 0ppIehenslye thgl
upon the hearing of the bill on the lIth
instant this Judge mightappoint receiver
for 30 much OF the Richmond and DanYilit
Companies property and roads as were To-
Gated in the State of Georgia and tirt
over their management 10 unfriendly inter
ests.
HOW TO AVOID II.
1T was possibly 20 avoid such q result
and because the road is largely indebted
| 20 Messrs. Clyde. Meben. and other com
planning creditors that this effort TO fore
| stall judge Spear and the Georgia crcdt
| tors was attempted. BY this action th'
proceedings having for thor object IN,
| settlement of the vast interests Affected
| by the tWenty-seyen hines OF rallroau com
posing the Danyille system Will be hearC
| and determined in the United states Cir
cunt Court in tins State and directed a
| above suggested boy parties who's
object will be 70 facilitate as speedily
as possible the reorganization OF this
great system. IL IS thought that tn
| proceedings alluded TO will not Affect th'
| efforts AZ reorganization whlcn Messrs
| Drexel. Morgan q Co. have expressed thei
| Willingness 10 undertake. Mr.. Samue
| Spencer, representing this firm, has com
pleted in the last few days personal IN
| spectlou Of the railroad properties unde
| the control Of the Terminal company
| HIS report to Messrs. Drexel, Morgan 4
| Co. has not yet been made public, but 1t Il
| thought that he Will recommend that TN
| firm of bankers, with the assistance OF th'
committees representing the underlying
| securities of the Terminal system, VIII IN
| dertake a plan OF reorganization whlcl
| will provide for the floating dobt and re
| duce the amount Of the bonded indebted
| ness % point within the earning capaclt.
| OF the properties"
LSOrHEB GOOD EFFEcT.
Another effect OF these proceeding
| will be the speedy removal from Atiant,
4 to Washington, or plObADll " AiCuiiOL4b
| of many of the offices of the Terminal sys
| tenn now stationed in the former State. !
| has for some time been an open secret tha
| many of the officials OF the Danville com
| panv have been desirOus OF removing tn
| Headquarters of the company away iron
| Atlanta. They were carried there a. tn
! time of the lease Of the Georgia Central
I because Atlanta was the most central pom
| in tho svstem, and because of the iniiuenc
| of prominent Atlanta citizens IN tine man
agement of the Terminal company. Bu
| the experience OF the Terminal compan.
| i'm Georgia has been anything but pleasan
| or profitable. The company and ITS ope
rating lines. the Georgia Pacific ant
| tInual assault on the part Of the Legisla
| ture. the railroad commissioners. and th
| press, with results. "a the outcome shows
| alike disastrous 10 the railroad and IN
| business interests Of the - Cracker State.
| A telegram was received here yesteida
| ordering force of carpenters to procee'
| to Atlanta toremoyo the Offices 10 wash