New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-04-19
TROUBLES OF TERMINAL.
A REORGANIZATION COMMITTEE SPLIT.
An INTERNAL row DEVELOPED OVER AN AD-
NEUTRALITY-SUSPICIOUS. OF BOTH SIDES.

ACKNOWLEDGEMENTS OF BOTH SIDES.
The revelation Of the hostile attitude Of the repre-
sentative on the reorganization committee Of the Rich
came through the statement given out on saturday by
H. c. Fahnestock did not prevent further deposits OF
securities yesterday with the Central Trust Company.
II is evident, however that the affairs OF the COM
mttee have reached crisis and the abandonment OF
the work Of carrying the reorganization nnder the
present plan can only be averted by spirit OF com
promise IL will require meeting Of the committee 10
determine whether any Of this spirit exists. but
n 4. hoped to have conference In n day two
Tho opposition developed In Mr.. Fahnestocks state
ment 10 which Frederick ID. 1alpan. another member
OF tho committee subscribed. Is crystallsed aona te
form Of the advertisement which Secretary George D.
Elli, az the committee inserted In the newspapers
last Friday and The chief objection seems 10 rest upon
the use OF the expression that large amounts OF
underlying securities had been deposited under the
plan Considerable light Is thrown upon the situation
by the following statement made by Secretary EillS
yesterday:
at returned TO the city today. having been absent
since Thursday night. With reference to Mr. Fahne-
stocks objection to the form OF the advertisement the
Central Trust Company had been for several days re-
ceving large amounts Of the securities under the plan
and the clerks were taxed TO their utmost merely 10
receive the securities and issue the temporary receipts
It impossible at the close OF business on lhuau"S
to count all the securities and the efors OF the U"st
company were devoted almost exclusively 10 inc "orh
OF counting and arranging the Richmond Iermlhai
securities the first thing to be done being To get III
that class OF securities.
"The uncounted underlying securities made
formidable pile on the desks Of the trust company ana
II appeared TO every one who saw them that 'here
must be u large amount Of them. In addluoh' 'he
trust company had received written assurances 'o''
responsible persons that they would deposit uhue'Ss
securities Of UPWARD OF 81 100000 when were ~
transit Accordingly the advertisement was prepared
stating THAT very large amount bad eeeh
Al the Instance Of Mr. Fahnestock the word very
vas STRICKEN ont and the advertisement 50 amended
WAS approyed by the signatures OF Mr. FahneStock ana
every member Of the committee except Colonel fayhe
who is on his way 10 Europe. on the foIlo"'"s u"'
Mr. Pahnestock wro'e 10 the trust compan! "S""o
fl to give him severally the amounts OF tne r's"'
grade bonds of the Eas Tennessee, Rchmohu "'"
Danvllle and Virginia Midland issues wh''h ia" o''"
deposited His request compiled WITH but the
rcn,v I'D NOT. OF course cover all the underlying
securities deposited nor those pledged TO be deposited
relating merely to those specially asked for
Owing TO the holiday season, my absence anu '''"'
OF several members II the committee, IL wa "'l
ticabe TO hold a meeting to consider Mr. fahneS'o'N
objection. but one will be held tomorrow morning.
The question what Is or Is not large amount may
we'll be one As to which opinions differ some W'sh'
na, In relation 10 securities not yet asserting II Il
small For INV part consider the deposit large co"
s,derinc the fact that special effort has y- oce'
made BY tho committee to bring In n; ms stag "
the reconciliation any but the Terminal s'c"''''e
themselves ,
That Mr. Fahncs'ock Is not IT. conclna'orS moo
secms IN he indicated by What was given OUT Fe-F'
40, al,houeb there are thought 10 b, traces Of an
an loce,,c tone I'm part Of his additional statement
H.. was quoted a. saying:
.,rne work Of tie reorganization committee M
apparently been assumed by MI hndre ana VT I'm
and the do not seem 81 have cared Tor our a'oe q"
assistance. The changes In the Varlon' aHN''uS"t
no,lcrs have been made often without eoaS"'n-
the rc-, Of the committee that We thought II uh'e !"
esert ou- rights ON that account Thursday al
v.rieemrnt was referred 10 the committee VIII NV
amount OF deposits lett blank. and the deposits o' '"p
UNDERLYING securities were eirrrd 10 - No's N''N.'
I signed this notice aud - did "thtr Weh'"c'a W ~"
committee but first insisted that ue wow Nc'!
.,ould lie eliminated. / wanted the figures OF The
,a.-ving secnriues gwen With Size sane i'nnAi'fss
that the figures of the Terminal securities VEN us'e
a. nm ard on Friday / Insisted uia the Genital irs'
Company should nIni,h tie figures OF tr drpH'~ ="
Tho virginia Midland. DanVle aud last iehe,'"
bonds When / ottLued The figures "ro'c 10 81.
pudro Insisting on the advertisement bcns chhsco'
but did not get any response. lhe pan 'uiI oN''s''
hpt "a far a. the syndicate Il oonecrned IL must "
u.m,cred ,,a, II wa formed Ia take az hrst
.uo4r,ge bond and 80 far The COMMITTEES mas ""''""r
In ts.e Grst NOR gaze bond upon.
The letter referred t. replied 10 by Mr. B'"'s''
n, uollearten a Co.. n, follows. under date oil shuhf
d.y: Your letter Of tie 18th INST VA fh"u'"
u, ~. last night On reflection you VIII no ovab'
nerceive the prupriey Of addressing yoaneh to tle
committee II you de.lrc To have any alterations
made and will submit your letter To The committee
a, nc next meeting. ahich VIII prbab tn'Se rl"'e
m Wondny or 1ucsdIy next , "a
n wps rumorod yesterday that j.. Kennedy ,. aon'
ara,b.- member o: the Reorganization CDhn"Itc;
60 disgrnntled as well ~ Mes'r-. iahnrs2.h 'u,u
Tanncn I'm reply TO letter from Mr.. lalhe,I ch'
NJ Tod wrote from South Beach. Conn, yeot ruhY.
and mo following extract will enable AM rea'" -
jndre ~ Mr. Tods position ,.,,o ,,r,c ,h,,
As do not know ana cannot Imagine upon w" ~.
1-ounds ,lpe term large amount wa cmploy"i, mr.
ar ~ inform my self concerning the matter IuIIy, uy
sre pittinc myself IN attitude OF seeming criu
ssm o. or hostility 70. the committee or ~,
cnnno, dfrIb that the Of the words ny thr parry
or parties responsible for them was inahvertehc or u,
good faith and I'm any case strongly uepFsS,'e az
ssc,nn except BY the COmmlttc" rs snch Inc pia'
bas a,rerdy been snfiicicnty smharrafsed py pr
,aoIna mi, 7 trust nniOuDdcd popular inpresNon
Sat ne committee lack harmony and common Pur
pose"