The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-04-05
WAITING TO BE ASSESSED.
.,yx1K4BLE APArHY or RICHMOND
TERMINAL sECURITT HOLDERS

WAlllNu ~ I'LL AooAA1oA>b'
s,usnKABLE APArHY OF RICHMOND
TERMINAL sECURITT AOLDERx
A eeh.n. to Gospel The~ - Surrender
centred OF Their Property-They Have
Been IndueeA 70 Believe that the r'isa
or Reorganization Cannot Succeed.
Although the securities OF the Richmond
Terminal Company have become inactive on
the Stock Exchange interest In the plan OF re-
organization has not died out On the con-
trary. interest In the fate OF the property in
creases with the decline in tho prices Of the
securities. and as approach lie made to the
time. April IL. whom the Reorganization Com
mittee will announce whether or not tho
plan has become operative This interest Is
intensified BY the evident inability OF the hold
ers OF the securities. particularly OF the direct
obligations Of the Richmond Terminal Com.
pany. to decide what course to pursue
Though the plan has been before the public
about two weeks. only q comparatively small
portion Of tho securities has been deposited
subject to the terms OF the reorganization
agreement, The listing by tho Stock Elk
change OF the certificates OF deposit week
nco has not, as was generally expected. slim
ulAtsd deposits.
Wall street has come to tho conclusion that
the plan will DO failure. yet 1t has been una
bic to determine why 1t should fall. Tho
only opon opposition It has developed has
come from tho holders OF certain OF the under
lying lions Of the constituent companies. and
Wall street has jumped to the conclusion that
this opposition 10 responsible for the apathy
Of all Glasses Of security holders. The fact
10 ignored that tho Reorganization Com
mIttse estimated In advance that $685.
100000 or S40.OCO.000 OF the best se-
cured bonds would not participate In
tho reorganization. and 1t has also been over
looked that tho participation OF thoee bonds Is
not essential to the success Of the scheme. It
IL tho Richmond Terminal Company that is to
be reorganiEed. not the corporations It con-
trolls. The principal interest OF those last in
the reorganization Is that they are to be con-
soldated. and that by agreeing to such step
funds will be secured which will prevent thom
from drifting into insolvency.
Interests antagonist, to the reorganization
have endeavored to thwart the scheme by lny-
ing stress upon the fact that the securities Of
the Richmond Terminal Company proper arc
treated more liberally In the plan than certain
Of tho underlying obligations Of the companies
composing tho system. But those criticisms
appear to have had quite as much effect upon
the holders OF tho common and preferred
stocks and collateral trust bonds Of the Ter
control Of or equities In the auxiliary compa-
MES. as upon the holders Of first mortgage
bonds. the security OF which is in the main be-
yond question. The real reason for tho hesi-
fancy on the part OF the Terminal SECURITY
holders TO accept the plan must DO found else-
whore than in the criticisms that have boon
passed upon It
For two months or more the problem that
Wall street has been trying to solve is: Who
Is going to control this great property. con-
sisting Of 9.sl6 miles OF railroad with Its
$4,000. 600 Of gross earnings? A reorGaniza-
ton upon sound financial basis. conducted
BY those who have no direct or personal In
terest In the various properties. would solve
the problem In one way. and give the control
to those to whom it belongs by placing 1t in
the hands of the present stockholders. whose
name. undoubtedly. Is legion.
the
!ndiylauals but at the expense Of the preseSn.
G sse
Se 81
NOUS fortunes out oft Il they can capture It
cue q drowning man 4 he does not wish to be
saved; and that would seem to be the deter
Of s se hrs OF tns Ts5
eoptemplates the destruction OF those security
holders: no mater what their presentpredlles-
prevent It's oonsummation.
T6s plan e The iorces to
ssticn now pending. with the view Of present-
Ing deposits Q, securities thersu 1E Attic
large enough to warrant the Reoreanization
plan viii. t is understood. be suggested to the
COMMITTEES. which viii propose a contribution Of
i Is part Of the calculation that this PROPOSE:
ton win put the stock to such : figure that
the control OF the company can be acquired
probability. viii result In Compulsory reor.
comparatively small issue OF new stock.
The new plan will; OF course; Withdraw the
esosae for tha
which may be EXCHANGED for the old ones By
The Of ., the on such
Securities tho pr9'spsstiys inslders can pur
been Injured upon in tKo' present plan. while
the new seeurities can be held at such prices
lew insiders. The present guarantee syndl-
cate will. Of course. he dissolved and probably
fsse!ys snail S9Hpsnsation for the risks 1t
tls expected that the present committee.
b offd having been sustained by the SECURITY
sent 70 promote ths new plan. I and thus save save
the eIPenses It has Incurred. The scheme
outlined above is not chimerical, but is the
ae a programme Of respectable bankers
entirely with tho present security holders.
Their d rroperty. having an aggregate value Of
terms. Under tho plan Of REORGANIZATION now
ee!oss re IN public tho Terminal stock is not
stock and 10 per cent. OF preferred stock. with |
ne option Of subscribing to new securities
which 2 bankers syndicate has contracted to |
t&ke uley arc not subscribed for
At the present price Of tho old securities the |
tnew ones can be obtained about points below |
legally bound to take them. The question !
nsiti1raliy suggests itself whether the present
opes viii b. worth less than those taken AK nf by
{ns guarantee syndicate. It Will be interest |
III 70 khSW whether their Indifference Is due
H!ce x REORGANIZATION before them. or to the
.sSS enat tt6isy are 10 league with the bankers
on mar nMS who hope to get tho property