The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-23
TERMINAL GOES TO POT.
THE BIG SYSTEM IN THE HANDS
OF A RECEIVER.

tlt19d WIN tno Adn6Sem6nC OF the
Company - President Oakman Ap-
poirted Receiver by the Court-A
statement of the SYSTEMS Assets.
NEW YORK, June 22.-Upon an applica-
ton made before Judge Addison Brown, in
the United States circuit court to-day by
william P. Clyde and others. an
order was granted appointing w.
g. Oakman receiver for the Rich
mond Terminal Railway and Ware
house Company. His bond Is fixed at
800 900. The names Of the creditors asking
for the appointment of the receiver are
william P. Clyde. H. c. Fahnestock, John
G. Maben, John A. Rutherford, Miles
Rutherford & Co., William H. Sondley and
Reuben Foster.
In the application for a receiver It is re-
cited that the Terminal company never
directly operated any line of railway, but
was restricted to the business of a security
company Inability Of the company to meet
is obligations, which will fall due In the
shape Of interest on bonds and payment OF
notes, renders it insolvent, and in order to
protect its creditors and the company from
the expense Of separate executions a receiver
was asked for. The outstanding capital of
the company is stated to be $40, Loo, 900 of
common and $1,000 900 of preferred stock.
ASSETS OF THE COMPANY.
The defendant owns nearly all the stock
OF the Richmond and Danville railroad, the
capital of which is $4,000, 900. 1t operates
twenty-seven other railways in Virginia,
North Carolina, Georgia, Alabama, Ten
nessee, South Carolina aud Mississippi
Il also owns the entire stock of the B., c.
and r. Steamboat Company. The total
e kIo ~
only 1872, while the mileage Of the system
operated is $500 The aggregate capital
stock Of the twenty-seven railway lines
and steamboat companies is $43, 4S0, $50, of
which Sl0,707. 1857 is owned by the de-
PENDANTS to the bill. Some Of these roads
are operated as proprietary lines through
ownership of all or ma orlty of the stock
Others are operated on the basis of either a
fixed rental on the payment Of net earnings
or guaranteed interest The bonded debt
on the roads equipment is $16, 1856 900, the
car trust obligations foot up 81 ,542, 1924, and
tue floating debt is S5,000.0O0.
There is an emergency loan of 5000, 600.
The company owns of Cincinnati extern
sion bonds, in joint obligation with the East
Tennessee, Virginia and Georgia, SO, 900, 900.
The $600,OOO emergency loan was obtained
TO prevent default on its bonds on April !,
1892.
LEASE OF THE CENTRAL.
The Georgia Central system has been
operated at a loss to the company, and the
Terminals sole dependence being revenues
from dividends amounting to 100000,
against fixed obligations of 5000 900, and
other obligations coming due, nothing
could prevent It's being declared insolvent.
The So 0U0,O 900 extension bonds executed
jointly with the East Tennessee, Virginia
aud Georgia railroad are secured by trust
pledge of preference and ordinary shares of
the Alabama and Georgia Southern Rail-
way Company, limited.
On June l, 1891. the Danville company
became the assignee and guarantor Of
written lease executed by the Central Rail-
way and Banking Company OF Georgia on
all its systems of rail ways and steamer lines
for long term to the Georgia Pacific COM
pany, whereby the Danville company be-
came obligated TO operate said Central sys-
tenn and to assume and pay all interest on
bonds, debts and rentals, and obligations Of
the Georgia COMPANY; also an animal divi-
dend upon the entire capital stock Of the
Central Of Georgia system OF per cent.
The Danville company executed aud deliv-
cred 81, 100000 OF bonds to faithfully per-
form all the covenants in such lease.
The bonded debt of the roads operated by
the system and the rental obligations which
the Danville company assumed in oonse-
quenoe Of the absorption Of these roads by
ltds6 VI 10 OIL, lHo, lSO,
making the total bonded debt of the Dam
vile system of $S7, 3l4, 1876.
CLYDE'S VIEWS.
Speaking Of the receivership Mr.. Clyde
said II have no interest in the matter ex-
Geps as creditor and large security holder
Of the Richmond Terminal Company.
believe our action is for the benefit OF the
entire system. The Richmond Terminal
Company has been discredited and that is
- L,
got 800 lilies OF railroad with only float
log debt of between S.. 1000 900 and S6,OOO,-
OOO With the East Tennessee the floating
debt is only little over $6,000,00O. l do
not know whether Drexel, Morgan & Co.
will take hold of the system or not. l shall
be glad if they will but the system will not
now be disiutegrated if they do not. We
have got it altogether now by our
action this morning and 1t will remain 80.
The action of the City Bank was very
foolish. 1t may sell securities il it likes,
but it cannot give title to them and every
business man knows that. The auctioneeTs
have been notified that the securities are
now in possession of the receivers of the two
companies appointed by the court and that
If they sell them they the auctioneers and
bank could not give title TO them. | do
not think they will be sold under the circlm-
Stances
The Post referring to Richmond Terminal
affairs says this afternoon: "Much of Wall
streets interest to-day was conferred on the
affairs of the Richmond Terminal and
Richmond and D8nville Railway COM
panies aud the advertised sale of securities
on account of loan for 500. coo due to the
National City Bank by the Richmond and
Danville Company. BY many operators it
was supposed that an injunction would be
applied for to restrain the sale of the
securities, inasmuch as the Richmond and
Danville is at present in the hands of
receivers
The receivers of the Richmond and Dan
vile road attended the auction sale this
afternoon of the securities pledged to Sc
|cure 100000 loan from the City Bank,
and entered formal protest against the
sales, but the auctioneer ignored the protest
and offered the securities to the highest
bidder. Fifty thousand dollars East Tennes
see extension IS sold at %; $4,000 Wash
ElnRton, Ohio and Western at so; $1,000
Terminal IS at %; 1856, 900 Danville IS at 35,
ISlO,0OO Georgia Pacific %, at Is and 200
Shares of Virginia Midland at 80. 1t is sup
posed that the securities were bought in by
the bank.