The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-14
TERMINAL'SLAST CHANCE
DRHxsL, MORGAN S5 90. TO TRY
TO SAVE IT.

They Express Their Willingness TO
Undertake to ReorVsnizs the Prop
erty-An Assessment on the Com
mon Stock and a Heavy Scaling OF
the Bonds Looked For.
New York, April 13.-Regarding the
plan of reorganization Of the Richmond
Terminal system by Drexel. Morgan 81 Co.,
Samuel Spencer, who has charge Of ths
matter for the firm, said this morning:
we are not yet ready to make statements
as TO Richmond Terminal affairs and
know nothing OF the publications that we
have made up a programme for reorgani~
zation.n
It is the understanding among people
having large interests in the Richmond
Terminal that the reorganization plan has
been practically perfected and that it will
be announced when approval is received by
cable from j. Pierpont Morgan, the head
OF Drexel, Morgan & Co, who is now In
Europe. The various issues OF bonds Of the
roads in the Richmond Terminal system
will probably be scaled down in volums
and reduced In interest with no sparing
hand. The actual money for the present
and prospective needs OF the system will
come from an assessment on the Richmond
Terminal common stock. Richmond
Terminal preferred stock will, 1t is ex-
pected, be changed into income bonds. The
whole scheme for the rehabilitation Of the
property from all accounts will be OF the
most radical character.
A special nesting of the board OF
directors of the Terminal company was
held this afternoon 40 the general Offices Of
the company, No. so Broadway this being
the first meeting held since Feb. 4. Wall
street anticipated Important developments
In the property as result of the meeting.
1t was rumor6d that Drexel, Morgan & Co.,
after careful investigation OF the matter,
we're appointed 20 undertake the reorRani-
zation Of the company. The rumor could
not be verified. W. T.. Est. w. r. Clyde,
J. Q. Mabsn and several other gentlemen
had on informal but protracted meeting in
the morning. Each refused to tell the
nature OF the consultation.
70 UNDERTAKE THE WORK.
Drexel, Morgan 81 Co later in tho day
announced that they will undertake the re-
organization of the Richmond Terminal.
In letter written in reply to the letter Of
the Terminal committee, the firm saysg
"Wo believe that reorganization Is practis
cable on a sound financial basis that will be
equitable and prove 70 the ultimate adVan-
taRe OF all the security holders. We arc
prepared to act on your request and will be
ready 30 announce an agreemsnt and plan
OF reorganization aud TO form a syndicate
TO underwrite che same as soon as the
several classes OF securities of the Terminal
company, viz, the 9 per cent. bonds,
per cent bonds, preferred stock and COM
mon stock shall, pursuant to your letter Of
Feb. 2, have been deposited with us in
amounts sufficient to demonstrate that the
holders OF such securities generally Join in
your desire that we shall undertake tho
work Of reorganization. It must be under-
stood that we are given full authority to
L. oil - Ek,- Nska
company SO deposited in the plan when
announced, and that each depositor, by his
consent, gives such authority, and his COM
sent that all the terms and provisions OF the
plum. together with assessments on the do.
posted stock, shall be discretionary with
usn
The firm will begin TO receive deposits OF
stock and bonds at their Office on Monday,
giving temporary receipts which will be ex.
changed for reorganization certificates
countersIgned by the Central Trust Com
pAny. which will be the custodian Of the
securities deposited under the plan.
On receips of the foregoing letter the
committee issued tho following:
TO the holders Of the per cent trust bonds s
per cent must bonds, preferred stock and
common st0ce Of the Richmond and West
Poiut Terminal RGftt0aD and Warehouse
Company.
Referring TO the foregoing letter from Drexei.
Morgan q Co., we hereby recommend TO all
holders OF the above securities to deposit the
same with Drexe, Morgan 4 Co., No. % Wall
street, New YORK, at once. and in no event later
than May /, 1893, in order to assure them Of your
cooperation and to enable them to proceed with
the reorganization with the least possible delay.
Such a course is. IN our opinion, essential for
the protection Of your interests.
WILLIAM p. CLYDE.
q. +. stone.
SAMUEL THOMAS
WILLIAM E. STRONG.
J. @. MABEN.
THOMAS r. RYAN.
The board Of directors OF the Richmond
and West Point Terminal Railway and
Warehouse Company met and adopted these
resolutions:
WHEREAS, The foregoing letter to and recon.
fnondation by the security holders have been
laid before this board for its information.
Resolved That this board recommends hold
ers OF ell classes of securities Of this company
to deposit them immediately with Draxel,
Morgan g. Co, on the terms and for the purpose
named IN their letter.
The resolutions were sent out to the se-
curity holders over the signature of w. @.
ORkman, president, andE. X. Lynch, assist
ant secretary Of the Richmond Terminal
Company.