New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-14
TO REORGANIZE 4. T.
DREXEL. MORGAN & co. ACCEPT THE TASK.


SECURITY HOLDERS ASKED TO DEPOSIT THEIR
HoLDINGs-No POLICY OUTLINED
Formal announcement WIS made yesterday by
Drexel Morgan Co. that they would accept the task
OF recognizing the Richmond Terminal system.
They do not outline any plan OF reorganization but
invite security and shareholders TO deposit their
holdings with them with full authority TO bind the
owners to any scheme that may l~ devised. The
security holders are In other words asked TO join In
n s0r: Of blind pool" out Of which o satisfactory
rehabilitation OF the company Is expected. The firm
Is not yet ready TO discuss any further steps to be
taken In the matter. 1t Is understood. however.
that an underwriting syndicate Will be formed TO
guarantee the OF any plan that may be ndopt-
ed, and II Is said by some persons who are IN
position to know the facts that when the syndicate
and its financial plans announced the Terminal
security holders will be entirely satisfied 1t IL also
probable that at early day proceedings will lie taken
to give Drexe. Morgan & Co. closer representation
on the board OF receivers.
The announcement was made yesterday In the form
of the following letter from the firm to the cCmmttee
OF the share and bond holders
New-York, April II, 1893
Messrs. william =. Clyde George +. Stone. William T.
Strong, J. {. Mabcn and Thomas f. Ryan, present
Gentlemen Referring to your favor OF February :.
1893 and OF the date would say that
carefully reeNamInd the AFFAIRS Of the llchmond
Terminal SYSTEM including it, subordinate companies AND
sound financial bas, that viii be equitable ana prove "
the ultimate advantage Of all secur ty-hoGcrs.
We prepared to act Oh your request, anu Will oe
ready to agreement and plan OF feorgahHa
ton and TO form yndcat" TO underwrite the same as
soon a. the several securities OF the Terminal
Company, viz per bonds, per cent bonds pre-
and stock, shall, pursuant N your
letter OF February ., have been deposited with us IN
amounts that the holders OF such
securities generally join in your desire that we shall un
dcrtake the WORK Of reorganization.
1t must understood that given full authority
10 include any the securities Of the Terminal Company
deposited in the ploD. when announced and that each
Deposition By his deposit, gives such AUTHORITY and his
all the and provisions n the plan To-
eeher with assessments deposited stock, shall be ais
crctonary with
As we presume that you will communicate the con-
tents OF this letter holders Richmond Terminal
stock bonds would further that In such event.
shall be prepared and after Monday April H. 1898
TO receive at our Office No. % Wallst, deposits Of Rich
mond Terminal securities above and to give our tenn
porary receipts for In negotiable form.
Upon OF the plan these temporary receipts
will be- eAchangeable for our reorganization certificates
gned by Central Trust Company which com.
any will be the custodian Of the securities delivered to
US for the purposes Of the reorganization
DREXEI. MORGAN co.
On receipt Of this letter the following circular was
Issued the holders OF the per cent trust bonds
the 5 per cent trust bonds and the preferred and
William p. Clyde. George F. Stone, General samuel
Thomas. william f. strong, J. c. Maben and Thomas
+. Ryan:
Referring 10 the foregoing letter from Messrs
Drexel, Morgan d Co., hereby recommend all
holders OF the above securities deposit same with
Messrs. Drexel Morgan & Co.. No. 23 Wall Street.
Ncw-Nork at once-and IN no event later that Nav
l. 1-03-ln order 30 them Of your cooperation
and enable them to proceed with the reorganiza-
ton with the least possible delay. Such course Is.
In our opinion, essential for the protection OF your
Interests IA. -
The board Of directors Of the Richmond Terminal
held q meeting In the afternoon and took the fol-
lowing formal action in favor OF the acceptance OF
the Drcxel-Morg,n proposition:
Whcrcas The foregoing letter and recommendation by
security have been lai before this Board for It's
information,
Resolved That this Board recommends the holders OF
all classes OF securities company deposit them
Immediately with Mos>rs. DrcNe Morgan Co. Oh the
terms for and the purI o~es named In their letter.