The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-21
OAKMAN A BORN KICKER.
zH WAS ASKED TO ARBITRATE
BUT REFUSED.

HnAeT-OC6du
Paid.
NEW YORK, Jan. 20.-Jacob Schif, of
the banking house OF Kuhn, Loeb & Co.,
and advisory member OF the Georgia Gem
tral reorganization committee, wrote last
week to W. @. Oakman, president and re-
csiver of the Richmond Terminal Company
and president Of the Richmond and Den-
vile Railroad Company, suggesting that
the claim Of the latter company against the
Georgia Central company. to enforce which
attachments suits were brought, should be
submitted 10 arbitration. MIR. Sohiff as
serts In bis letter that the Georgia Central
zone OF the fairest railroad properties on
this continent has been wrecked by the
Richmond Terminal management, and on
she ground that public opinion will never
permit the Terminal company 20 ever
again resume its control, asked that the lat
ter company shall assist in the rehabilita-
tion of the property, whose condition is
blot upon American railroad management.
oAKMAN's ANSWER.
Receiver Oakman in his answer charges
the reorganization committee with insin-
cerity In proposing arbitration and ques-
tions their authority to do so. He says that
the expressed desire OF the RICHMOND
Terminal interest to participate in the
sessions to settle the details of the reorgAni-
cation was ignored, TO the detriment of
their rights as owner OF a majority OK the
stock. He sums up the situation thus:
1t is an amazing spectacle for fair-minded
men to contemplate. Holins, Lehman, Den
nston and their associates sell to the Terminal
company controlling interest in the Central
OF Georgia. Their own chosen officials
are continued in uninterrupted power and
now they are by your side clamor-
ing for the crucifying of the interest they
sold, because this precise management inher-
tied from them has been SO wreckless and hurt.
full as TO become a national reproach. The
Terminal company most explicitly denies any
responsibility for the financial collapse Of the
Georgia Central Its officials regard your ac-
cusations as groundless and unjust, aud they
will resist with all possible vigor the execution
Of any reorganization scheme which denies
audience and works practical extinction of our
company's investment.
ALL THE RISKS COUNTED.
In reaching this conclusion we have counted
the hazards. We fifty estimated, for instance
the fact that the receivership and directorate
are being used as blind instrumentalitie5 TO en-
force your schemes. With money thrown away
upon the Macon and Northern Port Royal and
Augusta and other non essential securities and
the reconstruction of parts of the Savannah
and Western, and heavy new equipment pur
chased on shrunken traffic the receiver has
managed to empty his treasury as to create
an unnecessary and sham default on the trlpar-
tite bonds and enable yon to coerce all junior
late in September. created your com
mittee with declaration that the
company is entirely solvent and competent
to pay all its debts is noJ the conclusion too
paIpable when you try to build your reconstruc-
tion q default on the first lien OF only 5000
mile on one of the fairest properties on the
continent. The average net earnings of the
Ocean Steamship Company arc officially stated
at $474,533 per annum. It's yearly interest is
only S50,009 and yet convenient receivershp
allows that issue Of bonds to bs defauted in
additional furtherance Of your plan. Are you
prepared on full reflection to approve such hcti-
Eious, unnecessary and manufactured defaults
and the consequent shrinkege Of tho securities
held by many small investors in Georgia and
elsewhere as quite consistent with justice or
fair business methods? Is this not intention
ally creating false situation on which TO infiict
heavy loss TO others for the sake Of personal
profit?
AN ATTACK ON sPEER.
Receiver Oakman then declares that Judge
Emory Speer has been practically "a brevet
member OF the committee, scrive in attend
ance as assistant and COUNSEL" that he
stopped for some days in November and
December at the St. James hotel, New
York, where repeated consultations for adj
vice were had between members Of the com
mittee and the president and board of
directors of the Georgia Central Receiver
Oakman continues:
Without notice aud at night, he seized the
Central road when 1t was absolutely without
default in debt, dividend or interest. He ruled
that most Valuable collaterals should be de-
posted within his jurisdiction. and then handed
1t over to his receiver, pigeon-holng worthless
court certificates and his estimate OF an equi-
yalent. without motion OF bond, he vacated
tAe previous corporate election and disfran-
chised $4,000, 900 of stock. The combination of
the Judge aud advisory board may seem strong,
put you must also count on the poSs bility that
ms ranking judge may conclude that he is not
quite the person TO crowd through, under whip
and spur, reorganization plan to which he
has given partisan aid and comfort.
G1txsF d. tvA- - IT,
TO the Terminal interests ard asserts that
the charge against Judge Speer is without
warrant
PAYING OCEAN STEAMSHIP INTEREST.
The street was surprised this afternoon by
the announcement that the coupons on the
bonds Of the Ocean Steamship Company
would be paid on presentation to the New
York Security and Trust Company.
These coupons were due Jan. /, and the
iact that default was allowed, notwithstsnd-
ing the known handsome earnings of the
steamship company, gave rise to much
criticism. The company is controlled by
tne Central Railroad and Banking Company
OF Georgia.
CAN'T PREVENT THE REORGANIZATION.
Areporter interviewed Jacob a. SchifR
tne advisory member of the reorganization
committee of the Georgia Central Railroad
company, to-day regarding the publication
Vi tne correspondence between that gentle-
man man and President Oakmau OF the
ihichmond Terminal Mr.. Schiff said that
Gs letter was a private one, not
intended for publication and was given out
Mr. Oakman without his consent. He
s slued that the reorganization Of the Geor-
sla Central would be carried out as planned
without modifcation that the Terminal
aeoIi se might possibly Celay, but ii SO they
'Nu'u not prevent that oonsummatiou.
=. STOCKHOLDERS TO FIGHT.
~ Is learned that the New York stock
nUiuers rs1..s OF the Central will appoint a COM
n. na'Oee Tor the purpose Of defeating the
Exposed plan Of reorganization. 1t is said
In. mat foreign holders Of the
tSni tSIus OF the Georgia Company will direct
,o er trustee, the Central I'rus5 Company, z,
cHIppose the scheme The bonds are the
Ga.eral trust per cent bonds Of the
trsi gla Company secured by Georgia Cen
"s! railroad stock.
roit,nI oithDers OF the reorganization com-
With SAID To-day that they were satisfied
tb"s. 'ne reception that had been accorded
tbs ana that they we're not disturbed by
ns.,t attltude Of the Richmond Terminal
a. g ,s,swar toward the proposed reorgani ization,
IA AZ. WVsled "a by President Oakman's letter
com,,,,.cn ,s.cniif, the advisory member Of the
trova.uesee As 10 the merits Of the con.
Il GsorsiS between the two companies, ths