The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-05
WON'T AFFECT TIE CENTRAL.
Drexel, Morgan & Co. g Undertaking
the r. T. REORGANIZATION

OfeXel, morgan q Co. 8 undertaking
the R. T. Reorganization.
The announcement that Drexei, Morgan
/ & Co. will probably undertake the reorgani-
zation of the Richmond Terminal Com
pany's properties did not create either sur
| prise or dismsy In Savannah. The Central
railroad people are rather pleased than
other wise. As they look at it. Mr.. W. =.
! Clyde, the controlling spirit In Terminal
and a determined opponent of the
Central, has caved in. Mr.. Clyde was
strongly opposed to allowing Drexel,
Morgan q Co. reorganize the
property some months ago. aud it looks now
as II he had acknowledged his inability 20
take care OF the property himself.
b. 1t Is not believed that the reorganization
OF the Richmond Terminal By Drexel,
Morgan q Co. will have any effect, good or
bad, upon the Centrars reorganization, but
it Is thought that the effort viii have gen
orally good effect upon southern railroad
properties. Such a reorganization, it Is
believed, would be very beneficial 20 the
Richmond and Danville railroad as distinct
from the results to the Richmond Terminal
interests.
The New York Herald in alluding TO the
matter, says: The control OF the Richmond
Terminal system has passed into stronger
hands, which seam likely to place that ram
inspire the security holders Of the biggest
aggregation Of capital in this country with
confidence in a new reorganization plan.
The activity of Richmond Terminal stock
could not be traced to any definite source,
and the only explanation was that some
body might be buying for control.
Drexel, Morgan & Co. have quietly taken
charge. In just what way they acquired
control will be clearer In few days. Did
Mr.. w. p. Clyde aud his associates help Mr..
Morgan to get it,
Mr.. Clyde, it will be remembered, used
up several sheets of paper last June address
ing somebody in strong language because
Mr.. Morgan at that time refused to re-
organize the Richmond Terminal system
according to Mr.. Clyde's notions. There
was great deal in the previous manage
ment OF the company which Mr.. Clyde
probably did not want brought to light.
Since the downfall of the Inman manage
ment Mr.. Clyde has been the controlling
power in the Richmond Terminal system
and things have been going according to
his beck
On account Of the repeated defaults the
bondholders have been considering the ques-
ton Of foreclosing the mortgages. This
would be the shortest way Of bringing the
Clyde dynasty to a close and the one which
that gentleman most feared. This fact
alone was enough to induce MIR. Clyde and
his associates to give up the game and let a
responsible banking house reorgsnize the
property.
But the man thing is that Mr.. CLYDE
found that he had reached the end of his
rope in the way of reorganization, and he
had TO take the least disagreeable way out
1t is impossible to say at this time whether
Mr.. Morgan has taken hold of the Rich
mond Terminal system with the idea of
controlling 1t ultimately. as previous
arrangements have done, or whether he
merely represents other interests, who have
placed their holdings in his hands and for
whom he merely acts as a trustee to read
just the colossal system on a sound basis.
But the main thing Is that a new page has
been turned and discredited management
has taken back seat
There may be those who think they see
in this coup the hand of the Vanderbilts.
or perhaps the Pennsylvania company.
which includes the majority Of the big
southern railroads. There are no indica-
tions at present to warrant any such as
sumption. system aggregat ting S,S1S
miles, as it did under the Inman manage
ment before it began to disintegrate, and
with capitalization Of 1894, 527. 900, is not
a plaything.
The Olcott plan of reorganization pro-
vided for total issue Of $3.50, 900, 900 seouri-
ties, Of which SIC, 100000 was to be a 4
per cent first mortgage. There was to be
| 100000 preferred and $1lO,000,O0 COM
mon stock. These figures give an idea of
the immensely Of the task that is before
Drexel, Morgan g. Co. If they succeed it
| will probably be the greatest undertaking
| they have ever assumed.
The railroads in the Richmond Terminal
system are the Richmond and Danville,
East Tennessee, Virginia aud Georgia,
| Queen and Crescent, Central Railroad and
Banking Company of Georgia and Georgia
Pacific and their allied lines. There is lit
tie of Importance left south of the Ohio river
and east of the Mississippi, except the
Plant system and the Louisville and Nash
| Vile railroad.