The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-21

The Schif- Oakmsn Correspondence.
Mr. Oakmau, the receiver of the Rich
mond Terminal. in his correspondence with
Jacob II. SchIf, one of the reorganization
committee of the Central railroad, seems to
entertain the view that all who are In any
way concerned In the reorganization OF the
Central are either dishonest or are the will
ing instruments Of dishonest men 1t seems
impossible for him to understand that those
who are now trying to restore the Centrars
credit and save something for the security
holders are influenced by good motives.
There are men engaged in the Centrars
reorganization against whose integrity there
has never been breath OF suspicion. Al
though they will demand what they think
legitimately belongs to them they will not
be parties to any scheme TO enrich them
selves OF the expense OF others. Against
Judge Speer. for whom Mr.. Oskman APP
pears to entertain feeling OF intense Bit
terness, there can be brought no charge Of
unfairness or conduct unbecomiIg a
judge In connection with the
Central railroad litigation or re-
organization that could be sustained. He
ganized and something saved to the
houndreds Of security holders. many of
whom have about all their savings invested
in Centrars securities, but whatever his
desire may be in that respect, It will not
influence him to use bis power otherwise
than In accordance with the law as he
understands it.
Why Mr. Oakman and the Richmond
Terminal should seek to obstruct the reor-
gsnizatlon OF the Central it is not easy to
understand except upon ths theory that the
worse the financial condition Of the road
becomes the better the opportunity of the
Richmond Terminal will be TO get out of it
in a roundabout way the money It invested
10 1t. The Terminal is about as complete
financial wreck az it can be. Il is in no
condition to undertake the reorganization of
the Central, and, as far as the public
knows, it has no intention of undertaking
its reorganization. What hope would the
junior security holders Of the Central have
of getting dollar for their securities IL the
control Of the Central were to be turned
over to the Terminals would not an effort
be made to take what remains OF the CeE-
trail to compensate the Terminal security
holders for their lossesl
Some Of the largest of the minority stock
holders Of the Central have expressed their
willingness to accept the reorganization
which has been proposed for the Central.
The Terminal, which holds the majority of
the stock OF the Central, will fare as we'll as
the minority stockholders. 1t is apparent,
therefore, that there is no discrimination
against the Terminal in the reorganizatio
scheme.
IL is true the Terminal is deprived OF its
control of the Central, but In its wrecked
condition what would it do with that COM
troll II It had itl Would it use 1t for the
good OF the Central's security holdersi II
SO, it can rest assured that the Central's 30
turity holders will not suffer by permitting
the control of the property to est where the
reorg inlzltion will piacs It. Ii th9 Termi-
nal would use the control for its own bono.
fit rather than for that OF the security hold
ers then it should not have it.
In all that Mr.. Oakman has said In the
public prints against the reorganization
scheme he has not iutimated that the
Terminal would or could offer scheme
more advantageous to the Csntrars security
holders. and he does not say that IL would
gain any advantage for itself IL intrustsd
with the work of reorganization.
1t Is a rare thing that the stock holders Of
an insolvens corporation are permitted to
have voice in its reorganization. Their
interest virtually ceases when the corpora
ton fails to pay its fixed charges. Tho
creditors Of the property then takO charge
of it aad get what they can out OF 1t. The
Terminal having failed TO pay the Csntrars
obligations it has nothing to complain of il
the roads creditors take hold of 1t aud do the
best they can with ID. The Terminal ought
to be thankful that it's interest is not elirni-
mated altogether.