The sun., 1893-01-20
GEORGIAC ACENTRALRAI
RICHMOND TERMINAL VILE RESIST
THE FREEZING OUT PROCESS.

RICHMOND TERMINAL WILL RESIST
THE FREEZING OUT PROCESS.
rre.,deut Onknau Uses Plain Language In
Deapiue tho Attitude OF His Company
Toward the HoiiinS Reorganization Plan.
MIR. Jacob II. schifr OF the banking house OF
Kubp. Loeb & Co.. and the advisory member OF
the Georgia Central Reorganization Commit
tor wrote last week to w. O. Oakman. Presi-
dent and receiver of tho Richmond Terminal
Company. and President Of the Richmond and
Danyille Railway Company. suggesting that
the claim OF the latter company against the
Georaia Central Company. to enforce which
the attachment suits were brought should be
submitted to arbitration. Mr.. Schim asserts
In his letter that the Georgia Central. "one OF
the fairest railroad properties on this conti-
nent" has been wrecked by the Richmond
Terminal management and on the ground
that public opinion will never permit the Rich
.nond Terminal Company to ever again re-
sumo its control. asks that tho latter company
shall assist in tho rehabilitation OF q property
whose condition Is n blot upon American
railroad management"
Mr. Oakman sent the following answer to
Mr.. SchifT's communication:
"Your letter in behalf OF the Georgia Central
Reorganization Committee renchcd me In due
course Its statements and charges. coming
from the head OF n great house. hnve received
the consideration their gravity demands. You
start a broad inquiry. and proper response
requires that should 60 into considerable de-
tail and use much plainness Of speech.
THAT you disapprove OF the recent attach
ment suit against tho Central is quite natural
considering your relation to the situation. As
to that action. you tender what to n casual
reader would seem to be q friendly offer to mr.
bitrate. As practical proposition two serious
difficulties appear to block tho way. You ex-
hibit no power to make it Certainly have
none to accept Until you furnish proper cre-
dentials must be permitted to doubt whether
your committee holds any authority whatever
from the Federal Court in Georgia to arbitrate
claims which are pending therein.
II you will read the garnishment process
served on several Of your members you will
learn that the suit you wish me rs President
to adjust by arbitration was brought by the
receivers OF tho Richmond and Danville Com
pany on their own official responsibility. The
corporation and its officers have no power
whatever to act on your suggestion or to con-
troll that litigation. Abstractly considered
terests ars very eommepda6ie. They are. re-
tuai experience that some OF our people are
disposed to regard this newborn zeal tor
friendly adjustment as being possibly n mere
diplomatic effort to unIustly 1asten upon us
the odium of resorting rs Of choice to hostile
now through YOU apparently prefer peaceful
solutions opened relentless war on us. Be.
suits, they sued ut Augusta and demanded a
recover Tor the entire Danvile system upon a
tnramped-up claim WHICH was n,
successful We would have been forced to- pay
heavy tribute to, to ransom % our p property from
arranged revolutionary seizure failed OF nc
complainant the Same stupendously false
fastened as crushing lien upon the DanviIls
road.
venomous pending litigations. you can hardly
quarter viii vii Be- receiysd with any enthSsiastie i ti
committees and their associates are not the
coSpny in the ser
bound to ,,o protect the IN majority stoekholdng
Thsn heSs s Sn'if aSs S
no doubt the Terminal Company. has n cash in
basnss tne 9vnsd s by vo the
mittee. This state Of affairs was we'll known
to you, yet your letter advising me that YOU
first oticial notification that this majority in in.
terest has ever received OF the existence OF
When & was indirectly learned that you
orcanization a formal Written " roauest It was vas
sent bk met to your Chairman 9i asking that tho
Fl WsSs 10
materially affect its rights. Our request was
maer 81
sponse. Your committee. therefore. deliber-
to deal with our property without allowing US
s1y hearing. @ You write Writ that you were asked
sss Iss4 IN. sslssssoas
ance OF YOUR Interested and nroiudiced
committee that the share which you conde-
sow u oq"by N entleG
not satisfying. Property owners have n natural
rirhts. The Terminsl Board labor under tie
distinct impression that as trustees they are
ferests. You hold no direct commission from
us to parcel out our rights, and your ineXcus-
atoms Vital to our % INTERESTS r st deprVes o
clnsions q all moral weight.
full liberty Of action AGAINST the sladestine
thus to be forced upSn US
expect either apology or disavowal.
test. You biuntiy avow that you have 10th 10th
the moss A positIs tsrms that tn The 'Tef Terminni
Company is exclusively responsible for the
property. and that public opinion Will not toll
crate its majority interest to ever resume con-
our interest is too dangerous to be- allowed to
exist in its present relation. you were in duty
bound to labor caously to shrink and practi-
cally eNtinguish II. AS expressed in u Georgia
paper your function has been 70 render it
harmless You have not intrusted us even
now with q copy or summary Of your salts
factory plan, but l venture the prediction
that when it is disclosed it will be found that
you have so successfully carried out your par-
tisan opinions that the Terminals S7OOO.OOO
cash investment has been rendered practically
valueless either for income or voting pur-
poses.
You attempt to justify this colossal for.
feiture OF pronerty as Just punishment on
the Terminal Company for wrecking the Cen
tral OF Georgia. well nigh running many small
Investors In it's shares and obligations, and
creating a condition Of affairs which Is a blot
upon. American railroud management l
doubt doubt whether yon knew knew thet your declara-
title under which your com mmittee holds official
existence.
- Your body was created as recently as Sept.
~. 1882 under resolutions Of the Central
Board seeking to effect u restoration Of its
property and business to the sole control OF
Its shtockh0lders.' And under a preamble which