The times. [volume] (Richmond, Va.) 1890-1903, 1893-01-20
THE TERMINAL TANGLE.
BAD FEELING GROWS OUT OF TIE
CENTRAL REORGAyIzATIOY.
Receiver Oakman and Mr.. schin Prefer
Charges and Counter Cbarges-Hints af
wrecking for Personal Ends.


schif, Of the banking house Of Kuhn.
Loeb & Co., and the advisory member OF
the Georgia Central reorganization COM
mittee, wrote last week to W. G.. Oakman,
president and receiver Of the Richmond
Terminal Company. and president OF the
Richmond and Danville Railroad Com
pany. suggesting that the claim OF the
latter company against the Georgia Gem
trail Company, to enforce which the at
tachment suits were brought, should be
submitted TO arbitration. Mr.. Schin as
serts in his letter that the Georgia CEN
trail. "one of the fairest railroad proper
ties on this continent, has been wrecked
by the Richmond Terminal management
and on the ground that public opinion
will never permit the Richmond Terminal
| Company TO ever again resume its con-
| trol. asked that the latter company shall
assist in the rehabilitation of a property
whose condition is blot upon American
railroad management"
| Mr.. Oakman, in his answer, charges the
| reorganization committee with insincerity
in proposing arbitration, and questions
their authority to do so. He says that the
expressed desire Of the Richmond Ter
minal interest TO participate In the ses-
| sions to settle the details OF the reorganl-
zation was ignored. to the detriment OF
| their rights as owners Of the majority or
| the stock He sums p the situation thus:
1T is an amazing spectacle for fair
| minded men to contemplate! Messrs.
| HollIns. Lehman, DennistOn and their
| associates sell to the Terminal Company
| the controlling interest in the Central OF
| Georgia Their own chosen officials are
! continued in uninterrupted power ana
now they are by your side clamorlng Tor
| the crucihxion OF the interest they SOLD,
| because this precise management inherit
| ed from them has been so reckless ana
hurtful as to become national reproach.
| "The Terminal Company most explicitly
denies any responsibility for the financial
collapse of the Georgia Central. It's OF
| ncials regard your accusations as ground
| loss and unjust, and they will resist with
| ALI rossible vigor the execution or any
REORGANIZATION scheme which denied US
audience, and works practical exuhc-
| ZION of our company's investment In
reaching this conclusion we have counted
| the hazards. We ftly estimate for IN
| stance the fact that the receivership and
| directorate are being used as phnd m
| strumentalities to force your scneme'
| with money thrown away upon Macon
| and Northern Port Royal and Augusta,
| and other non-essentidl securities ana
| reconstruction OF the heart OF the
| Savannah and Western and heavy new
equipment purchases on shrunken traIlic
the receiver has managed to empty ms
| treasury 50 as to create necessary aho
sham default on the tripartite bonds and
enable you to coerce all JUNIOR ih'eres'
| by foreclosure.
"When the directors, late In September
created your committee. with the decllr
alton that the company is entirely solven
and competent 10 pay all its debts, Is no
collusion palpable when you try t'
build your reconstruction on default ol
the first lien Of only 5000 a mile on 'on'
of the fairest properties on the con
tinent?" The average net earniag
| Of the ocean steamship company ar
officially stated at S47i,533 per annum
It's yearly interest is only $4,000, and We
a convenient receivership allows hat issu
Of bonds 10 be defaulted in additional fur
therance of your plan.
Are you prepared. on full reflection
| TO approve such fictitious, unnecessar.
and manufactured defaults and the con
seuuent shrinkage Of securities held bl
many small investors in Georgia an'
elsewhere. as quite consistent with jus
tice or fair bushes methods? Is his 10
Intentionally creating a false situation
which infiicts heavy loss to others 70
the sake Of personal proht?'
Mr.. Oakman then declared that Judg
Emory Speers has been practically
''brevet member OF the committee, activ
| in attendance, assistance and counsel.
| That he stopped for some days In No
vember and December at the st. Jane
Hotel, this city, where repeated consul
tations for advice were had betweei
members Of the committee and presiden
| of the board OF directors Of the Georgia
| Central. He continues: without notice
and at night, he seized the Central road
when il was absolutely without DEFAULT
in debt. dividend. or interest. He rule
that most valuable collateral should be de
posted within his Jurisdiction, and the
hand, : it over 10 his receiver on pigeon
holing a worthless court certificate as hi
estimate of an equivalent. Without mo
ton or bond he vacated a previous cor
porate election, and disfranchised 100000
Of stock"
"The combination Of judge and advise
may seem strong, but you must also coun
on the possibility that his ranking supe
riors, advised of his self-imposed dis
ability, may conclude that he is not quit
the person to crowd through under whil
and spur the reorganization plan TO whicl
he had given partisan aid and comfort"
Mr.. Schiff denies intentional discourtes,
TO the Terminal interests, and asserts tha
the charges against Judge Speer are with
out warrant.
The street was surprised this Afternoon
by the announcement that the coupon
OF the bonds of the Ocean Steamship Com
pany would be paid on presentation 10 tn
New York Security and Trust Company
These coupons were due January lst. an
the fact that default was allowed, not
withstanding the known handsome earn
fngs Of the steamship company, gave ris
TO much criticism. The company is con
trolled by the Central Railway and Bank
ing Company OF Georgia.
| TERMINAL PROTESIS