The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-16
a HITCH IN THE R. !. PLAN.


A st-o-e co-si,t.s win Dtse-.s me sst---
,io. yytth Drsx,i. Merge. n Co.-As Az
parent Departurs FROM the orisi-sl Pros
visions OF the Rsorrssisstic. Scheme
The Floating Dest sna the Decree OF Sale.
The holders Of the floating debt Of the Rich
mond and Danville Railroad have been very
uneasy ever since they aseertained that the
decree for the sale Of the road which has been
presented to the court does not require pay
ment by the purchaser OF any claims subse-
uuent to the lien OF the cons olidated mortgage.
The foreclosure suit was brought under this
mortgage. as It carries all the leases. The
court is asked. as shown In THE Sun last week.
10 direct the unconditional pay ment of. first
the costs OF suit and sale and expenses and
charges OF the trustee OF tha mortgage; second,
the receivers certificates issued under the or
der Of June 20. 1892. about $500. 000 and. third
the principal Of the bonds outstanding under
the mortgage. amounting to Sl.52S. 400. with
interest from the date Of default ANY sur
plus after these payments arising from the
sale Of the road IL to be applied to the ex-
tingulshment Of the receivers certificates.
issued for the Emergency Loan" but the
decree does not require that the road shall be
sold for enough TO cover this lastdebt. and the
floating debt. which is now carried on collateral
by some Of the largest banking and trust In
stitutions. and by individuals In this city. 10
not provided for.
The feeling that there was danger OF serious
loss to them In case the road was bought in
under this decree by the REORGANIZATION Com
mittee finally became so strong that call for q
meeting was sent out last week. and Yesterday
afternoon the representatives Of about twenty
i've financial institutions and bankers assem-
bled at the Offices OF the Central Trust Com pany
to consider the situation. The meeting organ
lied with Frederic r olcott. President OF the
Central Trust Company. as Chairman. and John
A. Rutherford as Secretary. There were pres
ent among others John Inman. John @. Moore
OF Moore Il Schley. ]. c. Mabon. Henry Bulge
OF Hsllgarten 4 Co. George f. Baker. Presi-
dent OF the First National Bank. and Henry
W. Cannon. President Of the Chase National
Bank. The following trust companies and
banks were also represented: The Union
Trust Company. Manhattan Trust Company
Mercantile Trust Company. Fourth National
Bank. Chemical Bank. Bank Of the Republic.
Bank Of America. and I'm porters' and Traders
Bank.
The meeting lasted about an hour. and after
some general discussion It was decided to ap-
point a committee to confer with Messrs.
steps were taken. This committee is to be
COMPOSED of the Presidents. 4 they will ac-
Bank, Chase National Bank. and Chemical Ma
The boating debt OF the Richmond and Dam
Vile Railroad Company was stated In the plan
Organization OF the Richmond Terminal Com
pany at S7000.OO0. The debt Of the East
Tennessee system was stated at 50 QUO. OUO.
mond and Danyille stock and q large, part o!
that OF the East Tennessee. Virginia and
Georgia Railway Gonna The plan provided
for the payment OF tha whole OF the Richmond
and Danyille floating debt and sl.2QO,OOO OF
that OF the Fast Tennessee system by an as.
sessment Of $3.50 a share on tho Richmond
Terminal common stock.
1t was also announced In the pamphlet ex-
| planning the features Of the plan that syndi-
antee subscriptions for $50. 1893 OF common
stock OF the new company at Sl5 per share
and for 50. 900. 900 OF the new company's D per
cent bonds at ~ per cent. and to take the
mond Terminal and East Tennessee stock
holders who refused to pay their assessm ents
The first assessment OF 500 on Richmond
Terminal stock was paid in two installm nts
and none other has been called.
Although the payment OF the floating debts
Ia thus provided for BY Asaess m ents and guar
antred by an underwriting syndicate. the
closing sentence In one OF the clauses In tho
agreement under which deposits Of securities
the nature OF floating debt against any prop
erty EN- braced in the plan. either as proposed
or as carried out, or any securities held as col
lateral for any such obligation. may be ac-
such times. In such manner. and upon such
terms a. it may deem proper for the purposeS
o: reorganization: but nothing contained In
the plan or In this Agreement 10 intended to
respect OF any such obligation for floating
debt"