The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-09-14
A. A. ROBINSON
Will, it is Said, Soon Be
Recalled
To the Management of the Santa
Fe Railroad.
ONE MORE CIRCULAR
Issued by the Reorganization
Committee,
Demanding the Resignation Of
the Present Directors.

The reorganization committee of the
Santa Fe railroad has issued another cir
cular which will materially affect the
future of the road
The circular advises that new directors
be elected at the meeting of the stock
holders which will be held in Topeka on
October %. This means much more
than might appear on the face. A well
known Topeka gentleman who knows
all about the business of the road, but
who will not permit the use of his name,
said to a JOURNAL reporter:
II knew this circular was coming and
I know what 1t means. 1t means that
every member of the board of directors
will be forced to resign. Some Of them
may be taken back but at amy rate the
entire policy of the road will be entirely
changed.
"a. A Robinson will be called back
and put at the head Of the road General
Manager Frey and many of the rest of
the heads of departments Will have to
go and new men Will be elected. l do
not think that Geo. r. Peck will be
asked to resign because he has not been
responsible for the trouble.
"The fact of the matter is that the road
has been run by champagne manage
ment and this will be shut off and re-
turn will be made to the old policy,
which has made the road what it Is At
Der you may expect some lively times"
Ia the circular issued by the reorgani-
zation committee the committee recon-
mends the election of new directors and
places the responsibility for the present
condition Of the road upon the shoulders
Of the directors. It excuses Mr. Rein
harts action by saying that he occupied
merely clerical position to the drec-
tors, and that the directors are the re-
sponsible parties. The circular contin-
ues:
~The best guaranty stockholders can
have that their interests will not be neg
lected or sacrificed in reorganization.
will be the selection of directors who
will protect the interest OF tile stockhold-
ers, and thereby necessarily protect all
other interests. We are strongly im-
pressed with the idea that the bondhold-
ers themselves will gladly join in reas-
enable and just plan to save this great
property from hostile foreclosure. We
believe they can be made to see that their
greatest security lies in cooperation with
the stockholders, in the expectation that
the repeal or modification of unfriendly
legislation, and the return of more health
ful business conditions, combined with
prudent management and discOntinuance
of the extravagant methods which have
heretofore prevailed, will at no distant
day place the road upon paying basis.
1T is important for the stock holders to
remember that no satisfactory plan of
readjustment can be fully form ulated
until more certain knowledge is furnish
ed as to the condition, earnings and
pros poets of the company. This work
can be better accomplished when the
stockholders shall have placed their own
board in charge of the organization, and
through that board shall have learned
exactly what the facts are. The task of
reorganizing the greatest railroad sys-
tenn in the world is one which ought not
to be taken up and finished ia haste"
The committee says that the plan an
nounced by the board of directors to as
sess each share of stock $12 and place
$50, 100000 of new securities ahead
of the stock and invest the $115,000.0OO
of bonds with voting power, can not sue
ceed as it takes the control Of the road
out Of the hands of the stock holders.
The committee outlines the following
plans:
l. The control of the property shall be
left with the stockholders.
?. No new securities shall be issued
to the injury of stock.
B. Whatever assessment is made must
be the smallest possible, consistent with
the permanent welfare Of the company.
It is not the mere fact of an assessment
which is to be dreaded SO much as the
unfavorable conditions upon which that
assessment may be enforced. If the con-
ditions are right and just the stock will
be improved in value by an assessment,
but the stockholders cannot safely fur
nish the company with new capital unless
the bOndholders will also make conces-
sions on their part TO such extent
will enable the system to work out of its
present depression.
T. The stockholders should receive for
their contributions of money the best Sc
curity which the condition of the COM
pany will allow.