New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-04-03
BARON ERLANGER EXPLAINS.
ne TELLS WHY He TRANSFERRED HIS
HOLDINGS TO THE c. II. D.
TIE U9yrroLpEHs o. THE CINciNNATI ENTl'N'
SION NET TO plecrSs THEIR lNTE'i-'''-
pnrxeI.. MORGAN & 90 NAY oF-
FER BETTER TERMS TO Pre-
crp,.r THE SYSTEM
SERVE TIE SYSTEM.

SERVE THE SYSTEM.
meeting Of the Cincinnati extension oohH"',,'lS
q tho East Tennessee Virginia ana F'ofS't i'"'.
road was held Yesterday at tEe once q iOo'
Crecnough The meeting was without p'uc'''"i
cutie and was adjourned until Thursday In or'e'
TO give time 10 the consideration Of an organization
and IN obtain details IN reference to negotiations
said 10 he under consideration b. the l'eoi ga"%a
ton Committee Of the Richmond ana DahN'ic ~
tom toward Offering better Terms To inc ->'ip'.'
AMI Great Southern and the Cincinnati So"'"'' ID.
which were not included in tho reorganization. Vi
fine s. 0o 90 bonds outstanding Of the N"cnnau tN-
,enaiop Baron Granger holds $lv0V" ~ the
meeting Yesterday Baron ErlarGcr made speech
defining his position and stating WHY ne had trans
ferrcd his interests 20 the Cincinnati iahil'O" IL"
Barton Railroad The Baron said. IN part:
"'ro make the situation perfectly clear. you mast
allow ne TO 20 back Last yea:. We had theh De-
fore rs project OF reorganization OF the Il'nlohu
/ Terminal the East Tennessee and the Richmond
and Danville systems. and We were on'red lot our
Cincinnati extension bonds 10 par cent in prefer
crce sto k Of tn, reoIg Iniz company. We III h-h'-
land found the Offer unacceptable ad uHH'r'oo
to come this country and take The views oil inc
bonlholdcrs on this side ard TO negotiate With
Drcxel. Morgan q CO. FOR better terms. TO acheVe
this object CCmmitteee was appointed ID h'bo-
t.atc with them and as basis Of negotiations we
laid before Drexcl. Morgan d Co. in writing a
/ counter proposition asking for ~ per cent OF our
bonds in bonds of the rcors;anzcd company ara .,
per cent in preference soch We had several inter
! views with Drexcl, Morgan {: CO. our technical
managers met and discussed at great ei'f'h ne
/ merits II our lives. and DTcXel Morgan * CO. to-
| cliu,i our Offer promising. however. to put 10
| obstacle In way Ia having our properties re-
stored to the control Of the Alabama Great South
en- shareholders
Il Ia! received at the same time last year
/ declaration from those who. unit! the breakdown.
! had directed ard presided over the affairs Of TIC
/ In T,vr
their interests IN those railways g DrcXcl Morgan
* Co. that they could not help any further. ana
that the: also would exercise all thcr Influence to
F.yc ~ back properly uutettered by any I"t.rirr-
! ence Of theirs For reasons only known To- them
selves the changed the!r mind and Tacn me rc,,
| Southern Railway came Oh | was confronted with
the dilemma either to giye seats on the bo3'H8 ID
those who Rad cmphatically declared not 10 DE- any
longer Interested In affairs or 70 have di'lcui'
tics and delays. the extent cf which vas - a.
were reconstructed. Now. what WAS the position
they commirri to each other by any other contract
| Than the trust deed upon which their bonds were
diem that notody should sell his bonds? Wa,
there committee who had tn" right to pieige any
| dividuai or collective? Nothing ~ this Kind OK
listed TO my know ledge. None Of the persons present
! at the meeting which named the committee had de-
posted any boUds The comm!tte"; in word.
would have he'd 30 legal r.ghi - bind thosr whom
ncsotiatc. AMI IL opinion AMI convict. that tho
/ committee ,nd j IT'S existence with the iatGrc 81
the negotiations with prcNcl. Moran q 90. | am
strengthened In that conviction hy the fact that i
! was propose - Great" new committee Win
better defined origin and powers. ani t'at al %
! luiaiy refused form such committee ] hn Z
! hoped that Drexel. Morgan Il Ga. would corSil -
| W fayorably IN Their rev reoTganiz on
| scheme and ! was snrrowful!y disappointed 60 -
LETT out altogether. Meanwhile. our extension bon Is
had dropped into entire dls.rclit aui were offered
| at 3 pr cent 80 holr from Kew otN. nothiHi;
| but dinicultes and disappointment Therefore II
Will not astoIish you that ! received with pleasure
| IN offer To- sell the ma prity OF thf hon Is.
Baron Granger then explained low ID" SOFA n"
| bonds and how he provided Tor III" Other holder.
| 50 they would lose nothing. Tho plan prop1scf
| hy tie Cincinnati. Hamilton and Dayton, hy which
Baron I.rilucsr stated ID" loulho.Irrs 81 me I'm
| cinuau extension would loso nothing is th"' "A new
| CORPORATION viii ic formed. taking til hrsf mort
gage bonds 90 thc Cincinnati extension luIdho.dcra
| and giving &. return lr" cent bona guaranteed
! bv the Cincinnati Hamilton ana prytln C'mpauy.
| !:aron Eranger Wenu med Ia tho cours' y his
remarks that ~ mp1wcrci o. t'nT ~ hi- con
tract T. th- majority ~ the minority lonihold'T ~
! requested hin - %