New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-09-11
FOR THE STOCKHOLDERS.
THE PLAN TO PUT THEM IN CONTROL
OF ATCHISON AFFAIRS.
AN APPEAL ISSUED BY THE PROTECTIVE COM
MITTEE-ATTITUDE OF THE ENGLISH
BoNDHoLDERs AND THE POSITION

WITH T. D. CARLEY.
TIE Atchiscn Protective Committee has issued
the following announcement to the stockholders
OF the company:
The annual meeting of the corporation FOR the
choice of a board OF thirteen directors VIII De
10 a. m. The Protective Reorganization Commit
tee respectfully asks your proxies TO DC uSea ~
our purpose 10 place the control OF the organiza-
ton in the hands Of men who are IN an ig npen
in railway and financial circles. me lrlenus oi
im g that tie Withdrawal of Mr. Keinhart
amounts to a change OF managememt. me e taoi
position toward the real managers Certain di,
rcctors have been tor years in nnanciai coht1oI
ence ' When has secured the proxies have selected
and elected all it, directors ana nave hppontT r
management and control of the road and are; in
our opinion responsible for its present condition.
The best guarantee stockholders can nave sai
their interests Will not be neglected or sacriced
in reorganization VIII be the election OF direG,0rs
and thereby necessarily protect all other inter-
that the bondhoders themselves Will gladly tom
in reasonable and just plan to save TINS great
they can be made that their greatest Sc
curity lies in cooperation with the stockholders;
beaithfiI bnsiness conditions Combined with pru-
dent management and discontnuance of the ex-
travagant methods which have heretofore pre-,
vailed will at no distant day replace the road
1t is important Tor the stockholders to remem-
Der that no satisfactory plan of reimbursement can
Is furnished as to the condition earnings and pros
Accomplished when the stockholders shall have
placed their own board in charge of the organza,
tion and through that board shall have learned
exactly what the facts are The task of reorgan-
izing the largest railroad system in the world is
which ought not TO be taken up and finished
in haste. -.
had announced plan involving an assessment OF
sl2 per share upon the stock, the placing OF $751;,
vesting sll5.oooOOO OF bonds with voting power.
thereby deprivng the sOa 5000 OF stock Of the
evident that such a plan cannot succeed. If
Stockholders board had possessed control Of the
organiZa ton such an unjust proposition never would
We do not intend by this circular to create the
impression that think the Atchison road can
be lifted out of its present difficulties without con-
ers. but we do protest against laying the entire
burden upon them. and we shall continue our ef-
stocSholders be net ruthessly Sacrificed The cleo
ton in October of such a board of directors as
will be placed in nomination by this committee is
essential in the harmonzing of all interests in
any plan of reorganization which may be finally
The plans of the Protective Committee in refer
enc to hg sofb The be Hh b as with the
stockholders. 2 No new securities shall be issued
ment is made must be the smallest possible
sistent with the permanent welfare Of the com
which is to be dreaded much as the unfavorable
conditions upon which that assessment may be
stock will be improved in value by an assessment
but the stockholders cannot saiey furnish the
will also make concessions on their part TO such
% M T the Th So
should receive for their contributions of money
the best SECURITY which the condition of the com
Owners of stock whose certificates do not stand
in their own names should at once. and before
executing the proxy for the annual meeting take
r Sos o Sny m haw OF eer
Gates cannot conveniently be obtained. proxies
should be secured from the record owners
In speaking yesterday of the way the Atchison
Company has been managed. F. D. Carley. who has
been active in organizing the stockholders against
the present managers. said:
The Atchison Company has not been managed by
Americans for many years. The newspapers; with
in regard TO this company have brought disgrace
upon American railway management. This is not
been in control of this system for many years. The
Atcnison Company has had but one firm of bankers.
and tina; London firm. The directors VINO
exerted the influence which obtained the proxies
After ter ea re English and they selected and
brought Mr.. Marvel to the company. and at the
Marvel to Chicago and placed MIR. Renhart in the
East In absolute control Of the auditing department
by resolution of the Board of Directors. Upon the
From first to last Mr. Reinhar occupied virtually a
clerical position toward the real managers Of the
company. His withdrawal has not created change
Of &c but simply change in the ma
But what is the present situation in this regard?
appointed the General Reorganization Committee.
That committee Is composed OF some OF our best
Representatives of three large trust companies which
TO be the depositaries of securities if their
plans of reorganization mad not miscarrie1. The
Atchison managers believed that such a prominent
committee might satisfy the foreign bondhoders and
at the same time influence the American s,ockhold-
ers 10 pay in large amount of new capital for the
protection Of the bonds They called upon the
stockholders to pay such assessment under con-
ditions which would have forced them TO lose both
their stock and their assessment and they under
stockholders ne
combined influence Of threatened foreclosure and a
tine stock OF those who failed to pay the assessment
the s The LOa
have committee. which Is represented by Mr..
sened BY m dn The a
Committee (Which was selected by the Atchison man
three members two of whom are Mr.. Fleming and
Mr.. Ludin. The fact is the General Reorganization
Since their first plans have failed. they propose
keep the company in the hands OF receivers for one
plans OF reorganization.
Mr. Mr.. Fleming; under date Of august 2s stated in
would be in the hands of receivers certainly one
o. receversbp would destroy the value of the stock
equity before two years have expired. So 1t APP
pears from every point Of view. the English bond
holders ignore the rights and interests the stock
holders In that event what will be the outcome?
from unbearable claims of bondhodefs for a period
organz ation OF their interests. The bondhoders Will
concede as much as their interests demand. pro-
vided the stockholders IN position to enforce their
claims Without union OF interest the stockholders
with the bondhoders but Of the siric;es, business
interests and in no way can the stockholders
and protect their equity without concert OF
ton. ---. rs
How long do the present directors hold their office?
Until October % ana afterward. uDess the stock
holders unite and elect board of their The
Protective Committee now asks for proxies for the
purpose of electng a Board OF Directors COMPOSED
Of men OF the highest position in railway and
financial circles. We ought 10 secure such men. be-
% nc
the fitness OF the individuals selected Such board
will furnish full Information. command the respect
OF foreign bondholders and enable just plans of re-
organization TO be carried through.
RECEIVERS ASK FOR INSTRUCTION.
Ex-Judge Cornish. Master in Chancery, will give