The times. [volume] (Richmond, Va.) 1890-1903, 1900-12-23

ever paid upon such stock, and finally
apparently to clinch a weak argument
that it does not rest III the whim of a
Reorganization Committee in Wall Street
to impose a tax upon the whole Southern
country"
IN BAD TASTE.
The allusion here to the "whim OF g
Reorganization Committee" in wall
Street is not only irrelevant and in ex-
ceedingly bad taste, violating every rule
of official propcIety, but in the inference
which it seeks TO convey is a gross mis-
representation of the facts Of the case.
rAere was occasion tor Iugg.ng in the
Reorga nization Committee at all, and we
can conceive Of no reason for SO doing,
except a desire on the part of some of the
members to pose before the country as
foes OF the railroad and financial interests.
The ReorganiZa ton Committee was not
on trial, and if -Ae Commission deemed
the capitalization OF the Southern Rail
way excessive and wanted to maintain
It's position with reference to the rate
question: decorous statement to that
effect would have answered every pur-
pose and have shown that the Broad still
had some regard for its official position.
Instead. the Commission seeks to cast
aspersions upon a body of men who in
recognizing the old Richmond and West
Point Terminal Company and its consti-
tuent properties rendered as important a
public service as was ever rendered. I'M
der similar circumstances by like body
anywhere in the country. AS a matter OF
fact, the Reorganization Committee, in
stead of being pI.-oried, should be held
up to public approval and praise.
They accomplished Il task which seemed
well-nigh hopeless-a task which several
previous committees formed for the same
purpose had been obliged to abandon be-
cause OF its onerous character.
PROSPERITY OUT OF RUIN
The imputation that this committee,
which carried to success an undertaking
which everyone else had abandoned,
sought by the reorganization Ito impose
4 tax upon the whole Southern country
is absolutely without any foundation in
truth, and his nothing whatever to sus-
tain it. When these people took hold
the properties constituting the present
Southern Railway system were physical
as we'll as a financial wreck. The SER
vice was bid and the costly way in which
it was rendered forbade the possibility OF
cheapen;ng the charge to the public.
The reorsanzers provided the means
for 'rehab;litating the system and poured
millions upon millions into It for its i'm
provement and development Now ut last
the territory served by the lines has
railroad service worthy of the name. So
far from having imposed a tax upon any
portion of the Southern country. we Ven
ture the assertion that the South to-day,
us the result OF these efforts and expendi-
lures, is being served better and cheaper
than at any previous period in its his
tory.
ASSESSMENT ON OLD STOCKS.
The statement that there is no evil
dence that anything was ever paid
the cannon stock Of the Southern Rail
way is OF the same baseiess character.
The stock referred to was issued in eS-
change for the stocks of the old COM
panies. Everybody in the financial and
railroad world knows that the terms were
not liberal.
And what benefits have the security
holders VINO came in under the reorgani-
cation scheme received thus far? They
have had no dividends upon their hold
iyggS of common stock, ard to-day, 1-2
years after the reorganization, they find
these shares quoted In the market at the
naunificent figure of II.
When, therefore, the managers OF the
company sought to protect these share
holders against the action of the Interstate
Commerce Commission in threatening a
large reduction of the company's revenues,
they were evidently doing only their du-
tv The Commission in denying the re-
quest for a rehearing might at least have
refrai7red from injecting abuse into the
ref,,sal-Financ5al Chronicle, - Y, Dec.
1St
Indeed. the reorganization was a pc
culiarly drastic one. Leaving out Of ac-
count what may have been originally
paid on the old shares, the reorganization
menasers levied heavy assessment on
these old stocks, and also on some classes
of bonds. and the security-holders had
to pay these assessments in order to get
any Representation in the reorganized
company.
The Richmond Terminal shareholders
had TO pay SO % per share, and the East
Tennessee common stockholders had to
nav 81. 20 per share. and besides had their
holdings reduced 40 per cent
GROSSLY IGNORANT.
So hard were these terms considered
that many OF the security owners sacri-
feed their holdings rather than accept
Them. and the reorganization syndicate
had IN step into the gap. II the Inter-
state Commerce Commission does not
know all this, it is inexcusably ignorant
nm q most important subject coming di
.,,, within it's province