The Birmingham age-herald., 1911-12-20
REORGANIZATION
 PLANS OPPOSED Independent Committee Is
 Formed
  ISSUE A STATEMENT New Committee Is Headed by James N. Wallace-None of Them Are Connected at Present With
 the Railroad
ISSUE A STATEMENT

formed in opposition to the committee formed by the. reorganization interests headed by Winslow S. Pierce and other directors of the Equitable Trust company last night.
 The new committee, which is headed by James N. Wallace, president of the Cen tral Trust company. offers bond holders exactly the same inducement for the de- posit of their bonds as the Pierce com mittee, namely the payment of the $S00,- 1 900 interest on the bonds due January l, 1 in the event that it is not paid by the | railroad company. Although not officially stated, it was said the opposition com mittee plans to ask for the appointment of an independent receiver as part of l it's fight against the interests which now | appear to be in control. Their chief ob- l jection is said to be the friendliness' or the receivership. .
 1 The committee consists, in addition 70 l MT. Wallace, of Henry R. Carse, John J. Mitchell, Robert I. Montgomery, H. A. Pomeroy, William A. Read, J. Herndon Smith, Alexander M. White and Albert | A Wiggfn, who, owning and represent ing large amounts of first refunding and extentions mortgage bonds of the Wa bash Railroad company according to a statement given out tonight, have form | ed a committee for protection
 "None of these gentlemen" the state ment continues, lis any way connected with the present management under which the railroad receivership has been
 brought about. Another committee, Q majority of whom are now directors of the company, has been formed to repre- sent the same issue of bonds and has an- | nounced it will advance to the bond hold l CTS who shall deposit their bonds with that committee. the interest on the bonds maturing January l, in case the same shall not be paid by the company l ''This committee makes the same offer to those who deposit their bonds with | them. In view of the appointment of l receivers this committee, to the end that cooperation of all bond holders, may 1 be secured, requests the holders of the | first refunding and extensions mortgage bonds to deposit their bonds with the l Central Trust company, which has been appointed depositary
 | Application will be made in due course to list the certificates of deposit on the l New York stock exchange
 There was formed also today a stock | holders committed headed by Charles H. Keep president of the Knickerbocker Trust company, as it is said to be prac- | ticaHy certain that if the plans of the
 directors committee are carried out, as- easements will be levied on both the com-
 mon and preferred stock.
 The more pressing needs of the Wabash aggregate about $2 900 coo which amount, it was intimated, will be forthcoming. The bankers identified with the road de- clned to enter into any financial dis cussion of the property except to say that many million of dollars would pc needed to put it into state of efficiency.
 Wabash stocks today reflected the un- Il certainy felt in the outcome of the re- organization, both declining to the low est points in years, although final prices showed only fractional losses.
 St. Louis, December 19.-Frank A. Del ano, and Edward B. Pryor, two of the receivers appointed yesterday for the Wa
 bash Railroad company arrived here late today from New York and prepared to- night to confer with w. K. BiXby, the other receiver who during the day, in dicated his willingness to accept appoint
 ment 1t was thought possible the re- ceivers would go before Judge Adams in the United States circuit court tomorrow. At the Wabash general offices, MT. Del ano- issued the following signed state ment:
 'The decision to apply for receiver
 was entirely immaterial to me. At the
 same time as president of the company, I have endeavored to keep the stock
 holders fully advised of the condition Of
 the company.
 ..The Wabash company has been se- riously handicapped ever since the re- organization of 1889, which reorganization provided no funds for improvement oi development work. This made 1t impo5- sible for the company to keep abreast Of
 the requirements or to successfully com pete with it's aggressive and richer rivals
 Disappointing results, with investments in commitments in that connection. as well
 Al {; tffat, kipcr n1lf n actions. all helped to deprive the com
 pany of credit and the ability to continue
 in business.
 of the courts of the various districts
 confirm my appointment as receiver, It will be my earnest endeavor, in co-opera-
 ton with the other receivers, to put the
 company in a position, as speedily as possible to pay all it's debts and return the property to the stockholders. can't believe the public will blame the recent I mana cement of the railroad for what has happened and for whatever blame may be placed on the management, certainly none will be placed on the many faithful em- | ployes who have served the company, ana l who, I doubt not, will remain in it's Ser vice. The receivers will issue the usual circulars to employees of the company and to connecting lines as soon as pracu- | cable No changes are contemplated.
 Mr. Pricer tonight said he could not dis cuss the statement given ins New York by the independent committee regarding | the Wabash receivership. The statement was read to him by a representative or l the Associated Press and he said:
 There is nothing I can say. There 1 are many conflicting interests and the receivers Dust be perfectly neutral Under tie orders of Judgs Adams the receivers take immediate possession of | the pro/erty though they have 10 days in which [o file their bonds of $30O0O0 each. | Albeit N. Edwards, president of che | Commonwealth Trust company. who was named in Chichago as member of the committee for independent Wabash bond | holders is on his way to Austin, Tex, and is said not to have been informed c | far of the steps taken in Chicago.
 Chicago, December 19-Plans for the | appointment of an independent committee to represent the independent bondholders of the Wabash railroad became known here today after conferences between i James c. Chaplin, president of the Co lonial Trust company of Pittsburg, George | M. Reynolds, of the Continental and Com l mercial National bank, and others
 The independent committee will be made up of Willard King, president of the Co., l lumbia Trust company, New York, chair | man; r. J. Lisman, banker, New York; l M Edwards president of the Common