The Birmingham age-herald., 1914-09-08
Statement Issued by Man In-
 terested in Tidewater
FORMING COMMITTEE
Propose to Investigate Company's Accounts and Properties Together With All Transactions Re-
 garding Bonds

.. II. Cunningham, of Boston, a dealer in bonds and interested in the securities of the Birmingham, Ensley and Besse- mer railroad, is forming a committee to look after the interests of the bondhold- CTS in the receivership. The following letter, sent to each of the bondholders, explains plans of the interests repre- sented by MT. Cunningham:
 We address this letter to you as one of the holders of the securities of the Birmingham, Ensey and Bessemer Rail- road company, and therefore vitally in- terested in the proceedings now pending in the United States courts in Birming- ham,
 Some days since 1t was called to the attention of this office that the physical property in Birmingham as at present constructed did not appear to justify the amount of securities which had been issued against it. Inasmuch as our office has been and is largely. interested in the securities of the railroad. we wrote to the management a letter propounding the following questions, answers to which we propose to place at the disposal ot our clients These questions have never been answered.
 T. What is the total amount of bonds of the railroad now outstanding?
 2. Kindly give us the dates and amounts when the successive issues were certified to the trustees in New York.
 '3. To whom were the successive bond issues sold and what was the net amount realized by the railroad therefrom?
 "A For what specific purposes were these several amounts of bonds expended by the railroad and under what votes of the board of directors?
 Engaged Attorneys
 "In the meantime we had received a printed communication from the office of the president advising us that the bond interest due September l, 1914, would be defaulted and that a receivershlp was imminent. We retained as counsel Whip pie. Sears X Ogden in Boston, and Henry upson Sims, of Birmingham, and ap- peared before the federal court to em- phasize the fact that the question of the proper application of the money which has been heretofore paid into the treasury of the company by bondholders is financial question and not an op- erating question, and that In any such Inquiry the interests of Morris Bros. were not the interests of the bondholders.
 'To keep the expense at minimum the court appointed w. I. Ross, formerly of the road, receiver, with every possible guaranty that the widest latitude should be afforded to the se- curity holders to investigate the former financial administration of the road.
 We propose immediately to
 make complete investigation of
 all of the company's accounts and
 properties, together with all trans-
 actions and contracts between the
 railroad company the construction
 company and the promoters, with
 particular reference to the amounts
 and dates of the certification of the
 bonds by the trustee and the dis
 position Of the cash proceeds of
 these bonds. We have been prom
 ised answers to the questions
 hitherto sent to the corporation and
 above referred to, When we have
 this information in hand we will
 then take such action in regard
 to the protection of the security
 holders as the facts justify.
 Forming Committee
 Meantime we are engaged in the organization of bondholders' pro- tective committee-the personnel of which will be announced upon its completion. The gentlemen who com pose the committee will be sufff- cient guaranty to all interested parties that the proposed investigation will be thorough and effective. We have had cordial offers of cooperation from all quarters and we expect to represent a majority of the entire amount of out standing securities.
 we suggest that until fully ad-
 vised you do not affiliate yourself
 with any so-called bondholders
 committee organized in the inter-
 ests of Morris Brothers of Phila-
 delphia. That firm acted as bank
 CTS and promoters and controlled
 the railroad down to the receiver
 ship. It is toward that administra-
 ton that any investigation of the
 financial status of this corporation
 is directed. and 1t is obvious that
 an investigation In which the party
 investigated Is also investigator
 will not accomplish anything.
 We ask your cooperation and shall be glad to furnish all the information which we have from time to time. A complete record of all the corresponds ence and other papers connected with this mater to date is on file in our of- flee and we shall be very glad to place the same at your disposal.
 Awaiting your reply, we beg to rs-