Railroads -- United States; Railroads -- United States -- Finance
At this point efforts at reorganization were checked. One plan had
failed, one had been formulated but not pushed forward, and the task
of creating a third had been refused by the banking firm which was
apparently best able to carry a plan to a successful conclusion. For
a time now the field was left to the disputes between members of the
Richmond Terminal family, which made up in bitterness for what they
lacked in the matter of valuable result. Mention will be made only of
the wrangles between the Central of Georgia and the other parts of the
system.
The Central of Georgia had been placed under a receiver of its own
some two weeks before the publication of the Olcott plan. Some months
later this receivership was made permanent, and the Richmond Terminal
was enjoined from voting the 42,200 shares of Central stock which it
held. It can scarcely be said that the withdrawal of the Central of
Georgia from the Terminal system was unwelcome to the latter. Already
the Richmond & Danville had refused to carry out its guarantee on the
Central’s stock unless that company should deposit bonds to cover an
alleged sum due from it,[365] and President Oakman had hastened to
inform General Alexander, the temporary Central receiver, that the
Richmond & Danville would not operate the Central of Georgia after the
end of the temporary receivership.[366] When, however, the Central not
only insisted on withdrawal, but asked Judge Speer, of the District
Court of Macon, Georgia, to appoint a receiver for the Richmond &
Danville Railroad on the ground that that company was insolvent and
was indebted to the Central in the sum of $2,459,670,[367] prompt
action was made necessary. Application was made to Judge Bond of the
Circuit Court for the Eastern District of Virginia, and on June 16
this magistrate appointed Messrs. F. W. Huidekoper and Reuben Foster
receivers of the Danville road.[368]
“This appointment of receivers by Judge Bond,” explained the parties
responsible,[369] “is not only not inimical to nor in opposition to
any plan for the financial reorganization and rehabilitation of the
Danville system, but will be found to greatly facilitate and aid
any plan of reorganization, while if the Georgia court had obtained
possession of and jurisdiction over the Danville system this would
have been rendered practically impossible.... The necessity for such
action,” they continued, with a touch of pathos, “will be further
appreciated when it is known that for some weeks past the Richmond &
Danville Company has not been able to keep either a dollar in bank or
in its safes within the state of Georgia, because every such dollar
has been attached or garnished by parties alleging claims against the
company, and even the money sent by express for the liquidation of
pay-rolls has been attached in the hands of the express company, and
in every instance enormous bonds have been required to release such
moneys....”[370]
Public-domain text, read in full here on John Shaqi.
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