ed, the Terminal Company
found itself once more securely in control of the entire system, and the
Brice and Thomas interests had incidentally very considerably increased
their fortunes and also their hold on the general situation. From this
time, the Terminal Company went aggressively forward in an ambitious
plan for further expansion. By acquiring control of the Central Railroad
and Banking Company of Georgia, the Terminal management was involved
with new financial interests which immediately sought to control the
system and to eliminate the Brice and Thomas group. The consequent
internal contest was adjusted, however, in May, 1888, by electing as
president John H. Inman, a man who had been identified with the Central
Railroad of Georgia system.

The Richmond Terminal system now put in motion further plans for
expansion. In 1890 it acquired a system of lines extending south from
Cincinnati to Vicksburg and Shreveport, known as the Queen and Crescent
route, and in the meantime made a close alliance with the Atlantic Coast
Line system. By the end of 1891 the Richmond Terminal system embraced
over 8500 miles of railroad, while the Louisville and Nashville, the
next largest system in the Southern States, had only about 2400 miles.

But as 1891 opened, the vast Richmond Terminal system was perilously
near financial collapse. Notwithstanding the great value of many of
the lines, its physical condition was poor; the liabilities and
capitalization were enormous; and much of the mileage was distinctly
unprofitable. About this time many disquieting facts began to leak out:
during the previous year the Richmond and Danville had been operated at
a large loss, and this fact had been concealed by deceptive entries on
the books; the dividends, paid on the Central Railroad of Georgia stock
had not been earned for some years; and the East Tennessee properties
were hardly paying their way.

Various investigating committees were now appointed, and finally a
committee headed by Frederic P. Olcott of New York took charge and
worked out a complete plan of reorganization. The scheme, however, met
with strenuous opposition, and thus matters dragged on into the panic
period of 1893, when the entire system went into bankruptcy and into
the hands of receivers. The various sections were operated separately
or jointly by receivers during this unsettled period, and it looked for
some time as though an effective reorganization which would prevent