New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-14
TIE CHESAPEAKE AND OHIO RAILROAD
DEEAILIT.

The proposition made by the directors OF the
Chesapeake and Ohio Railroad Company 10 the
holders of the first mortgage per cent gold bonds
of the Company, asking them 10 fund their coupons
for two years and take therefor an income bond,
causes general dissatisfaction among the holders.
The loan was sold Oh the reputation of the Board Of
Directors composed mainly of our most prominent
merchants. The road is completed and equipped
from the Ohio River to tde-water and has not cost
less than forty millions of dollars. The frst
mortgage loan amounts to S5,00O,0OO, or less than
40 per cent of the entire cost The entire debt OF all
description does not exceed 100000 and even at
the present depressed prices of material the road
could not be replaced at anything like that sum.
The holders of the bonds are mainly composed OF
small capitalists in this country and in Europe who
will suffer seriously if the plan of the directors IL
carried out. The following from the Handel Zeiiang
of recent date gives the statement of the German
bondhOlders:
In nearly all where any Of our corporations we're
under the necessity 70 ask the indulgence OF theI
creditors advised the latter 10 settle with the debtor
in amcable way. and to avoid lengthy and costly
litigation The same advice we would give IN reference
unable pay their overdue and next due coupons II
the directors would nave made acceptaole ptoP00ssi
case Iu the circular of the Treasurer, the financial
Imam it actually is, and thus endeayOr is made 20
force the creditors into an arrangement which in AL us
v.
cuar not that OF debtor ASKING indulgence, but Of
a creditor considering himself entitled to dictate his
terms.
amounting to over 8 0G00oO which gross misp pre-
scntaton, for actually, shall show hereafter, 1t
does not exceed s2,29j,JOO.
the Company has borrowed:
/ On their per cent hrst mortgage bonds Che same
h6ey nG pledged Tor over 40 per e.n 29oo' ~
pledged for OTes 10 per eeusl'..'... 36iS9l9 -
only the deficiency alter the realization viii Gu
matey become part of the floating debt, while the pres
cnt floating debt, for which collateral - giTen-a-,
for instance, dents Tor rolling STOCK, materials, etc.-
amounts only 81 29i9G 81. For the overdue coupons
and three coupons next due together four coupons.
the Company offers income bond az s. ami
further asks that such coupons should be surrendered 10
the Company.
Is it entirely fair to offer anNunsecure bond at the
same that the cent first mortgage gold bonds
originally issued atf Does II not appea rather
the surrender or the coupons. security
entitng the holder fOreclOsure Were the coupons
surrendered the Interest principal OF the
mercy of the Company. The coupons should 90
| into the hands of trustees, and remain there
| until the income bonds given in exchange,
! redeemed. The propositions OF tile Com
pany should be decidedly refused The more a. the
| bondnoders find ways and means 10 DE fully paid
for principal and interest The chesapeake and ONO
road 4lS miles long, fully completed ana equipped, aud
most substantially built, possessing all element, OF
large and paying traffic. II worth. among brothers."
If the directors of the Company bJ Their propositions,
intend prepare easy times for themselves and make
their stock valuable, such interests are, for the
present. matter OF Indifference 10 the DOndhOders,
who only endeayOr 10 secure their claim aud II the
Company does not come ont with better propositions the
bnndnoders within Fix months take possession OF
| the road by foreclosure proposed arrnu cement
being decidedly refused by the bOndholders the Com
| pany will Toe compelled TO make better propositions.
How Company arrange with the other creditors,
who are asked for three to years extension, OF
| secondary interest 10 the bondhoiacrs