The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-10
AFFAIRS OF THE RAILWAYS.
win Make No More Concessions.

The parties owning and controlling the Ohio,
Indiana 81 Western road have reached point,
IL il stated. where there will be no more con-
eessions made TO the parties controlling the
Cleveland. Sandusky & Columbus road, and
have. in effect. notified the latter company that
they can come and take their property and
operate the road. and the sooner they do SO the
better. AS the matter now stands. the passenger
equipments of the o., ]. & w. are run no further
east than Springfield, O., with the exception OF
the mail and express GERS and tie woodruff
coaches. All freights are turned over TO the
Decline at that point Employees OF the o.: l.
g. w. continue to work on the O., D &c e. using
equipm euts which the c., s. q C. turned over TO
the O. l. & W. when the lease was executed,
but which are IN mucn Deeter shape
true of the oad-bed How long this state of
affairs will exist is a problem. as the G.. 5. 81 G.
people according to the Boston papers, are IN
no mood to carry out the programme OF consoli-
dalton as mas been talked OF tor many months.
OF course IL the consolidation scheme falls
through, lengthy and ugly Irrigation will follow,
as many knotty questions viii arise. The o., l.
& w. have expended money Iloeraiiy on the T..
s. e. c. and will want TO be reimbursed, the
c., S. & c. has yielded no revenue above the
actual cost Of operating 1t and the rental
charges under tho lease. The o.. /. & w. peo-
ple are disposed TO blame the officers of the c..
s. a. G.. company because the consolidation has
not been effected. while the c., 5. g. G. people
alleee that under the reorganization they were
not accorded a fair show. the interests of those
most interested in the o., l. & w. having been
the best protected. Then there is a feeling that
under the reorganization the bonded debt is not
reduced, and that the road will be no better
able than before to pay it's fixed charges.
The Chesapeake g. Ohio Reorganization
NEW YORK, Feb. &C. P. Huntington has
issued q statement to the holders OF Chesapeake
81 Ohio securities, giving the for the
steps to be taKen for the reorganization of the
property that minority of the holders of the
bonds refused to assent to the proposition to
scale down the interest. He states that the
mortgage securing the $l5.0OO,O 600 bonds will be
foreclosed. Advance sheets obtained from
Drexel, Morgan s. Co, who undertake the re-
organization, give the following details: A
committee consisting Of c. S. Coster and A. J.
and r. J. Cross, of Morton. Bliss
& Co., have been appointed to carry out
the plan. The present mortgage. securing 3d.
OOO 900 bonds will be foreclosed and a new
company organized with the following securi-
ties: First mortgage per cent bonds. $50. 000.-
600; first preferred per cent. non-cumulative
non-cum ulative stock, $l2, 900, 900; common
stock, $40, 600, 900; total issue of stocks and
bonds, 1914, 600, 900. The old securities will be
to the series will be EXCHANGED at par for new
frsts The $15. 600. 900 bonds will receive two
thirds of their face in new frsts and the bal
ance in first preferred stock. The present first
preferred stocks will be assessed 81
per share, tho second preferred stock
90 per share, and the common stocks So per
share. For the assessment paid. new first pre-
ferred stock will be given. All stockholders
both common and preferred, who pay the assess
ment will .sceive common stock in exchange for
present holdings The reorganization provides
from Ashland to Cincinnati, including the bridge
at that point The completion of this extension
will be paid for out of the proceeds of the bonds
which a syndicate guarantees to place at 80.
The voting power of the now stock will be
vested for FIVE years in j. Pierpont Morgan,
John Crosby Brown and George Bliss.