New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-24
financial.
NEwYo3K, Jan. % 1892.
To ne H0Idcri n ctr'ncc'r ror Scck Ofae
Chesapeake and Ohio Railway Co.
sJ,29O,O0O
7.lGI,000
S.127.OOO


Ihis development has been brought about or III, use
OF bonds which We're provided at the time q the fcoran
ha'lon. and to By what might generally be
'cnscend large Increase in the percentage Of operating
expenses.
Your Board OF Directors IS confident that II con
hnuaton OF the present pocy OF enlargement OF facit
con be secured by adequate financial provision even mora
favorable results BE- shown in tho future. Tho
Possibilities for extending the business OF the eoHp'ny ar
rTc;ieay unlimited The question TO be met l. no" to
make such adequate provision IN way that shan d'a'
Justly with the equities OF the preferred stock In"
requirements OF the company can only be met by using
what II earns or by mortgage t'klng 9rcouencc OF 'c
proferrsd stocks, or by both these plans combined
Under these circumstances nold has not hesitatd
to adopt and to recommend for approval the following
scheme which provides for equitable adjustment WIN
the preferred stockholders well TO- he future needs
OF the company.
IL Ia proposed to create new general mortgage On
all the property OF the company (Which shall also be
lien on properly hereafter acquired by use Of inc
OF o.,d bonds far a. p,actcable to secure Oo"uS
FOR the OF SO 100000, and bearing ~ per CENT
interest, both principal and interest payable IN aoo o'"
Of the tinted States OF the present standard OF Ne''"
and nncness the principal payable March l. 1"2' ana
Interest the first Of March and september In "ach war
OF ths amount about 1873 COO 900 viii b" ic'e'u "
pay on bonds Issued u be s"u'd under all cN'S 's
mortgages the property and for equipment notes *
cep the loads On the Richmond aud Allegheny Division
which iun until 1859. and bear net over pr cent
interest.
b. Necessary. will be used In adjustment "th t'
and second preferred stokhoder. explained below
and obout 50 0O0o 600 will be available Tor Use from u"c
70 time (undr proper Ic-,rctonsl Tor Improvement ~
editions 10 and engagements OF the companys sy'rn'
recently made and as hereafter DC nccr-ary o. e.
podcnt
In addition to the above fixed amount OF the mortgage
above suitable provision Will be made IN II ior
the Of additional bonds AZ rate not eNcecihR an
average Of s.j goo for the purpose Of nouoe 'r'cN
to hereafter.
So far a. the rrccrred SO Rhodcrs concerned the
following adjustment Is proposed
The first preferred stockholders 70 70 eNe t"oth'tus
Of the face value their stock In thc-' bonds bearing
iuefcs, from July J. 1872 aud onc.thd IN common stoo"
tue, certificates. The second preferred stockholders to
receive on".lrd OF the face value q their s'cN ID IKE
bonds ami two.thais in stock uu>t cethcatN.
Fractions will be adjusted h. cqniiabl" cash stu'HehS'
Tor the purpose thl, adjustment and other hr'@ OF
the company II Is proposed 70 n"'a>" the common 'o'N
by an issue exceeding as geo 600
win these arrangements Tor providing funds Tor me
development Of the property there l. no doHo' ID thr o'
.on Of your Board as to H. iu'ure.
when this mortgage is executed ami proper poYl''on
mad, for tin exchange u securities p"ohc notice WI" w.
given all tae preferred stockholders may nave o'
orfuny 20 exchange but IN, company does not "beate
itself 70 make the exchange, unl's. wothrd' IN amount
Of each ca,s deposit Their stock Tor that purpose
when notified to d So
Of the bonds which reserved for Improvements &C.,
{, +, rropocd sell $4,000 600 at once fot Improvement,
recently made about % BE- undertaken They VIII be
offered % tho stockholders a - per cent and a.
cfucd interest a. they ready iur delivery
syndicate fomd to purcasr any bonds not 80
taken hy stockholders The proceeds Of these bonds
WIFI provide for all expenditures a. present required on
construction accoun and lave the company free q hoat
Ing debt.
II tho above scheme conmends it.eN - you wll you
kindly sign the request the Voting Trustees In whose
hands the voting power Of the stock Of hc company IS
vested until Jan !. 1885,
Such variations may be- made In working ont the details
Of th, plan shall commend Themselves q the Board u
Directors IT. essential features viii bc aS above stated
ANY further explanation desired viii be- furnished upon
apntlon 81 the Fiscal Agent, Of tho company. Mcssfs
DEEXFr. MORGAN CO., % Wall.st. Ncw-iofk CIV.
II, order of the Board of Dirccfor-.
The Chesapeake & Ohio Railway Co..
BY VI T.. INGALLS,. Prc-Idcut.