New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-23
l'llGlItldI.
NETWORK, Jan. - 1892.
To TIE Holders n C,rtiNcafo Jor s'oct u The
Chesapeake and Ohio Railway Co.
7,1G1,OO0
S.121.00O

81
Ihls development has been brought about by the Use
OF bonds were provided time the
zaion, and 10 extent by what might generally be
considered large Increase the percentage " operating
expenses.
Your Board OF Directors is confident that II
tnuaton OF the present policy OF enlargement OF facitea
can be secured by adcquat, financial provision more
favorable results be- shown in the future. Tho
Possibilities for extending the business 0; hc company arr
practically unlimited The question be met Is how TO
make such adequate provision IN that shall deal
Justly with the equities Of the preferred stock The
requirements OF the company only be met by using
what it earns by mortgage taking precedence OF the
pr,ferrd stocks, or by bo.h these plans combine d.
Under these circumstances your Board has not hesitatd
to adopt and recommend for approval the following
scheme which provides Tor equitable adjustment WIN
the preferred s,ockhotos well for the future needs
OF tho company.
IL Is proposed o create o general mortgage on
all the property OF the company (Which shall also be
hrt lien properly hereafter acquired by use OF the
olo.cd bonds, far piactcoble 70 secure bohds
for the Of $40 100000, aud bearing Az per cent
inter It. both principal AID interest payable In gold coin
OF the United States OF the present standard OF "e'2ht
AMI nnones, the principal payable March /, 1T2 ana
Interest the Of March and september in each year
or this amount 1913 coo 900 will be reserved 70
pay issued or h issued under all existing
motsagcs the property and for equipment notc eX-
cert the lolds On the Richmond AMI AlrghanY DVlsio'
which until 1899, and bear not over per cent.
interest.
oi the remainder, about Sl3,OUoOOo or ~'lch paw VI
may b, necessary will he used adjustment with tho
frs. aid second preferred stockholders explained below
eGd ,hout s2 10000 will be available for use from time
To time lundr proper rcstrcton-) for improvements e.
additions and engagements o. the conpanys system
rccoy made and may hereafter DC necessary or cN'
pcdimt
II addition to the above nx,d amount Of the motrase
suited above suitable provision Will be made In IL Tor
the ssuc Of additional bonds rate not exceeding an
average Of saj the purpose Of double track
A.
10 tine hereafter.
- far a. tho poferred stockholders concerned, the
following adjustment Is proIos' q
Tie fist pefciI'd stockholders t. tNe C"o-0"los
OF tie faro value Of their e, bonds. bearing
interest July 1872. and oaehiri IN common stock
irus certificates. The second preferred stockholders to
receive ouc.thd o; the face Nare u u'lr ftck III Ike
bort, ana twohird, In common stock uu't cerl''ts
Fadions VIII be- adjusted b. equitable cash ttenerts
Dor the purpose 4 this adjustment and other needs o
the company proposed To ncras" the common st''A
hy an Issue not exceeding SD Cno.Do'.
Nlh thes. arrangements for Providing funds Tor me
ie,,opment u the property thr' Is 80 u0uut 10 tc op
ion q your Boad To 10, futuI".
When this mortgage o''cutet and proper provision
mad. exchange q securities pubic notice viii be-
given =, that all preferred siockhod rs may have op
lottunty - hangc but tn company does not obHfde
if.- q. make the exchange, unless twOthds IN amount
u each ella, snail Gcro.; their stock for That purpose
When notified 10 60
OF the bonds which are reserved Improvements &C.,
10 4, ur,nnd T. sell - 600 600 40 for Upto, rHchtS
recently made or about To be undertake They viii be
,recd 20 thf common hodr, o. - cent aud nc-
.iucd interest a, thy aie rady ir delivery.
yndlcatc has formed - purchase any bonds not o
taken bv the ,t1rkhode-. tn" l;oc'rds ~ these bonds
Will provide fo- expenditures a. present required on
account: ald have the company free q Hoat
Ing Goht.
n ,ho above schcn, conuend- lt,of - ,ou VIII You
Kindly sign the oqu,,. the Voting Trustees IN whose
hand, the voting power Of stock OF the company IS
y,s.cd until Jan. ! le9i.