Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-22
RECEIVERS CERTIFICATES
r. and O. Borrowing Money for Expenses
and Stock.
What is Needed to Put the Road On
Its Feet-The Cars and
Engines.


pany will have just $4,000 left after pay
ing off the Indebtedness provided for under
the arrangements included in the issue Of
receivers certificates for $5,OOO0OO. for
which authority was granted by Judges
Goff and Morris in the United States court
al Baltimore yesterday.
OF the issue of $5OOO,OOO. for which au-
thority was asked by Receivers Cowen and
Murray, it will require, according to the
statement of the same officials. A,999,-
543O1 to meet pressing Indebtedness, and
leaves only the small sum of $4,000 to be
applied to the purchase of the additional
rolling stock, for most of which contracts
have already been entered into. In order
to provide for the latter and for :locomo-
tives that are also badly needed. the re-
ceivers asked, and were granted condi-
tionally, the authority to issue certificates
to the amount of $3,4O0OOO, the entire issue
OF s., 100000 to be payable in one. two and
three years. and to bear interest at the
rate of per cent.
Great as is this sum, there is no doubt
that the certificates can be successfully
negotiated, as the $5.OU,OOO issue will, 1t Is
understood, be looked after by ]. P. Nor
gan & Co. of New York. and that of 49,
100000 by the Mercantile Trust and De-
posit Company of Baltimore, who have al
ready received subscriptions for the one
half allotted to them and the other half
interested In other securities Of the
Baltimore and Ohio.
The Reasons.
In giving the reasons for asking authority
to issue the 100000 of certificates, coun-
sci for the receivers made the following
statement: "On May 1 the company owed
s., s47, 6SO.31, on account of current operat-
ing. expenses, including traffic accounts.
The creditors for this amount are numerous,
and a great many of them are individuals,
firms and corporations. from whom the rail-
road has obtained its traffic as well as its
supplies. They have been clamorous for
their money, and the non-payment Of this
operating Indebtedness is said to be causing
great hardship injuring the credit of the
company and seriously impeding the revival
of traffic on the road. So great has been
the pressure from this class of creditors,
and the receivers have found 1t so import
ant to the successful operation of the prop
erty to give them the utmost relief. that in
the disbursement of money coming into
their hands the receivers have anticipated
their net earnings, and have applied to the
payment of this Indebtedness SS0S, 0I2.3G up
to May in excess of the receipts applicable
to such purpose.
In making this estimate the receivers
treated as cash accounts 81, 400, 1OS.S9 shown
by the company's books to be due from
agents and collectors. The available cash
on hand was $16S, Even if the en-
tire net earnings be applied to paying the
operating Indebtedness this
cannot be discharged within anv brief
period of time without great preindice to
the mana cement of the company"
Notwithstanding this large addition to the
debt of the Baltimore and Ohio if is under
stood that the RECEIVERS are confident that
after the road shall have received it's adj
ditional equipment. it will be able to meet
all necessary payments and to provide for
the receivers certificates as they mature
vh.. =; x
An account OF what Is needed, according
to the B. and O.'s own officials, to bring
the main line and princina1 hranc bas u, IN
tho ,+,,aaua aao..as ~ ~ "
w. .iie great INES
oi the country Is interesting, and Is as
follows: For new steel rails $4,000: re-