The herald., 1896-03-16

preferred stock fifty per cent, common
stock fifty per cent.
Depositors for common stock for pay
ment of a sum equal to SIS per share
common stock 100 per cent.
The percentages as to bonds are based
upon the principal amount of deposited Sc
curities. The payment by depositors of
preferred and common stock must be made
in no less than three installments at least
thirty days apart.
The new bonds will be in coupon form
for $500 and $1,000 each, with right of con-
version into registered bonds of $1,000 and
10000.
Interest on new prior lien bonds issued
for present general first mortgage bonds
will start from July l, 1896, and will be
paid quarterly. Interest on all other bonds
will start from January l, 1897. payable
on or before completion of the reorganiza-
ton.
The present first mortgage bonds mature
in 1921, but are redeeInable by compul-
sorry callings at any time at ITO per cent
from the proceeds of land sales or the
to the sinking fund.-.
In some years these redemptions have
required, it is explained. large contribu-
tions from the operating department., even
TO the extent of the entire annual interest
on about $l9,OOO,OOO of prior lien bonds
as now proposed.
A conversion on the basis set forth, it is
also explained, will relieve the holders of
general mortgage bonds from these calls
for redemption, as we'll as the company
from the sinking fund requirements.
The general first mortgage bonds now
outstanding are at the rate of about s20.-
466 per mile. The proposed prior lien
bonds, including those reserved for the St.
Paul and Northern Pacific bonds, will
amount to about $22 81 1000 per mile. 1t
is estimated that on the prior lien bonds
the annual fixed charges will amount to
$685. per mile as compared with $16lS
Under previous arrangements.
A syndicate of $45 100000 has been
formed to provide the amounts of cash
estimated as necessary to carry out the
terms of the plan of reorganization to for
nish the new company with a cash working
capital and with sum estimated at $5,-
100000 for early use in betterment and
enlargement of its property.
b, AND o. REORGANIZATION
BALTIMORE, Md, March l5.-It is stated
on good authority that The reorganization
of The Baltimore and Ohio railroad can be
effected without any assessment upon the
common stock and that plan with this
result in view, is under consideration and
will be submitted within few days, to one
or both of the committees having the mat
ter in charge. The plan is an elaborate
one, its main feature being a reduction in
the operating expenses and the
ultimate floating Of new securities to pro-
vide for the taking of such receivers GER
tificates issued before reorganization can
be effected. The reduction in expenses if
the plan is adopted, will be brought about
by the conciliation of all the present aux
iliary systems into one body with head
quarters in Baltimore and having but one
set of departmental heads. This would
involve the abolition of the present ex-
ecutive departments of the Baltimore
and Ohio Southwestern and Pittsburg and
Western. A general scaling down of
rentals wherever practicable would also
be effected, and these economies, together
with anticipated increased earning ca
pacity of the several systems to be
brought about by increased facilities for
handling traffic would, it is thought, put
the company in a position to float the
securities in sufficient volume to
cancel the floating debt and pro-
vide for the receivers certificates.
there is little or no chance to do anything
of that kind at this time, but they as.
serted that there is to be SO great an in
crease in the roads carrying system from
this time forward that by the time the de-
tails of the plan are perfected public con-
fidence will be restored to an extent which
will admit of the floating of the
proposed new securities. In this
connection it is also stated that the Balti-
more committee recently organized to look
after the interests of local security holders
will make a determined effort to have the
books of the company overhauled by an
expert with vie~ of learning the exact
condition of the property and of ascertain
ing what has become of the collateral which
was thought to have been in the company q
strong box up to within a week of the final
cOllapSe.