The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-11-02
.flnanfinl.
NEW YORK. NOvonber !. 1897.
70 THE OF
CONSOLIDATED MORTGAGE
FIVE PER CENT. GOLD BONDS
Baltimore & Ohio
Railroad Company.
DUE 1891

Since tho nDDO1utHnfut VI NNNANNi VI NHS Jaw
moro and Ohio Railroad company in February, 1894
we have cndeavored to watch carefully, and to take
Ali steps necessary to protect the righta. OF the Five
Per Gent. Consolidated Bondhoiders.
Almost Immediately after their appointment the
Receivers expressed the opinion that, II allowed TO
issue s6. 900, 900 Receivers Certificates, to be used
for discharging accumulated supply bills and foR
making some needed additions to the property, they
could thereafter regularly meet tho interest on the
several issuea of bonds for which the b. & o. r. r. 90.
was directly responsible, and which constituted lieus
on tho principal railroads of the system.
Recognizing tho advantages likely to accrue from
holding together all the properties. and also under
standing that the greater part OF the $4,000 600 Ger
tincates were to DO used to discharge supply bills
which would probably be held by the Court TO b
preferential liens. we, with others Interested In the
Consolidated bonds. favored the issue of such certih-
Gates.
or late the Receivers have been unable to fuln1
their expectation. and defaults have taken place on
several OF the lines important to the integrity OF the
system. Since these defaults we have felt that, the
object OF the original issue having failed. no further
issue OF certificates for any purpose should be made
by the Receivers, aud therefore we have opposed all
such further issues.
In the Spring OF 1897 the Johns Hopkins Univeg>
sity hlod in court an application asking that the
%. 900. 900 nrst preferred stock OF the B. e. o. R. n
Co. should be declared q lien on the income Of the
property ahead Of the Consolidated Mortgage Bonds-
The Trustee of the Consolidated Mortgage hled
an answer which was deemed adequate to set forth
the rights of the bondholders. A few days before
this application was to be heard by the Court. we
learned that this answer had been withdrawn by the
Trustee, and that In its stead there had been nled an
other answer. merely formal in character. stating
that the Trustee had no views in the matter. and
leaving the determination OF the question to the
Court. The reason for this sudden change can per
hape be given best by the Trustee. who. on inquiry.
Informed one OF us that at differed decidedly with US
e in regard to the D. o. preferred stock. and that this
was no new idea with 1t; that Il had held this
"opinion for many years. long before It accepted tho
trust of the Consolidated Mortgage" and that "the
purpose OF the Company in amending its answer
" was TO remain In n neutral position"
Immediately upon hearing of the changed ana
"neusral" attitude Of the Trustee. on whom we had
been relying for the protection OF the rights of the
bondholder. we communicated with some OF the
large bondholders. and took steps for an Independents
Intervention in their behalf, and in behalf of all
other Dondholders. Although subjected to great
pressure in the preparation OF papers, the case was
fully presented by our counsel. and We are happy to
say that Notwithstanding the views OF the Trustee)
the Court has decided in favor OF the Consolidated
Mortgage, and has denied the application Of the Uni.
yersity. We do not know whether the University
Will take an appeal from this decision, but II so, we
shall continue our opposition.
More recently the Trustee of the PIttsburgh and
Viva DnE Va Nnr al
has e,ed a no,,t,or =, ,,h,o. ,h. ars.,.. go
In .ro., h. i. ao,,..o,,o, a.. IT, -.
usn .,ua, with orr A. tho ,,.,, 10" ~ N
and n p n W. rror.u.,m
n,,cat,on
We ment,o, ,ho.o ,...r, u,
srs n, the E,v. PC, ron.a,,S.,os D.. ~.
ida n, m. rrr.r., nha... r.s.,s - 800"
On oueatio,s o,hor ,hon ,,.. -, e. e.. n.ssa.-ts
stock the Trrs,.. h.s oomnnn,.a,a, y, w. 100
| under an Indemnity from ia. has ailDyyed fta counael
..a...--.
R.c.,v.r. w,u da,.,,, T., , ao.Ss.. .sA.n"
con, urd.r n,o., a,ra na,..sts' ~
IA M de,,uI, In N. n,vm.n, -, go, 80
mr. In the n.rro.ran.a -, .na go
the mor,raao ,n.r. uo,,. ~, -. .S,,-...S
dr,ons ho m, ~ ,or,nx,.u d.. a..
usual attacks on tho ,ntogritv ~ yorr nor,,,,. 80.
from apv defiant and the cor,nI,c ,,,ors -, ,ha -.
ant rsc.,voxo,,n ..uou
neutral ), Tru,,.esh,n. indicate rscess,,v tor oon.
slant watchfulness and vigorous action.
1t seems to us most important. therefore. that the