New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-06
fiuaurial
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New-York November ]. 1897
TO THE HOLDERS OF
CONSOLIDATED MORTGAGE
FIVE PER CENT. GOLD BONDS
f,nantial
Baltimore & Ohio
Railroad Company.
DUE 1891

Since the appointment Of Receivers Tor the Baltimore
and Ohio Railroad Company in February. 1895 have
endeavored watch carefully. and 10 take all
sary protect OF the Five Per Cent conso
dated Bondholders.
Almost Immediately after their appointment. the Re
ceivers expressed the opinion that u allowed to Issue
S. 600 900 Receivers Certificates 10 be used for dschars
ing accumulated supply bills and for making needed
additions the property could thereafter regularly
the interest the several issues OF bonds for
which the .. & o. r. r. Co. directly responsible.
and which constituted liens the principal railroads OF
the system.
Recognizing the advantages likely TO accrue from hold
ing all properties and also understanding
that the part OF the IS 100000 certificates were TO
be used TO discharge supply bills which would probably
be held by be preferential liens We with
others interested in the Consolidated bonds. favored the
issue Of such certificates
OF late the Receivers been unable TO fulh their
expectation and defaults place several Of
the lines important the integrity OF the system since
these defaults have felt the object Of the original
issue having failed further Issue Of certificates Tor any
purpose should made by the Receivers and therefore
have opposed all further Issues.
In the Spring Of 1897 the Johns Hopkins University
filed in application asking that the 100000
first preferred stock Of the 3. o. X X co. shoud DC
declared lien on the income Of the property ahead Of
the Consolidated Mortgage Bonds The Trustee OF the
Consolidated Mortgage filed which was deemed
adequate to set forth the rights Of the bondhoders
few days before this apr caton be heard by the
Court learned that this answer had been withdrawn
by the Trustee. and stead there had been fled
another answer merely formal IN character stating that
the Trustee had the matter and leaving the
deterrn nation = the question the Court The reason
f0r this sudden change perhaps be given best by the
Trustee who inquiry, Informed of Ms that III
differed decidedly with u in regard TO the b. o. pre-
"ferred stock AMI thst this was no new idea with H.
that had held this opinion FOR long before
W accepted the trust u the Consolidated Mortgage ard
that 'the purpose Of the Company amending rs an
'swer was 10 remain IN neutral position
/ Immediately upon hearing % the changed and nett
trail attitude q the Trustee whom We had been rely
ing for the protection q the rights of the bonihodegs
We communicated with u the large bondhoders.
and took steps for Independent Intervention in Their
behalf and in behalf Of all other bondholders. Although
subjected 20 great n the preparation u papers
the case fully By counsel and We ere
happy % say that Notwithstanding the Views OF the
TRUSTED the Court has decided On favor the Consol
dated Mortgage. denied the application Of the
University We DO know whether the University Will
take appeal from this decision. but II shall
! continue our opposition
More recently the Trustee Pittsburgh and Con-
nesyile Five Cent Consolidated Mortgage has filed
petition OF which the granting would in effect be a
declaration tina, its has lien equal with yours
the main line Of the b o. r. Z. We now Wig
! oror ely opposing this application.
We mention these matters simply 70 give the holders OF
the Five Per Consolidated idea o. the
unusual phases which matters taking On questions
other than that OF the Frs, Preferred stock the Trustee
has communicated With US. and. undr indemnity from
has allowed It's counsel cooperate with ours. We
d. believe that The Receivers Will default in the pay
x n,eres, except under dire necessity and 20
long there is default the payment Of Interest on
your bonds tn performance OF the other undertaS
.ngs g; the mortgage there would under ordinary
.rdt1rs De any '-r anxiety. But the very UNI
attacks Integrity q your mortgage apart
from any default and the conulcatons OK the present re
/ Ownership = well tie move. suggestion o. "neu
irni' Trusteeship. indicate necessity FOR constant
/ aatchnIlress and vigorous action
II seems 10 MS most important therefore, tina: The bond
holders unite with protect their and sc-
which among other things provides ;or the deposit Of
bonds with Messrs = r. MORGAN & Co.. and gives us all
necessary Iower that b'nih1 iers represented
~ a matters In c5lr well power 10 press fore
] closure procs-l!ngs In case x defagit.
II these purposes nd themselves 20 you. Will you
be good enough 10 Iep3s. your bonds with Messrs J.
Morgan 6 Co. - before January . 1888 receiving IN
exchange therefor certificates = deposit Tor which quo
! talon n due lime VIII te asrel fr-m the New YORK
stock Exchange These certificates ior 5000 each
and bear pfrnf ~ f1oring O. the coupons
maturing IN bonds f0r the next i've loars As fast
40 up.ns are co lecteG g. J. Morgan GO. Will pay tn'
amount thereof On surrender = toe corresponding war
! rants.
We cnno, undertake to represent any bonds which shall
not have deposited before the date above Ind
| Gated.
There may be Obtained at Offices statement FUR
shed by the Receivers as showing the earnings and fixed
charges Of the property by the Consolidated Mort
gage We believe this statement will be reassuring q
bon holders but also will show them the necessity
u not allowing additional liens 10 be Imposed on The
ropery covered BY their mortgage In priority thereto u
| on an equality herewith.