New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-14
Gnanrial.

Since the appointment Of Receiver. for the Rs,,..
mo Ohio Railroad Company in February. 1896 We have
ehoeeVored to watch carefully and 20 ali steps ne.es
e'fy 70 protect the rights Of the Five Fer Consoi
dated Bondholders
Almost Immediately after their appointment the Re-
oeNes expressed the opinion that II allowed 20 issue
s'ooVooo Receivers Certificates be used FOR dscharg
ing accumulated supply bills for making some needed
additions 10 the property. they thereafter regularly
meet me interest ON the several issues os bonds
"hieh the 3. e. o. r. r. Co. was directly responsible
ana which constituted liens prncpa, railroads
the system
recognizing the advantages likely accrue from hold
's together all the properties and also understanding
mat the greater part Of the certificates
oe USED TO discharge supply bills which would probably
DC he'd by the Court to be preferential liens we with
Others interested Consolidate bonds favored tho
Issue OF such certificates
VI late the Receivers have unable fulnl
expectation ard defaults have place on several
the lines important TO the integrity system
ese DEFAULTS we have felt that obec, OF the original
issue having failed further Issue of certificates for any
PURPOSE should be made by the Receivers and therefore
We have opposed al! such further issuc.
In the Spring OF 1897 the Johns hopkins University
hed IN court an application asking that the 100000
first preferred stock OF the D. O. r. r. Co. should be
oeciafed Hen on the income CT property ahead OF
we consolidated Mortgage Bonds. The Trustee Of the
Consoida,ed Mortgage filed answer which was deemed
adequate TO set forth tho rights " the bondholders
rev days before this application be by the
Court we learned THAI this had been withdrawn
o. he trustee aad that in Its stead there had been ei
another answer merely formal IN character stating that
the Trustee had Views Ia the tier leaving
determination OF the question the Court
For this sudden change perhaps given best By the
trustee. who. on inquiry. Informed OF ;hat -;
uttered decidedly with In regard 70 the 2. X O. y.c-
icrred stock. and that this was idea WIKI l.;
that had held this opinion many Years ,ong before
=; accepted the trust OK Consolidated Mortgage
that the purpose Of the Company in amending
'swer was to remain In neutral position"
Immediately upon hearing OF the changed arl 'neu.
tral attitude q the Trustee whom We had been rely
ing for the protection OF the rights Of bondhoiers
we communicated with some OF the large bondho.ders
and took steps for independent Intervention In their
behalf and in behalf 0. all other bondholders. Although
subjected to great pressure In Ire preparation n papers
the case was fully presented by counsel arc
happy to say that Notwithstanding the Views OF the
TRUSTED the Court has decided in favor OF Tho Conso-
dated Mortgage. and has denied the application Of the
University We 10 not know whether the University VIII
take appeal from this decision but II So We shall
continue our opposition.
More recently the Trustee Of the Pittsburgh and Con-
nelsvlle Five Per Cent Consolidated Mortgage filed
petition. q; which the granting would In effect be
declaration that s mortgage las lien equal With yours
On the main ae Of the b. & O. II. L. We are now Wig
crot sy OPP Jsng this application
We mention these simply 10 give the holders Of:
Tie Five Per Cent Consolidated Bonds idea The
unusual phases which are taking. On questions
other than that Of First Preferred Stock
has communicated With and. uad r indemnity from
U.s. has allowed its counsel 10 cooperate with We
do not believe that 'he Receivers will defaul; pay.
meDt OF Interest except under dire necessity and
loag there Is default IN the o! interest
bonds. In III performance the other undertake
4 he mortgage there would not. under ordinary
conditions. be any 'or anxiety. But the very
usual attacks the integrity OF mortgage apart
from any default AMI The combinations ot the presen:
ceyeEsaip. well as the novel suggestion 81 ''neu.
trail" Trustceship. indicate necessity for
wachfulness and .igorous action.
II seems 10 important thei efore that the bond
holders unite With protect their interests; and.
,osdingly lave prepared Boniholle:s Agreement.
which among other things provides tor The deposit Of
bonds with Messrs =. p Morgan Co.. ami gives all
Necessary power that bonihodsfs represented
IN all matter, in court; well powe. to press to;e-
closure proceedings in of deianlt.
II these purposes commend themselves to YOU viii YOU
good enough sepos. your bonds With Messrs J. P
Mo-rnn Co 81 before January :: 1895 receiving IN
exchange therefor certificates Of deposit .lr which quo
taton n due time viii be asked from the New York
sioc., Exchange. These certificates for $3.50 each.
and bear Interest CORRESPONDING the coupons
maturing on the for the i've years As fast
az coupon, co.ecte1 y r Morgan co. will pay the
amount thereof on sur-erde. Of the corresponding
rants
We cannot undertake represent any bonds which shall
n: haze depos,. before tho date above !aG.
Gated
There may be Obtained a. Offices Statement. fur
sel by Receivers showing The earnings and fixed
charge. o, tie property covered by to Consolidated Nor
ragc We believe this statement VI. ho rcaSsutia- 70
bonIholders bit also that VIII show them the necessity
q. no, allowing additional liens % be imposed the
property covered by priority ihe9so or