New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-02
financial
Baltimore & Ohio
Railroad Company
DUE 1882

and Ohio Railroad Company in February. 1905 have
endeavored to watch carefully and TO take all steps neces
protect the rishts Of The Five Per Cent Console
dated Bondhoders
Almost Immediately after their appointment. the Re-
ceivers expressed the opinion that allowed to Issue
s500c0O0 Receivers Certificates be used for discharg
ing accumulated supply bills ard for making some needed
additions the property they could thereafter regularly
the interest the several issues Of bonds for
which the .. e. o. r. R. Co. directly responsible
and which constituted liens the principal railroads OF
the system.
Recognizing the advantages likely to sccru. from hold
ing together all the properties and also understanding
greater part OF the 100000 certificates were 70
be used discharge supply bills which would probably
be held by the Court to be preferential liens we with
others Consolidated bonds. favored the
issue 81 such certificates
or late the Receivers unable 10 fulfil their
expectation and defaults have taken place on several OF
the lines important 10 the integrity Of the system since
these defaults have felt that the obec. Of the original
having failed further OF certificates FOR any
purpose should DO made the Receivers and therefore
have opposed all such further issues.
In the Spring Of 1897 Johns Hopkins University
filed in application asking that the 100000
first preferred stock Of the b. o. r. r. Co. should be
declared a lien on the income Of the property ahead OF
the Consolidated Mortgage Bonds The Trustee OF the
Consolidated Mortgage filed which was deemed
adequate forth the rights Of the bondhoder'
few days before this application 70 be heard by the
Court learned that this answer had been Withdrawn
Trustee that stead there had been hed
answer merely formal in character stating that
the Trustee had views In the matter and leaving the
determination Of the question the Court The reason
FOR this sudden change perhaps be given best by the
Trustee. who inquiry. informed one Of us that 1t
differed decidedly with in regard to the B. & O. pre-
"ferred stock. and that this idea with it,
that had held this opinion for many years Ions BEFORE
III accepted the trust Of the Consolidated Mortgage and
that the purpose Of Company IN amending its an
ever 10 remain in neutral position.
Immediately
trail attitude OF the Trustee whom had been rely
for the protection Of the rights Of the bondhoders
communicated with Of the large bondhoders
and took steps for independent intervention In their
behalf and in behalf Of all other bondholders Although
subjected great pressure preparation OF papers
the fully presented by counsel and we are
happy that notwithstanding the views Of the
Trusteet the has decided In favor Of the Conso
datcd Mortgage and has denied the application OF the
University We DO not know whether the University will
take appeal from this decision but II We shall
continue opposition
More recently the Trustee Of the Pittsburgh and Con-
neisye Five Per Cent Consolidated Mortgage has filed
a petition. OF which granting would In effect be a
declaration tina, mortgage. has lien equal with yours
the main line ~ the -. & o. X. r. We are now Wig
orovsly opposing this application.
We mention these simply give the holders Of
the Five Per Cent Consolidated Bonds idea OF the
unusual phases which taking. On questions
other than that the First stock the Trustee
has communicated With and. under Indemnity from
US has allowed its counsel to cooperate with ours We
d, that the Receivers will default In the pay
men except dire necessity and so
long the payment Of interest on
your bonds or performance OF the other undertake
ings the mortgage there would not under ordinary
conditions. be any or anxiety But the very un-
usual attacks integrity your mortgage apart
from default and the complications OF the present re-
Ownership. we'll the novel suggestion OF ''neu-
frai" 1rusteeshIp. indicate necessity for constant
aa,chfllness and vigorous action.
Il seems 10 us most important therefore tina, the bond
holders unite with Us 70 protect their and
cordingly prepared q Bondholders' Agreement.
which among other things provides for the deposit Of
bonds j. F. Morgan & Co.. and gives us all
necessary power that bondhoders represented
a matters in court as we'll as power TO press tore'
closure proceedings in case OF default.
II these purposes commend themselves 70 you. will YOU
be good enough 10 deposit your bonds with Messr. j. p
vo-r,n a 90 on or before January 1895 receiving in
exchange therefor OF deposit for which quo
,s,on IN due time Vil Re asked from the New ferk
Stock Exchange? These certificates are for $l0o each
and bear interest corresponding 70 the coupons
maturing on bonds for the next hve years As as
"a couoon, are collected T. P Morgan CO. will pay the
a,oun herto. on surrender Of TIE corresponding war
rants
cannot undertake 10 represent any bonds ~h'ch sh
M, ha. been deposited on ar before the date above nd
ca'ed
There may be obtained oAees sts.emsnt fur-
tA v tho Receiver. as showing the earnings and fixed
~ the property by the Consolidated Mort
e,se We believe this will be resssurins 70
hon Ihoders but also II will show them the necessity
~ no, allowing additional liens 10 be Imposed on the
p-n.rtv covered by their mortgage IN priority 'ne~
on an equality herewith.