New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-17
financial.
New-York. November I. 1891
TO THE HOLDERS OF
CONSOLIDATED MORTGAGE
FIVE PER CENT. GOLD BONDS
OF THE
Baltimore & Ohio
Railroad Company
DUE 1897
financial.

appointment OF RECEIVERS TOR the
and Ohio Railroad Company in February 1885, we have
endeavored to watch carefully take all stepa
protect rights OF the Five Per Cent Conso-
dated Bondhoiders.
Almost Immediately after their appointment. the Re
oeivers expressed opinion that. allowed to issue
s. oOo ReceIvers Certificates be used for discharg
ing accumulated supply bills and for making some neeied
additions the property they could thereafter regularly
meet interest the several issues or bonds Tor
which the y. o. r. II. Co. was. directly responsible
and which constituted the principal railroads OF
the system.
Recognizing the advantages likely to accrue from hold
ing together properties and also understanding
that the greater Of the S5Oopooo eeTcates were u.
be used to discharge supply bills which would probably
be held by the Court to be preferential liens We win
others Interested the Consolidated bonds. favored the
Issue o, such certificates
OF late the have been unable to fuhl their
expectation defaults taken place on several OF
the important the integrity Of the system Since
these defaults felt that the objec: OF the original
issue having failed 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 University
fled in court application asking that the so.oop
first preferred stock OF the b. o. r.. r.. Co. should be
declared len on the income Of the property ahead OF
the Consolidated Mortgage Bonds The Trustee OF the
Consolidated Mortgage filed answer which was deemed
adequate set forth the rgh.s OF tho bondholders
few days Application TO be head by the
learned that this answer had been withdia"h
by Trustee that stead hers had been nled
answer merely formal in character STATING that
Trustee had Views In the matter ami es,tns the
determination Of the question to the Court The reason
for this sudden change perhaps be given best by the
Trustee. who inquiry Informed one II US ,ha' II
differed decidedly with IN regard to the b. o. pre-
'ferred stock and that this no new idea with It;
had held this opinion for years. long before
accepted the Of the Consolidated Mortgage and
that The purpose OF the Company in amending ita an
remair in a neutral position
Immediately upon hearing of the changed and "neu-
hon had haan
for the protection Of tho rights Of the bondhoders
communicated with some OF the large bondholdess.
steps for independent Intervention in their
behalf and behalf Of all other bondhoders Although
subjected great pressure In the preparation OF paperj
fully presented by our counsel and We are
happy say tha: tnotw outstanding the Views OF tho
Tusee the Court has decided in favor OF the Conso
dated Mortgage and has denied the application OF the
University. We do not know whether this University will
take appeal from this dec!sion' but II So we shall
continue opposition
More recently the Trustee Of the Pittsburgh and Con
n.llsvle Per Cent Consolidated Mortgage has hed
a petition. OF which the granting would In enec: be
declaration has lien equal with yours
On the line Of the T. & o. r. II. We are now Wig
orot Fly opposing this application.
We mention simply give the holders OF
the Five Pc. Consolidated Bond, idea Of the
unusual phases which matters are taking On questions
other than that Of Preferred Stock the Trusted
has communicated with and und,r indemnity from
u.s. has allowed Its counsel 10 co0perat" with ours VIC
will default In the pay
ment except dir, necessity: and 81
long there is default IN tho payment Of Interest on
your performance OF the other undertake
Of the mortgage. there wouif not under ordinary
conditions he any cause But the very I'M
usual attacks tn, integrity OF your mortgage apart
from any default, and the complication, OF the present re-
eeIvership a., well az the novel suggestion OF "neu
! trail" TruSteesato. indicate necessity for constant
watchfulness and vigorous action
Il important. Therefore. that the oon<-
holders unite with protect the- interests and ao-
Cordingly, prepared Bondhoid'rs Agreement.
which among things. provides eor the deposit OF
bonds J. p. Morsan & Co.. ana gives us AL
mower TO see that bondhoders represented
4, all na,ter, in court well rs power to press fore
| closur. proceedings In case Oh deiaut
II these nlrposes commend themselves to you. will you
b. ood enough to ieposi your bonds with Nsssrs j. T.
,,ro,, e. 90 o., or before January 1898. receiving In
,cborr. therefor OF deposit. for which quo
,a,o, :, dn. time will be asked from the New York
So, r,cbansef These certificates for 81 900 each.
a b.ar interest corresponding 20 the coupons
maturing on bonds 10: the next Ave years As fast
. coupons collected. J. p. Morgan Co will r1J me
amount thereof surrender Of II. corresponding war
| rants.
undertake represent bonds which snail
not have been deposited date above indi'
Gated.
There bs obtained at our ofices a statement lui
nshed by Receivers showing the earnings ava Hea
charges OF the property by the Consolidated Mort
gage We believe this statement will be reassurlns to
bondhoders but also that will show them the necessity
OF not allowing additional liens to be imposed on 'ns
propery covered by their mortgage In priority 'hee'o ~
equality Herewith
Up. MORGAN 4 co.