The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-02-26
RECEITER FOR AN ONO ROAD.
TIE C~oiurssss. Bockipg valley ana reiede
Railway Company Cenre~.cs insolvency.

CLEVELAND. o.. Feb. 25.-Cnited States Judge
Sage to-day appointed President Monserrat OF
the Columbus. Hooking Valley and Toledo
Railway. receiver for the road on petition OF the
Central Trust Company Of New York.
The trust company in its petition alleges that
there will be due in the next thirty days $3.50
900 as interest on the company's bonds for
which there is no money in the company's pos.
session 10 pay. The company filed its answer at
once. admitting all the allegations Of the pcti.
tion to be true. indicating that the suit IL
brought with an understanding between the
parties.
When the news OF the appointment Of a re-
oeiver for the Columbus, Hooking Valley and
Toledo Railway Company was received IT. Wall
street yesterday Samuel d. Davis. vice-Presi-
dent OF the company issued the following state
ment in behalf OF tho management:
In view OF the present financial depression
and tho great loss OF credit from which the
Hooking Valley Railway Company is now suffer
ing. the railways immediate requirements de-
mand the prompt assistance Of capable parties
in restoring the credit Of the company, by a lib
eral advancement OF funds or d resdjustmcnt
OF its fixed charges TO meet the changed
conditions OF the railroad and coal traffic now
prevailing. Al the time OF the issue OF 4 per
cent. bonds in July last the situation warranted
dend-earning basis, since which time. however.
hnu UuTAAtulhIN II = AOAI -
1896. the unparalleled competition for traffic
among the coal roads in Ohio produced so great
decentralization in rates that several OF our COM
peiitors have been forced into the hands OF re.
ceivers, and the Hooking Valley management IL
now confronted with the problem Of financing for
the large coupon payments TO be made on March
!. and a proper provision for the retirement OF
Sl,4Ol. 900 underlying per cent. bonds maturing
In October next. An active inquiry ON our part
among the security holders Of the road has con
WINGED us that IL will not be possible TO secure
present necessities and at the same time place
IL upon a financial basis that will enable IL 10
maintain its proper proportion OF trafic during
the coming years. The management have there
fore secured the assistance OF Messrs. y. Il.
Morgan & Co., 10 the end that n reorganization
may bc brought about under their direction. he
licvlng that in this way all interests will he
eQuitably adjusted.
In view OF the appointment Of a receiver. and
Valley & Toledo Railway Company TO b. inevi.
table In payment OF coupons due March ] on its =
per cent. bonds, Messrs. J. y. Morgan s. Co, re-
guest holders OF all classes OF bonds 20 deposit
the same with them for mutual protection. An
agreement looking 10 the reorganization OF the
property, IL necessary, is in way OF preparn.
lion. and will be submitted 10 all depositors for
approval. pending which J. p. Morgan s Co. are
prepared 10 advance SIS on each ~ 600 3 per
cent. bond deposited with them. Negotiable re-
ceipts will he issued for bonds deposited. for
York Stock Exchange will be asked.
The Columbus. Hooking Valley and Toledo
Railway Company owns about 325 miles Of road.
OF which the main line is from Walhridgc 10
Columbus, lis miles. Its principal revenue is
derived from the bituminous coal traffic.