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

Since the appointment Of Receivers for the Baltimore
and Ohio Railroad Company in February 1896 we have
endeavored to watch carefully and to take all steps
sary to protect, the rights 0, the Five Per Cent Consol
dated Bondhoders
Almost Immediately after their appointment the Re
ccIvers expressed the opinion that Il allowed Issue
100000 Receivers Certificates 10 be used for dscharg
ing accumulated supply bills and for making some needed
additions to the property they could thereafter regularly
meet the interest the several issues Of bonds for
which the D. & o. r. r. Co. was directly responsible.
ard which constituted liens the principal railroads OF
the system.
Recognizing the advantages likely accrue from hold
ing together all the properties ani also understanding
that the part Of the So 600 900 certificates were TO
be used to discharge supply bills which would probably
be held by the Court 10 be preferential liens We with
others interested in the Consolidated bonds favored the
issue Of such certificates.
OF late Receivers have unable fulfil their
expectation and defaults have taken place on several OF
the lines important to the integrity OF he system since
these defaults have felt that the object of the original
issue having failed further issue Of certificates for any
purpose should be made by the Receivers and therefore
We have opposed all such further issues.
In the Spring OF 1897 the Johns Hopkins University
flied In court application asking that the 100000
first preferred stock Of the B. o. r. r. 60. should be
declared lien the income OF the property ahead Of
the Consolidated Mortgage Bonds The Trustee Of the
Consolidated Mortgage filed answer which was deemed
adequate TO set forth the rights OF the bondhoders
few days before this application 10 be heard by hs
Court We learned that this answer had been withdraWn
by the Trustee and that in Its stead there had been fled
another answer merely formal character stating that
the Trustee had views in the matter and leaving the
determination OF the question to the Court The reason
for this sudden change perhaps be given best by the
Trustee who inquiry. Informed of us that lit
differed decidedly with in regard TO the r. o. pre-
"ferred stock and that this idea with a.;
that II had held this opinion for years long before
ut accepted tho trust OF the Consolidated Mortgage and
that the purpose OF the Company in amending ts an
'swer was 10 remain In a neutral position"
Immediately upon hearing OF the changed and neu-
trail attitude Of the Trustee. whom had been rely
ing for the protection OF the rights Of the bondhodes
communicated with OF the large bonihoders.
and took steps for Independent Intervention In their
behalf and in behalf OF all other bondholders Although
subjected great pressure in the preparation Of papers
the was fully presented by counsel, and are
happy TO that notwithstanding the views OF the
Trustee the Court has decided In favor OF the Consol
dated Mortgage, has denied the application Of the
University We do know whether the University will
take an appeal from this decision but II SO. We shall
continue opposition.
More recently Trustee o., the Pittsburgh Con-
nelisvie Five Per Cent Consolidated Mortgage has filed
a petition. OF which the granting would in effect be a
declaration that its mortgage has lien equal with
on the main line q the B. o. X. r. We are now Wig
orotsly opposing this application
mention these matters simply 10 give IN. holders Of
the Five Per Cent Consolidated Bonds idea Of the
unusual phases which matters taking. on questions
than that Of the First Preferred Stock the Trustee
has communicated with and und indemnity from
us, has allowed It's counsel to cooperate With ours. We
believe Receivers will default in the pay
Of except under dire necessity; and
long there IA default in the payment Of interest on
your bonds performance Of the other undertake
ings II the there would not under ordinary
conditions any cause anxiety. But very
usual attacks the integrity OF mortgage apart
default and the complications Of the present
ownership. az well the novel suggestion Of "neu
trail" Trustecship, indicate necessity for constant
wa,chfuness and vigorous action
1t important. therefore. that the bond
holders protect their interests; and.
oorinsy. have prepared a Bondhoders' Agreement.
which among other things provides for tho deposit Of
bonds with Mesers. J. r Morgan Co.. and gives us all
necessary power that bondhoders represented
all in well as power 10 press fore
closure proceedings In case OF default.
II these purposes commend themselves Won, will you
good enough deposi. your bonds with Messrs J. T.
Morgan Co on or before January q 1898 receiving in
exchange therefor OF deposit for which quo
taton IN due time will be asked from the New York
Stock Exchange These certificates are for $1,000 EACH
and hear interest warrant. corresponding the
maturing on bonds for the next fye years As fast
a. coupon, are collected T. p. Morgan Co. will pay the
thereof on surrender OF ue corresponding war
We cannot undertake represent bonds which shall
no, have been deposited before the date above nd
Gated
There may he obtained al Offices statement FUR
hed by the Receivers showing the earnings and 5xed
charges Of the property covered by the Consolidated Mort
gage believe this statement Will be reassnrihg 10
boudholders bat also that will show them the necessity
NJ not allowing additional Hens to be imposed on the
property covered by their mortgage IN priority es''' u
on equality herewith
II MAREAN 4 60.