New-York tribune., 1897-11-01
financial
financial
New-York November I. 1887
TO THE HOLDERS OF
CONSOLIDATED M RTGAGE
FIVE PER CENT. GOLD BONDS
OF THE
Baltimore & Ohio
Railroad Company
DUE 1885,.


and Ohio Railroad Company in February $780, we have
cndeavored 10 carefully and to take all steps neees
sary protect the rights Of the Five Per Cent Conso-
dated Dondhoders.
Almost Immediately after their appointment. the Re
ce!vers expressed opinion that y allowed to issue
81 0o 600 Receivers Certificates used for discharg
Ing accumulated supply bills and for making some needed
additions TO the property they could thereafter regularly
meet the the several ssues OF bonds Tor
which o. II. r. Co. directly responsible
and which constituted the principal railroads OF
the system.
Recognizing advantages likely to accrue from hold
ing together all the properties and also understanding
that the greater part Of the 100000 certificates were 10
used to discharge surply bills which would probably
held hy be preferential liens. we. with
others Interested Consolidated bonds favored the
issue u such certificates.
OF the Receivers have been unable to fulfil their
expectation defaults taken place on several CT
the lines important integrity Of the system Since
these defaults felt that the object Of the original
having failed further issue Of certificates for any
purpose should be made by the Receivers and therefore
have opposed all such further issues.
In the Spring ot 1897 the Johns Hopkins University
filed in application asking that the s3.coo0O
preferred stock Of the b. G. o II. r. Co. should be
declared a lien the OF the property ahead Of
the Consolidated Mortgage Bonds The Trustee OF the
Consolidated Mortgage fled which was deemed
adequate forth the rights of the bondholdcrs
Few before this application to be heard by the
Court learned that this had been Withdrawn
hy the Trustee stead there had been fled
answer merely formal in character stating that
Trustee had views IN the and leaving the
determination of the question the Court. Tho
for this sudden change perhaps be given best by the
Trustee. who inquiry informed Of US tha, ut
differed decidedly with in regard to the r. O. pre-
'ferred stock and that this Idea with t.:
that had held this opinion Tor years long before
-, accepted The Of the Consolidated Mortgage and
that he purpose OF Company in amending its an
ain In u'rnlr ION
Immediately upon hearing Of the changed and 'neu-
tra attitude II tho Trustee whom had been rely
or the protection Of the rights Of the bondhoders
communicated with some Of the large bondhoders.
and took steps for Independent Intervention In their
behalf and IA behalf all other hndholiers. Although
subjected {, great In the preparation OF papers
fully presented by counsel. and are
happy ray that Notwithstanding the Views Of the
TRUSTED Court has decided IN favor Of the Consoli
dated Mortgage. and has denied the application Of the
University. 80 no, know whether University will
take appeal from this d"c.lon hu, II -. We shall
continue opposition.
Mpre recently Of the Pittsburgh ani con
n.lsyle Fiy. Per Cent Consolidated Mortgage has Gled
a petition ~ which the granting would IN effect te a
has lien equal with yours
the main line = The u. o. II. r. We are now Wig
oror,ly .-lng this application.
We ren'lon these simply - give the holders Of
the Five Per cent Consolidated Bonds Of the
unusual phases which matters taking On questions
other han uat q Preferred stock the Trustee
has communicated With us. AMI. under Indemnity from
us ha. allowed its counsel o. cooperate with ours We
d. not believe Receivers VIII default In the pay
= eNcep, under dire necessity and 50
long default the pai nient = Interest on
Your bonds or In the Performance = the other undertak
ings q the mortgage would not under ordinary
conditions. any '0r anxiety. But the very un-
usual attacks on the integrity - mortgage apart
rom any default and combinations Of the
ceiycr-nip - tn. novel suggestion - "ncu-
trnI" Trustcrshp. indicate necessity Tor constant
gatchfIlncs- ant vigorous action.
/, seems 20 ia most important Therefore that the bond
holders unite with US TO protect their interests, and ac
cofdtngly We have prepared Bonihollers Agreement.
which among other things provides f0r the deposit u
bond. with Meers J. T. Morgan 4 Co.. and gives us all
necessary power bondhoters repesen ed
in all matters vel as power 70 press toTe
cosure proceedings IN case ot default
II these purposes commend Themselves - YOU VIII You
Doe good enough TO deposit your bonds with Messrs. J. T.
rgan & 60 On before January ?, 1895 receiving IN
n,gc therefor certificates q deposit. for which quo
tatlon N due Tine Will he asked from the Ne" loIN
stock Eschange7 These certificates for so" each
ana h,- ,n,erea, warran CORRESPONDING the coupons
,,our,, On the bonds for the Ave years As FAST
m coupons are collected T. T. Morgan CO. VIII pay the
aon, thereof on surrender of the corresponding war
rants.
We cannot undertake to represent any bonds which shall
not have been deposited before the date above d
Gated.
There may be obtained our Offices a statement iur
l.b. h the Receivers as showing the earnings and fixed
charges Of the property covered by the 'ons''e' '''
gage We believe this statement Will be reaSSurns |"
honaholer but also that it will chow them the necessity
propery covered by mortgage. in priority thereto