New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-07
Financial.
Baltimore & Ohio
Railroad Company
DUE 1882

Ohio Railroad Company IN February, 1871 we nave
endeavored watch carefully take all steps neces
sary protect. the rights OF the Five Per ceni Cohso-
dated Bondho,derg.
Almost Immediately after their appointment the ke-
ccvers expressed the opinion that 4 allowed 70 Issue
s. Receivers Certificates be used for dschaFs
ing accumulated supply bills and for making some needed
additions the PROPERTY they could thereafter regularly
meet the interest tine several Issues ct bones io'
which the y. o. r. Z. Co. was directly responsive,
and which constituted liens the principal railroads Of
the system.
Recognizing the advantages likely from hold
ing together all properties elso understanding
that greater part OF the 100000 certificates were 70
be discharge supply bills which would prohaoy
be held by the Court to be preferential liens We win
others in the Consolidated bonds fa'oea 'ne
issue OK such certificates.
or late the Receivers have been unable TO fli '"et
expectation and defaults have taken place On several OF
the lines important the integrity Of the system since
these defaults have fo!t tha the obec, OF te Original
having failed further os certificates for any
purpose be made by the Receivers and therefore
We have opposed all such further issues.
In the Spring II 1891 ;he Johns Hopkins University
filed IN an application asking that the $5oooooo
preferred stock Of the b. q o r. r. Co. SHOULD oe
declared on Of the property ahead ot
the Consolidated Mortgage Bonds. The Trustee OF the
Consolidated Mortgage filed which was deemed
adequate forth the rights Of the boniholders
before this application TO be heard by the
Court we learned that this answer had been Withdrawn
By the Trustee and that in its stead there had been Med
another answer merely formal character, stating that
the had 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 II
differed decidedly with Us IN regard 20 the g. o. pre-
"ferred stock. ana that this new idea with 1T;
THAT had held this opinion for years long before
1T accepted the OF the Consolidated Mortgage and
that the purpose Of the Company in amending Its an
"swcr 10 remain in neutral position"
Immediately upon hearing Of the changed and "neu-
hall relE
for the protection OF the rights Of the bondhoders
communicated with Of the large bondholders
and took steps for Independent Intervention In their
behalf and In behalf OF all other bondholders. Although
subjected pressure In the preparation ot papers
the fully presented by counsel and We are
happy say that Notwithstanding the views Of the
TRUSTED the Court has decided in favor OK the Consoh
dated Mortgage and has denied the application Ok the
University We ID know whether the University will
take appeal from this decision but X So We shall
continue opposition.
More recently the Trustee OF the Pittsburgh and Con-
nellsvc Five Per Consolidated Mortgage has filed
petition, II which the granting would in effect be a
declaration that It's mortgage has lien equal with yours
on the main line Il the b. & 0. Il. r. We are now Wig
orously opposing this application.
We mention these simply TO the holders OF
Five Per Cent Consolidated Bonds some idea OF the
unusual phases which taking. on questions
other Of First Preferred stock. ;he Trustee
has communicated with and. under indemnity from
has allowed ts counsel % cooperate with ours. We
i not believe that the Receivers will default IN the pay
except under dire necessity; and so
long default IN the payment Of Interest on
your bonds or In tn Performance Of the other undertake
ings ~ the mortgage would not. under ordinary
conditions any 'or anxiety But the very IN
usual attacks on the integrity n your mortgage apart
from any default tho complcao1s u the present re-
Ownership a. we'll ~ novel suggestion Of men
traT Trustccship. indicate necessity for constant
watchfulncss and vigorous action.
II important. therefore. that the bond
holders unite with 20 protect their interests and &C
coriingIy. have prepared "A Bondhoiers Agreement
which among things. provides tor the deposit OF
bonds with Mcers. !. +, Morgan Coz and gives US all
reccsary power bondhalders represented
10 all matters In court well power to press fore
ci1su-. proceedings IN q default
II these purposes commend themselves 20 you. VIII YOU
be- good enough 20 icpos. your bonds with Messrs J. =
ur,,n 4 60 on or before January ? 1895 receiving II
.changc therefor certificates u deposit for which quo
,ation N due time will b. asked from the New York
s,rk Exchange These certificates arr FOR $1,000 each
and liar interest warrant, corresponding to the coupons
maturing On the bonds for the next five years As fas
MI, coupons are collected J. T. Morgan Co will pay th
amount thereof on surrender u the corresponding war
/ rants.
cannot undertake TO represent any bonds whch sha
not hive BEEN deposited before the date above indi
Gated
There may be obtained Offices statement fur
nd by the Receivers 40 showing the earnings and nxeC
charges of the prop5y covered by the Consolidated Mort
y,ge We believe this statement Will be reassurins t
hon lhoiders but also that will show them the necessity
| o., no, allowing additional Hens 70 be Imposed on IN
nr+, covered 10y their mortgage. in priority thereto.
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