New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-07
RAILROAD INTERESTS.
CONDITION OF THE p. AND o. COMPANY.
ANSWER OF RECEIVERS TO PETITION TO PRE-
VENT FoREcLo -REoRGANIzA-
TION FAVORED.

Baltimore Oct s-The answer Of Messrs John X.
Cowen and Oscar G. Murray. receivers or the bai''-
more and Ohio Railroad the petition of the state
of Maryland. the Johns Hopkins University and
other holders Of preferred stock to prevent the fore
closure o. the railroad was hled IN the ohlleu
States Circuit Court to-day.
The fat statement is made that the fixed charges
OF the company's system greater than II can
bear and that the receivers viii never be able TO
discharge the company's debts. The answer goes
into reorganization plans II says: FOR more than
a year the railroad has been preserved from dis
memberment through the hope and expectation or
reorganization. When the semi-annua interest on
the loans of 1872 and 1874 fell due last March and
May. the receivers were compelled 10 default IN
payment as previously similar interests. Pro-
ceedings had been begun to enforce mortgages AZ
fairs had reached a crisis Unless some acceptable
plan Of reorganization was speedily reached. the
breaking up of the system could not he prevented
more than a few months
The receivers deemed II unwise, saws the answer,
to Iull the bondholders Of 1872 and 1914 into fct
tious sense Of security by paying their interest
II was manifesty for the best interests OF the
stockholders and creditors generally for them TO CO.
operate in reorganization Therefore the default IN
interest was made.
The answer goes into the operation Of the prop
eriv since the appointment of the receivers, and
states that the expenditures REQUIRED to put me
railroad into working condition greatly exceeaed
expectations and that the revival or business was
long delayed. The revenues proved entlrey
quate meet the expenses Of the road. ana on july
l. 1897 the receivers were obliged 10 make default
on the payments Of numerous coupons. amounting
in all 10 50 1871 9OS. The improved service. however
shown It's effect in increased trafilc ana larger
earnings. and for the year ended June 30, lsy the
gross earnings were s255s2,1S 81, against S23sA1H
the previous year and for the year ended June
90 1895 the earnings have been 2I1Z.IH ". Never
theless the Indebtedness OF the company has accu-
INFLATED until for interest unpaid IT now exceeds
Sc 200 49,
Within the next eighteen months It Is stated 80
10000 will be needed maintain efficient service
and a resume OF the petition 10 prevent foreclosure
and to make the receivers pay the defauted Inter
est amounting 70 S23l3oO9 is given. The answer
shows that II such is ordered liens the rail-
road will he created yearly. and the road VIII he
greatly complicated financially.
II Is then alleged that the aVoWed object o. the
petitioners Is delay and thwart reorganization:
The times are now favora BILE as can be hoped
for TO carry out reorganization. and. the answer
concludes the receivers submit that under the cir
cumstances the course they have taken Is the right
one to take care Of their own obligations and TO
LET the various interests come 70 some adjustment.
peaceably by dint Of strife. hut In either case
each interest standing its contract rights with
out interference herewith by the receivers
There are filed exhibits of the current available
assets Of the road juno 90 1898. which are $50
2S9 &C. and miscellaneous and current liabilities.
which sl97S 995 "a.
The answer OF the Baltimore and Ohio Railroad
was also fled II refers - the answer II filed TO
the original petition, which was against reoreaniza
tiOnt In