New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-21
Sinanr,al
no THE SECURITY HOLDERS
OF THE
BALTIMORE & OH SOUTHWESTERN
RAILWAY co.

The Baltimore and Ohio Railroad. the euaran;or Of
certain OF securities having become nsovent and
s property being in the possession Of Receiver and is
Reorganization having been declared operative It became
necessary for Board. properly protect
the securities OF your Company enter into negotiations
with the Reorganization Managers o, the Baltimore and
Ohio Railroad Company TO the future relations
OF your Company with that reorganzed property.
For several months the Board has been in negotiation
with them. and in with the security holders
for the purpose OF securing exchange OF your Com
panys the Of the Recognized
Baltimore and Ohio Railroad Company upon salts
factory basis. and additional new capital to
place the Company in position 10 successfully carry on
its business and place II a sound financial basis
Since the organization Of Company. vigorous COM
petition then unexpected ha. developed in the territory
II occupies greatly reducing the yates FOR transportation
received by your Company.
The effect OF reduction IN rates has been most
serious and shows the pressing need Of readjuttmen
Of the Conpanys securities and n1ed charges end the
securing additional capital make needed Improve
upon the property Had the same rates prevailed
last year existed the time OF the organization OF
the Company would have been surplus over hxed
charges OF So ga G26 instead Of dehct OF SO3o'a
When your Company organized. It was believed
ample provision had been made for necessary capi'h 10
reduce grades secure Increased ana heavier mo'Ne
equipment and rails and to bring the property
hghert OF condition Such necessary cap'a
was 10 be secured through ;he sale Of the Company
securities guaranteed by the Baltimore and ONO ha'
road Company Immediately upon the organization OF
the Company certain OF such Improvements were eneu
upon; before they ,ouii be completed 70 the e1'en
whereby substantial savings in operation could De eHee
meet the prevailing tho insolvency ana re-
ownership Of Baltimore and Ohio Railroad Copan!
prevented tho sae Of securities and thereby arrested
the completion contemplated improvements THESE
Improvement. have imperative and cannot longer
be DELAYED.
The amount Of oapi;r now needed to Be e1penoeo IN
the reduction the grades purchase OF additional equip
men, and for improvements IN order TO bring he
property N the for advantageous and
profitable operation IN conjunction with the reorsanzeo
Baltimore and Railroad, is estimated at apou'
100000 greater proportion II which should De eA
pended the calendar year and the as
a possible thereafter
The REORGANIZATION Managers have agreed 70 IN
detake the contamination of the plan herewith submitted
provides for the Issue by the Baltimore ana ONO
Railroad Company Reorganzed) Of It's securities IN
exchange for yours and equitable basis and The
securing o. additional capital required 10 pu' your
property in position successfully carry on Its business
The syndicae mentioned in the plan Will purchase at
.heir face value all coupons due on the hrs Gay OF
January paid from such oondho'aers as
shall deposit th=.r Is hoped that further
financial enbarrassn,ent inevitable consequences
and the depreciation IN the value Of your securie can
be avoided by a promp. acceptance Of the plan
Your Board therefore urgently recommends It's prompt
acceptance
Dated New York December 18Th. 1898.
EDWARD r. BACON,
President.
WILLIAM l. BULL
EDGAR 7. WELI.ES.
JOHN u. DAVIS.
New YORK
JAMES SLOAN. Jr.
Baltimore
FRANCIS PAvY.
London
Committee Of Board