The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-06-23
REORGANIZATION PLAN

~ llLVltuiNluAlluIt' JuN fs7
or tho Baltimore & Ohio Railroad Ju,.
Made Pubiio-rhs Syndicate That will
Furnish the Cash 10 Carry ont tho
Scheme.
NEW YORK, June 22.-The Baltimore
& Ohio Reorganization plan, prepared by
the New York reorganization commit
tee, has Just been made public.
The reorganization managers are
Messrs. speyer Brothers, OF London;
speycr & Co.. and Kuhn. Loeb & Co.,
of New York
The advisory committee, who CO.
operated with them, consists OF General
Lewis Fitzgerald, president OF the Mer-
camille Trust Company; Mr.. E. r. Ba-
con, OF New York; Mr.. Henry Bulge, of
Hallgarten G. Co.: vcrmilye G Co., and
W. a. Reed. OF Vermilye & Co. 81
A syndicate has been formed, COM
posed Of Speyer Bros, London; Speyer
& Co.. Kuhn, Loeb &: Co., Hallgarten &.
Co., Vermilye &; Co., and August Bel
mont G. Co., Of New York, to provide the
requisite cash to carry out the plan,
The scheme provides for the issue of the
following new securities: Prior lien 81.
per cent gold bonds, $4,000. 900: first
mortgage 4 per cent gold bonds. So. .00O,-
900; 4 per cent non-cumulntive preferred
stock. si0,0O0.000; common stock, $685.
900, 900.
The prior lien bonds are secured by
mortgage lien upon the lines OF the
road between Baltimore and the Ohio
river, at Pittsburgh, Wheeling and
Parkersburg. and also upon, the COM
pany's equipment of all kinds, valued at
S22,OOo,OoO.
Baltimore 6 Ohio reorganization No.
2-The first mortgage bonds are lien
on the Philadelphia division, Baltimore
Belt railroad (when exchanged us pro-
vided), Akron G. Chicago Junction rail-
road. Baltimore 6 Ohio. and Chicago
railroad, and FaIrmont, Morgnntown &
Pittsburgh railroad, and also on the ter
minal properties covered by the $500. 900
terminal mortgage Of 1894 and lien
subject to the prior lien mortgage upon
the lines and equipment covered
thereby.
The new securities will be appropri-
atcd approximately us follows: On the
prior lien bonds there will be issued in
Pal AlSll 4Ok SA4dllls ppIllS SOV,-
073.000, purchased by the syndicate TO
provide in part for cash requirements;
$4,000, 900, md the remainder, $9a7, 900, are
left In the treasury Of the company for
contingencies. l.
On the first mortgage bonds there will
be issued in partial exchange for trust
ing bonds, s36,SS4 600 for purchases by
the syndicate; for cash requirement,
s12 900; held by the new company for
contingencies. etc, sl.165.0 600; held by
the new company as n reserve, $1,000, 900.
and there Will be held for the purpose
OF retiring the Baltimore Belt railroad
bonds, which are reduced to 1 per cent
interest, the acquisition OF which the
plan contemplates, 100000.
The $4,000 900 of preferred stock is ap-
proprlated as follows: For reorganiza-
tion purposes, s17.2lS,70o; purchased by
syndicate TO provide cash requirements.
s16,45O, ,Ooo: for adjustment with out.
standing bonds and stockholders and
contingencies, etc, 1881 300, and there
Is reserve In the treasury Of the new
company s5.000000.
The $35, 100000 Of the common stock
will be applied as follows: For reor-
ganizatlcn purposes. s31 LIS, 900; for ad-
justment OF outstanding securities, con-
tinsencies, ETC., s2,S22,00O, with surplus
to the new. company.
The fixed charges Of the new company,
Including all rentals, interest, taxes,
terminals, etc, will be approximately
$6.2J000o, Us against fixed charge for
the fiscal year ending June 30, 1897, OF
E77l, 900, making decrease In the an
nunl fixed charges OF substantially
S1,500, 900. " @%tst
1t Is estimated that the net earnings
for tho fiscal year ending June 80, 1898
(eight months OF which are audited,
with four months estimated), will
amount to 1886 1856. Allowing for n re.
ductlon In the miscellaneous income of
s2510OO on account of the sale OF some
OF the securities md tho cancellation OF
the sinking fund investments, 1t will be
seen that the net earnings for the pres
ent fiscal year are about 81 soc, 900 in ex-
cess of the fixed charges. N.G
All the receivers indebtedness and
the entire ilonting debt OF the company
represented by promissory notes and me- 4
gotlnble obligations and all the car trust
obligations arc paid In full. n
III reference to the leased lines, Nthc
plan provides that the security holders
shall confer with the advisory commits
ted and provision will then be made for
each .leased Slinc separately. and the
sumo method will be adopted as to the
lines. Tho leased lines thus
provided FOR nrc: Central Ohio railroad,
snndusky, Mansfield & Newark, New
ark, Somerset AS Straitsyllle.A Columbus
& Cincinnati Midland, Schuylklll & East
Side, Winchester. &. Potomac, md Win
chester & Strashurg 4 X, 3E;S
! In nddltlonito recommendation OF
the plan! by the banking house compog-
Ing the Reorganization managers. the
plan 10 strongly approved Shy. tho fol-
lowing housca: ~. p. : Morgan & Co..
Brown Bros. 6 Co., Burlng, Magoun &,
Co, vermilye & Co.gof New York; ].
s. Morgan & Co., Brown. shlpley s. Co,
and Barring Bros, OF London. n
E The scheme provides for foreclosure OF
tho enortgagc on the main line, ana Il
Will probably take someSslx month"; to |
carry out&all the dctails;,o of tho plan,
Abvotingi trustswill have charge OF the |
for 1--WE ven rn ~ it5T s,fFls