New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-18
TO THE SECURITY HOLDERS
OF THE
BALTIMORE OHAJ SOUTHWESTERN
RAILWAY co.

The Baltimore and Ohio Railroad. the guarantor OF
certain Of your securities. having become nsovent and
Its being In the possession OF Receivers ana It's
having declared operative II became
necessary your Board order properly protect
the securities OF Company 10 enter into negotiations
with the Reorganization Managers Of the Baltimore and
Ohio Railroad Company TO arrange the future relations
Of your Company with that reorganized property
For several the Board has been In negotiation
with them and in consultation with the security holders.
for the purpose Of securing exchange OF your Com
panys for the securities Of the Reorganzed
Baltimore and Ohio Railroad Company upon salts
factory basis and additional new capital to
place the Company a position TO successfully carry on
Its business and place 1T sound financial basis
Since the organization Of Company. vigorous COM
petition unexpected has developed in the territory
occupies greatly reducing the rates for transportation
received by your Company.
The effect Of such reduction in rates has been most
serious and shows the pressing need OF readjusment
Companys securities and fixed charges and the
securing OF additional capital to make needed improve
mcn,s upon the property the rates prevailed
year existed the time Of the organization OF
Company there would have been surplus over hxed
charges Of 49, 273 62G Instead OF deficit OF so95I4
When your Company organized. It was believed
ample provision made for capital to
reduce its grades secure and heavier motive
power equipment rails and to bring the property 10
the highest OF condition Such necessary capai
was to be secured through The sale OF the Company
securities guaranteed by Baltimore and Ohio Rail
road Company. Immediately upon the organization OF
the Company OF such improvements were entered
upon; they could be completed to the extent
whereby substantial savings In operation could he enec'eu
10 meet the prevailing ow the insolvency and re-
cevership Baltimore and Ohio Railroad company
prevented Of securities and thereby arrested
completion Of the contemplated improvements ihese
improvements have become imperative and cannot iohsr
be delayed.
The amount Of captfi now needed to be expehnen III
reduction Of the grades, purchase OF additional equip
ment and for other improvements In order TO bring the
property to efficiency requisite for advantageous and
profitable operation In conjunction with the reorganzeh
Baltimore and Ohio Railroad. is estimated at about
s. 800 0O0 the proportion OF which should be ex
pended during calendar and the remainder az
possible thereafter
The Reorganization Managers have agreed 10 I'M
dertake the consumnaton OF the plan herewith submitted
which provides for the Issue by the Baltimore and Ohio
Railroad Company Gas Reorganized) OF Its securities in
exchange yours just and equitable basis and the
securing OF additional capital required to put your
property In position to successfully carry Its business
The syndicate mentioned in the plan will purchase at
their face value all coupons due the first day OF
January paid from such bondholders as
shall deposit th-r securities Is hoped that further
financial s.men with its inevitable consequences
and the depreciation in the value Of securities can
be avoided by a prompt acceptance OF the plan
Your Board therefore urgently recommends It's prompt
acceptance
Dated Nev-York December 18th. 1893.
EDWARD r. BACON.
President.
WILLIAM l.. BULL.
EDGAR T. WELLES.
JOHN II. DAVIS
New York
JAMES SLOAN. Jr.
Baltimore.
FRANCIS PAvY.
London
Committee Board