New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-17
financial,
FREsHFIErDs ( WILLIAMS.
London.
Counsel 20 Reorganization Managers
TO THE SECURITY HOLDERS
OF THE
BALTIMORE & OB.V SOUTHWESTERN
RAILWAY co.

The baltimore and Ohio Railroad. the Ruarsntor OF
certain OF your securtes having become nsovent and
us property bene IN the possession OF Receivers and its
reorganization having been declared operative IT became
necessary for your Board order properly protect
the securities Of Company into negotiations
with the Reorganization Managers Of the Baltimore and
Ohio Railroad Company the future relations
Of Your Company with that reorganzed property.
For several months the Board las been in negotiation
with them. and in with security holders
for the purpose Of securing exchange OF your Com
parys securities for the securities 81 the Recognized
Baltimore and Ohio Railroad Company upon satis-
factory basis md 20 additional capital to
pace the Company position successfully
ts business and place 1T sound financial basis
Since the organization your Company vigorous COM
petition then unexpected has developed in the territory
occupies greatly reducing the FOR transportation
received by Your Company.
The eject OF such reduction in rates has been most
shows tho pressing need Of REIMBURSEMENT
q tho comranys securities and fixed charges. ard the
securing O. additional capital make needed improve
Yrerts upon the property. Had tire rates prevailed
last year - existed the time Of the organization OF
Company would have been surplus over fixed
charges Of Sc c7S Gce. instead Of deficit Of so9o7+
When your Company organized. Il was believed
ample provision made for necessary capital 20
reduce its grades secur. increased and heavier motive
power equipment rails and 10 bring the property TO
the highest standard condition. Such Necessary capital
was 10 he secured through the sale OF gre Company
securities. guaranteed by the Baltimore ard Ohio Rail
road Company Immediately upon the ORGANIZATION OF
COMPANY certain Of such improvements were entered
upon; befor. they could he completed T. the extent
Whereby substantial savings in operation could be erected
10 meet The prevailing low rates. the insolvency and re-
ce,er.hp Of the Baltimore and Ohio Railroad Company
prevented the sale OF its securities and thereby arrested
the completion OF the contemplated improvements These
improvements have imperative and cannot longer
be delayed.
The amount Of capital needed TO be expended In
the reduction OF the grades purchase OF additional equip
and for other improvements In order 70 o'hs inc
property 20 the efficiency requisite for Advantageous and
profitable operatien conjunction with the reorganzed
Baltimore and OHIO Railroad. Is estimated at about
IS the greater proportion Of which should be ex
pended during calendar year and the remainder -
possible thereafter
The Reorganization Managers have agreed 10 IN
dertake the contamination OF IN. plan herewith submitted
which prov,des FOR by the Baltimore and Ohio
Railroad Company Reorganized Of its securities In
exchange FOR yours Just and equitable basis ana me
securing o. additional capital required 20 put your
nrooer,v ~, position 70 successfully carry on It's business
The syndicate mentioned IN the plan VIII purchase y.
their face value all coupons due on the first day OF
January naxt that are not paid such bondholders IS
shall dspost securities Is hoped that fur'her
financial embarrassment. with s Inevitable consequences
and the deprecafion in Of your securities can
be avoided by a prompt acceptance Of the plan
Your Board therefore urgently recommends is prompt
acceptance.
Dated New-York December 18th. 1895.
EDWARD T. BACON.
President
WILLIAM u BULL
EDGAR T. WEILES.
JOHN II. DAVIS.
New York.
JAMES SLOAN Jr.
Baltimore.
FRANCIS PAvY.
London.
Committee Of Board.