Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-05-19
PLANS OF REORGANIZATION
Opinions of Bankers in Respect of B. and O.
Railway Affairs.
Belief That the Company VIII Soon
Be Placed on New FOOting-Re-
ceiver Governs Views.

posted in regard to the internal affairs OF
the Baltimore and Ohio Railroad Company
express the belief that the period is rapidly
approaching when the property can be sci
| on it's feet and a reorganization effected.
The last reports by the receivers were
for March, and were as follows: Receipts
balance February 2S, sS63. 1855; miscel-
laneous, 1924 OG5.06; traffic, 5000 037. 20
total, s4,6T1 $50 81; disbursements, misceI-
laneous, 2.14O.s14.15; traffic. STA, 449 G2
total, s., So, 26377; balance in hand, 81, 163,
2T5.S4.
Referring to the above, a leading Balti-
more banker said to Star reporter: The
only important thing about these reports
is the fact that there is an appreciable in
crease in the balance on hand. This in
crease is no doubt, due to the fact that
very general defaults have been made, and
possibly to reduced expenditures for main
tenance of way and betterments and i'm
provemeLtS.
TT is anticipated that the receivers OF
the Baltimore and Ohio company are pre-
pairing to make as good showing pos
sible, with the view of arranging an early
reorganization of the company and rear
rangement of it's obligations.
Defaults have been made upon both OF
the sterling per cent loans, on the Phil
|
branch is; the Pittsburg and Cumberland
first consolidated, IS, and second CONSOLE
dated, 5s; the Belt railroad. IS; Sandusky,
Mansfield and Newark; Newark, Somerset
and Stratsviile; Columbus and Cincinnati
Midland, and other roads, and 1t is proba-
BILE that default will be made on the Chica-
go division 5s, and possibly upon the con-
solidated mortgage 5s.
Scaling of Securities.
TT is, of course. impossible to foretell how
any of the obligations of the company will
be treated under the to-be-proposed plan
of reorganization, but the method gener-
ally observed of projecting priorities and
scaling securities not self-supporting may
be expected to be adopted 1t is certain
that large concessions must be made, ana
it appears to be accepted as a fact that
an assessment of $40 per share will be lev
led upon the stock of the company, ana
that for such assessment preferred stock
will be given.
'Of course the levying of such as
sessment unon Baltimore and Ohio stock
means that the property will be sold under
foreclosure, as no one would voluntarily
pay such assessment 1t will, however.
be very gratifying to have the affairs of
the Baltimore and Ohio Company arranged
and the property set en- its feet, and it
Is to be hoped that before long those who
are considering the matter will be able to
announce their plan"
Receiver John K. Cowen authorized the
following statement in reference to reports
regarding the proposed reorganization Of
the B. and o.:
ut is not correct that any plan for the
reorganization of the road has yet been
agreed upon, nor do 1 believe that even
the general lines for such a reorganiza-
ton have been arranged.
THE whole truth of the matter is that
the financial world, though very much
more settled than 1t has been, will await
the result of the naval engagement between
SIMPSONS fleet and the Spaniards before
launching any large financial schemes.
1T is my belief that if Admiral Sampson
succeeds in defeating the Spanish fleet in
the engagement that is soon to come the
financial world will look upon the war as
settled. and operations will commence or
be renewed without any reference to In
ternational complications. For this reason
/ believe nothing definite will be done In
Baltimore and Ohio matters until the re-
suit of SIMPSONS fight is known.
Il will say this. however: I believe the
various interests which hope for a reorgan-
iZation are closer together than they have
ever been before and that they under
stand better than ever before what they
will have to give and take In this matter.
l do not know who will be the under
writers of the reorganization plans. 1t is
strongly intimated in some quarters that
it will be Speyer & Co. Perhaps it WILL
Assessment of Stock.
THE schsme for reorganization Will I'M
doubtedly be an assessment Of the stock
1 believe that the assessment will be 20 per
cent on the common stock. The stock
holders will. however, In my judgment, re-
ceive in return for this a certificate Of
value Of some sort, which will approx
mate half of the assessment.
I'm other words. think that in return
for the 20 per cent assessment the stock
holders will receive something. 1 don't
know yet what shape it will take, but
that which is decided upon will, 1t is ex-
pected, have an immediate market value
of 10 per cent of the par value of the
stock This will make the net assessment
10 per cent.
There will not be any great hardship
in this assessment. 1t will not ruin any
one. For instance. the net amount of the
assessment of the Johns Hopkins Unvers-
ity, whose holdings of common stock
amount to about 1900 shares, would De
only about $4,000 The matter of the pre-
ferred stock is still, of course before the
courts for settlement
II have no idea who will represent the
Baltimore stockholders interest in the re-
organization plans. I expect to be con-
suited, of course, by the reorganizers, but
will not represent the Baltimore stock
holders except as an officer of the COM
pany and of the court, looking out for all