Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-06-23
B. & @. REORGANIZATION.
The Plan Prepared by the Nsw York Com
mittee Made Public.

The Plan Prepared by the Nsw York Com
mittee Made Public.
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,
Speyer & Co. and Kuhn, Loeb & Co., Of
New York.
The advisory committee who coop
Grated 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 & Co.; Vermilye & Co.,
and w. A. Reed, of Nermilye & Co.
A syndicate has been formed COM
posed Of Speyer Bros, London, Speyer
& Co., Kuhn, Loeb & Co., Hallgarten &
Co., Vermilye & Co.. and August Bel
mont & Co., of New York, to provide
the requisite cash to carry out the plan.
The scheme provides for the issuance
of the following new securities: Prior
lein 81 per cent gold bonds, $fo,0Co,-
900; first mortgage 4 per cent gold
bonds, $50, 100000; 4 per cent non-cu-
mulative preferred stock, $4,000. oOO;
common stock $35, 000,0 GOO.
The prior lien bonds are secured by
a mortgage lein upon the lines OF road
between Baltimore and the Ohio river,
at Wheeling Pittsburg and Baltimore,
and also upon the companys equip
ment Of all lines, valued at $22,OOO, wv.
B. & O. reorganization NO. 2-lhe
first mortgage bonds are lien on the
Philadelphia division, Baltimore Bet
railroad when exchanged as provld-
ed), Akron & Chicago Junction rail-
road, B. & O., and Chicago railroad
and Fairmont, Morgantown q Pltts-
burg railroad, ard also on the terminal
properties covered by the $S,500,00O
terminal mortgage of 1894, and lien
subject to the prior lien mortgage upon
the lines and equipment covered there
by.
The new securities will be appro-
priated approximately as follows: On
the prior lien bonds there will be IS
sued in partial exchange for existing
bonds $6O,O73,00O; purchased by the
syndicate to provide in part for cash
requirements, $S,000,00O, and the re-
mainder, 1927 900, are left in the treas
ury of the company for contingencies.
On the first mortgage bonds there
will be issued in partial exchange for
trusting bonds, $36,3S4,000 for pur-
chases by the syndicate; for cash re-
quirement, $12, 450, GOO; held by the new
company for contingencies, ETC., ST.
165 900; held by the new company as
a reserve, 100000, and there will be
held for the purpose of retiring Balti-
more Belt railroad bonds, which are
reduced to per cent. interest, the ac-
QUESTION of which the plan contem-
plates, s6.OO0,OOO.
The s4O,O0O,OOO of preferred stock is
appropriated as follows:
For reorganization purposes, $17,21S,-
700; purchased by syndicate to provide
cash requirements, SIG, $50 goo; for adj
justment with outstanding bonds and
stockholders and contingencies. ETC.,
81 ,331 800, and there is reserve for the
treasury of the new company of S. ,000,-
Coo
The $35,0OO,0o0 of the common stock
will be applied as follows: For reor-
ganization purposes, $31, IT'S, 000 for ad-
justment of outstanding securities, con-
tingencies, ETC., So, 1922, 900, with surplus
to the new company
The fixed charges of the new com
pany, including all rentals, interests,
taxes, terminals, etc., will be approx
imately S6,250,C00, as against a fixed
charge for the fiscal year ending June
80, 1897 of $7,771 COO. making de-
crease in the annual fixed charges of
substantially S1,500,000
1t is estimated that net earnings for
the fiscal year ending June 80, 1888,
(eight months of which are audited,
with four months estimated,) will
amount to s7,975,7S5. Allowing for a
reduction in the miscellaneous income
of S251 ,0G0 on account of the sale of
some of the securities and the, cancel.
lation of the sinking fund investments,
1t will be seen that the net earnings for
the present fiscal year are about 81 800,
0C0 in excess Of the fixed charges.
All the receivers Indebtedness and
entire floating debt of the company rep
resented by promissory notes and nego-
table obligations and all the car trust
obligations are paid in full
In reference to the leased lines. the
plan provides that the security holders
shall confer with the advisory committee
and provision will then be made for each
leased line separately, and the same
method will be adopted as to the guar
anteed lines. The leased lines thus pro-
vided for are: Central Ohio railroad
Sandusky, Mansfield & Newark; Newark
Somerset &, Straitsville: Columbus & Gin
cinnati Midland: Schuylkill and East de.
Winchester & Potomac, and Winchester &
Strasburg.
In addition to the recommendation of
the plan BY the banking house compos-
ing the reorganization managers, the plan
is strongly approved by the following
houses: J. p Morgan & Co. Brown Bros
& Co. Barring Morgan & Co. Vermilye
& Co., of New York: ]. S Morgan & Co,
Brown, Shipley & Co. Barring Bros of
London.
The scheme provides for foreclosure of
the mortgage on the main line and it will
probably take some six months to carry
Cr,t al no a OF Of he ~