Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-10-03
PROPOSE A SETTLEMENT
Affairs Of Central Ohio Railway Stockholders
Under Consideration.
%. aud q. REORGANIZATION Committee
SUBMITS Plan for Adjustment
of Differences.


minority stockholders Of the Central Ohio
RafI~t,at Company al ii the receivers of the
baltimore and ohio Railroad Company for
the recovery of d large sum of money,
stnlC untlug. sls claimed, TO nearly SlNn.HG,
with the prospect that more suits are like
ly To he iilei in the near future by the for
ner against the receivers or the Speyer
syndicate. the Il. and O. reorganization
cCrmittcc has undertaken to SETTLE the
pending and prospective difficulties. With
this purpose in view the reorganization
managers and the advisory committee of
the Baltimore and Ohio Railroad Company
have devised plan to re0rganize the Cen
trial Ohio and it's brancnes--the 5andusky
Mansfield and Newark; the Newark, Som
erset and Straitsville and the Pittsburg
Junction railroad companies.
The plan IS TO make all of the properties
Included in the Reorganization a part of
tn Baltimore and Ohio Railroad Company
and TO issue bonds of the Baltimore and
Ohio Railroad Company as reorganized, Sc
cured by q first mortgage on the properties
covered by the respective mortgages of the
sew raj companies OF predfcated upon the
Ircss nj bonds of the old companies if their
mortgage bonds are kept in existence. 1t is
also proposed to utilize $5sss.SJo of the new
Baltimore and Ohio tompany's preferred
EtCCk for the purpose.
The Proposition.
II is Il part of this plan also that
The baltimore and Ohio reorganization
nsragers recommend TO the Baltimore
End Ohio Railroad Company (as reor
ganized) that it shall acquire the prop
trties of the companies named above or the
recUrities representing the same, and shall
Issue il exchange therefor. as providing
new capital for the aHlarseme Mt, better
ntut or eNI.Hsiou Of those properties. its
ry 1 "a :. Al &,
RU!lTu,.d Company taS reOrgaDIzedJ, Pitts
burg Junction and Middle Division first
r.grtgaGc three tGGd ouz-half per cent gold
bonds. and also the surplus Of its new
preferred stock TRUST certificates. The
TgnJ viii bc reserved to reUrg0nize or con-
souGate the lines included in the Central
p.iy I'll broad system into new corpora
GD., il that shall be deemed eXpedient.
Tie Baltimore ard Ohio Railroad Com
pauy tus reOrEdnizedj is therefore to au-
fEDriZe new securities. comprising $1J.NtJ,-
lVr E4IJ,unIe and Ohio Railroad Company
las TrsrEanIZSdyt PftSbUTS junction and
Middle Division first mortgage Jig per cent
gold bonds. due 1H2I, and 10 bear i2terest
from November 1 next. The right viii be
reserved to issue $J,u0|UoO additional of
HES bonds at the rate of not exceeding
y -'E",'"J per year for the first two years
Ind thereafter at the rate of not exceeding
f@t'G'3 per year for the same PurpoSe-bet-
term mt Or extension of the properties
either as d direct lien or by pledge of the
Securities representing such properties, or
for additions thereto
Operates ais First Lien.
The NOR Eage securing these bonds IS ex-
Tected to no ultimately first lien upon the
rail! ads Of the Central Ohio system and
PittShu-E Junction Railroad Company
allow NAMED. or the above mentioned Sc
curitics representing the same. In case it
snail bee found ine xyeditnt 70 acquire any
OF said railroads.. tnc contamination of the
plan vi. not necessarily for that reason
he affected. but The bonds and stocks rep
-TeseE--ns the railroads. respectively. may
he pledge! under the mortgage in lieu of
the railroads thcuf=t Ives
The new bonds are to lee applied as fol-
lows. In partial exchange for existing
bonds $H.-a9. UIp: sold 10 syndicate for cash
requirements. $4UnVh1: balance for con-
irlyHrla-. etc. $ia1 $50. total. $l5.rn(ysl
The plan has not, however. met with uni
versa! approval on the part Of those most
directly interested. and & number Of persons
who hold the securities Of the Central Ohio
nave expressed dissatisfaction with the plan
as announced, and the talk was that bet
Ter terms would be demanded.
An Important Chain.
The Central Ohio and its associate roads
form d very important chain of subsidiary
lines between Pittsburg and Wheeling and
Chicago. and they have for a long time
sheeh operated by the B. and o. as d por-
lion Of its system The length of roads in
Tor REORGANIZATION is about 3S3 miles
There are Ave distinct lines involved
the Central Ohio itself. the sandusky,
Mansfield and Newark the Colurn-
bus. and Cincinnati Midland the New.
ark. Somerset and StraitsvilIe and the
,Pittsburg Junction These are the interlac-
1ng lines and branches which cover the i'm
,portant territory stretching westward from
lFlttsburg TO Sandusky and north of the
OHIO river TO the lakes. Among the lines
or specia! Importance. though short of mile
II r-r7i gI,
meets Pit1sturg with Allegheny.
Inc sefni-annual interest due October /
upon bonds Of the extended loan of 1853 of
the Baltimore & Ohio Railroad COMPANY
were promptly paid at the of1 c Of the treas
lrer III Baltimore This loan amounts 10
Sl6Sl.'s@, but il is understood a large ma
Jointly OF the issue has been deposited with
the syndicate. In the terms of the reor-
ganizaLiOn the payment of maturing con-
ponS Is provided for on bonds that have
heen deposited. Coupons OF the Baltimore
anu OHIO equipment trust. series A due Oc-
Toner /. We're paid at the Office of the B. and
C-s representatives in Philadelphia OF
i