New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-12-19
TO THE SECURITY HOLDERS
OF THE
BALTIMORE e. OH.J SOUTHWESTERN
RAILWAY co.

The Baltimore and Ohio Railroad. the guarantor A.
certain Of your securities having become nsolv.nt ana
IT'S property being In the possession u Receivers and s
reorganization having been declared operative beam.
necessary for your Board In order properly pro.c,
the securities OF Company 10 enter into negotiations
with the Reorganization Managers Of the Bal'mor. ana
Ohio Railroad Company 70 arrange the future relation,
e. your Company with that reorganized property
months the Board has been In negotiation
with them consultation with the security holder,
for the purpose u securing exchange u Com
pany's securities for the securities 4 the Rsorganlr.,
Baltimore and Ohio Railroad Company upon salts
factory basis. and additional capital 10
place the Company In position 20 successfiy carry On
It's business and place {, on sound financial basis
Since the organization Of your Company vigorous com
petition then unexpected has developed territory
occupies greatly reducing the ior transportation
received by your Company
The effect Of such reduction in rates has been rnost
serious and shows tho pressing need = readustm.nt
Of the Companys securities and nxed charges ana The
securing Of additional capital make needed improve
upon the property. Had 'te rates pevai.d
existed the time ~ the organzati0n OF
the Company there would have been surplus fired
charges OF 50 273 G2G Instead o, deficit - to9j7
When your Company organized. . vas believed
ample provision had been made capital 70
reduce f.. grades seclre increased ami heavier
power equipment rails and % bring rho property
the highest STANDARD condition such necessary capital
was be secured through he sale = the . mpanys
securities. guaranteed hy The Baltimore and Ohio Rail
road Company. Immediately upon the organization ~
the Company certain q such improvements were entered
dpon: before they ,ouii te completed % the sr,sn,
whereby substantial savings IN operation could DO eec'sd
the prevailing o~ rates. the insolvency and r..
cevershp Of the Baltimore and ono Railroad Company
prevented tho sale ~ securities and thereby arrested
the completion = the contemplated improvements Thes.
improvements become imperative and cannot longer
DELAYED
he amour, % capi,ol needed % 10 expended 10
the reduction u the grades purchase of additional equip
mear and other improvements In order - bring he
properly the efficiency requisite or advantageous and
profitable operation. IN conjunction with the reorganir'i
Baltimore and Ohio Railroad. Is estimated ., about
s. o0o the greater proportion u which should be
pended the calendar year ana inc remainder
soon as possible thcreafie'
The Re1r2ari zati0n Managers have agreed -
dertake the contamination q the plan herewith submitted
which provides for tie issue BY the Baltimore and oaio
Railroad Company Re1rganzei) - IFS securities Ia
exchange yours u,t and equitable basis. and he
securing additional capital requir"i 20 pa; your
property position successfully carry m rs ousine"
The syndicate mentioned in the plan VIII purchase at
heir face vaiu~ al coupons due the FIRST day o.
January that paid from such b'ndnoldes a.
shall depos, thr securities. II Is hoped thar further
financial embarrassment with s inevitable consequences
depreciation in the value q your securities can
be avoided by pronp, acceptance of the plan.
Your Board. therefore. urgently recommends rs prompt
acceptance.
Dated New-York December 18Th. 1895.
EDWARD r. BACON.
Preslten.
WILLIAM T.. Bull.
EDGAR T. WELLES
JOHN Il DAVIS.
New York.
JAMES SLOAN Jr
Baltimore
FRANCIS PAvY.
London
Committee = Beard