Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-02-20
DISCHARGED OF RECEIVERS
Probable Early Contamination of B. and 0.
Reorganization.
Views of n Member of the Committee
Having Charge of BaIti-
more Interests.

1t is the belief of the majority of those
most vitality interested that there will be
no unnecessary further delay in the formal
reorganization of the Baltimore and Ohio
Railroad Company: that the receivers will
be discharged by the court in the course of
a few weeks, and the great property turn
ed over to it's new owners. Concerning
this member of the committee appointed
to look out for the interests of the Balti-
more holders of the securities of the COM
pany said to a Star reporter:
THE reorganization managers of the Bal
timore and Ohio company are progressing
rapidly to final settlement of the affairs
of the company, and while it is probable
That several months will yet elapse before
the many interests shall have been settled
with and the new securities issued, it must
be realized that almost insurmountable OBJ
stacleS have been overcome and that the
managers have accomplished results very
favorable to the company without disturb
ing complications. The proposed settle
ment with the holders of the Staten Island
second mortgage 5s is in my opinion very
favorable
This plan, as explained in a circular to
the bondhoders, is as follows: The Balti-
more ana OHIO reorganization managers
offer to procure an agreement from the
Baltimore and Ohio Railroad Company as
reorgan1zed to purchase your bonds at par
and interest in cash, in five years, and in
the meantime to guarantee interest there
on at per cent per annum, which Is to be
accepted by the holders in full of such in
terest. In consideration thereof the Ba1ti-
more and Ohio Railroad Company, as re-
organized, is to have the right to purchase
your bonds at any time within such five
years at par and interest in cash, upon
thirty days notice. The Baltimore and
Ohio Railroad Company as reorganized Is
n Il.fh ar hat
five years a plan for the reorganization of
the Staten Island Rapid Transit Railroad
Company shall be issued by it, or with its
approval, it will secure for you the option
for two weeks after such plan is publicly
announced to take the new securities there
by provided, in lieu of the cash price of par
and interest, for your bonds as above
stated.
Issue of New Bonds.
I'm case, however, the mortgage secur-
ing your bonds should be foreclosed new
per cent bonds to the same amount shall
be created, to be secured by mortgage hav-
ing the same lien upon the same property,
and the agreement of the Baltimore and
Ohio Railroad Company as reorganized
shall apply equally to all such bonds. The
agreement will not become effective unless
all the bonds, or such lesser amount
the Baltimore and Ohio reorganization
managers shall approve, assent thereto and
Upon the agreement thus becoming opera
tive, the overdue coupons will be paid in
cash.
"JTnder your bondholders agreement of
July s. 1885, it is provided that if at any
time after default i'm interest there should
arise opportunity considered favorable
by US for arrangement and settle nent of
the claims upon the deposited bonds or
coupons, then, with the assent of the hold
ers of our certificates of deposit represent
ing 10 per cent in amount of the deposited
bonds. we may make such arrangement
and settlement.
West Virginia and Pittsburg Ronds.
1.-The proposed settlement with the hold
ars of the West Virginia and Pittsburg five
per cent bonds is as follows: A new cor
poration is to be formed which will Issue
bonds similar to those now existing, ex-
cept that they will bear interest at the
rate of four per, cent instead of five per
cent. 1t is proposed to lease the property
to the reorganzed Baltimore and Ohio
Railroad Company at a rental sufficient
to pay four per cent interest on the bonds.
The overdue interest on the existing bonds,
together with the interest thereon at the
rate of five per cent per annum up to date
of settlement, is to be paid in full. The
scheme contains the important proViSo that
the Baltimore and Ohio shall have the OPP
ton for five years from April 1 next to
purchase the bonds at par. with accrued
interest, upon giving sixty days notice of
its intention to do so. If the option is
not exercised the Baltimore and Ohio will
guarantee the interest and principal of
the new bonds. 1t is the opinion of those
who have heretofore baen best posted re-
gardng Baltimore and Ohio affairs that all
of the holders of 3. and o. securities have
Jared better than in any reorganization
settlement which they have ever heard of.
Even the common stockholders have re-
covered very much more of their losses
than any one ever expected and for the
assessments exacted preferred stock was
hiph CT at STfal ,,r~iaa
to cut down the assessment to a very
low figure. The whole reorganization has,
it is conceded, been skilfully aged and
is q great success