The Washington weekly post., 1899-05-16
REORGANIZATION OF B. & 0.
Orders and DEGREES for Final Settle.
ment of Affairs Of Receivers.
judges Con and Morris Authorize Issue OF
Full-paid and Non-assessable Stocks
and Bonds for Purpose of
Retiring Old Issues

Baltimore May 15-Judges Goff and
Morris, sitting in the United States Circuit
Court, signed an order and decree to-day
authorizing the Baltimore and Ohio Rail-
road Company to issue full paid and non-
| ass essable stocks and bonds for the pur-
pose of retiring the old issues, as pro-
| vided for in the plan of agreement de-
cided upon by the reorganization man
ayers.
The securities authorized are:
Seventy million dollars par value prior
| lien mortgage 3 1-2 per cent. gold bonds.
Fifty million dollars par value first
| mortgage fifty-year per cent. gold bonds.
Fifteen million dollars par value Pitts
burg Junction and Middle Division first
| mortgage IL per cent. gold bonds
Forty million dollars par value South
western Division first mortgage 3 IL per
cent. gold bonds.
Sixty million dollars par value per
cent. non-eumulative full-paid and non
assessable preferred stock
Twenty million dollars par value addi-
tional full-paid and worcestershire COM
mon stock.
The order is long printed document,
containing full statement of the matters
embraced in the petition of which the
hearing was had, as we'll as the order
ant decree. 1t authorized the company TO
accept the offer of Frederick p. Voor-
hees, of New York, to effect settlement
of the claims of the Baltimore and Ohio
Southwestern, Central Ohio, and Pitts
burg Junction Railroads against the Balti-
more and Ohio in consideration of the
| issuance to him of certain new securities.
One of the effects of such settlement will
tNr 70 fhn ya1 fslao an
systems from Ss,146727, 10 S6, %, 351, thereby
saving annually sl.S9f.S76 for the company.
The plan by which the outstanding in
debtedness may be Cancelled is explained
in the order. Messrs. A. S. Dunham and
Arthur l.. Spamer. the special masters in
the case, are to give notice 10 all security
holders involved 10 appear within thirty
days, interest on the securities ending at
that time. The bonds are to be given to
the special masters, who shall cancel
them and deposit them in a safe deposit
vault. When the full 80 per cent have
been Cancelled the company is to deposit
cash in the Farmers and Merchants Ma
tional Bank of Baltimore equal to the
amount due upon the uncanceled bonds
and overdue coupons or to file bond
for the faithful payment of the
amount due. The trustees under
the lawful compensation for their SER
vice, shall file With the court q record of
the satisfaction of their mortgages. The
distribution of the new securities shall
then begin. The special masters are also
authorized to cancel such of the receivers
certificates as the company desires 10 re-
tire upon the payment of the necessary
money.
Messrs. Barring Brothers & Co. and j. s.
Morgan * Co, trustees of the sinking
funds under the mortgages of 1872, 1874
and 1871, are directed upon the presenta-
ton of a certificate from the court that
the bonds secured by these mortgages
have been Cancelled, to turn over to the
company all the various securities, prop
critics, and moneys comprised in said
sinking funds.
After the payment of all claims of cred
itors and all counsel fees, allowances, &c,
of the various trustees under the various
mortgages and sinking funds, the Baltl-
more and Ohio Railroad Company has
leave, upon ten days notice TO the re-
ceivers, TO apply for a proper order pro-
viding for the redeiiyery TO il OF its prop
critics and franchises, for the settlement
of the affairs of the receivers, and for
their final discharge, but the court re-
serves TO itself for future adjudication all
questions regarding the final discharge of
the receivers.