Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1899-05-27
The New b. & o.

The two new Baltimore and Ohio rail-
road mortgages provided for the reorgan-
ization plan, under which an aggregate Of
S14o,oooooo bonds may be issued. were
left for record in the record Office of the
Supreme Court last week. The mort
cages are known. respectfully. as the
prior lien mortgage and the first mort
gage.
Under the prior lien mortgage the trus-
tee is the Mercantile Trust Company Of
New York. The total authorized issue of
bonds is S75.ooo.ooo These bonds are
to bear 81 per cent interest in gold from
July 1, $685. and are to be payable in gold
in 1923. OF the total authorized issue
S.. COO, 900 is not to be used until after
January l. 1902, and then not exceeding
81 900 900 year, for the enlargement,
betterment or extension of the properties
covered. The present issue is limited to
SIC. 900. 900. of which 5000 900 is to be
used toward the retirement of existing
bonds. $4,000. 900 for purchase by the re-
organization syndicate and S9,6.oIo for
contingencies and surplus to go to the
new company. This mortgage is a first
lien on the main line and branches, the
Parkersburg branch and Pittsburg division
and also all the equipment, now valued at
| about Sac, 900. 900.
The trustees under the FIRST mortgage
are the United States Trust Company Of
New York and John A. Stewart This
mortgage provides for per cent. gold
bonds, due July +, 1913, but subject to
call. in whole or in part, after July |,
i af 4.
terest from July 1, 1898. and are secured
by first lien on the Philadelphia. Chr
cago and Akron Divisions, and branches,
the Fairmont, Morgantown and Pitts.
burg Railroad, the Baltimore and Ohio
Terminal property and the Baltimore
Belt Railroad when ACCUSED by the new
company. There will also be a lien upon
the main line and other property subject
to the prior lien mortgage.
The total issue under the first mort
gage is in no case to exceed sos ooo,-
900. OF this amount SIS 100000 is to be
used to retire the prior lien bonds in
| 1925; S27 100000 for enlargement. better
ment or extension OF the properties cov-
cred by the two new mortgages, not ex-
| ceeding 81 500 900 a year for the first
iOul ySdiS anu llot SAICSuHlS Ci,OSO,CoO
year thereafter $1,000, 900 as a reserve
for the Few company and 10000 900 to
retire Baltimore Belt Line first mortgage
| 6ves.
This leaves balance of $4,000, 900, to
which the present issue is limited. Of
this amount $50, 3S4555is to be used to-
ward the retirement of existing bonds,
! SI2,4 900 for purchase by the reorgani-
cation syndicate and $I,I65,465 for con-
tingencies, and surplus to go to the new
company.
Internal revenue tax stamps valued at
| SOC, 900 were affixed to the two mortgages.
The first lien mortgage required $50
stamps Of $50 each, being for the full issue
of 81 900, 900. There were 63o stamps
of $50 each on the first mortgage for the
proportion of the bonds under that mort
gage that will be issued in the near future.
If the first mortgage had also been stamp
ed to cover the total authorized issue of
| SI65 ,ooo, 900 tax stamps valued at
$4,000 would have been required foI
the two mortgages.
| Some Of the new securities of the reorI
ganized company, issued under these
mortgages, were received in Baltimore
Yesterday. For weeks the reorganization
managers have been busy preparing the
securities for issues and it will be some
time before they are all distributed ID
| the owners.